Question 16 1 pts The following accounts were included in the unadjusted trial balance of BUNCHING COMPANY as of December 31, 2015: Cash P 963,200 Accounts receivable 2,254,000 Inventory 6,050,000 Accounts payable 4,201,000 Accrued expenses 431,000 During your audit, you noted that Bunching Company held its cash books open after year-end. In addition, your audit revealed the following: 1. Receipts for January 2016 of P654,600 were recorded in the December 2015 cash receipts book. The receipts of P360,100 represent cash sales and P294,500 represent collections from customers, net of 5% cash discounts. 2. Accounts payable of P372,400 was paid in January 2016. The payments, on which discounts of P12,400 were taken, were included in the December 2015 check register. 3. Merchandise inventory is valued at P6,050,000 prior to any adjustments. The following information has been found relating to certain inventory transactions: a. The invoice for goods costing P175,000 was received and recorded as a purchase on December 31, 2015. The related goods, shipped FOB destination, were received on January 4, 2016, and thus were not included in the physical inventory. b. A P182,000 shipment of goods to a customer on December 30, 2015, terms FOB destination, are not included in the year-end inventory. The goods cost P130,000 and were delivered to the customer on January 3, 2016. The sale was properly recorded in 2016. c. Goods costing P637,500 were shipped on December 31, 2015, and were delivered to the customer on January 3, 2016. The terms of the invoice were FOB shipping point. The goods were included in the 2015 ending inventory even though the sale was recorded in 2015. d. Goods costing P217,500 were received from a vendor on January 4, 2016. The related invoice was received and recorded on January 6, 2016. The goods were shipped on December 31, 2015, terms FOB shipping point. e. Goods valued at P275,000 are on consignment with a customer. These goods are not included in the inventory gure. f. Goods valued at P612,800 are on consignment from a vendor. These goods are not included in the physical inventory. Determine the adjusted balance of Cash as of December 31, 2015: P693,400 P668,600 P681,000 " " P963200 \f\f\f\fQuestion 21 1 pts On January 1, 2016, an entity acquired a 10% interest in an investee for P3,000,000. The investment was accounted for under the cost method. During 2016, the investee reported net income of P4,000,000 and paid dividend of P1,000,000. On January 1, 2017, the entity acquired a further 15% interest in the investee for P8,500,000. On such date, the carrying amount of the net assets of the investee was P36,000,000 and the fair value of the 10% existing interest was P3,500,000. The fair value of the net assets of the investee is equal to carrying amount except for an equipment whose fair value was P4,000,000 greater than carrying amount. The equipment had a remaining life of 5 years. The investee reported net income of P8,000,000 for 2017 and paid dividend of P5,000,000 on December 31,2017. What amount of investment income should be recognized in 2016 300,000 500,000 ' ' " 100,000 P400,000 Question 22 1 pts On January 1, 2016, an entity acquired a 10% interest in an investee for P3,000,000. The investment was accounted for under the cost method. During 2016, the investee reported net income of P4,000,000 and paid dividend of P1,000,000. On January 1, 2017, the entity acquired a further 15% interest in the investee for P8,500,000. On such date, the carrying amount of the net assets of the investee was P36,000,000 and the fair value of the 10% existing interest was P3,500,000. The fair value of the net assets of the investee is equal to carrying amount except for an equipment whose fair value was P4,000,000 greater than carrying amount. The equipment had a remaining life of 5 years. The investee reported net income of P8,000,000 for 2017 and paid dividend of P5,000,000 on December 31, 2017. What is the implied goodwill arising from the acquisition on January 1,2017? 2,000,000 3,000,000 2,500,000