1.Neptuna Company operated in hyperinflationary economy and provided the following information on December 31, 2019:

Property, plant and equipment 900,000

Inventory 2,700,000

Cash 350,000

Share Capital issued on December 31,2015 400,000

Noncurrent liabilities 500,000

Current liabilities 700,000

Retained earnings 2,350,000

The index number had moved on December 31 of each year: 2015 - 100, 2016 - 130, 2017 -150, 2018 - 240 and 2019 - 300. The property, plant and equipment were purchased om December 31, 2017. The noncurrent liabilities were loans raised on December 31, 2018. What is the balance of retained earnings on December 31, 2019 after adjusting for hyperinflation?

a. 2,350,000

b. 2,750,000

c.3,550,000

d. 2,625,000

2.The following liabilities and equity relate to Jelly Company operating in a hyperinflationary economy:

Before restatement After restatement

Liabilities 2,000,000 2,500,000

Share Capital 5,000,000 8,500,000

Revaluation Surplus 1,000,000 ?

Retained Earnings 1,500,000 ?

Total liabilities and equity 9,500,000 16,000,000

What amount should be reported as revaluation surplus and retained earnings, respectively after restatement?

a.0 and 5,000,000

b.5,000,000 and 0

c.1,000,000 and 4,000,000

d.3,500,000 and 1,500,000

3.Gumamela Company reported the following liabilities in the statement of financial position:

Accounts payable 1,000,000

Accrued expenses 500,000

Bonds payable 3,000,000

Finance lease liability 4,000,000

Unearned revenue 300,000

Advances from customers 1,200,000

Estimated warranty liability 200,000

Deferred tax liability 400,000

In preparing financial statements in a hyperinflationary economy, what total amount should be classified as monetary liabilities?

a. 4,500,000

b. 8.500,000

c.9,700,000

d. 8,900,000

4.Pandecoco Company reported the following assets in the statement of financial position:

Cash in bank 2,000,000

Accounts receivable 4,000,000

Inventory 1,500,000

Financial asset at fair value 500,000

Patent 1,000,000

Advances to employees 200,000

Advances to suppliers 400,000

Prepaid expenses 100,000

In preparing financial statements in a hyperinflationary economy, what total amount should be classified as monetary assets?

a. 6,200,000

b. 6,600,000

c.6,700,000

d. 7,700,000