36. Kiwi Corporation reports the following information: • Correction of overstatement of depreciation expense in prior years, net of tax- P215,000 • Dividends declared- P160,000 • Net income- P500,000 • Retained earnings, 1/1/21, as reported- P1,000,000 Kiwi should report retained earnings, December 31, 2021 at a) P785,000. b) P1,125,000. c) P1,340,000. d) P1,555,000.-answer
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36. Kiwi Corporation reports the following information:
• Correction of overstatement of
• Dividends declared- P160,000
• Net income- P500,000
•
Kiwi should report retained earnings, December 31, 2021 at
a) P785,000.
b) P1,125,000.
c) P1,340,000.
d) P1,555,000.-answer
44. Pineapple Company provided the following information on December 31, 2020:
• Accounts payable amounted to P500,000 and accrued expenses totaled P300,000 on Dec. 31,
2020.
• On Dec. 15, 2020 the entity declared a cash dividend on P7 per share on 100,000 outstanding
shares, payable on Jan. 15, 2021.
• On Jul. 1, 2020, the entity issued P5,000,000, 8% bonds for P4,400,000 to yield 10%. The bond
mature on June 30, 2025 and pay interest annually every June 30.
• The pretax financial income was P8,500,000 and taxable income was P6,000,000. The difference is
due to P1,000,000 permanent difference and P1,500,000 of taxable temporary difference to
reverse in 2021
• The income tax rate is 30%. The entity made estimated income tax payments during the year of
P1,000,000.
What amount should be reported as total current liabilities on December 31, 2020?
a) P2,300,000
b) P2,500,000-answer
c) P2,700,000
d) P3,500,000
48. The following accounts and their balances appear in an unadjusted
as of December 31, 2020.
• Cash and cash equivalents- P400,000
• Inventory- P500,000
• Trade and other receivables- P2,000,000
• Trade and other payables- P670,000
• Subscription receivable- P375,000
• Income tax payable- P196,500
Additional information:
Trade and other receivables include long-term advances to company officers amounting to
P430,000.
The subscription receivable has the following call dates: June 30, 2021, P200,000; December 31,
2021, P100,000; and June 30, 2022, P75,000.
Inventory of P500,000 was determined by physical count. On December 31, 2020, goods costing
P125,000 are in transit from a supplier. The terms of purchase of said goods are FOB shipping
point. The goods and the related invoice have not been received as of year-end.
Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is
payable in cash and P100,000 is distributable in Melon’s own shares.
The total current assets at December 31, 2020, is
a) P2,670,000
b) P2,595,000
c) P2,895,000-answer
d) P2,770,000
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