1.On January 1, 2017, ABC Co. acquires 5-year, 1,000, 10%, P5,000 bonds for P4,639,522. The bonds were classified as subsequently measured at fair value through other comprehensive income. Interest is payable annually. How much is the interest income in 2017?

A.P0

B.P556,743

C.Answer not given

D.P463,952

E.P500,000

2.On January 1, 2016, ABC Company purchased bonds with face amount of P4,000,000. The business model of the entity in managing the financial asset is not only to collect contractual cash flows that are solely payment of principal and interest but also to sell the bonds in the open market. The entity paid P4206,000 for the bond investment. The bonds mature on December 31, 2018 and pay 10% interest annually on December 31 each year with 8% effective yield. The bonds are quoted at 95 on December 31, 2016 and 90 on December 31, 2017. What amount of cumulative unrealized loss should be reported in the statement of changes in equity on December 31, 2017?

A. P0

B. P 473,878

C. P 406,000

D. Answer not given

E. P 606,000

3.Company provided the following information: Balance per bank statement, May 31 1,300,000 Balance per book - May 31 1,405,000 Deposits outstanding 150,000 Bank service charge (5,000) Checks outstanding (50,000) Correct bank balance - May 31 1,400,000 Correct book balance - May 31 1,400,000 June data are as follows: Bank Book Checks recorded 1,100,000 1,250,000 Deposits recorded 800,000 900,000 Service charges recorded 25,000 - Note collected by bank, P250,000 plus interest 275,000 NSF checks returned with June 30 statement 50,000 Balances 1,200,000 1,050,000 What is the adjusted cash balance on June 30?

A. 1,400,000

B. 1,200,000

C. 1,050,000

D. Answer not given

E. 1,250,000

4.On February 12, Lar Company purchased a tract of land as a factory site for P175,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows: Cost of razing old building 35,000 Title insurance and legal fees to purchase land 12,500 Architect's fees 42,500 New building construction cost 875,000 The recorded cost of the completed factory building should be

A. 952,500

B. 917,500

C. 910,000

D. 930,000

E. Answer not given

5.The following information pertains to ABC Co.'s accounts receivables at December 31, 2017: Age Amount %Uncollectible

0-60 days 120,000 1%

61-120 days 90,000 2%

Over 120 100,000 6%

During 2017, ABC wrote off P7,000 in receivables and recovered P4,000 that had been written off in prior years. ABC's December 31, 2017, allowance for uncollectible accounts was P22,000. Under aging method, what amount of allowance for uncollectible accounts should ABC report on December 31, 2017?

A. Answer not given

B. P10,000

C. P19,000

D. P9,000

6.On January 1, 20x1, Entity A received land with fair of P200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost of P1,000,000. The building has an estimated useful life of 10 years and no residual value. How much is the income from government grant in 20x1 and 20x2, respectively?

A. 20x1-P0.00 ; 20x2-P 20,000

B. 20x1-P0.00 ; 20x2 - P 200,000

C. 20x1-P200,000 ; 20x2 - P 0.00

D. Answer not given

E. 20x1-P20,000 ; 20x2-P20,000

7.Quezon Co. records purchases at net amounts. On May 5 Quezon purchased merchandise on account, P32,000, terms 2/10,n/30. Quezon returned P2,000 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid.

The amount to be recorded as a purchase return is

A. Answer not given

B. P1,800

C. P1,960

D. P2,000

E.2,040

8.On January 1, 2020, Kay Corporation established a petty cash fund of Php400. On December 31, 2020, the petty cash fund was examined and found to have receipts and documents for miscellaneous expenses amounting to Php364. In addition, there was cash amounting to Php44. What entry would be required to record replenishment of the petty cash fund on December 31, 2020.

A.Dr. Miscellaneous Expense Php356; Dr. Cash short or over; Cr. Cash in bank Php364

B.Dr. Petty cash fund Php364; Cr Cash short or over Php8; Cr. Cash in bank Php356

C.Dr. Miscellaneous Expense Php364; Cr Cash short or over Php8; Cr Cash in bank Php356

D. Dr. Miscellaneous Expense Php364; Cr Cash short or over Php8; Cr Petty CashPhp356

9.Entity A acquires equipment on January 1, 20x1. Information on costs is as follows:

Purchase price, gross of P10,000 trade discount 800,000

Non-refundable purchase taxes 20,000

Delivery and handling costs 40,000

Installation costs 30,000

Present value of decommissioning and restoration costs 10,000

How much is the initial cost of the equipment?

A.870,000

B.820,000

C.890,000

D.900,000

E.Answer not given

10.The company purchased an investment property on January 1, 2014 for a cost of 2,200,000.The property had a useful life of 40 years and on December 31, 2016 had a fair value of 3,000,000. On December 31,2016 the property was sold for net proceeds of 2,900,000. The entity used the cost model to account for the investment property.

What is the gain or loss to be recognized for 2016 regarding the disposal of the investment property?

A.810,000 gain

B.700,000 gain

C.100,000 loss.

D.865,000 gain