* Happy Department Store uses the retail inventory method to approximate the lower of cost or market. The fo
Cost of goods available for sale
net markups (excluded from goods available for sale)
TGAS
Net markdowns (excluded from goods available for sale)
Sales
Ending inventory at retail
Ending inventory at cost
What was the appropriate inventory at the lower of average cost or minute at August 31
*
An entity cultivates cattle as livestock for meat and sells the cattle to slaughterhouses. On December 31, 2020
costs of sale of P1,500 per heifer. The fair value less costs to sell of the herd on December 31, 2021 is P750,00
The net amount to be recognized in 2021 profit or loss related to these biological assets is?
Dec. 31, 2021 FV
Dec. 31, 2020 FV
2021 Calves
Ten Heifers Sale price
Cost to sell
FV less cost to sell
Ten Heifers
*
The Night Company imported an equipment at a peso equivalent to P330,000. The company has to pay additio
intended use include P2,000 transportation cost, P3,000 installation and P1,000 testing and trial run costs.
Equipment
Import duties
Non-refundable taxes
Transport cost
Installation
Testing
*
M Company borrowed P3,000,000 on a 10% note payable to finance a new warehouse which the entity is cons
accumlated expenditures on the new warehouse totaled P4,750,000. What amount of interest should be capit
, Average expenditures
Less: Specific borrowing
General borrowing
Interest - Gen. borrowing
Interest - specific borrowing
*
On January 1, 2021, G Company contracted with a contractor to construct a building for P20,000,000. G Comp
The entity made the following payment during 2021:
Jan. 1
Mar. 31
June. 30
Sept. 30
Dec. 31
Average Expenditures
Less: Specific borrowing
General borrowing
Interest - general
Interest - specific
Capitalized
The entity had the following debt outstanding on Dec. 31, 2021:
12% 4-year note dated Jan. 1, 2021, both principal and interest due Dec. 31,
a.
2024, relating specifically to the building project
10% 10 year note dated Dec. 31, 2020 with simple interest and interest
b.
payable annualy on Dec. 31
12% 5-year note dated Dec. 31, 2020 with simple interest and interest
c.
payable annualy on Dec. 31
What total amount of interest should be capitalized as cost of the building on Dec. 31, 2021? (Round two de
* B Company exchanged a delivery truck costing P1,000,000 for a parcel of land. The truck had a carrying amoun
entity gave P600,000 in cash in additionto the truck as part of this transaction. It is expected that the cash flow
different. The previous owner of the land had listed the land for sale at P1,200,000. At what amount should B
FV of asset given
Cash
Land Cost
,* Presented below is the information related to Carny, Incorporated:
Beg. Inventory
Purchases
Purchase returns
Purchase discounts
Freight-in
Mark-ups
Mark-up cancellation
TGAS
Markdowns
Markdown cancellations
Employee discounts granted
Loss from breakage
Sales (net of employee discounts)
Sales return
Ending inventory at retail
Ending inventory at cost
Assuming Carny, Inc. uses the conventional retail inventory method, how much is the ending inventory?
* Sultan Co. uses retail inventory method to estimate its inventory for interim statement puposes. The following
Beg. Inventory
Net purchases
Net mark-ups
Net markdowns
TGAS
Sales
Sales return
Employee discount
Normal shortage
Ending inventory at retail
Ending inventory at cost
Sales discount
Estimated cost of ending inventory using average approach is?
, *
Night Company bought a new machine and agreed to pay for it in equal annual installment of P500,000 at the
periods is 0.5
Annual installment
PV of ordinary annuity
* Wishful inventory shows the following information at Dec. 31, 2020
Beg. Inventory:
Cost
Retail
Purchases:
Cost
Retail
Freight-in
Mark-up
Mark-up cancellation
TGAS
Mark down
Mark down cancellation
Sales
Estimated normal shrinkage
Ending inventory at retail
Wishful uses the retail inventory method of valuing its inventory. How much is the estimated ending cost of
*
In 2018, a farmer purchased a mango plantation at P100,000, which approximates its fair value less costs to se
improved, but the trees has mangoes on it worth P42,500. On June 30, 2020, the farmer harvests, at a cost of
trees (e.g., fertilizer, water, etc.) amounting to P7,500, P5,000 and P2,500 in the years 2018, 2019 and 2020, re
The carrying amount of the biological assets as of December 31, 2019 is?
Dec. 31, 2018 FV less cost to sell
Trees with mangos
* Light Company has recently purchased a computer system for its office. The following information were gathe
List price
Cost of goods available for sale
net markups (excluded from goods available for sale)
TGAS
Net markdowns (excluded from goods available for sale)
Sales
Ending inventory at retail
Ending inventory at cost
What was the appropriate inventory at the lower of average cost or minute at August 31
*
An entity cultivates cattle as livestock for meat and sells the cattle to slaughterhouses. On December 31, 2020
costs of sale of P1,500 per heifer. The fair value less costs to sell of the herd on December 31, 2021 is P750,00
The net amount to be recognized in 2021 profit or loss related to these biological assets is?
Dec. 31, 2021 FV
Dec. 31, 2020 FV
2021 Calves
Ten Heifers Sale price
Cost to sell
FV less cost to sell
Ten Heifers
*
The Night Company imported an equipment at a peso equivalent to P330,000. The company has to pay additio
intended use include P2,000 transportation cost, P3,000 installation and P1,000 testing and trial run costs.
Equipment
Import duties
Non-refundable taxes
Transport cost
Installation
Testing
*
M Company borrowed P3,000,000 on a 10% note payable to finance a new warehouse which the entity is cons
accumlated expenditures on the new warehouse totaled P4,750,000. What amount of interest should be capit
, Average expenditures
Less: Specific borrowing
General borrowing
Interest - Gen. borrowing
Interest - specific borrowing
*
On January 1, 2021, G Company contracted with a contractor to construct a building for P20,000,000. G Comp
The entity made the following payment during 2021:
Jan. 1
Mar. 31
June. 30
Sept. 30
Dec. 31
Average Expenditures
Less: Specific borrowing
General borrowing
Interest - general
Interest - specific
Capitalized
The entity had the following debt outstanding on Dec. 31, 2021:
12% 4-year note dated Jan. 1, 2021, both principal and interest due Dec. 31,
a.
2024, relating specifically to the building project
10% 10 year note dated Dec. 31, 2020 with simple interest and interest
b.
payable annualy on Dec. 31
12% 5-year note dated Dec. 31, 2020 with simple interest and interest
c.
payable annualy on Dec. 31
What total amount of interest should be capitalized as cost of the building on Dec. 31, 2021? (Round two de
* B Company exchanged a delivery truck costing P1,000,000 for a parcel of land. The truck had a carrying amoun
entity gave P600,000 in cash in additionto the truck as part of this transaction. It is expected that the cash flow
different. The previous owner of the land had listed the land for sale at P1,200,000. At what amount should B
FV of asset given
Cash
Land Cost
,* Presented below is the information related to Carny, Incorporated:
Beg. Inventory
Purchases
Purchase returns
Purchase discounts
Freight-in
Mark-ups
Mark-up cancellation
TGAS
Markdowns
Markdown cancellations
Employee discounts granted
Loss from breakage
Sales (net of employee discounts)
Sales return
Ending inventory at retail
Ending inventory at cost
Assuming Carny, Inc. uses the conventional retail inventory method, how much is the ending inventory?
* Sultan Co. uses retail inventory method to estimate its inventory for interim statement puposes. The following
Beg. Inventory
Net purchases
Net mark-ups
Net markdowns
TGAS
Sales
Sales return
Employee discount
Normal shortage
Ending inventory at retail
Ending inventory at cost
Sales discount
Estimated cost of ending inventory using average approach is?
, *
Night Company bought a new machine and agreed to pay for it in equal annual installment of P500,000 at the
periods is 0.5
Annual installment
PV of ordinary annuity
* Wishful inventory shows the following information at Dec. 31, 2020
Beg. Inventory:
Cost
Retail
Purchases:
Cost
Retail
Freight-in
Mark-up
Mark-up cancellation
TGAS
Mark down
Mark down cancellation
Sales
Estimated normal shrinkage
Ending inventory at retail
Wishful uses the retail inventory method of valuing its inventory. How much is the estimated ending cost of
*
In 2018, a farmer purchased a mango plantation at P100,000, which approximates its fair value less costs to se
improved, but the trees has mangoes on it worth P42,500. On June 30, 2020, the farmer harvests, at a cost of
trees (e.g., fertilizer, water, etc.) amounting to P7,500, P5,000 and P2,500 in the years 2018, 2019 and 2020, re
The carrying amount of the biological assets as of December 31, 2019 is?
Dec. 31, 2018 FV less cost to sell
Trees with mangos
* Light Company has recently purchased a computer system for its office. The following information were gathe
List price
