1365464987statement of Financial Positio 3

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The following trial balance of Robertson Co. at Determine the total amount of current assets to be
December 31, 2019 has been adjusted except for reported in Longfellow’s statement of financial position
income tax expense. at December 31, 2019.
Debit Credit a. P988,000 c. P888,000
Cash P 825,000 b. P986,000 d. P848,000
Accounts receivable 2,475,000
Prepaid taxes 525,000
Accounts payable P180,00O 3. for the purpose of starting the working capital of Alcano
Share capital Share 750,000 Company on December 31, 2019, the following data are
premium Retained 450,000 submitted:
earnings 945,000 Cash on hand and in bank, net of bank
Revenues 5,400,000 overdraft of P50,000 P 550,000
Expenses 3,900,000 Petty cash (unreplenished petty cash
P7.725 000 expenses, P4,000) 10,000
Notes receivable 750,000
During 2019, estimated tax payments of P525,000 were Accounts receivable, net of accounts
charged to prepaid taxes. Robertson had not yet with credit balances of P100,000 1,100,000
recorded income tax expense. There were no Merchandise inventory, excluding
differences between financial statement and income tax unrecorded purchase of P2O0,000 on
income, and Robertson’s tax rate is 35%. Included account in transit on December 31,
in accounts receivable is P750,000 due from a
Customer. Special Terms granted to this customer 2019 and shipped JOB shipping point 2,000,000
on December 31, 2019
require payment in equal semi-annual installments of Prepaid expenses
P187,500 every April 1, and October 1. 90,000
Accounts payable, net of accounts with
In Robertson’s December 31, 2019 statement of debit balances of P150,000 3,000,000
financial position, what amount should be reported as Note payable, with annual installment of
total current assets? P500,000 payable every May 31. 2,000,OOO
a. P3,750,OO0 c. P2,925,000 Accrued expenses 300,000
b. P3,375,OOO d. P3,300,000 The total current liabilities of Alcano Company on
December 31, 2019 should be
a. P5,800,OOO c. P4,100,000
g2. The following data were compiled prior to preparing b. P3,950,OOQ d. P4,300,000
Longfellow Company’s statement of financial position at
December 31, 2019: 4. When preparing a draft of its 2019 statement of financial
Cash in BPI (current account), including position, Mount Inc. reported net assets totaling P875,000.
a compensating balance of P50,000 Included in the asset section of the
which is not legally restricted P160,000 statement of financial position were the following:
Cash in Metro Bank (savings account) Treasury shares of Mount, Inc. at cost,
set aside for building construction to which approximates market value P24,000
start next year 200,000 idle machinery 11,200
Cash surrender value of life insurance Cash surrender value of life insurance
policy 80,000 13,700
Investment in shares of an associate 250,O0O policy on corporate executives
42,000
Allowance for decline in market value
Investment in shares held for trading of available-for-sale securities 8,400
Investment in shares held indefinitely 24,000
Merchandise inventory (of which At what amount should Mount’s net assets be reported
P100,0O0 is pledged as security as in the December 31, 2019 statement of financial
security for a bank loan) 400,000 position?
Notes receivable, all due within one a. P851,000 c. P842,600
year, including a P30,000 note b. P850,100 d. P834,500
discounted 120,000
Prepaid items, including deferred bond 5. The accounts below appear in the December 31, 2019
issue costs of P20,000 34,000 trial balance of Luna Company:
Reserve for anticipated inventory market
price declines 40,000 Authorized share capital P30,000,000
Unearned finance charges on installment Unissued share capital 5,000,000
accounts receivable 30,000 Subscribed share capital 3,000,000
Undeposited collections, including Subscription receivable 1,000,000-
P2,0O0 customer‘s Check returned, Share premium 10,000,000
marked DAIF 12,000 Retained earnings unappropriated 6,000,000
Trade installment accounts receivable, Retained earnings appropriated 2,000,000
including amount of P100,000 due Revaluation surplus 4,500,000
after one year 300,000 Treasury shares, at cost 1,500,000
In its December 31, 2019 statement of financial
position, Luna should report total equity at
a. P49,000,000 c. P43,500,000
b. P48,000,000 d. P58,000,000

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