A. Listed below are selected transactions of Green View Department Store for the current year ending December 31:

1. During December, cash sales totalled P996, 800 which includes a 12% value added tax payable that must be remitted to Bureau of Internal Revenue by the 20^th day of the following month.

2. On December 10, the Company purchased on account a delivery truck for P 500,000.

3. The Company decided to give yearend bonus to its fifteen employees to be paid January next year

Instructions:

Help to make a journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31.

B. Assume that on January 1, 2019, JK Restaurants sells a computer system to High Finance Company for P510, 000 and immediately leases the computer system back. The relevant information is as follows:

1. The computer was carried at JK's books at a value of P450, 000.

2. The term of the noncancelable lease is 10 years. Title will transfer to JK.

3. The lease agreement requires equal rental payments of P83, 000.11 at the end of each year.

4. The incremental borrowing rate for Elmer is at 12%. Elmer is aware that High Finance Co., set the annual rental to ensure a rate of return of 10%

5. The computer has a fair value of P680, 000 on January 1, 2019, and an estimated economic life of 10 years.

6. Elmer pays executory costs of P9, 000 a year.

Instructions:

Help me to make the journal entries for both the lessee and the lessor for 2019 to reflect the sale-leaseback agreement. No uncertainties exist, and collectability is reasonably certain.

C. Presented below are four independent situations.

1. On December 31, 2019, Hairy Inc. Sold computer equipment to Barber Co and immediately leased it back for 10 years. The sales price of the equipment was P560, 000, its carrying amount is P400, 000, and its estimated economic life is 12 years. Determine the amount of deferred revenue to be reported from the sale of the computer equipment on December 31, 2012.

2. On December 31, 2012, BTS Company sold a machine to GOT Co and simultaneously leased it back for one year. The sales price of the machine was P480, 000, the carrying amount is P420,000, and it had an estimated remaining useful life of 14 years. The present value of the rental payments for one year is P35, 000. At December 31, 2019, how much should BTS Company report as deferred revenue from the sale of the machine?

3. On January 1, 2012, Pacific Airlines sold an airplane with an estimated useful life of 10 years. At the same time, Pacific Airlines leased the back the plane for 10 years.The sales price of the airplane was P5, 000,000, the carrying amount P4, 010,000, and the annual rental of P739, 750. Pacific Airlines intends to depreciate the asset using the sum-of-the years-digits depreciation method.Discuss on how the gain on the sale should be reported at the end of 2019 in the financial statements

4. On January 1, 2019 VT Company sold equipment with an estimated useful life of 5 years. At the same time VT Company leased back the equipment for 2 years under a lease classified as operating lease. The sales price (fair value) of the equipment was P212, 700, the carrying amount is P300,000, the monthly rental under the lease is P6,000 and the present value of the rental payments is P115,753. For the year ended December 31, 2012, determine which items would be reported on its income statement for sale-leaseback transaction.

D. On December 31, 2019, AX Company had P12, 000,000 of short term debt in the form of notes payable due February 3, 2020. On January 13, 2020 the company issued 250, 000 shares of its common stock for P36 per share receiving P9, 000,000 proceeds after brokerage fees and issuance costs. On February 2, 2020, the proceeds from the sale of stocks, supplemented by additional P3, 000,000 cash are used to liquidate the P12, 000,000 debt. The December 31, 2019 balance sheet was issued on February 23, 2020

Instructions:

Show how the P12, 000,000 of short term debt be presented on the December 31, 2019 balance sheet including note disclosure.