Solve the following.
14. 15. 16. 17. Kimberly 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 2021 is as follows: 12131/2020 12/311'2021 Employee advances P 24,000 P 36,000 Accrued salaries payable 130,000 ? Salaries expense during the year 1,630,000 Salaries paid during the year (gross) 1,560,000 On December 31, 2021, what amount should Kimberly report for accrued salaries payables? a. 200,000 b. 188,000 c.164,000 d. 70,000 Kristine, Inc. pays royalties on its purchased trademarks. Royalties for the trademarks are equal to a percentage of Kristine's sales. Assume that the sale in 2021 were 83,700,000 and expenses amounted only to 24,580,000 and were subject to rate of 4.25% . At December 31,2021, Kristine owes one portion out of five of the year's royalty, to be paid in July. What would be the royalties payable? a. 718,450 b. 711,450 c. 3,5772 50 d. 3,348,000 During the current year, Cleo Company sold 50,000 reversible belts under a new sales professional program. Each belt carried one coupon which entitled the customer to a 80 cash rebate. The entity estimated that 60% of the coupons will be redeemed even though only 20,000 coupons had been processed during the current year. 1. What amount of rebate expense should be reported for the current year? a. 2,400,000 b. 1,920,000 c. 30,000 d. 24,000 2. What amount should be reported as rebate liability for unredeemed coupon at year-end? a. 2,400,000 b. 1,600,000 c. 800,000 d. 900,000 In 2018, a personal injury lawsuit was brought against Ivan Co. Based on counsel's estimate, Ivan reported a 50,000 liability in its December 31,2018 balance sheet. In November 2019, Ivan received a favorable judgment, requiring the plaintiff to reimburse Ivan for expenses of 30,000. The plaintiff has appealed the decision, and Iva n's counsel is unable to predict the outcome of the appeal. In its December 31, 2019 balance sheet, Ivan should report what amounts of asset and liability related to these legal actions? Asset Liability 7 a. 30,000 50,000 b. 30,000 0 c. 0 20,000 d. 0 0 18. 19. 20. 21. In 2019, Cooper Incorporated sells 5000 electric fans at an average price of P750 each. To earn additional income, Cooper Inc. sells separate items such as television for P 1750 each and refrigerator with a negotiable price of P4670. The selling price includes one-year warranty on parts. Cooper Inc. expects that 88% of the fans won't be defective and certainly in good condition. Warranty repair costs will average P103.75 per unit. In 2019, How much would be the estimated warranty liability? a. 181,562.50 b. 62,250 c. 456,500 d. 86,457.50 Edna Co. has a contract with its president to pay her a 5% bonus for 2020 and 2021. The income tax rate is 30% during these two years. In 2020, income before deductions for the bonus and income taxes was P600000. If the bonus is based on income before deduction of the bonus but after deduction of income tax, the bonus (ROUNDED OFF) is a. 20,690 b. 21,000 c. 21,320 d. 30,000 Matet Company is preparing annual financial statements on December 31, 2021. Because of the recently proven health hazard in one of the products, the Philippine Government has clearly indicated its intention of requiring the entity to recall all cans of this product sold in the last three months. The entity estimated that this recall would cost 680,000. What accounting recognition should be accorded in this situation? a. No recognition b. Note disclosure only c. Expense of 680,000 and Retained earnings restriction 680,000 d. Expense of 680,000 and liability of 680,000. Alfie Company have the following information at year-end: Accounts payable net of debit balances in so pplier's accounts of 120,000 and includes cost of goods received on consignment of 90,000 3,910,000 Accrued Rent expense 25,000 Credit balances of customer's accounts 100,000 Claims for increase in wages by employees of the business, covered in a pending lawsuit 420,000 Estimated expenses in redeeming coupons presented by customers 180,000 Alfie Company as guarantor 200,000 Reserve for contingencies 90,000 7 i What amount should be presented as short-term debt at year-end? a. 4,455,000 b. 4,735,000 c. 4,005,000 d. 4,245,000
