1. On May 1, 2025, ABC Company issued a P 500,000 1 year note payable bearing 10% interest rate in exchange for the land purchased. The market interest rate is 10%. How much interest expense shall be reported in 2026 statement of financial performance?
2. Cely Company's salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 20x2 is as follows:

12/3x/1112/31/x2

Employee advancesP24,000P36,000

Accrued salaries payable182,000?

Salaries expense during the year1,820,000

Salaries paid during the year (gross)1,750,000

At December 31, 20x2, what amount should Cely report for accrued salaries payable?

3. In November and December 20x1, Ad Company received P792,000 for 1,000 3-year subscriptions at P264 per issue per year, starting with the January 20x2 issue.Adventure elected to include the entire P792,000 in its 20x1 income statement for tax purposes.What amount should Ad report in its 20x1 statement of financial position as unearned subscription revenue?

4. In 20x1, Charles Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:

First year of warranty2%

Second year of warranty5%

Sales and actual warranty expenditures for 20x1 and 20x2 are presented below:

20x120x2

SalesP600,000P800,000

Actual warranty expenditures20,00040,000

What is the estimated warranty expense for the year 20x1?

5.In 20x1, Sebastian Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:

First year of warranty2%

Second year of warranty5%

Sales and actual warranty expenditures for 20x1 and 20x2 are presented below:

20x120x2

SalesP600,000P800,000

Actual warranty expenditures20,00040,000

Assuming that sales and repairs occur evenly throughout the year,what is the corrected warranty expense for the year 20x1? (Note adjusting entries were made and posted. )

6. On May 1, 2025, ABC Company issued a P 500,000 1 year note payable bearing 0% interest rate in exchange for the land purchased. The market interest rate is 10%. How much is the value of Land?

7. El Corp. signed a three-month, zero-interest-bearing note on November 1, 20x1 for the purchase of P60,000 of inventory.The face value of the note was P60,882. Assuming El used a "Discount on Note Payable" account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 20x1 will include a

a. credit to Discount on Note Payable for P294

b. debit to Discount on Note Payable for P294

c. credit to Interest Expense for P 588

d. debit to Interest Expense for P588

8. In 20x1, Simon Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:

First year of warranty3%

Second year of warranty6%

Sales and actual warranty expenditures for 20x1 and 20x2 are presented below:

20x120x2

SalesP600,000P800,000

Actual warranty expenditures20,00040,000

What is the estimated warranty liability at the end of 20x2? Note that sales and repairs occur evenly throughout the year.