C D E F G H 12 13 For presentation purposes in the Statement of Financial Position (SFP), specific asset accounts are grouped (for example: a number of accounts in the Trial Balance my comprise the amounts presented as "Cash and Cash Equivalents" or "Property, Plant and Equipment" or PPE). Write 3 specific assets or asset accounts that may comprise the PPE presented in the SFP 14 its purchase price, including legal and brokerage fees, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the costs of site preparation, initial delivery and handling, installation and assembly, and testing of functionality 15 16 17 18 Write the formula for computing Depreciation Expense per year? Straight Line Depreciation Method = (Cost of an Asset - Residual Value) Useful life of an Asset. 19 Be sure to write the 3 pieces of information and the 2 arithmetic operations needed in the computation 20 21 22 If the business has Total Assets of P10,000,000 (ten Million) and Total Liabilities of P3,000,000 (three million): 23 Write the formula for computing the equity of the owner/s of the business 24 Be sure to write the 2 pieces of information and the arithmetic operation needed in the computation 25 Write the owner/s equity amount in this case 26 27 28 29 An impairment loss occurs when the carrying amount of an asset exceeds Accounts Receivable - 30 31 32 33 Inventories - 34 35 36 Property, plant and Equipment- 37 38 39 39 40 Write the effect on the Financial Statements of NOT recognizing an impairments loss on assets that has occurred? An impairment loss records an expense in the current period which appears on the income statement and simultaneously reduces the value of the impaired asset on the balance sheet. 41 42 43 44 Explain why the Net Income (before Income Tax) in the Statement of Income may not be equal to the Taxable income in the Income Tax Return 45 46 47 48 For Property, Plant and Equipment (PPE), write the rule that defines what costs need to be included in the cost of an item of PPE purchased (costs to be recognized or set up as part of the cost of the PPE at initial recognition or recording) - 49 50 51 For PPE, and in line with the rule above, write 2 examples of costs that should be included as part of the cost of the PPE item to be recognized or recorded as cost of the asset: 52 are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes 53 are expected to be used during more than one period 54 55 55 56 For a corporation, write 2 components of shareholders' equity and describe the source of the component: Component 1 57 58 1 59 Source of Component 1 60 1 61 62 Component 2: 63 1 64 Source of Component 2: 65 1 66 67 68 Present your computation of the balance of the Retained Earnings of a corporation at the end of the year, using these givens: Balance at the beginning of the year = P 5,000,000; Net Loss during the Year = P500,000. Dividends Declared and Paid during the Year = P1,000,000; write the arithmetic operation/s that needs to be done as part of your computation. Balance at the beginning of the year (Then) Sub-total (Then:) Balance at the end of the year 69 1 70 3 71 1 Write the balance Write the arithmetic operation, description, and amount Write the sub-total Write the arithmetic operation, description, and amount Write the balance 72 3 73 1 74 75 75 76 Write the criteria/condition for when the revenue from the sale of goods should be recognized 1 77 78 79 80 Write the criteria/condition for when the revenue from the sale of services should be recognized 1 81 82 83 84 Write 2 conditions of Property, Plant and Equipment (PPE) that require disclosure in the Notes to FS (assuming that the conditions actually exist at the reporting date). 85 86 1 87 1 88 89 89 90 Accounting 1 & 2 Recap Questions: 91 92 1 Write the 3 types of businesses the Accounting for which we have studied: Service Companies Merchandising Companies Manufacturing Companies 1 2 93 1 94 1 3 95 96 97 98 99 1 100 1 101 1 102 1 Write the 8 major steps in the Accounting Processing Cycle that are not given below. Identify and Analyze Transactions or Events to Be Recorded Given Journalize accounting transactions and other events 1 Post journal entries to the ledger 2 Prepare unadjusted trial balance 3 Journalize and post adjusting entries Prepare the adjusted trial balance 5 Prepare financial statements 6 Prepare the closing entries Prepare post-closing trial balance 8 Journalize and Post Reversing Journal Entries Given 4 103 1 104 1 105 1 7 106 1 107 108 109 110 On Basic FS Ratios: 111 112 Write about 2 Financial Ratios that you can compute from information in the Statement of Financial Position: Ratio 1: Name of the ratio: Formula Insight that the ratio provides 113 1 114 1 115 1 1 116 117 118 1 Ratio2: Name of the ratio: Formula Insight that the ratio provides 119 1 120 1 121 122 123 124 Write about 2 Financial Ratios that you can compute from information in the Statement of Income: Ratio 1: Name of the ratio: Formula Insight that the ratio provides: 125 1 126 1 1 127 1 128 129 130 1 Ratio2: Name of the ratio Formula: Insight that the ratio provides 131 1 132 1 133 134 END 135 C D E F G H 12 13 For presentation purposes in the Statement of Financial Position (SFP), specific asset accounts are grouped (for example: a number of accounts in the Trial Balance my comprise the amounts presented as "Cash and Cash Equivalents" or "Property, Plant and Equipment" or PPE). Write 3 specific assets or asset accounts that may comprise the PPE presented in the SFP 14 its purchase price, including legal and brokerage fees, import duties and non-refundable purchase taxes, after deducting trade discounts and rebates any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the costs of site preparation, initial delivery and handling, installation and assembly, and testing of functionality 15 16 17 18 Write the formula for computing Depreciation Expense per year? Straight Line Depreciation Method = (Cost of an Asset - Residual Value) Useful life of an Asset. 19 Be sure to write the 3 pieces of information and the 2 arithmetic operations needed in the computation 20 21 22 If the business has Total Assets of P10,000,000 (ten Million) and Total Liabilities of P3,000,000 (three million): 23 Write the formula for computing the equity of the owner/s of the business 24 Be sure to write the 2 pieces of information and the arithmetic operation needed in the computation 25 Write the owner/s equity amount in this case 26 27 28 29 An impairment loss occurs when the carrying amount of an asset exceeds Accounts Receivable - 30 31 32 33 Inventories - 34 35 36 Property, plant and Equipment- 37 38 39 39 40 Write the effect on the Financial Statements of NOT recognizing an impairments loss on assets that has occurred? An impairment loss records an expense in the current period which appears on the income statement and simultaneously reduces the value of the impaired asset on the balance sheet. 41 42 43 44 Explain why the Net Income (before Income Tax) in the Statement of Income may not be equal to the Taxable income in the Income Tax Return 45 46 47 48 For Property, Plant and Equipment (PPE), write the rule that defines what costs need to be included in the cost of an item of PPE purchased (costs to be recognized or set up as part of the cost of the PPE at initial recognition or recording) - 49 50 51 For PPE, and in line with the rule above, write 2 examples of costs that should be included as part of the cost of the PPE item to be recognized or recorded as cost of the asset: 52 are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes 53 are expected to be used during more than one period 54 55 55 56 For a corporation, write 2 components of shareholders' equity and describe the source of the component: Component 1 57 58 1 59 Source of Component 1 60 1 61 62 Component 2: 63 1 64 Source of Component 2: 65 1 66 67 68 Present your computation of the balance of the Retained Earnings of a corporation at the end of the year, using these givens: Balance at the beginning of the year = P 5,000,000; Net Loss during the Year = P500,000. Dividends Declared and Paid during the Year = P1,000,000; write the arithmetic operation/s that needs to be done as part of your computation. Balance at the beginning of the year (Then) Sub-total (Then:) Balance at the end of the year 69 1 70 3 71 1 Write the balance Write the arithmetic operation, description, and amount Write the sub-total Write the arithmetic operation, description, and amount Write the balance 72 3 73 1 74 75 75 76 Write the criteria/condition for when the revenue from the sale of goods should be recognized 1 77 78 79 80 Write the criteria/condition for when the revenue from the sale of services should be recognized 1 81 82 83 84 Write 2 conditions of Property, Plant and Equipment (PPE) that require disclosure in the Notes to FS (assuming that the conditions actually exist at the reporting date). 85 86 1 87 1 88 89 89 90 Accounting 1 & 2 Recap Questions: 91 92 1 Write the 3 types of businesses the Accounting for which we have studied: Service Companies Merchandising Companies Manufacturing Companies 1 2 93 1 94 1 3 95 96 97 98 99 1 100 1 101 1 102 1 Write the 8 major steps in the Accounting Processing Cycle that are not given below. Identify and Analyze Transactions or Events to Be Recorded Given Journalize accounting transactions and other events 1 Post journal entries to the ledger 2 Prepare unadjusted trial balance 3 Journalize and post adjusting entries Prepare the adjusted trial balance 5 Prepare financial statements 6 Prepare the closing entries Prepare post-closing trial balance 8 Journalize and Post Reversing Journal Entries Given 4 103 1 104 1 105 1 7 106 1 107 108 109 110 On Basic FS Ratios: 111 112 Write about 2 Financial Ratios that you can compute from information in the Statement of Financial Position: Ratio 1: Name of the ratio: Formula Insight that the ratio provides 113 1 114 1 115 1 1 116 117 118 1 Ratio2: Name of the ratio: Formula Insight that the ratio provides 119 1 120 1 121 122 123 124 Write about 2 Financial Ratios that you can compute from information in the Statement of Income: Ratio 1: Name of the ratio: Formula Insight that the ratio provides: 125 1 126 1 1 127 1 128 129 130 1 Ratio2: Name of the ratio Formula: Insight that the ratio provides 131 1 132 1 133 134 END 135