3.) The cash account of Riyadh Corp. son December 31, 2024 has a balance of P127,600 and it consists of the following:

Bills and coins on hand	P52,780
Petty cash including petty cash vouchers of P650	1,000
Balance in savings account with a bank closed by the BSP	36,000
Customer's check dated January 15, 2025	8,000
Credit memo from suppliers for purchases returns	6,500
Postage stamps	120
Money order	800
IOU of an employee	400
Checking account balance in Bank of P.I.	22,000

The correct cash balance on December 31, 2024 of Riyadh Corp. is

a.

P76,330

b.

P76,580

c.

P75,130

d.

P75,930

6.) On January 1, 2024, Contentious Company provided the following information related to the land and building:

Land	50,000,000
Building	450,000,000
Accumulated depreciation-building	75,000,000

There were no additions or disposals during 2024. Depreciation is computed using straight line over 15 years for building. On June 30, 2024 the land and building were revalued as follows:

	Replacement cost	Sound Value
Land	65,000,000	65,000,000
Building	600,000,000	480,000,000

What is the depreciation of the building for the current year?

a.

30,000,000

b.

40,000,000

c.

32,000,000

d.

35,000,000

12.) Jenerose Corp. has an outstanding 10% note payable dated October 1, 2020 and is payable in three equal annual payments of P600,000 plus interest. The first interest and principal payment was made on October 1, 2021. In Jenerose's June 30, 2022 statement of financial position, what amount should be reported as accrued interest payable for this note?

a.P135,000

b.P45,000

c.P90,000

d.P30,000

30.) On February 1, 2021, Brian Corporation sold P300,000, 12 percent, ten-year bonds at 96 plus accrued interest. Interest is payable semi-annually on June 1 and December 1. The bond issue was dated December 1, 2020. On July 31, 2022, P150,000 of the issue was reacquired at 95 plus accrued interest. Assuming the entity uses the straight-line amortization method, the gain or loss on bond retirement to be recognized on July 31, 2022 is

a.P2,500 gain

b.P2,415 gain

c.P2,669 loss

d.P2,669 gain

33.) Beach Company acquired copyright to the original recordings of a famous singer. The agreement with the singer allows the entity to record and rerecord the singer for a period of 5 years. During the initial six-month period of the agreement, the singer is very sick and consequently cannot record. The studio time that was blocked by the entity had to be paid during the period the singer could not sing. The following cost are incurred by the entity:

Cost of acquiring the copyright	5,000,000
Operating loss during the start-up period (studio time lost)	1,000,000
Massive advertising campaign to launch the artist	1,500,000

What amount should be capitalized as cost of the copyright?

a.

6,000,000

b.

5,000,000

c.

6,500,000

d.

7,500,000

38.) Chameleon Company purchases a P4,000,000 tract of land for a factory site. The entity razed an old building on the property and sold the materials it salvaged from the demolition.

Payments to tenants of old building to vacate the old building	200,000
Demolition of old building	100,000
Legal fee for purchase contract and recording title	50,000
Title guarantee insurance	30,000
Proceeds from sale of salvaged materials	10,000

What is the initial carrying amount of land following the PIC interpretation?

a.

4,170,000

b.

4,080,000

c.

4,280,000

d.

4,030,000

44.) Deuteronomy Corporation has a machine costing P480,000, with an annual depreciation of P96,000, and has accumulated depreciation of P240,000 on December 31, 2023. On April 1, 2024, when the machine has a fair value of P192,000, it is exchanged for a similar machine with a fair value of P576,000 and the proper amount of cash is paid. The loss to be recognized on exchange is

a.P 0

b.P24,000

c.P48,000

d.P168,000

45.) Collie Company and its subsidiaries own the following properties at year-end:

Land held by Collie for undetermined use	5,000,000
A vacant building owned by Collie and to be leased out under an operating lease	3,000,000
Property held by a subsidiary of Collie, a real estate firm, in the ordinary course of business	2,000,000
Property held by Collie for use in production	4,000,000
Building owned by a subsidiary of Collie and for which the subsidiary provides maintenance services to the lessees	1,500,000
Land leased by Collie to a subsidiary under an operating lease	2,500,000
Property under construction for use as investment property	6,000,000
Land held for future factory site	3,500,000
Machinery leased out by Collie to an unrelated party under an operating lease	1,000,000

What total amount should be considered as owner-occupied property and included in property, plant and equipment in the consolidated statement of financial position?

a.

10,500,000

b.

13,000,000

c.

11,000,000

d.

8,500,000

46.) Collie Company and its subsidiaries own the following properties at year-end:

Land held by Collie for undetermined use	5,000,000
A vacant building owned by Collie and to be leased out under an operating lease	3,000,000
Property held by a subsidiary of Collie, a real estate firm, in the ordinary course of business	2,000,000
Property held by Collie for use in production	4,000,000
Building owned by a subsidiary of Collie and for which the subsidiary provides maintenance services to the lessees	1,500,000
Land leased by Collie to a subsidiary under an operating lease	2,500,000
Property under construction for use as investment property	6,000,000
Land held for future factory site	3,500,000
Machinery leased out by Collie to an unrelated party under an operating lease	1,000,000

What is the total investment property that should be reported in the consolidated statement of financial position of the parent and its subsidiaries?

a.

15,500,000

b.

10,500,000

c.

12,000,000

d.

9,500,000