4. The financial statements of Crescendo Company contained the following errors: ????2018???2019Ending inventory?140,000 overstated?200,000 understatedRent expense?? 48,000 understated? 66,000 overstatedIf none of the errors were detected or corrected, what is the net effect of the errors on retained earnings on December 31, 2019? 5. Galaxy Company had the following financial statement information:???? ?? 2019?? 2018Revenue???1,350,000?1,000,000Expenses??? 980,000? 650,000Net income??? 370,000? 350,000 Total assets???1,570,000?1,050,000Total liabilities??? 500,000? 350,000Total owners' equity??1,070,000? 700,000The entity failed to record P120,000 of accrued wages at the end of 2018. The wages were recorded and paid in January 2019. The correct accruals were made on December 31, 2019. What is the owner's equity on December 31, 2019? 6. The income statement of Aroma Company showed net income of P8,000,000 and depreciation of P200,000. All sales were for cash except a P50,000 sale resulting in the acceptance of one-year 12% note receivable and a P100,000 sale resulting in the acceptance of a tract of land valued at P100,000. Accrued salaries on December 31, 2019 and 2012 were P50,000 and P40,000 respectively. Interest expense includes P5,000 of amortization of bond discount. Income tax expense includes P50,000 of deferred tax liability. What is the net cash provided by operating activities for the current year? 7. Love Company provided the following information for 2019:Net Monetary assets - January 1??? 880,000Sales ???????3,000,000Purchases??????1,400,000Expenses?????? 900,000Income Tax?????? 500,000Cash dividend paid on December 31, 2019?? 300,000The sales, purchases, expenses and income tax accrued evenly during the year. The index numbers are 110 on January 1 and 140 on December 31. What is the gain or loss on purchasing power? 8. Dix Company reported the following shareholders' equity on December 31, 2019:8% cumulative preference share capital, P50 par, liquidating?value P55 per share?????1,000,000Ordinary share capital, P25 par, 100,000 shares issued and?outstanding??????2,500,000Retained Earnings?????? 400,000Dividends on preference shares have been paid through 2017 but have not been declared for 2018 and 2019. What is the book value per (1) ordinary share and (2) preference share? 9. Yodel Company had 50,000 ordinary shares of P100 par value and 25,000 cumulative preference shares of P100 par value, 6% cumulative and participating. Dividends on the preference shares are two years in arrears including the current year. The entity distributed P1,350,000 as dividends in the current year. What is the dividednd payable to the ordinary shareholders? 10. Excel Company had 600,000 ordinary shares outstanding at the beginning of the current year. During the year the entity issued rights to acquire one ordinary share at P10 in the ratio of one new share for every four shares outstanding. The market value of the ordinary share immediately prior to the rights issue is P35. The rights were exercised on October 1. The net income for the current year is P8,550,000. What amount should be reported as basic earnings per share in the income statement? #11-12. On January 1, 2019, Chewy Company had 100,000 ordinary shares outstanding. In addition, on January 1, 2019, the entity had issued 10,000 convertible cumulative 5% preference shares with P100 par. The preference shares were converted on September 1, 2019. Each preference share was converted into five ordinary shares. The preference dividends for the entire year were paid in full before the conversion. The entity had no other potentially dilutive securities. The net income for the year was P2,000,000.11. What amount should be reported as basic earnings per share?12. What amount should be reported as diluted earnings per share? 13. On April 1, 2017, Brandy Company had a machine with a cost of P5,000,000 and accumulated depreciation of P3,750,000. On this date, the machine was classified as held for sale and decided to sell the machine within one year.On April 1, 2017, the machine had an estimated selling price of P1,200,000 and a remaining useful life of two years. It is estimated that the selling cost associated with the disposal of the machine will be P50,000.On December 31, 2017, the estimated selling price of the machine was P1,100,000 with estimated selling cost of P100,000.What amount of impairment loss should be recognized in 2017?

4. The financial statements of Crescendo Company contained the following errors: 2018 2019 Ending inventory 140,000 overstated 200,000 understated Rent expense 48,000 understated 66,000 overstated If none of the errors were detected or corrected, what is the net effect of the errors on retained earnings on December 31, 2019? 5. Galaxy Company had the following financial statement information: 2019 2018 Revenue 1,350,000 1,000,000 Expenses 980,000 650,000 Net income 370,000 350,000 Total assets 1,570,000 1,050,000 Total liabilities 500,000 350,000 Total owners' equity 1,070,000 700,000 The entity failed to record P120,000 of accrued wages at the end of 2018. The wages were recorded and paid in January 2019. The correct accruals were made on December 31, 2019. What is the owner's equity on December 31, 2019? 6. The income statement of Aroma Company showed net income of P8,000,000 and depreciation of P200,000. All sales were for cash except a P50,000 sale resulting in the acceptance of one-year 12% note receivable and a P100,000 sale resulting in the acceptance of a tract of land valued at P100,000. Accrued salaries on December 31, 2019 and 2012 were P50,000 and P40,000 respectively. Interest expense includes P5,000 of amortization of bond discount. Income tax expense includes P50,000 of deferred tax liability. What is the net cash provided by operating activities for the current year? 7. Love Company provided the following information for 2019: Net Monetary assets - January 1 880,000 Sales 3,000,000 Purchases 1,400,000 Expenses 900,000 Income Tax 500,000 Cash dividend paid on December 31, 2019 300,000 The sales, purchases, expenses and income tax accrued evenly during the year. The index numbers are 110 on January 1 and 140 on December 31. What is the gain or loss on purchasing power? 8. Dix Company reported the following shareholders' equity on December 31, 2019: 8% cumulative preference share capital, P50 par, liquidating value P55 per share 1,000,000 Ordinary share capital, P25 par, 100,000 shares issued and outstanding 2,500,000 Retained Earnings 400,000 Dividends on preference shares have been paid through 2017 but have not been declared for 2018 and 2019. What is the book value per (1) ordinary share and (2) preference share? 9. Yodel Company had 50,000 ordinary shares of P100 par value and 25,000 cumulative preference shares of P100 par value, 6% cumulative and participating. Dividends on the preference shares are two years in arrears including the current year. The entity distributed