1. XYZ Company has provided the following account balances. Help the entity create the entity's Statement of Comprehensive

Income:

Commissions revenue 40,000

Depreciation expense 10,000

Gross sales 2,000,000

Inventory, December 31, 2018 400,000

Inventory, December 31, 2019 200,000

Purchase discounts 70,000

Purchase returns and allowances 30,000

Purchases 800,000

Rent expense 50,000

Salaries expense 200,000

Sales discount 100,000

Sales returns and allowances 20,000

Utilities expense 40,000

What is the Net sales,

Cost of goods sold

Total revenue earned under functional approach,

Operating expenses, and Net income.

2. The net income of Maria Company for the years 2001, 2002, and 2003 is P400,000, P300,000, and P200,000, respectively. The entity has then detected the following inventory errors:

2001 ending inventory is overstated by

P18,000.

2002 beginning inventory is overstated by

P18,000 and 2002 ending inventory is

understated by P10,000.

2003 ending inventory was P20,000 short of the actual cost that should be recorded.

How much is the correct net income for 2017?

3. Mamma company sold merchandise to a customer priced at P49,000 vat-inclusive, in which the cost of the merchandise is P32,000vat-exclusive. Under periodic and perpetual inventory system, how much should be debited as cost of goods sold?

4. An entity has an unadjusted inventory balance of P100,000 on December 31, 2019. It was determined that the company has purchased merchandise FOB Destination on December 28, 2000 and is currently in transit, amounting to P50,000. The inventory arrived at the company premises at January 4, 2001. How much is the correct inventory balance at December 31, 2000?

5. Lillian Company has a machinery with a cost of P8,000,000 and accumulated depreciation of P2,000,000. This asset was depreciated for 5 years until revaluation. The replacement cost of the machinery is

P12,000,000. How much is the sound value of the asset? how much should be credited as revaluation surplus?

6. Avenue Company has equipment costing P600,000 with residual value of P65,000 and life of 7 years which was acquired January 1, 2010. At the end of 2012, changes in estimates had been known. Compute for the depreciation expense for December

31, 2013 assuming asset life changed to 5 years and assuming the entity determined that SYD method is more applicable for the equipment with no change in useful life.