Accounting Answers

The Creep Company. Presented below are the items to be consolidated for the immediate preparation of the Statement Of Financial Position, for the year 2020.

Accounts Payable     ₱ 600,000 

Unearned Revenue             1,210,000 

Salaries Payable- current 120,000 

Owner’s Withdrawals             280,000 

Owner’s Capital                         1,500,000 

Comprehensive Income 3,000,000 

Total Current Assets 80% of total liabilities  

Cash                         250,000 

Inventories           480,000 

Prepaid Expenses 600,000

 Property, Plant and Equipment       ? 

Accounts Receivable                         ? 

a. Prepare the SFP using the ACCOUNT FORM 

Advise NextG's executive committee which project should be undertaken if: the net present value method of investment appraisal is used; [8 marks] ii. the internal rate of return method of investment appraisal is used; [8 marks] b) Critically discuss the reasons for superiority of the net present value method over the other methods. Is the internal rate of return method now redundant?

STATEMENT OF COMPREHENSIVE INCOME 

Practice Set 12 

1. The Swift Company presented the balances of each income and expense account and you are tasked to make its expanded income statement for the year ended 2020. 
2. Always apply the income tax expense as 25% of operating profit. 

Gross Sales = ₱ 3,822,300 

Sales Returns= ₱ 219,700 

Gross Purchases = ₱ 1,000,000 

Purchase Discounts = ₱ 180,000 

Beginning Inventories = ₱ 920,500 

Ending Inventories = ₱ 450,800 

Distribution Expenses = ₱ 760,200 

Administrative Expenses = ₱ 440,900 

Other Comprehensive Income = ₱ 210,000 

STATEMENT OF COMPREHENSIVE INCOME 

Practice Set 11 

1. The Deluxe Company presented the balances of each income and expense account and you are tasked to make its expanded income statement for the year ended 2020. 
2. Always apply the income tax expense as 25% of operating profit. 

Gross Sales = ₱ 3,500,000 

Sales Allowances= ₱ 120,000 

Net Purchases = ₱ 1,280,000 

Ending Inventories = ₱ 450,000 

Distribution Expenses = ₱ 280,000 

Administrative Expenses = ₱ 150,000 

Other Comprehensive Income = ₱ 330,000 

STATEMENT OF FINANCIAL POSITION  

PRACTICE SET 2 

1. The Jeremiah Company has the following accounts in year-end 2020.  
2. Kindly prepare the SFP in report form. 

Unearned Revenue ₱ 1,000,000 

Revenues, at gross      340,000 

Payables, short-term                                     285,000 

Owner’s Withdrawals      320,900 

Long-term portion of bonds payable    ? 

Cash and cash equivalent   4,219,000 

Intangible assets      890,000 

Gross value of expenses      112,000 

Owner’s Capital   2,130,000 

STATEMENT OF FINANCIAL POSITION  

PRACTICE SET 5 

1. The Creep Company has the following accounts in year-end 2020.  
2. Kindly prepare the SFP in both report and account forms. 

Accounts Payable ₱   600,000 

Unearned Revenue 1,210,000 

Salaries Payable- current    120,000 

Owner’s Withdrawals    280,000 

Owner’s Capital 1,500,000 

Comprehensive Income  3,000,000 

Total Current Assets 80% of total liabilities 

Cash 250,000 

Inventories 480,000 

Prepaid Expenses 600,000 

Property, Plant and Equipment ? 

Accounts Receivable ?

1. The Creep Company has the following accounts in year-end 2020.  
2. Kindly prepare the SFP in both report and account forms. 

Accounts Payable ₱  600,000 

Unearned Revenue 1,210,000 

Salaries Payable- current  120,000 

Owner’s Withdrawals   280,000 

Owner’s Capital 1,500,000 

Comprehensive Income  3,000,000 

Total Current Assets 80% of total liabilities 

Cash 250,000 

Inventories 480,000 

Prepaid Expenses 600,000 

Property, Plant and Equipment ? 

Accounts Receivable ? 

Canodia oil milds, delhi consigned 500 tins of vanaspati ghee to Aggrawal bros, jalandhar. Each tins cost Rs 132@Rs8 per kg. Oil mills paid Rs 50 as carriage Rs 250 as freight and Rs200 as insurance in transit............................show the necessary account in the books of both the parties

STATEMENT OF FINANCIAL POSITION  

PRACTICE SET 5 

1. The Creep Company has the following accounts in year-end 2020.  
2. Kindly prepare the SFP in both report and account forms. 

Accounts Payable ₱    600,000 

Unearned Revenue 1,210,000 

Salaries Payable- current  120,000 

Owner’s Withdrawals   280,000 

Owner’s Capital 1,500,000 

Comprehensive Income  3,000,000 

Total Current Assets 80% of total liabilities 

Cash 250,000 

Inventories 480,000 

Prepaid Expenses 600,000 

Property, Plant and Equipment ? 

Accounts Receivable ? 

II. Directions: Based on the following amounts of Lychee Company,

prepare a cash flow statement for the year ended 2020

Cash balance, January 1, 2020 ₱ 300,000

Decrease in accounts receivable ₱ 85,000

Interest expense ₱ 55,500

Proceeds from sale of equipment ₱ 130,000

Payment of equity financing ₱ 65,000

Decrease in accounts payable ₱ 54,000

Increase in inventory ₱ 118,000

Proceeds from issuance of long-term bonds payable ₱ 250,000

Increase in salaries payable ₱ 125,000

Income tax expense ₱ 49,000

Payment for purchase of equipment ₱ 280,000