Beruflich Dokumente
Kultur Dokumente
Brock Company reported operating expenses in two categories, namely distribution and general and
administrative.
The adjusted trial balance at year-end included the following expense and loss accounts for current year:
Lee Company reported the following data for the current year:
The office space is used equally by the sales and accounting departments.
Vigor Company provided the following information for the current year:
Hiligaynon Company provided the following information for the current year:
Carmela Company provided the following information for the current year:
Kay Company provided the following information for the current year:
Argentina Company incurred the following costs and expenses during the current year:
Beginning Ending
Raw materials 300,000 450,000
Work in process 400,000 350,000
Finished goods 500,000 700,000
Tactful Company reported that the operating expenses other than interest expense for the year amount to
40% of cost of goods sold but only 20% of sales. Interest expense is 5% of sales.
The amount of purchases is 120% of cost of goods sold. Ending inventory is twice as much as the beginning
inventory. The net income for the year P560,000. The income tax rate is 30%.
Jericho Company showed net income of P480,000 for the year. Selling expenses were equal to 15% of sales
and also 25% of cost of goods so All other expenses were 13% of sales.
Ronalyn Company reported that the financial records were destroyed by fire at the end of the current year.
However, certain statistical data related to the income statement are available.
The beginning inventory was P400,000 and decreased 20% during the year.
Administrative expenses are 25% of cost of goods sold but only 10% of gross sales.
2) LMR Enterprises provided the following data for the current year:
Net income Php 2,014,000
Unrealized gain on derivative contract 507,000
Foreign currency translation adjustment – debit 51,500
Revaluation surplus 201,400
What is the comprehensive income for the current year?
4) EXODUS Trading accounts for noncurrent assets using cost model. On September 30,
2019, the entity classified a noncurrent asset as held for sale. At the date, the asset’s
carrying amount was Php 1,457,965, its fair value was estimated at Php 957,365, and the
cost of disposal at Php 68,500. On November 20, 2019, the asset was sold for net proceeds
of Php 875,000. What amount should be included as loss on disposal in the statement of
comprehensive income for the year ended, December 31, 2019?
5) EXO Entertainment has two divisions, EXO-K and EXO-M, and both qualifies as business
component. In 2019, the entity decided to dispose of the assets and liabilities of Division EXO-
M and it’s probable that the disposal will be complete next year. The revenue and expenses
of EXO Entertainment for 2018 and 2019 are as follows:
2018 2019
EXO-K
EXO-M
During the latter part of 2019, EXO disposed of a portion of Division M and recognized a
pretax loss of Php 2, 00,000 on disposal. The income tax rate is 30%. What amount should
be reported as a loss from discontinued operations in 2019?