With Solutions Please

1. On July 1, Brave opened Happy Company, a perfume shop with an initial investment of P750, 000.

Happy borrowed a total of P300,000 to finance its initial operation. In early September, Brave issued a

personal check for 100,000 in payment for one of Happy Company's loan. In December, Brave took

merchandise costing P40,000 which were marked to sell for P75,000 for personal use. Sales and other

income for the year amounted to P400,000 while total expenses totaled P160,000. Happy Company's

liabilities decreased by P95,000.

The assets of Happy Company at the end of the year is.

2. Smiley Company was incorporated on June 1, issuing 50,000, P5 ordinary shares for a total

consideration of P280,000 and borrowed funds totaling P120,000. Operations for the year resulted in

an excess of income over expenses of P150,000. Additional 10,000 ordinary shares were issued for a

total cash consideration of P55,000. On December 1, Smiley Company declared cash dividends of

P30,000 for holders on record as of December 31, to be distributed in January of the subsequent year.

At December 31, 2018, total assets increased to P675,000.

The liabilities of Smiley Company at the end of the year is

3. Cheers Company's total assets on December 31, 2018 were 25% lower than the total assets on

January 1, 2018. Total equity on January 1, 2018 amounting to P135,000 was 40% lower than the total

liabilities on that date. During 2018, total liabilities decreased by 15%.

Cheers Company's equity at December 31, 2018 is

4. Apple Company

Undeposited receipts (currency and coins on hand), P50,000

Postal money orders, P90,000

Traveller's check on Hand P120,000

Money market fund held held at BPI that permits Apple Company to write checks on this

fund,P400,000

Utility deposit receipt (made to Electron Company), P100,000

Apple Company's Cash and Cash Equivalent is

5. BPI demand deposit account, P200,000

Travel Advances of 150,000 for executive officer's travel for the first quarter of next year

Petty Cash Fund (includes 5000 in expense receipts) P25,000

BDO cash fund in the amount of P200,000 is restricted for the acquisition of machinery to be

made in 2019

The December 31,2018 cash and cash equivalents reported by Bruno Company is

6. 3 Month Treasury bill, P200,000

6 Month treasury bill maturing on February 2019, P300,000

1 year Treasury Bill, acquired on December 15, 2018, maturing on February 28, 2019,

P400,000

90 Day money market placement, P200,000

30 Day Certificate of Time Deposit, P240,000

180 Day Certificate of Time Deposit , P180,000

Cash and cash equivalent of Fred Company at December 31, 2018 is

7. Information in relation to Ally Company's bank reconciliation for July

Deposits made by Ally Company in July P 900,000

Deposits recoded by bank in July 1,100,000

Deposit in transit, June 30 280,000

Credit memo - loan proceeds in June 120,000

Credit memo - loan proceeds in July 50,000

The amount of deposits in transit at July 30 is

8. The following were provided by Bunny Company for the month of June

Deposits and credit memos recorded by the bank in June, including interest of P9,000; P970,000

Total debits ti Cash in all journals during June, P960,000

Deposit in transit as of May 31, P120,000

Interest income reflected in the May bank statement, recorded only in the books in June, P200,000

Direct payment to the bank by Bunny Company's customers. Bunny company was not informed of the

said payment as of June 30, P80,000

The deposit in transit at June 30 is

9. The following were provided by Dairy Company related to December.

Checks issued by Dairy Company in December, 2,200,000

Checks paid by the bank in December, 1,450,000

Outstanding checks, November 30, 70,000

Debit Memo - NSF checks in December, 20,000

Debit Memo - NSF checks in November, 50,000

The amount of outstanding checks at December 31 is

10. The following were provided by Eagle related to August

Total book debits for the month of August, P2,300,000

Total book credits for the month of August, P1,950,000

Outstanding checks at July 31, P280,000

Debit memo - July service charges/ NSF checks, P60,000

Debit memo - August service charges/ NSF check, P110,000

The amount of outstanding checks at August 31 is