What total amount should be reported as cash on

9. What total amount should be reported as
cash
on December 31 , 2018?
a. 3,550,000
b. 3,000,000
C.
4,050,000
d. 5,550,000
I 0. What total amount should be reported as cash equivalents on December 3 L 20 18 ':'
0

Numbers 11
and 12
t'age 4
An entjty began opera t io ns o n Ju.nuary
I.
201 R. On Deccmher 31 . .
douht ful a cc ounts based nn I o 'o (If n nnu ul
crf' · '1 ·1
s·1 1l e•
<)
J. •, 22 018 , the e ntit y pr ovide d for
th d
f .
u
J .
n
u nu11ry OI 9 th .
me o o de tcr1111111n g the . lll(l\\an cc fo r dnuhtful
ucn,11111 ~
hy
l .
1· . ' e e~t1ty ch anged the
Da~•s pust im oicc·
d111t·
0 -
30
JI - -> O
91 - l SO
O, r r l S()
·
1
K
111 g
o
u cc ount s recc,v .ible .
P~n · cnt 1uu·oll cc tihlc
5
20
80
1 . 11
additil' ll .
the
L 'lllity wrote
off all
accounts rcceivahlc over
tl,llo, nn ~ aJJirri ln : tl inforrn ,lli on :
year o ld . Th e.: entity
pr ovided th e
Credit
sales
ol k crions. including recovery
Accowits \\Ti(len off
Recovery of accounts previously written o ff
Days past in" oice date at Dec ember J I
0 - 30
31 -
90
91 - 180
Over
1 80
11 .
What
is
the allowQilce
for do ub tfu l accou nt s on December 3 1 2019 ?
a.
60,000 ' - ·
b. 78,000•
C.
58,300
d. 54,000
2019
6,000,000
5,830,000
50,000
10 , 000
2019
600 , 000
160, 000
120 , 000
50 , 000
12. What amount should be reported a doubtful accounts expense for 20 I 9?
201k
5,600,000
4,800,000
None
No ne
2018
500 , 000
180, 000
90 , 000
30 , 000
I
I') .-
I ,
V -
r--..,
er
Numbers 13 and 14
On August
31,
2018,
an
entity discounted with recourse a note at the bank at discount
rate
of
15%.
Toe
note
was
received from the customer on August 1, 2018 for 90 days with face amount of P9,000,000
and an interest rate of 12%. The discounting transaction is accounted for as secured borrowing. The
customer paid
the
note to the bank
on
October
30, 20 I 8, the
date
of
maturity.
13 . What is
the
interest expense to be recognized on August 31, 2018?
750
14 . The
entry on October
30, 2018
will include
7 l 1,\-
I
.
of
che
a. Debit
note receivable discounted P~,000,000.
b. Debit liability for note receivable discounted
P9 , 038,250
c.
Credit
cash
P9,000,000. . 9
000 000
~
d. Debit liability for eote receivable d1Scounted
.
p ' ' • ,

On December
11
• :!O
1
~- 1111 entity hn-.
11
5-ycer
lo llll
mceiv1 1blc with a fit ce amount of P6 000 000 dated
Jnnunry 1. 2017 th at 1s due
,n l) ·
h JI 7. 021 · ' '
. • •
1
o~em er . , . .
lntrrc f! t on the loan 1s payable at 9% every
Deccmhcr_
1
1 I h t' b or row~r pnid thC'
intere-it
1l1111 "' ,, due
on Uccc mh cr ) I, 2017
but
informed the
bank _t~at 111IC'rl' SI nc crned 111 ~ 0IH will he
paid
1 11 m11turi1 y d, ,l c There is a high probability that th e
re~a1111'.1 g 111tl'l'l :s _1 pny~1cnt s will
r~lll
h~ p, ~i _d
bec 1111 . 'l~
n
fin, 11i Li:d
di fli c ult y The prevailing market rate
of interest
llll
I >u ;cmhcr 11 . 2018
1s
IO ½, I hC' P" ol I f11r thr ee periods is 77 al 9% a nd .75 at I 0%.
I) . \\'h:rt is
till' 111 , 111 i111p111rn1rn1
l11s ~ for 2 t1IX '.' /
1
,
,I
I .<,.15. P(Hl
b.
1,S ll -1.2 \\ tl
l'
I • .1 X ll .t llll)
d. I. "lhl.000
If \\'ha t
i~
thL ' intal' st
111romc
for 20 I'> ?
Number
17
An
entity reported the December 31 , 2018 inventory at F3 ,000,000. The entity revealed
the
following