Dian Company's checkbook balance at December 31, 2019 was P180,000 which includes:

*Check payable to Dian dated January 2, 2020 in payment of a sale made in December 2019, included in December 31 checkbook balance, P65,000.

*Check payable to Dian deposited December 15, but returned by the bank DAIF, P20,000.

*Check drawn on Dian's account, payable to a vendor, dated and recorded on December 30 but not yet mailed to payee as of December 31, 2019, P15,000.

A. P110,000 B. P130,000C. P165,000D. P175,000

On April 1, Jennifer Company established an imprest system petty cash fund for P10,000 by writing a check drawn against the general checking account. On April 30, the fund contained the following: Currency and coins, P3,000; Receipts for office supplies, P4,000; Receipts for postage still unused, P2,000; Receipts for transportation, P600. On April 30, the entity wrote a check to replenish the fund. What is the amount of replenishment under the imprest fund system?

A. P 3,000.B. P 6,600C. P 7,000D. P10,000

At the close of its first year of operations, December 31, 2019, Linn Company had accounts receivable of P540,000, after deducting the related allowance for doubtful accounts. During 2019, the company had charges to bad debt expense of P90,000 and wrote off, as uncollectible, accounts receivable of P40,000. What should the company report on its balance sheet at December 31, 2019, as accounts receivable before the allowance for doubtful accounts?

A. P440,000B. P490,000C. P590,000D. P670,000

During the year, Jantz Company made an entry to write off a P4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was P50,000 and the balance in the allowance account was P4,500. The net realizable value of accounts receivable after the write-off entry was

A. P41,500B. P45,500C. P49,500D. P50,000

Melody Company used the allowance method of accounting for doubtful accounts. For receivable aging, it was estimated that 3%, 10%, and 15% will not be collected anymore for receivables aging 0-30 days, 31-60 days, and over 60 days, respectively. These all amounts to P4,000,000, P2,000,000, and P1,500,000. Net credit sales for the year amounted to P30,000,000 and that the balance before adjustment of the allowance for uncollectible accounts amount to P50,000 credit. What amount should be recognized in the adjusting entries as doubtful accounts expense for the current year?

A. P445,000B. P495,000C. P545,000D. P595,000

Mochi Company was granted a patent on January 1, 2016 and capitalized P450,000. The entity was amortizing the patent over the useful life of 15 years. During 2019, the entity paid P150,000 in successfully defending an attempted infringement of the patent. After the legal action was completed, the entity sold the patent to the plaintiff for P750,000. How much is the gain from sale of patent in 2019 assuming no amortization will be taken in the year of disposal?

A. P360,000B. P390,000.C. P410,000D. P420,000

On January 1, 2019, Karla Company acquired 5,000 shares of P40 par value ordinary shares of Frances Company at P65 per share. These shares are to be held as financial assets at fair value through profit or loss. Broker's commissions paid amounts to P5,000. At the end of the reporting period, the fair value of Frances Company's shares is P80 per share. How much will be reported as unrealized gain?

A. P 60,000B. P 75,000 C. P200,000D. P250,000

Using the information in item 53, how much is the carrying value of the financial asset at December 31, 2019?

A. P330,000B. P400,000C. P405,000D. P410,000

On January 1, 2019, Karla Company acquired 5,000 shares of P40 par value ordinary shares of Frances Company at P65 per share. These shares are to be held as financial assets at fair value through other comprehensive income. Broker's commissions paid amounts to P5,000. At the end of the reporting period, the fair value of Frances Company's shares is P80 per share. How much will be reported as unrealized gain?

A. P65,000B. P70,000C. P75,000D. P80,000

Using the information in item 55, how much is the carrying value of the financial asset at December 31, 2019?

A. P330,000B. P400,000C. P405,000D. P410,000

Page 9 of 10

On January 1, 2019, P Company acquired 20% interest in S Company for P5,000,000. During the year, S Company reported net income of P7,000,000 and paid dividends of P2,000,000. How much is the share of P Company in the net income of S Company?

A. P -0-; should only be reported as investment in equity securities.

B. P1,000,000

C. P1,400,000

D. P7,000,000

Using the information in item 57, how much is the share of P Company in the dividends declared by S Company?

A. P -0-; should only be reported as investment in equity securities.

B. P 400,000 reported as dividend income

C. P 400,000 reported as deduction to investment

D. P2,000,000 reported as dividend income

Using the information in item 57, how much will be reported as carrying amount of the investment as at December 31, 2019?

A. P5,000,000 as investment in equity securities

B. P5,000,000 as investment in associate

C. P6,000,000 as investment in equity securities

D. P6,000,000 as investment in associate

Dian Company's checkbook balance at December 31, 2019 was P180,000 which includes: *Check payable to Dian dated January 2, 2020 in payment of a sale made in December 2019, included in December 31 checkbook balance, P65,000. *Check payable to Dian deposited December 15, but returned by the bank DAIF, P20,000. *Check drawn on Dian's account, payable to a vendor, dated and recorded on December 30 but not yet mailed to payee as of December 31, 2019, P15,000. A. P110,000 B. P130,000 C. P165,000 D. P175,000 On April 1, Jennifer Company established an imprest system petty cash fund for P10,000 by writing a check drawn against the general checking account. On April 30, the fund contained the following: Currency and coins, P3,000; Receipts for office supplies, P4,000; Receipts for postage still unused, P2,000; Receipts for transportation, P600. On April 30, the entity wrote a check to replenish the fund. What is the amount of replenishment under the imprest fund system? A. P 3,000. B. P 6,600 C. P 7,000 D. P10,000 At the close of its first year of operations, December 31, 2019, Linn Company had accounts receivable of P540,000, after deducting the related allowance for doubtful accounts. During 2019, the company had charges to bad debt expense of P90,000 and wrote off, as uncollectible, accounts receivable of P40,000. What should the company report on its balance sheet at December 31, 2019, as accounts receivable before the allowance for doubtful accounts A. P440,000 B. P490,000 C. P590,000 D. P670,000 During the year, Jantz Company made an entry to write off a P4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was P50,000 and the balance in the allowance account was P4,500. The net realizable value of accounts receivable after the write-off entry was A. P41,500 B. P45,500 C. P49,500 D. P50,000 Melody Company used the allowance method of accounting for doubtful accounts. For receivable aging, it was estimated that 3%, 10%, and 15% will not be collected anymore for receivables aging 0-30 days, 31-60 days, and over 60 days, respectively. These all amounts to P4,000,000, P2,000,000, and P1,500,000. Net credit sales for the year amounted to P30,000,000 and that the balance before adjustment of the allowance for uncollectible accounts amount to P50,000 credit. What amount should be recognized in the adjusting entries as doubtful accounts expense for the current year? A. P445,000 B. P495,000 C. P545,000 D. P595,000 Mochi Company was granted a patent on January 1, 2016 and capitalized P450,000. The entity was amortizing the patent over the useful life of 15 years. During 2019, the entity paid P150,000 in successfully defending an attempted infringement of the patent. After the legal action was completed, the entity sold the patent to the plaintiff for P750,000. How much is the gain from sale of patent in 2019 assuming no amortization will be taken in the year of disposal? A. P360,000 B. P390,000. C. P410,000 D. P420,000Using the information in item 57, how much will be reported as carrying amount of the investment as at December 31, 2019? A. P5,000,000 as investment in equity securities B. P5,000,000 as investment in associate C. P6,000,000 as investment in equity securities D. P6,000,000 as investment in associate Jan Company acquired an investment property on January 1, 2018 for P20,000,000. The property has a useful life of 50 years and has a fair value of P22,000,000 by the end of 2018 and P21,000,000 by the end of 2019. How much is the carrying value of the investment property on December 31, 2018 under the cost model? A. P19,200,000 19,600,000 C. P20,000,000 D. P22,000,000 Using the information in item 60, how much is the carrying value of the investment property on December 31, 2019 under the fair value model? A. P19,200,000 B. P19,600,000 C. P21,000,000 D. P22,000,000 Jem Company acquired an investment property on January 1, 2018 for P20,000,000. The property has a useful life of 50 years and has a fair value of P22,000,000 by the end of 2018 and P21,000,000 by the end of 2019. However, the entity sold the investment property at 15% higher than the carrying value of the investment property on December 31, 2020. The entity uses the cost model to account for the investment property. How much is the carrying value of the investment before disposal? A. P17,600,000 B. P18,800,000 C. P19,200,000 D. P20,000,000 63. Using the information in item 62, how much is the gain on sale of the investment property on December 31, 2020? A. P-0- B. P1,880,000 C. P2,820,000 D. P3,000,000