IA
Caticlan Company provided the following information: Caticlan Company provided the following information: January 1 December 31 Fahr value of plan ananta 3, 500, 000 3, 900,000 Market related value plan 2. 800, 000 2, 900,000 Contribution to the plan 280, 000 Benefits paid to retireen 250, 000 What is the actual return on plan assets for the current year? a. 400,000 b. 370,000 c. 430,000 d. 100,000Case Cereal Co. frequently distributes coupons to promote new products. On October 1, year 2, Case mailed 1,000,090 coupons for P.45 off each box of cereal purchased. Case expects 120,000 of these coupons to be redeemed before the December 31, year 2, expiration date. It takes thirty days from the redemption date for Case to receive the coupons from the retailers. Case reimburses the retailers an additional P.05 for each coupon redeemed. As of December 31, year 2, Case had paid retailers P25,000 related to these coupons and had 50,000 coupons on hand that had not been processed for payment. What amount should Case report as a liability for coupons in its December 31, year 2 balance sheet? a. P35,000 O b. P29,000C. P25,000 d. P22,500 Rapp Co. leased a new machine to Lake Co. on January 1, year 1. The lease is an operating lease and expires on January 1, year 6. The annual rental is P90,000. Additionally, on January 1, year 1, Lake paid P50,000 to Rapp as a lease bonus and P25,000 as a security deposit to be refunded upon expiration of the lease. In Rapp's year 1 income statement, the amount of rental revenue should be a. P140,000 b. P125,000 C. P100,000 d. P 90,000Leaf Co. purchased from Oak Co. a P20,000, 8%, five-year note that required five equal annual year-end payments of P5,009. The note was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of P19,485. Leaf does not elect the fair value option for reporting its financial liabilities. What should be the total interest revenue earned by Leaf over the life of this note? a. P5,045 b. P5,560 C. P8,000 O d. P9,000Grim Corporation reports under PFRS. Grim issued 2,000 P1,000 convertible bonds at par, with an annual interest rate of 6% when the market was 8%. The bonds are due in 5 years and each P1,000 bond is convertible into 3 shares of common stock. At what amount would Grim record the liability component of the bond? a. P 479, 125 b. P1,840,285 C. P2,000,000 O d. P2,006,000Star Company provided the following data for the preparation of statement of cash flows for the current year using the direct method: Star Company provided the following data for the proparation of statement of cash flows for the current year using the direct method: Cash balance, beginning 1, 500,000 Cash paid to purchase inventory 7. 800, 000 Cash received from sale trading 2, 500, 000 securities Cash paid for interest 450.000 Cash paid to repay a loan 1, 000, 000 Cash collected from customers 10,000, 000 Cash received from issuance of ordinary 1, 200,000 shares Cash paid for dividend 2. 000, 000 Cash paid for income taxes 1, 350, 000 Cash paid to purchase trading securities 1,000, 000 What is the net cash provided by operating activities? a. 1,900,000 b. 2.900,000 C. 2,350,000 d. 400.000
