Problem 1

On October 1, 2016, Mr. A opened A Co., a perfume shop with an initial investment
of 340,000. A Co. borrowed a total of 160,000 to finance its initial operation. In Early
November, Mr. A issued a personal Check for 50,000 in payment for one of scents
Companys loan. In mid-December, Mr. A took merchandise costing 40,000 which
were marked to sell for 55,000 for personal use. Sales & other income in 2016
amounted to 520,000 while total expenses totaled 225,000. A Co.s liabilities
decrease to 120,000. The assets of A Co. at December 31, 2016 is?
Problem 2
Beginning Inventory 5,000,000. Accounts Payable Beginning 2,300,000. Payments
made to suppliers for purchases made during the year, P7,500,000. Purchase
returns amounted to 90,000. Freight-in 80,000. Ending Inventory (physical count) P
4,200,000. Accounts Payable Ending, P8,400,000.
What is the total amount of purchases made during the year?
What is the total amount of Cost of goods sold?
Problem 3
Prepaid rent beginning of the year, P500,000. Rent paid during the year, P100,000.
Prepaid rent end of the year, P280,000. Unearned Rent Beginning the year,
P140,000. Unearned Rent at year end, P90,000. Total rent expense during the year
is.
Problem 4
On June 30, 2016, ABC Co. decided to sell its Building being used in operation for
the amount of P3,500,000. The carrying amount of the building as of June 2016 is
P4,300,000. On December 31, 2016, the fair value of the asset is P4,500,000.
What is the amount of investment property to be presented in the Non- Current
section of the Balance sheet?
What is the amount of gain to be recognize in the income statement of ABC Co.?