1.On October 1, 20x1, the warehouse of ABC co. and all inventories contained therein were damaged by flood. Off-site backup of database shows the following information:

Inventory, Jan 1 = 10,000

Account Payable, Jan 1 = 3,000

Accounts payable, sept 30. = 2,000

Payments to suppliers = 50,000

Freight in= 500

Purchase Returns = 500

Sales from January to Sept. = 80,000

Sales Returns = 5,000

Sales Discounts = 2,000

Gross Profit based on Sales 30%

Additionalinformation:

Goods in transit as of October 1,20x1 amounted to 1,000

Cost of goods out on consignment is 1,200

Materials damaged by flood can be sold at salvage value of 1,800.

How much is the inventory loss due to the flood?

A.4,400

B.2,500

C.Answer not given

D.4,900

E.3,000

2.On October 1, 20x1, the warehouse of ABC Co. and all inventories contained therein were damaged by flood. Off-site back up of data base shows the following information:

Inventory, Jan. 1 - 14,500

Accounts payable, Jan 1 - 6,000

Accounts payable Sept. 30 - 3,000

Payments to suppliers - 50,000

Freight-in - 5,000

Purchase returns and discounts - 2,500

Sales from Jan. to Sept. - 75,000

Sales returns - 5,000

Sales discounts - 2,000

Gross profit rate based on sales 20%

Additional information:

Goods in transit as of October 1, 20x1 amounted to P2,000, cost of goods out on consignment is P1,200, and materials damaged by flood can be sold at salvage value of P500.

How much is the inventory loss due to the flood?

A.P6,800

B.P7,200

C.P8,200

D.P7,800

E.Answer not given

3.Light Company bought a machine for 300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using a straight-line method.

The revalued amount of the machine is as follows:

December 31 Fair values of the machines

20x8360,000

20x9335,000

2x10320,000

The enacted tax rate was 30% for each year.

The revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position is:

A.Answer not given

B.123,443

C.109,500

D.77,000

E.110,000

The amount of revaluation surplus transferred to retained earnings in 20x9 is

A.answer not given

B.P10,000

C.P7,000

D.P6,667

E.P4,333

The amount of depreciation expense to be recognized in 20x9 is

A.36,000

B.32,500

C.42,500

D.40,000

E.Answer not given

4.Supporting records of ABC CORP's trading securities portfolio show the following debt and equity securities:

Security Cost. Fair Value

400 Ordinary shares Con Co. P254,400 P243,000

P800,000 Tip Co. 7% bonds 796,500 774,000

P1,200,000 Turk Co. 7 % bonds 1,207,500 1,218,900

Totals P2,258,500 P2,235,900

Interest dates on the bonds are January 1 and July 1. ABC Corp uses the income approach to record the purchase of bonds with the accrued interest. During 2017 and 2018, ABC completed the following transactions related to trading securities:

2017

Jan 1 Received semiannual interest on bonds. Assume that the appropriate adjusting entry was made on December 31, 2016.

April 1 Sold P600,000 of 7 % Turk bonds at 102 plus accrued interest.

May 21 Received dividend of P1.25 per share on the Con ordinary share capital. The dividend had not been recorded on the declaration date.

Jul 1 Received semiannual interest on bonds and then sold the 7% Tip bonds at 97 1/2

Aug 25 Purchased 200 shares of New, Inc. ordinary share capital at P580 per share plus brokerage fees of P500.

Nov 1 Purchased P500,000 of 8% Tol Co. bonds at 101 plus accrued interest. Brokerage fees were P1,250. Interest dates are January 1 and July 1.

Dec 31 Market price of securities were:

Con ordinary share P550

7 Turk bonds 101

8% Tol bonds 101

New ordinary share P538.75

2018

Jan 2 Recorded the receipt of semiannual interest on bonds

Feb 1 Sold the remaining 7 Turk bonds at 101 plus accrued interest.

What is the total interest and dividend income for 2017?

A.P91,417

B.P98,804

C.answer not given

D.P164,416

E.P125, 166

What is the carrying amount of the remaining trading securities on December 31, 2017?

A.P1,450,450

B.P1,473,450

C.answer not given

D.P1,452,250

E.P1,481,000