1. On March 19, 2022, ABC Company purchased merchandise with a list price of P1,000,000. The supplier allowed trade discounts of 20% and 10%. Credit terms were 2/10, 1/15, n/30. The account is still unpaid as of March 31, 2022. Required: a. Assuming the company uses the gross method of recording purchases, prepare the adjusting entry on March 31, 2022. b. Assuming the company uses the net method of recording purchases, prepared the adjusting entry on March 31, 2022. 2. On December 31, 2022, ABC Corp. has accounts payable of P1,500,000 before possible adjustment for the following: a. Goods in transit from a vendor to ABC Corp. on December 31, 2022 with an invoice cost of P75,000 purchased FOB Shipping point was not yet recorded. The goods were received in January 2023. b. Goods in transit from a vendor to ABC Corp. on December 31, 2022 with an invoice cost of P15,000 purchased FOB Destination was not yet recorded. The goods were received in January 2023. C. Goods shipped FOB Shipping point from a vendor to ABC Corp. was lost in transit. The invoice cost of P30,000 was not yet recorded. d. Goods shipped FOB Destination from a vendor to ABC Corp. was lost in transit. The invoice cost of P15,000 was not yet recorded e. Goods shipped FOB Shipping point from a vendor to ABC Corp. on December 31, 2022 amounting to P12,000 was recorded as purchase. The goods were received in January 2023. f . Goods with invoice cost of P22,500 was recorded. It was found out that the goods were shipped from a vendor under FOB Destination. These goods were actually received by ABC Corp. on January 3, 2023. What amount should ABC Corp. report as trade accounts payable on December 31, 2022? (Show your computation. 3 . On December 31, 2022, XYZ Company has accounts payable of P1,000,000 before adjustments for the following: a. Checks drawn and recorded but not yet delivered to the payees, P24,000. b. Postdated checks drawn, recorded, and delivered to the payees, P10,000. C . Goods shipped FOB Destination, freight collect were received on December 30, 2022. The invoice cost was recorded as part of the accounts payable on the date of receipt of the goods and the related freight of P10,000 was charged to an expense account. d. Goods shipped FOB Shipping point, freight prepaid by the vendor on December 28, 2022 was recorded at invoice cost at shipment date. The invoice cost is P28,000 while the freight cost is P6,000. What amount should XYZ Company report as trade accounts payable on December 31, 2022? (show your computation) 4. On January 1, 2022, LMN Company purchased an equipment by issuing a 9% interest-bearing note for P24,000,000 due on December 31, 2022. a. How much is the interest expense for the year 2022? b. How much is the total amount paid to settle the note on December 31, 2022? 5. On October 1, 2021, RST Co. purchased equipment by issuing a 9% promissory note with face value of P1,500,000. The note and accrued interest are payable in equal amounts of P400,000 every September 30 starting September 30, 2022. Question 1 - What amount should be reported as interest payable on December 31, 2022? Question 2 - How much is the interest expense for the year 2023?6. On April 1, 2022, OPQ Company purchased equipment by issuing a four-year noninterest bearing note with face amount of P1, 600,000. The note matures on March 31, 2026. There was no equivalent cash price for the equipment and the note had no ready market. The prevailing interest rate for a note of this type is 9%. Round off present value factors to four decimal places. a. At what amount should the note be recorded on January 1, 2022? b . Prepare the journal entry on April 1, 2022. C. Prepare the amortization schedule d. What is the carrying value of the note on December 31, 2022? e. How much is the interest expense to be reported for 2023? F . What is the carrying value of the note on December 31, 2023? g . How much is the interest expense to be reported for 2024? 7. On January 1, 2022, EFG Company purchased equipment by issuing a four year, noninterest bearing note with face amount of P1,600,000. The note matures on December 31, 2025. There was no equivalent cash price for the equipment and the note had no ready market. The prevailing interest rate for a note of this type is 9%. Round off present value factors to four decimal places. 3. At what amount should the note be recorded on January 1, 2022? b. How much is the interest expense to be reported for 2022? c. How much is the interest expense to be reported for 2023? d. How much is the interest expense to be reported for 2024? e. How much is the interest expense to be reported for 2025? f. What is the carrying value of the note on December 31, 2022? g. What is the carrying value of the note on December 31, 2023? h. What is the carrying value of the note on December 31, 2024? 8. On May 1, 2022, QRS Corp. issued a 3-year, 18% bonds with face amount of P30,000,000. Interest is payable annually every April 30, of each year starting April 30, 2023. The market rate of interest on May 1, 2022 is 12%% Round off present value factors to four decimal places. a. At what amount shall the bonds be initially recognized on May 1, 2022? b. How much is the interest expense for the year 2022? . At what amount shall the bonds be presented on December 31, 2022? d. How much is the interest expense for the year 2023? e. At what amount shall the bonds be presented on December 31, 2023? end