1.The following information pertains to ABC's long-term marketable equity securities portfolio:

December 31, 2017 December 31, 2016

Cost P200,000 P200, 000

Fair Value 240,000 180,000

Differences between cost and fair values are considered to be temporary. The decline in market value was properly accounted for at December 31, 2016. At December 31, 2017, what is the net realizable holding gain or loss to be reported as:

A.Answer not given

B.OCI: P0; Accumulated OCI: P0

C.OCI: P20,000; Accumulated OCI: P20,000 loss

D.OCI: P40,000; Accumulated OCI: P60,000 gain

E.OCI: P60,000; Accumulated OCI: P40,000 gain

2.Presented below is information pertaining to ABC Co.:

CostRetail

Inventory, January 121,75035,000

Purchases138,250200,750

Freight In5,000---------

Purchases Discounts1,250---------

Purchases Returns1,300021,500

Departmental Transfers-In (Debit)2,5003,750

Departmental Transfers-Out (Credit)2,0003,000

Markups15,000

Markup Cancellation5,000

Markdown30,000

Markdown Cancellations7,500

Abnormal Spoilage (Theft and Casualty Loss)12,50017,500

Sales109,500

Sales Returns6,250

Sales Discounts2,500

Employee Discounts1,250

Normal Spoilage (Shrinkage and Breakages)500

How much is the ending inventory under the Average Cost Method?

A.60,000

B.62,400

C.61,050

D.Answer not given

E.60,750

3.ABC Corporation had the following information relating to its accounts receivable:

Accounts receivable, December 31, 2016 1,950,000

Credit Sales for 2017 8,100,000

Collections from customers for 2017 7,125,000

Accounts written off, August 30, 2017 187,500

Estimated uncollectible receivables per aging of receivables, December 31, 2017 247,500

In the December 31, 2017, statement of financial position, what is the amortized cost of the receivable?

A.2,737,500

B.ANSWER NOT GIVEN

C.2,490,000

D.2,775,000

E.2,925,000

4.Peter, Inc. purchased a machine under a deferred payment contract on December 31, 20x1. Under the terms of the contract, Peter is required to make eight annual payments of P140,000 each beginning December 31, 20x2. The appropriate interest rate is 8%. The purchase price of the machine is

A.P1,389,190

B.P868,900

C.P804,520

D.P1,120,000

E. Ans not given

5.. 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

6. The following information pertains to ABC's long-term marketable equity securities portfolio:

December 31, 2017 December 31, 2016

Cost P200,000 P200, 000

Fair Value 240,000 180,000

Differences between cost and fair values are considered to be temporary. The decline in market value was properly accounted for at December 31, 2016. At December 31, 2017, what is the net realizable holding gain or loss to be reported as:

A.Answer not given

B.OCI: P0; Accumulated OCI: P0

C.OCI: P20,000; Accumulated OCI: P20,000 loss

D.OCI: P40,000; Accumulated OCI: P60,000 gain

E.OCI: P60,000; Accumulated OCI: P40,000 gain