1.ABC Co. showed the following balances on December 31, 2018:

Accounts Receivable P2,000,000

Allowance for doubtful accounts (60,000)

The following transactions transpired for ABC Company during the year 2016:

a. On May 1, received a P300,000, six-month, 12% interest bearing note from Ed, a Customer in settlement of an account.

b. On June 30, factored P400,000 of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored.

C. On August 1, ABC discounted the Ed Note at the bank at 15%.

d. On November 1, Ed defaulted on the P300,000 note. ABC company paid the bank the total amount due plus a P12,000 protest fee and other bank charges.

e. On December 31, ABC Company assigned P600,000 of its accounts receivable to a bank under a non-notification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan.

f. On December 31, ABC collected from Ed in full including interest on total amount due at 12% since default date.

g. On December 31, it is estimated that 5% of the outstanding accounts receivable may prove uncollectible.

The net realizable value of the accounts receivable is

A.P1,520,000

B.P1,235,000

C.P1,330,000

D.Answer not given

E.P1,900,000

2.On January 1, 20x1, Entity A obtained a 12% P6,000,000 loan, specifically to finance the construction of a building. The process of the loan was temporarily invested and earned interest income of P180,000. The construction was completed on December 31, 20x1. How much borrowing costs are capitalized to the cost of the constructed building?

A.P480,000

B.P0

C.Answer not given

D.P720,000

E.P540,000

3.On December 31, 2017, the "Receivables" account of ABC Company shows 1,950,000. Details of the subsidiary ledger show the following:

Trade accounts receivable775,000

Trade notes receivable100,000

Trade installment receivable,

normally due one to two years300,000

Customer's accounts reporting

credit balances arising from sales returns30,000

Advance payments for purchase of merchandise150,000

Customer's accounts reporting

credit balances arising from advance payments20,000

Cash advance to subsidiary400,000

Claims from insurance company15,000

Subscription receivable due in 60 days300,000

Accrued interest receivable10,000

How much must be presented as "trade and other receivables" under current assets?

A.Answer not given

B.1,290,000

C.1,650,000

D.1,125,000

E.725,000

4.Information on ABC Co. is shown below:

30-Jul Aug, 31

Book balance 132,200 180,0000

Book debits 60,000

Book credits ?

Bank balance 100,600 169,000

Bank debits 20,600

Bank credits ?

Notes collected by bank 10,000 35,000

Debit memos 7,800 8,900

Understatement of book receipts - 2,800

Deposit in transit 45,000 43,800

Outstanding checks 11,200 3,900

How much is the adjusted balance of Cash in August?

A.P134,000

B.P132,000

C.Answer not given

D.P208,900

E.P136,200

5.ABC Company owns an office building that is being leased out to various companies. ABC is required to provide security and maintenance services under the lease contracts. The building was acquired on January 1, 2014 at a cost of 6,000,000. The accumulated depreciation at the beginning of the year is 480,000. How much would be shown as investment property in ABC's 2016 Financial Statements?

A.6,000,000

B.5,520,000

C.Answer not given

D.0

E.5,280,000