Afar Test Bank Afar Test Bank

lOMoARcPSD|4644109
AFAR-Test-Bank - AFAR Test Bank
Bachelor of Science in Accountancy (University of Caloocan City)
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lOMoARcPSD|4644109
AFAR(PROBLEMS)-TestBanks Questions
.Th
1 eELICor
por
at
io
nisu
nde
rgo
ingl
i
qui
dat
i
ona
ndi
t
sst
at
eme
nto
ffi
nan
cia
lpo
sit
i
ona
sofJ
anu
ary2
,20
13i
s
a
sfo
ll
ows:
ELICor
pora
ti
on
St
at
ementofFi
nanci
alPosi
ti
on
AsofJanu
ary2,2013
Ass
ets Li
abil
it
iesandEqui t
y
Cas
h P124
,200 Acc
o un
tsPay abl
e P118
,500
Rec
eiv
abl
es,n
et 3
40,80
0 Sal
ari
esPa y
a bl
e 50,00
0
I
nven
tor
y 70,00
0 BankLoanPa yabl
e 2
22,00
0
Pr
epai
dExpen
ses 22,50
0 Not
ePa yabl
e 80,00
0
Bui
l
di
ng,ne
t 3
60,00
0 BondsPayab l
e 4
50,00
0
Good
wil
l 82,00
0 Or
dinar
ySh a r
es 1
20,00
0
Capi
tal
De fi
ci
t (
41,
000)
T
ota
lAs
set
s P9
99,
500 To
talLi
abil
i
ti
e sandEqui
t
y P999
,500
Theinve
nto
ryhasar eal
iz
abl
ev a
lueofP53,
000.Ofth
ea cc
ount
spay
able,P60,
000isse
cure
db y1/
4o ft
he
re
ceiv
abl
ewh i
chis30%n otc
oll
ect
i
ble
.Thebal
anceint
heb o
okval
ueoft
her ec
eiv
abl
eswhi
chhasareal
i
zabl
e
val
ueofP235,
000isuse
dtosecur
etheban
kloanpay
abl
e.Thebo
ndspa
y a
bleissec
ure
dbythebui
l
di
nghavi
nga
bookval
ueofP360,
000andareal
i
zabl
eval
ueofP375
,000.
Unr
eco
gni
zedl
iab
il
it
i
esasofJa
n.2,2
013ar
easf
ol
lo
ws:acc
rue
din
ter
esto
nbondspay
abl
eandt
axe
samount
in
g
t
oP4,0
00each
,andtr
ust
ee’
ssal
ar
yamoun
ti
ngt
oP9,
500
.(Uset
wodeci
malpl
ace
sfo
rther
eco
ver
yper
cen
tag
e)
Ho
wmu
chwi
l
lbep
aidt
oth
epa
rt
ia
ll
yse
cur
edc
red
it
or
sof
ELI
cor
por
at
io
n?
A.P477,
595
B.P479,
102
C.P478,
349
D.P480,
669
.OnNo
2 v
ember1,20
13,Goo
dbyeToY
ou(GTY)I
nc.
’
str
ust
eepr
epa
resaSta
tement
ofAff
air
swi
tht
hef
ol
lo
win
g
i
nf
or
mati
on:
 P340,
000ca
shwil
lber
ece
ive
dbyth
eunsec
ure
dcre
dit
or
swhos
ecla
imstot
al
edP136,0
00
 Arec
eiv
eda12%no
teo
fP1
24,
000f
r
omGTYo
nMa
rch1
,20
13,s
ecu
redwi
t
hma
chi
ner
ywi
t
hama
rke
t
v
alu
eo f
P11
5,0
00
 GTYis
sue
dtoBa1
2%,1
-ye
arn
oteo
fP1
36,
000o
nJa
nua
ry1
,20
13.No
thi
ngh
asb
eenp
led
gedt
oth
is
not
e.
 Chol
dsanot
eofP137
,50
0o nwhi
chin
ter
esto
fP7,4
52isacc
rue
d,sec
ure
dwithe
qui
pme
ntwi
t
hab
ook
v
alu
eofP1
53,
000.T
hefai
rva
lueo
ftheequ
ipment
isdet
er
min
edtobeP173
,25
0
 GTYs
ti
l
lowe
sD,
it
sca
shi
er
,wi
t
hhe
rsa
lar
ywo
rt
hP1
2,2
20
Wh
icho
fth
efo
ll
owi
ngs
tat
eme
ntsa
bou
tth
ecr
edi
t
orso
fGo
odb
yeT
oYo
uisf
al
se?
A.Th
eunse
cure
dc r
edi
torwi
tho
utpri
ori
tywi
ll
recei
veP37,
400
B.Th
eunse
cure
dc r
edi
torwi
thpr
ior
it
ywill
rec
eiv
eP3 ,
055
C.Th
efu
ll
ysecur
edcred
it
orwil
lbepaidanamountofP14
4,9
52
D.Th
epar
ti
al
lysec
uredcr
e d
it
orwil
lbepai
dana mounto
fP119,
730
.Ag
3 encyAA’
sa l
l
otmen
tandNo
ti
ceofCa
shAl
l
ocat
io
n(NCA)f
ort
heyear
wer
eP5,
000
,00
0andP3,
000,
000
,
r
esp
ecti
vel
y.Chec
ksi
ssu
edamoun
tedt
oP1,
500
,000.
Whatc
los
inge
ntr
ysh
oul
dbemadef
ort
heun
usedNCA
a
sofyear
-end?

lOMoARcPSD|4644109
A.Ca
sh–Na ti
ona
lTre
asur
y,MDS P(1
,00
0,0
00)
Subs
idyi
ncomefr
omNati
onal
Gover
nmen
t P(
1,0
00,0
00)
B.Su
bsid
yincomefr
omNa t
i
onalGo
vern
ment P1,
500,
000
Cas
h–Na ti
onal
Tre
asur
y,MDS P1,
500,
000
C.Su
bsid
yincomefr
omNa t
i
onalGo
vern
ment P3,
500,
000
Cas
h–Na ti
onal
Tre
asur
y,MDS P3,
500,
000
D.Memora
ndume nt
ry
.CCCo
4 rp.
own
sas
ubs
idi
ar
yinJ
apa
nwh
oseb
ala
nces
hee
tinJ
apa
nes
eYe
nfo
rth
ela
sty
ear
sfo
ll
ow:
De
cemb
er3
1,2
012 De
cemb
er3
1,2
013
Asset
s
CashandCa sheq
uiv
ale
nts ¥30,
000 ¥25,
000
Recei
vabl
es 1
22,
500 1
47,
500
I
nvent
ory 1
60,
000 1
70,
000
Pr
opert
ya ndEqui
pment
,net 2
55,
000 2
30,
000
To
talAsset
s ¥5
67,
500 ¥5
72,
500
Li
abil
it
iesandEquit
y
Acc
o un
tsPayabl
e ¥55,
000 ¥75,
000
Lo
ng -
ter
md ebt 3
22,
500 2
85,
000
Commo nst
o c
k 1
15,
000 1
15,
000
Ret
ainedearn
ing
s 75,
000 97,
500
To
talLi
abil
i
ti
esandEqui
ty ¥5
67,
500 ¥5
72,
500
Re
lev
ant
exc
han
ger
at
esa
re:
Ja
nuary1,2
012 ¥1=P4
5
Dece
mb e
r31,201
2 ¥1=P4
2.5
0
Dece
mb e
r31,201
3 ¥1=P4
7.5
0
Sept
ember12,
2012 ¥1=P4
0
CCfo
rmedt
hes u
bsi
di
ar
yonJanua
ry1,20
12.I
ncomeoft
hesub
sid
iar
ywasear
nede
venl
yth
roug
houtt
heyea
rs
an
dthesub
sid
iar
ydecl
ar
eddi
vi
dendswor
th¥15,
000onSept
ember12,2
012andnon
ewe r
ed e
cla
redd
uri
ng
20
11.Ho
wmu chi
sth
ecumul
at
iv
etra
nsl
at
io
na d
jus
tmen
tfo
r20
13?
A.P5
68,
750
B.P8
75,
000
C.P6
25,
000
D.P1
,00
6,2
50
.OnOc
5 t
ober3
1,2013
,Pyra
midPhi
l
ipp
ine
stookdel
i
ver
yfr
omaBri
ti
shfi
r
mo fi
nve
n t
oryc
ost
ing£
725,
000
.
Pay
menti
sdueonJanu
ary31,
2014.
Atthes
a met
ime,
Pyra
midp
aidP8,2
50cashtoacq
uir
ea90-
daycal
l
op
ti
onf
or£725
,00
0.
Oct
obe
r31,
2013 De
cember3
1,2
013 Ja
nuary3
1,2
014
St
ri
kePric
e P3.
60 P3.
60 P3.6
0
Spo
t Rat
e 3.
61 3.
62 3.
64
Fo
rwa r
dRate 3.
72 3.
77 3.
78
Fa
irVal
ueo f
Cal
lOpt
io
n P8 ,
250 P17,
000 ?
Gi
ventheinf
or
mat
io
na b
ove
,co
mputef
ort
hef
ol
lo
win
g:
F
ore
igne
xchan
gegai
norlossonopt
i
oncont
ra
ctdu
etocha
ngeintimeval
ueonDec
emb er3
1,2013i
fchan
gesi
n
t
het
imeval
uewil
lbeexcl
udedfr
omtheass
essme
ntofhe
dgee ff
ect
iv
enes
s,andf
ore
ignexch
angeg a
inorl
oss
d
uetochan
geinint
ri
nsi
cva l
ueonJanu
ary31,201
4ifcha
nge sinthet
imeval
uewil
lbee x
cl
u d
edfro
mt h
e
a
sses
sment
ofhedg
eeff
ecti
venes
s.

lOMoARcPSD|4644109
A.P1 ,5
00gain;P7,250gai
n
B.P1 ,5
00gain;P14,500gai
n
C.P5 ,2
50loss;P7,25
0g ai
n
D.P5 ,2
50loss;P14,5
0 0gai
n
.OnMa
6 y1 ,2013
,PERF ECTCo .ant
ici
pat
e dthepur
chaseof8 5
,000unit
so fmer
chan
dis
efrom afor
ei
gn
v
endo
r.Thep u
rchas
ewo u
ldp r
obabl
yo ccuronOc t
ober28,2013a n
dr equi
ret
hepaymentof1,
250,
000
f
or
ei
gnc u
rr
enci
es(FC).OnMa y1 ,
2013,th
ec ompanypur
chasedacallo
p t
i
ontobuy1,
250,
000F
Ca tast
ri
ke
p
ri
ceof1FC=P0 .27.Ano pti
onpremiu
mo fP1400
0wa sp a
id.Changesinthev
alu
eo ft
heopti
onwil
lbe
e
xcl
udedfr
omtheassessmentofhedgeeff
ecti
ven
ess.F
ortheyear20
13,thefo
ll
owi
ngrat
esar
easfol
lo
ws:
May1 May31 Ju
ne30 Oc
tob
er2
8
Spo
tRate P0.2
5 P0.2
8 P0.3
0 P0.
32
St
ri
kePri
ce 0.
27 0.
27 0.
27 0
.27
FVofca
llo
pti
on P1
4 ,
000 P1
7 ,
500 P39,
000 ?
Th
efo
rei
gne
xch
ang
ega
in(
l
oss
)ono
pti
onc
ont
r
act
tob
ere
cog
niz
edi
n(1
)eq
uit
yan
d(2
)ea
rni
ngso
nJu
ne3
0:
A.P(
25,
000
);P3,
500
B.P(
37,
500
);P21,
500
C.P2
5,0
00; P(
21,
500)
D.P3
7,5
00; P(
3,
500)
.USXCo
7 mpanyb
oughtmer
chand
isef
o r€12
5,0
00fr
omaF r
enchco
mp a
nyonDece
mb e
r1,20
13.Paymen
tin
Eur
oswasdueonFebr
uar
y28,2014.Onthesamed a
te,USXent
ere
dint
oa90-da
yfut
ur
escon
tra
cttobuy
€1
25,0
00fr
omab a
nk.Ex
chan
gerate
sf o
rEuro
sondiff
ere
ntda
tesar
easfo
ll
ows
:
De
cember1
,20
13 De
cember3
1,2
013 Fe
brua
ry2
8,2
014
Spo
tRat
e P91.
40 P92.
70 P91.
90
30
-dayf
ut
ur
es 92.
30 92.
50 93.
20
60
-dayf
ut
ur
es 91.
80 92.
20 92.
60
90
-dayf
ut
ur
es 90.
60 92.
60 93.
40
Ho
wmu
chi
sth
efo
rexg
ain
/l
osso
nth
efo
rwa
rdc
ont
r
act
onF
ebr
uar
y28
,20
14?
A.P1
,00
0,0
00los
s
B.P1
00,
000gai
n
C.P3
7,5
00gai
n
D.P3
7,5
00los
s
Pa
ge4
.Gi
8 vent
hef
ol
lo
win
gin
for
mat
i
on(
For¥
1):
SPOTRA
TES
Bi
dRate Off
erRat
e
Tr
ansact
i
onDate P43 P4 5
Bal
anceShee
tDate 48 4 9
Set
tl
ementDat
e 49 5 5
FORWARDRATES
12
0-d
ayf
ut
ur
es 90
-da
yfu
tur
es 60
-da
yfu
tur
es 30
-da
yfu
tur
es
Tr
ansact
i
onDate P43 P45 P44 P46
Bal
anceShee
tDate 42 46 47 49
Set
tl
ementDat
e 45 48 49 52

lOMoARcPSD|4644109
OnOctob
e r1,2
013,KELCo.sol
dmer
cha
ndi
sewor
th¥2,7
50toaJapa
nesecompa
ny,pay
abl
eonJanuar
y31,
201
4.Tohe d
gethi
sfor
ei
gncur
re
ncyex
pos
ure
,KELcon
tra
cte
dtosel
l¥2
,75
0o nOct
ober1
,2013t
obedeli
ver
ed
onJan
uary31,20
14.Onbal
anc
es h
eet
dat
e,h
owmuchist
henetf
or
exgai
n/
los
sfr
omthi
shedgi
nga
cti
vi
ty
?
A.P2
,75
0lo
ss
B.P2
,75
0gai
n
C.P3
0,2
50l
oss
D.P3
0,2
50gai
n
.Co
9 n
den
seds
tat
eme
ntso
ffi
nan
cia
lpo
sit
i
ono
fLo
veCo
rp.a
ndY
ouCo
rp.a
sofDe
cemb
er3
1,2
013a
rea
s
f
ol
lo
ws:
Love You
Cur
ren
tasse
ts P175
,000 P65,000
Nonc
urr
entas
set
s 7
25,00
0 4
25,0
00
To
tal
asset
s P900
,000 P49
0,000
Li
abi
l
it
ie
s P 65,
000 P35,
000
Commonsto
cks,P20par 55
0,000 3
00,
000
Addi
t
ion
alPai
d-i
ncapi
t
al 3
5,000 25,
000
Ret
ai
nedearn
ings 25
0,000 1
30,
000
OnJ a
nuar
y1 ,2014,LoveCo r
p.is
sued3 5,
000s t
ock
swithama rk
etval
ueo fP25/s
hareforth
ea ss
etsand
l
ia
bil
i
ti
esofYouCorp.Thebookval
uerefl
ect
sthefa
irva
lueoft
heasse
tsandli
abi
li
t
ies,
except
thatt
henoncurr
ent
as
setsofYouh av
ef ai
rv a
lueofP6 3
0 ,
000a ndthenoncur
re
ntasset
so fLoveareo v
erst
ate
db yP30,000.
Cont
in
gentc
on s
ide
rat
ion,whi
chisdet
erminab
le,i
sequalt
oP15,0
00.Lov
ea l
sopaidfo
rthest
ockissu
ancecost
s
wor
thP34,
000andotheracqui
si
t
ioncos
tsa mount
i
ngtoP19,
000.Howmuchisthecombi
nedtot
alasse
tsaf
tert
he
merg
er?
A.P1,
825
,00
0
B.P1,
742
,00
0
C.P1,
772
,00
0
D.P1,
567
,00
0
1
0.Th
efo
ll
owi
ngar
eth
eco
nde
nse
dst
at
eme
nto
ffi
nan
cia
lpo
sit
i
ono
fAy
iz
iel
andVi
ann
eyo
nJa
nua
ry1
,20
13:
Ayi
zi
el Vi
anney
T
ota
lAs
set
s P4
,10
0,0
00 P1,
223
,000
Li
abi
l
it
ie
s 1
,11
0,0
00 3
20,
000
CommonSto
cks 1
,24
0,0
00 5
18,
000
Addi
t
ion
alPa
id-
i
nCap
it
al 50
0,0
00 40,
000
Ret
ai
nedEar
nin
gs 1
,25
0,0
00 3
45,
000
Ci
doCo r
p.acq
uir
edth
en e
tasset
so fb
othAyi
zi
elan
dVi
ann
eybyi
ss
uin
g81,2
50sha
rest
oAyiz
iela
nd22,
550
sh
arestoVia
nney.T
hep a
rv al
ueofthes
es h
aresi
sP3
5/s
har
eandmark
etval
ueasofJa
nuary1,2
013is
P40/
sha
re.Ci
doal
sopai
dfort
hefol
l
owin
ge x
pens
es:
Ayi
zi
el Vi
anney
I
ndi
rec
tco
sts P37
,500 P40,
500
Fi
nder
’
sfe
e 2
6,50
0 1
4,000
Ac
ctg.
Andle
galf
eesf
orSECregi
st
ra
ti
on 13
7,50
0 14
5,000
Pr
in
ti
ngcos
tsof
sto
ckcer
ti
fi
cat
es 5
0,00
0 3
7,500
I
fCi
do’
sre
tai
nede
arni
ngsh
asabal
anc
eo f
P4,3
00,00
0onJa
n uar
y1,20
13,ho
wmu c
hist
he(
1)g
ood
wil
lan
d(2
)
a
dju
ste
dret
ai
nedea
rni
ngst
obep
res
ente
dinth
es t
at
emen
toffi
nan
cia
lpos
it
i
onofCi
do?

lOMoARcPSD|4644109
A.P2
59,
000;
P4,
118,
500
B.P2
60,
000;
P4,
112,
750
C.P0 ; P4,
112
,75
0
D.P2
60,
000;
P4,
182,
500
1
1.Age
ncyXh av
ea nobl
i
gat
ionf
ore
qui
pmen
tperpur
cha
seo r
deramou
nti
ngt
oP8 0
0,00
0.Subs
equ
ent
ly
,th
e
ag
encyli
qui
dat
esth
ee q
uip
menta
cqu
ir
edinf
ul
l.Th
ee nt
ryt
or e
cor
dthi
str
ans
act
ionwoul
dbe(i
gno
retax
i
mpli
cat
i
on)
A.Memorandument
ryi
nRAOCO
B.Ac
co u
ntsPaya
ble 8
00,
000
Cash–Nati
onal
Tre
asur
y,MDS 8
00,
000
C.Su
bs i
dyIn
comefro
mNa t
io
nalGov
ern
men
t 8
00,
000
Cash–Nati
onal
Tre
asur
y,MDS 8
00,
000
D.Obl
i
g at
i
onLiqui
dat
ed 8
00,
000
Cash–Nati
onal
Tre
asur
y,MDS 8
00,
000
1
2.Gi
onCorp
orat
i
onhasi
den
ti
fi
edacti
vi
tycent
er
stowhi
chov
erh
eadc
ost
sar
eas
si
gne
d.T
hec
ost
poo
lamo
unt
s
f
ort
hes
ec e
nte
rsa
ndth
eirs
elec
tedacti
vi
tyd
ri
ver
sfo
r201
3fol
l
ow:
Ac
ti
vi
tyCent
er
s Cos
ts Ac
ti
vi
tyDri
ver
s
Se
t-
ups P6
20,0
00 24
,80
0s e
t-
ups
Ut
i
li
ti
es P9
50,0
00 12
5,0
00ma chi
neh
our
s
No
.ofpar
ts P3
20,0
00 16
,00
0p a
rts
Di
rec
t c
ost
sofpro
duci
ngproductGGa moun
tedtoP7
5,0
00.Thesai
dp r
oductto
ok17,
000di
re
c tl
abo
rhou
rsand
15
,000machi
nehour
stofi
nis
h.Also
,th
ep r
oduct
need
ed7,5
00set-
upsand55 0par
tst
ocompl
ete
.25,
000uni
t
sof
pr
oductGGwerepr
oduce
dd ur
ing2013.Ho
wmu chwast
heful
lc
ostperuni
tofpro
duct
GGu s
ingABC?
A.P1
9.0
7
B.P1
6.0
7
C.P1
5.5
0
D.P1
2.5
0
1
3.Du
ri
ngAp
ri
l20
13,
Fai
t
hfu
ll
yIn
c.i
ncu
rr
edt
hef
ol
lo
win
gco
stsf
orJ
ob5
22(
450d
rums
ets
):
Di
rec
tmate
ri
als P4
2,5
00
Di
rec
tla
bor P6
5,2
50
Fa
ctor
yover
head P7
8,3
00
4
5u n
it
sofd
rums
etswe
ref
oun
dtob
ede
fec
ti
vea
ndF
ait
hf
ul
lyI
nc.h
adt
oin
curt
hef
ol
lo
win
gtor
eme
dyt
hes
aid
d
efe
cts
:
Di
r
ect
mat
eri
al
s P1
3,5
50
Di
r
ect
Lab
or P1
5,2
50
I
ft
her
ewo
rkc
ost
isn
orma
lbu
tsp
eci
fi
ctoJ
ob5
22,
thec
ost
per
fi
nis
hedu
nit
is:
A.P575
.68
B.P497
.75
C.P484
.22
D.P518
.11
1
4.Su
per
humanCo
.pr
ovi
dedt
hef
ol
lo
win
gda
ta:

lOMoARcPSD|4644109
Di
r
ectmat
eri
al
s P45
0,000
Di
r
ectl
abor P52
0,000
Ov
erh
eadrat
ewit
hou
tspoi
l
age P5.
50perun
it
Ov
erh
eadrat
ewit
hspoi
l
age P7.
50perun
it
Un
it
spro
duced 12
0,00
0
Sup
erhumand
onott
ypi
call
yexpe
ctsp
oil
agei
nit
spro
duct
ionp
roc
ess
.OnJob912
,thec
ostoft
hes
poi
l
edun
it
sis
P52
,200
,butt
hedis
posalval
ueoft
heseuni
t
swe r
ed e
ter
min
edtobeP2
4,00
0a ndP17,
000wer
efo
undt
ob e
ab
normalc
ost
sof
spoi
la
ge .
Howmu c
histh
etot
alc
ostofgo
oduni
t
s?
A.P1
,57
7,8
00
B.P1
,81
7,8
00
C.P1
,60
6,0
00
D.P1
,84
6,0
00
1
5.An
alo
gHe
art
Inc
.ma
kest
hr
eep
rod
uct
sfr
omma
ngo
esi
tha
rve
sts
:
Un
it
sof
out
put Sel
l
ing pr
i
ce a
tIncr
ement
al F
ina
lse
ll
i
ngp
ri
ce
sp
li
t-
off pr
oces
si
ngco
sts
Mangos
hake 5
,25
0 P3 P2 P7
.50
Dr
ie
dma ng
oes 2
,00
0 P1.
50 P2.
50 P3
I
cecand
y 7
50 P2.
50 P0.
50 P3
Wh
icho
fth
efo
ll
owi
ngi
sfa
lser
ega
rdi
ngp
roc
ess
ingt
het
hr
eep
rod
uct
sbe
yon
dsp
li
t-
offp
oin
t?
A.Th
ec ompan
yc anei
thersel
lt
heic
eca
ndyats
pli
t
-offorpr
oce
ssitf
ur
th
erandsel
li
tatP3b e
caus e
t
heinc
rement
alpro
fi
tiszer
o
B.I
ft
hed r
ie
dma ngoesarepr
ocess
edbe
yonds
pli
t
-off
,thecompan
ywil
lhav
ea ni
ncr
ement
a l
profi
tof
P1
C.Th
ec ompanyshoul
dp roc
essthema
ngoshak
ef urt
herbec
auseanincr
ement
alpr
ofi
tofP2 .
5 0
wou
ldbereal
i
zed
D.Noneoft
hesta
tementsisf
al
se
1
6.GBXInc.
’scap
a c
it
yforamo nt
his40,
000machin
ehours.
Overhea
dis40%v ar
i
a b
leand6 0
%fixe
d.Duri
ng
Ju
ne20 1
1 ,
GBXp rodu
ced3 ,
500unit
sofi
tspr
oduct
andincur
re
d3 8,
000machi
neh o
urs.Eachun
ito
fa
pr
oduc
t r
equi
res12ma c
h i
neh o
urs.
Unfav
orab
lenon-
cont
rol
l
abl
evari
ancefo
rthemonthofJunei
sP28,
500.
Whati
sthecomp a
ny’
sv ari
abl
eover
headrat
e?
A.P2 3.7
5
B.P1 9.7
5
C.P1 4.2
5
D.P9 .50
1
7.Thef
ol
lowingdat
awe r
et akenfr
omthereco
rdsofSweetSer
endi
pit
yCo .b
efo
rethea c
countsa
recl
osedfo
r
t
heyearendedDe c
emb er31,201
3.Thecompanyusest
heinst
al
lmentmet
hodo fr
ecogni
zi
ngrev
enueandi
t
se
ll
sgoodsexcl
usi
vel
yo ninst
al
lmentb
asi
s.
Fo
rtheyearend
ed:
Dec
emb er31
,2011 Dec
ember3
1,2
012 Dec
ember3
1,2
013
I
nst
al
lmen
tSal
es ? P5
00,0
00 P6
00,0
00
Cos
tofGood
sSol
d 30
0000 ? ?
Bal
ance
sa sof
:
Dec
emb er31
,2011 Dec
ember3
1,2
012 Dec
ember3
1,2
013
I
nst
al
lment
AR,
201
1 P35
0,000 P1
25,0
00 P3
5,00
0
I
nst
al
lment
AR,
201
2 P3
07,5
00 P1
40,0
00
I
nst
al
lment
AR,
201
3 P4
90,0
00
DGP,20
11 P1
22,
500 P4
3,7
50 P4
3,75
0

lOMoARcPSD|4644109
DGP
,20
12 P1
23,
000 P1
20,
000
DGP
,20
13 P2
10,
000
OnJanu
ary201
3,acust
omerdef
aul
te
dandSweetSer
end
ipi
t
yrepos
sess
edthemerc
han
dise
.Themerch
andi
se
wasass
essedt
oh a
veac ostofP4,
200af
terc
o s
tsofr
econd
it
io
nin
ga mo
un t
i
ngtoP800.Therep
osses
sed
mer
chan
dis
ewa spu
rch
asedbythecust
ome
rin2012andth
es a
idcust
ome
rs t
i
llo
wedthecompa
nyac er
tai
n
amou
ntatt
hedat
eofr
eposs
essi
on.
Ho
wmu
chwa
sth
ere
ali
zedg
ros
spr
ofi
tan
dlo
sso
nre
pos
ses
si
oni
n20
13?
A.P1 3
4,00
0; P3 0
0
B.P1 3
4,00
0; P1
,10
0
C.P1 3
7,00
0; P3
,30
0
D.P1 3
7,00
0; P4
,10
0
1
8.MabiCor
p.wascont
rac
tedbyMr.Tri
st
anP.t
ocons
tr
uct3
5co
ndomin
iumun
it
s.Thee
sti
mat
edt
ota
lcostof
co
nst
ruct
i
onwa sP28,
000,
000.Mabibi
l
lsi
tscl
i
ent
sat120
%ofto
talc
ost
sest
ima
tedt
ocompl
et
eap r
oj
e c
t.
Det
ai
lsr
egard
ingt
hecont
rac
taregi
venbel
ow:
Uni
t
sfi
nis
hed Cos
tsi
ncur
re
dtod
ate Es
ti
mate
dc o
sta
tco
mpl
et
io
n
2
011 10 P8
,412
,50
0 P3
3,6
50,00
0
2
012 18 P2
0,73
5,0
00 P3
1,9
00,00
0
2
013 7 P3
1,50
0,0
00 ?
Wh
ati
sth
eRGPd
uri
ng2
012u
sin
gth
eou
tpu
tme
asu
res
?
A.P1 ,105,
000
B.P1 ,700,
000
C.P1 ,360,
000
D.P1 ,410,
000
1
9.OnDe cember1, 2 013 ,Dewyz eI nc.autho
rizedCo oktoo p era tea safranchi seforanini
ti
alf
ranchi
sefeeo f
P3,4
0 0
,000.P90 0 ,
0 00wa srec eiv
e dup o
ns i
g nin gth econ tr
a c t,andtheb alan ceist
ob ep ai
dbyan on-i
n t
erest
bear
ingnote,duei nfivee quala nnua l
inst
all
me n t
sb egi
nnin gDe ce mber31 , 2014.Prevai
l
ingma r
ketrat
ei s
12%.PVf act
oris3 .
60 478.Th ed ownp ayme nti
sn o nr
efun da blea nditr
e pr
e se nt
saf a
irme as
ureofthe
ser
vicesal
readyp erf
orme dbyDe wy ze,howe ve r,wi t
hrega rd stot heba l
anc e, su
b s
tant
ialf
utur
es e
rvic
e sare
st
il
lr
e q
u i
r
ed.Ho wmu chisthed ef
e r
redfranc hi
ser e venuet ob er ecogni
zeda so fDecemb er31
,2 013?
A.P1 ,802,
390
B.P2 ,702,
390
C.P2 ,500,
000
D.P1 ,518,
677
2
0.Art
emu sCo.ope r at
esab ranchi nMa n i
l
aCi t
y.OnDe cemb er3 1,2 013,theMa nil
ab r
a n
chintheh omeo ffic
e
booksshowedad e bi
tb al
anc eo fP5 22,1
1 0.Th ein te
roffic
ea ccountswe rei na gr
eeme ntatt
heb eginni
ngo f
th
ey ear
.Forpurp o seso fr
eco n c
il
ingtheinteroffic
ea ccoun t
s , thefoll
owingfa ctsweregiven:
 Sh ipmentsfro mh omeo ffic
et oMa nil
ab ra nchc o s
tingP7 2 ,
500we r
ei ntransi
ta sofyea r
-end.Ma n i
l
a
recor
dedthes aidtransf
er twicea tcost
: oneo nDe cemb e r31, 2013an dt heo t
heronJ a
nuary1, 2
0 14.
 Th eh omeo fficea l
locate
dt oth eMa ni
lab ra nch¾o ft her entexpens e sitpai
dfo rt
hey earended2 01 3.
Therentexp e nsewa sP2 4 ,
000 .Theh o meo ffic
es en tad e bi
tme mot oMa ni
l
aforthea l
l
oc a
teda mou nt,
butthebranchr ecordedth es aidd e
bitme mob ydebi t
ingt h eh o
meo ffic
e–c ur
rentaccountandc r
edit
ing
rentpaya
ble.
 Th eb r
anchwr ote-offunc
o llec
tibl
ea ccou nt
sa mo unti
ngt oP1 0,120.Thea ll
owancefordoubtf
ulaccountsis
ma i
ntai
nedint h ebo okso f t
heh omeo ffic
e. T heh omeo ffic
er ecor
d edth ewr i
te-
offasawrit
e-offo
f i
tsown
account
srec e i
vab l
e.
 Th eb r
anchc o ll
ecteda ccou ntsrecei
vab lefromh omeo ffice’
sc ust
ome rsa mounti
ngtoP5 2,
920, n
e tof2 %
cashd i
scoun t.Th eb r
anc ht r
e at
edt hes aidt ra ns
a c
tiona sifitwa sac oll
ecti
onfromitsownc u
s t
ome rs.
Theh omeo fficewa sn ot
y e tnoti
fi
edof t
h es a i
dc o
ll
ect i
on .
I
ti
sth
ep ol
ic
yo ft
hehomeoffic
etobi
l
lit
sbr
anche
sat20
%a bov
ecos
t.Whati
sth
eun
adj
ust
edb
ala
nceo
fth
e
h
omeoffic
e-cu
rr
e n
tac
coun
tint h
eboo
ksofMani
l
abran
chonDe
cembe
r31,2
013?

lOMoARcPSD|4644109
A.P4
75,
990
B.P4
61,
490
C.P4
59,
070
D.P4
63,
650
2
1.OnAugust31
,2009,CheeseCo.i
ss
ued100,0
00sharesofi
t
sP20parval
ueco
mmo nst
ockf
orthenetas
set
s
of
Butt
er,Co,i
nab usi
nesscombi
nat
io
na c
count
edforbyt
hepur
chas
eme t
hod.
Themarket
val
ueo fChe
ese
Co.
’
scommo nst
ockonaug us
t31wasP36pershar
e.Chees
epaidaf
eeofP160,
000t
othecons
u l
t
antwho
ar
ra
ngedthi
sacqu
isi
ti
on.Costof
regi
st
eri
ngandi
ssui
ngtheequ
it
ysecur
i
ti
esamount
edt
oP8 0,
000.No
go
odwi
llwasi
nvol
vedint
hep ur
chas
e.
Wha
tamoun
tshou
ldc
hee
sec
api
t
ali
zea
sth
eco
sto
fac
qui
r
ingBu
tt
er
’sn
eta
sse
ts?
A.P3,
600
,000
B.P3,
680
,000
C.P3,
760
,000
D.P3,
840
,000
2
2.1
00%oftheequ
it
yshar
ecapi
t
a l
oft
heMoonCo.
wasa cq
uir
edbytheRive
rCo.onJul
y30,2
009.Ri
verCo.
i
ss
ued500,
000newP1ord
ina
ryshar
eswhi
chh
adaf a
irv
alueofP8eachatt
heacqui
si
t
ionda
te.I
naddi
ti
on,
t
heac
qui
sit
io
nresu
lt
edi
nRiveri
ncu
rr
in
gfe
espaya
bletoext
ern
aladvi
ser
sofP20
0 ,
000ands
harei
ssu
ec ost
s
o
fP180,
000.
I
na c
cor
dancewi t
hIFRS3 ,Busi
nes
sCo mbi
nat
io
n,goodwi
lla
ttheac
quis
it
i
ondat
eismeasu
redby
subt
r
act
ingtheident
ifi
abl
easset
sacqu
ir
eda n
dthel
iab
il
it
iesas
sumedfr
om
A.P4 ,
000,
000
B.P4 ,
180,
000
C.P4 ,
200,
000
D.P4 ,
380,
000
2
3.OnAp r
i
l1,2010,
Ai l
eenCop ai
dP6 2
0,0
00foral
lt
heiss
ueda n
do ut
st
andi
ngcommonst
ocko
f J
oyCo.ina
t
ra
ns a
cti
onpr
o p
erlyaccounte
da sapur
chas
e .
Therec
orde
da sse
tsandl
iab
il
it
i
esof
JoyCo.onApri
l1,
2 0
10
ar
e:
Cas
h P6
0,0
00
I
nven
tory 1
80,
000
Pr
opert
yande
qui
pment
(net
ofa
ccu
mul
at
edd
epr
eci
at
io
n
o
fP2
20,0
00) 3
20,
000
Goodwi
ll 1
00,
000
Li
abi
l
iti
es (1
20,
000
)
Neta
s s
ets P5
40,
000
OnApr
il1
,201
0,J
oy’
sin
ven
tor
yha
daf
ai
rva
lueo
fP1
50,
000a
ndt
hep
rop
ert
yan
deq
uip
men
t(n
et)
hada
f
ai
rva
lueofP3
80,
000
.
Wh a
tist
hea mountof
goodwil
lr
esul
ti
ngfr
omthebusi
nesscombi
nat
ion
?
A.P1 50,
000
B.P1 20,
000
C.P5 0,
000
D.P2 0,
000
2
4.OnJa n
uary1,2010
,PineCorpacqui
re
dtheneta
sset
so f
Ap pl
eCorp.
inabusi
nesscombi
nat
io
n.Att
hatdat
e,
t
hep r
opert
y,pl
antan
de qui
pmentofAppl
ehadabookval
ueo f
P21,00
0,00
0andaf a
irva
lueof
P22,5
00,0
00.
Th
es easset
swereori
gi
nal
lyacqui
r
eda taco
stof
P3 0
,000,
000,but
wouldpr
ese
ntl
ycostP12,
000,
000.
Usi
ngthepurch
aseme t
hod,whatamount
shoul
dthecombi
nedenti
tyr
epor
ti
tsprope
rt
y,pl
ant
and
equi
pmentaccoun
t?
A.P3 6,
000,00
0
B.P3 0,
000,00
0
C.P2 2,
500,00
0
D.P2 1,
000,00
0

lOMoARcPSD|4644109
Do
leCo
.ha
dth
esea
cco
unt
sat
thet
i
mei
twa
sac
qui
r
edb
yMo
nteCo
.:
Cas
h P36,
000
Acc
ount
srece
iva
ble 4
57,
000
I
nvent
or
ies 1
20,
000
Pl
ant
,pro
pert
yandequ
ipme
nt 6
96,
400
Li
abi
l
it
ie
s 3
50,
800
Mont
epai
dP1,
400
,00
0for1
00%of
thest
ockofDol
eCo.I
twasdet
er
minedth
atf
airmar
ketv
alu
eso
f
i
nve
ntor
i
esan
dpla
nt,
pro
per
tya
ndequi
pment
we r
eP13
3,000an
dP9 0
0,0
0 0
,res
pect
iv
ely
.
2
5.I
nth
ebo
oksofMont
eCo.,t
hi
str
ansa
cti
onre
sul
te
dto
:
A.Good
will
rec
orde
datP441,
400
B.Good
will
rec
orde
datP224,
800
C.Cur
re
nt a
sset
sdecr
ease
dbyP224,
800
D.Cur
re
nt a
sset
sin
crea
sedbyP224,
800
2
6.Th
en et
ass
ets(
exc
lud
ingg
ood
wil
l
,i
fan
y)r
eco
rde
dint
heb
ook
sof
thea
cqu
ir
in
gco
mpa
nywa
s:
A.P1,
400,
000
B.P1,
175,
200
C.P1,
309,
000
D.P 958,
200
2
7.Co
mpar
edwi
tht
heuna
djust
edval
uesr
eco
rdedi
nthebo
okso
fDo
leCo
.,t
hi
str
ans
act
i
onr
esu
lt
edt
o:
A.P224
,80
0moreth
a nr
ecor
dedowner
s’e
quit
y
B.P666
,20
0moreth
a nr
ecor
dedowner
s’e
quit
y
C.P441
,40
0moreth
a nr
ecor
dedowner
s’e
quit
y
D.P224
,80
0le
ssthanrec
ord
edowner
s’equ
it
y
2
8.Assumi
ngMo nt
eCo.paidP1,000
,00
0fort
heneta
sset
sofDol
eCo.,
theexc
essoff
airmar
ket
valu
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ost
was:
A.P1 52,
614
B.P1 75,
200
C.P1 62,
200
D.P1 57,
334
2
9.TheChie
fExecut
iv
eOffic
er(CEO)ofNoyCompan
yiscon
temp
lat
i
ngs e
ll
i
ngthebusi
nesst
onewint
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est
s.
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ati
veearn
ing
sf or
thepast5yea
rsamou
ntedt
oP800,
000.Th
ea n
nualea
rni
ngs,
basedonan
av
eragerat
eofre
tur
noni nv
estment
fort
hi
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ry
,woul
dhav
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enP1 4
5,000
.
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t
ali
zeda
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wha
two
uldb
eth
eimp
li
edg
ood
wil
li
nth
is
t
ra
nsact
i
on?
A.P937,
500
B.P800,
000
C.P187,
500
D.P5 2,
400
3
0.OnJ
uly1
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09,
theb
ala
nces
hee
tof
MixCo
.an
dMa
rtCo
.ar
easf
ol
lo
ws:
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Ass
ets P4
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0,00
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000
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abi
l
it
ie
s 1,
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000 80
0,000
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t
alst
ock
,nopar 2,
000,
000
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t
alst
ock
,P100par 1
,00
0,0
00
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it
ion
alpa
idi
ncapi
ta
l 700
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000
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ai
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gs (
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) 400,
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lOMoARcPSD|4644109
Mi
xCo .ont
hisdat
e,agr
eedtoacq
uir
ea l
lt
heasset
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da ss
umea ll
theli
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li
t
iesof
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n
ex
changefo
rs h
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tockt
hati
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lli
ssue
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cko f
MixCo .
issel
li
nginth
ema r
ketatP50per
sh
are.Theasset
sofMartCo.a
ret
ob eappr
ais
ed,andMixCo.ist
oissueshar
esofit
sstoc
kwitha
mark
etval
uee q
ualtot
hatoft
heneta
s s
etst
rans
fer
re
db yMartCo.Theval
ueo f
theass
etsofMart
Co.,
pera
pp r
ai
sal
incr
easedbyP300,
000.
Onth
eassu
mpti
onth
a t
the“
pur
cha
se”meth
odisa
ppl
i
ed,
thet
ot
all
i
abi
l
it
i
esa
nds
toc
kho
lde
rs’
eq
uit
yofMi
xCo.r
efl
ect
i
ngth
ecombin
ati
onis
:
A.P6,8
00,
000
B.P6,5
00,
000
C.P6,2
00,
000
D.P6,0
00,
000
3
1.Thecapi
tal
stockrefl
ect
ingthecombi
n a
ti
onunderp
u r
chas
eme t
hodis
:
A.P3 ,
000,000
B.P3 ,
300,000
C.P3 ,
500,000
D.P4 ,
000,000
3
2.Inab u
sine
ssco mbinat
ionaccount
edaspurcha
se,Br
ight
Corp.i
ssu
edn o
n-vot
i
ng,non-c
onve
rt
ibl
epref
er
re
d
st
ockwit
hafairval
ueo fP8,000,
000inexc
hangeoral
loft
heouts
tan
dingcommonstockofDi
mCo r
p.Onthe
acqui
si
t
iondate
, Di
mh adtan
g i
bl
enetasset
swit
hac ar
ry
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mo unt
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it
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ghti
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er
redst
ockval
uedatP800,
000t
oa nin
div
iduala
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nder’
sfe
ein
ar
rangi
ngthetr
an s
actio
n .
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esu
lto
fth
ist
r
ans
act
i
on,
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ght
sho
uldr
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rda
nin
cre
asei
nne
tas
set
sof
A.P4,
000,
000
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000,
000
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800,
000
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000,
000
3
3.Pang
asi
nanCo.ac
qui
re d80%oft
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oco
sCo .
foraco
nsi
der
ati
ontr
ans
fer
re
do fP100
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0,0
00.Th
e
co
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der
ati
onwasest
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edt
oin
clud
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ntr
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umo f
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loc
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at
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quis
it
i
ondate
. Aret
hef
oll
owi
ngst
atement
sTRUEorFALSE,ac
cor
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FRS3,Busi
nes
s
Combi
nat
i
on?
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dwi
ll
shou
ldbeme
asu
reda
tP3
2,0
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ft
hen
on-
con
tr
ol
li
ngi
nt
er
est
isme
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reda
tit
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eof
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l
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sets
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2
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dwi
ll
shou
ldbeme
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reda
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4,0
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ft
hen
on-
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tr
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li
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est
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at
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dCo .
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ir
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esti
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rP1,9
60,
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efai
r v
alu
eo f
EasyCo.
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den
ti
fi
abl
e
as
setsa n
dli
abi
li
t
ieswasP700,
000andel
ect
edtomeasu
ret
henon-
cont
rol
l
ingi
nter
esta
tit
ssha
reoft
he
i
dent
ifi
abl
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nuali
mpai
rment
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l
lhav
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lt
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mp a
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mentl
oss
es
be
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Ea
sy’
scur
re
nts
tat
emen
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nanc
ial
posi
ti
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wss
har
eca
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alo
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ese
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et
ai
nedear
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fP1,4
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Unde
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ssCombin
ati
on,
whatfi
gur
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esp
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ood
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ie
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at
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ffi
nan
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n?
A.P1 ,
470,
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B.P 1 60,
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lOMoARcPSD|4644109
C.P1
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00
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0,0
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3
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6.Ma
rsCo.acq
u i
reda70%int
e r
esti
ntheSat
urnCo.fo
r P1
,420,
000whenthefa
irv
alu
eof
Sat
urn
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dent
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set
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abil
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ti
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so,Mar
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qui
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ere
sti
nthePl
ut
o
co.
forP30
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0 0whenthef
airval
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dent
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set
sandli
abi
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ieswasP640
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measur
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o nt
r
oll
i
ngin
tere
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tshareofth
eident
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fi
abl
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it
i
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ther
Satu
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ut
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abi
l
it
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qui
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ean
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ir
va
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nan
cia
lst
at
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ts.
Annua
limpa
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mentr
evi
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ave
not
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t
edinan
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rment
loss
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ngre
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Unde
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sin
essCombi
nat
i
on,
whatfi
guresi
nre
spe
ctofg
o o
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lan
do fg
ain
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arg
ain
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ncl
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emento
ffi
nanc
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posi
ti
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l
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nop
ti
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ent
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ai
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ple
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ti
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ansf
er
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htra
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re
da t
theacq
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ti
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ansf
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ip
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,sothef
ai
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i
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ent
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t
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ar
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Whata
mountsh
oul
dTwi
nprese
ntf
orgo
odwi
lli
nit
sst
at
ement
ofc
ons
oli
dat
edfi
nan
cia
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sit
i
ona
t
Dec
ember31
,2010,
acc
ord
ingt
oIFRS3,Bu
sin
essCombi
nat
i
on?
A.P9 4,
000,
000
B.P8 0,
000,
000
C.P8 4,
000,
000
D.P114,
000,
000
3
8.OnJ
uly1,
2009,
Mini
eCo.
acq
uir
ed100%oft
heMi
ckeyCo
.fo
racon
sid
era
ti
ontr
ans
fer
re
dof
P160
,000
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0.Att
hea
cqu
isi
t
iond
ate
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ry
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,000
,00
0.
Att
heacqui
si
ti
ond a
te,apr
ovi
si
onalf
ai
rval
ueofP120,
000
,000wasatt
ri
but
edt
othene
tasse
ts.
An
addi
t
ion
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o nrec
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edonMa y31,
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ncrea
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alfa
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A.P25,
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lOMoARcPSD|4644109
Mani
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and
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lOMoARcPSD|4644109
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comest
at
emen
tof
HomeOffic
ea n
dBran
chfor
theye
aren
dedDe
cemb
er3
1,
200
9,wha
tamo u
ntoft
hea
bovet
r
ans
act
i
onss
h ouldbei
ncl
ude
dinsal
es?
A.P250,
000
B.P230,
000
C.P200,
000
D.P180,
000
Mar
uCorpor
at
ion
’sshi
pme n
tst
oandf
romit
sDa uCit
ybra
nchareb
il
le
da t1
20%o f
cost
.On
Dec
ember31,Daubranc
hrepo
rt
edth
efol
l
o wingda
taatb
il
le
dpri
ces
:inv
ent
ory,
Janua
ry1,o
f
P3
3,60
0;shi
pmentsre
cei
vedfr
omhomeoffic
eofP840
,00
0;shi
pment
sret
urn
edofP48,
000
;and
i
nve
nto
ry,
Decemb er
31,ofP36
,00
0.
4
5.Whatist
hebal
anc
eof
thea
ll
owa
ncef
oro
ver
-v
alu
ati
ono
fbr
anc
hin
ven
tor
yonDe
cemb
er3
1be
for
e
a
dju
stment
?
A.P 5 ,
600
B.P1 37,
600
C.P 6 ,
000
D.P1 45,
600
Ru thownsth
eBangusFie
stai
nDa gu
panCit
yan dabranchi
nCalasi
ao.Du
ri
ng2 0
09,t
hehome
offic
eship
pedtot
heb r
anc
hs u
ppl
iescos
ti
ngP12 0,
000atabil
l
edpri
ceof20%abovecos
t.T
he
i
n vento
ri
esofsup
pli
esatt
hebran
chwe r
easfo
ll
o ws:Ja
n u
ary1,2
00 9
,P90,
000;Dece
mber31,
2009
,
P1 08,0
00.OnDecember32,2
009,t
hehomeoffic
eholdsi
nvent
or
iesofP16
0,5
00wh i
chi
ncl
udes

lOMoARcPSD|4644109
P1
0,5
00h
eldo
nco
nsi
gnme
nt.
Bot
hlo
cat
i
onsu
set
hep
eri
odi
ci
nve
nto
ryme
tho
d.
4
6.Ho
wmuchi
sth
ein
ven
tor
i
esi
nac
omb
ine
dba
lan
ces
hee
taso
fDe
cemb
er3
1,2
009
?
A.P21
0,0
00
B.P24
0,0
00
C.P27
0,0
00
D.P30
0,0
00
TheUrda
netabr an chofPa
nasi
nanPr
oduc
ts,I
nc.
buysmer
chan
dis
efro
mt h
ir
dpart
ie
sandr
ecei
vesmer
cha
ndi
se
f
romthehomeo ffic
eforwh
ichi
ti
sbil
l
edat20
%a bov
ecost
.Bel
owareexc
erpt
sfr
omthet
ri
alb
ala
ncesa
nddat
a
onth
eh o
meo fficea ndUrd
anet
abranc
hfo
rthemont
hjus
tend
ed:
Ho
meOffic
eBo
oks
:
Cr . All
owanc
eforov
erv
alu
ati
ono
fbr
anc
hme
rch
and
ise P740,
000
Cr . Shipme
nttobr
anch 1,
700
,000
Br
anc
hBooks
:
Dr
. Be ginn
ingi
nven
tor
y P2,
880,
000
Sh
ipment
sfr
omh o
meo
ffic
e 2
,040
,000
Pu
rcha
ses 820
,000
Mo
nth
-endaddi
t
ion
aldat
a:
End
ingi
nvent
or
yofbra nch P2,
920
,00
0
Fromhomeo ffic
eatBP 2
,34
0,0
00
Fromout
sid
er s,atc
ost 58
0,0
00
Fo
rthemont
hjustend
ed:
4
7. Tot
alc
ostofg
o o
dss o
ldUrda
netaBran
ch
Atcost
(netofo
verval
uat
i
on)
A. P2,8
20,000
B. P2,4
00,000
C. P2,7
70,000
D. P2,4
70,000
4
8. Amounto
fall
owancefor
over
val
u a
ti
on
t
hat
wasreal
iz
edfrombranc
hs al
es
A. P400,
000
B. P350,
000
C. P740,
000
D. P390,
000
Ma r
kCompan
yo p
enedit
sManga
ldanBra
nchonJanu
ary1.Mer
cha
ndi
seshi
pment
sfro
mh ome
offic
eduri
ngt
hemonth
,bi
ll
edat1
20%o fcos
t,i
sP1
25,00
0.Bra
nchr
etu
rne
ddama g
edme r
chan
dis
ewo
rt
h
P1 5,62
0.OnJan
uary31,
theb
ranc
hr e
port
edanet
los
so f
P2,2
70andani
nvent
or
yo f
P84,
000.
4
9. Whati
sth
eneti
nco
me(
l
oss
)of
theb
ran
cht
obet
ake
nupi
nth
ebo
okso
fth
eHo
meOffic
e?
A.(P1,
690)
B. P6,
500
C.(P2,
270)
D. P1,
960
. Rupe
rtCorpor
at
io
ne s
tab
li
shedit
sBinal
onanbranc
hinJanu
ary2009.Du
ri
n gi
tsfi
r
s t
ye a
rof
op
erat
i
o n
s ,
homeoffic
eship
pedtoitsBin
alon
anb r
anc
hme r
chandi
sewor
thP1 30,
000wh i
ch
i
ncl
udedama r
kupof 15%onc o
st.Sale
so nacc
ountt
ot
al
edP2 5
0,000whi
lecashsalesamoun
tedt
o
P80
,000.Bi
nal
onanreport
edopera
tingexpen
sesofP38,
000andendi
ngin
v en
tor
yo fP15,0
00,
atbi
l
led
pr
i
ce.

lOMoARcPSD|4644109
5
0. Ins
ofa
rasth
eho
meo
ffic
eisc
onc
ern
ed,
ther
eal
net
inc
omeo
fBi
nal
ona
nis
:
A.P177,
000
B.P8 2,
000
C.P147,
000
D.P192,
000
An
gel
esb
ran
cho
fMDGCo
rpo
rat
i
ons
ubmi
t
tedt
hef
ol
lo
win
gtr
i
alb
ala
ncea
sof
Jun
e30
,20
09:
De
bit Cr
edi
t
Cash P28,
600
Acc
ount
sr ece
iva
ble 173,
800
Shi
pment
sf r
omh omeoffic
e 462,
000
HomeOffic
e–Cu rr
ent P3
24,5
00
Sal
es 369,
600
Expe
nse
s 29,
700
To
tal P6
94,
100 P6
94,
100
Ange
lesr
epo
rt
eda
nen
din
gin
ven
tor
yof
P13
8,6
00.
Shi
pme
ntsa
reb
il
l
eda
tama
rk-
upo
f40
%on
co
st.
5
1. Wha
tisth
ereal
net
inc
omeo
fAn
gel
esb
ran
ch?
A.P9 2,40
0
B.P1 3
8,60
0
C.P7 0,60
0
D.P1 0
8,90
0
RLGSalesCo mp anyest
abli
she
dab ranchi
nDa gup
anCi tyear
lyl
astyea
r.I
tshi
ppedme r
chandi
s eand
bi
l
ledt
heb r
an chforP300,000pr
i
ortoitsope
nin
g.Forthey ea
r,i
tma d
eaddit
io
nalshi
pmentsatbil
led
pr
ic
eo f
P1 20,
0 00.Wit
hintheyea
r,t
h ebra
nchshi
ppedba ckP7,500in
vent
oryandgott
hecr
e d
itme mofor
sa
idret
urns
.Ont h
el a
stworki
ngdayo ft
heyear
,aninv
en tor
ycountwasmade.Endi
nginve
n t
oryo f
P185,
000wase st
abli
shedcons
ist
i
ngo fpur
chas
esfromt hi
rdpart
i
esatP20,00
0,wi
ththebala
nc ecomin
g
f
romhomeo ffic
esh i
pmentsatbi
l
ledp r
i
ce.Thehomeoffic
eb i
l
ledthebr
anchat20%abovec o
st.Thetot
al
pur
chas
eso fthebranchfromout
sidesuppl
ie
rsamountedtoP7 2,
500.
5
2. Thet
ota
lcost
ofg
ood
sav
ail
abl
efo
rsa
leb
yth
era
nchac
ost
(ne
tof
ove
rva
lua
ti
ona
ndr
et
ur
ns)
amou
ntedt
o
A.P416,2
50
B.P485,0
00
C.P422,5
00
D.P435,2
50
ThehomeofficeofEur
oPacifi
cc o mpanywhichusesth
ep e
rp et
uali
nvent
or
ysyst
em,bi
ll
s
sh
ipment
sofme rc
handi
set
ot heBa nibr
ancha tamark
upof 25%o nthebi
l
le
dp r
ic
e.OnAugust
31,20
09,
t
hecredi
tbal
a nceoft
hehomeo ffic
e’sAl
lowanceforOve
rval
u at
io
no f
Inve
nto
ri
es–Ba n
iBran
chled
ger
ac
countwasP6 0
,000
.OnSe ptemb er17
,2 0
09, t
hehomeoffic
eshipp
edme r
chand
iset
othebr
anchat
a
bi
l
ledpr
iceof P400,
000.Th
eb ran chreport
eda nendi
ngin
ven t
ory,
atbi
ll
edpri
ce,
ofP160,
000on
Sept
ember30 ,2009.
5
3. Th
ere
ali
zedg
ros
spr
ofi
tis
A.P108,
000
B.P2 0,
000
C.P120,
000
D.P2 8,
000

lOMoARcPSD|4644109
Mat
t T
ext
il
eCo mp a
nyhasas i
ngl
ebra
nchinBagu
io.OnMarch1,2009,t
hehomeofficeacco
unti
ng
r
ecord
sincl
udeda nAl
lowanc
eforOver
val
uat
iono
fInven
tor
i
es–Ba gui
oBranchl
edge raccou
ntwi
tha
cr
edi
tbal
anceo fP32,
000.Dur
in
gMa r
ch,mer
chandi
secost
i
ngP36,000wasship
pedt otheBagui
o
Br
anchandb i
l
ledatapric
erepr
esen
ti
nga4 0
%ma rkupont
hebil
le
dp ri
ce.OnMarc
h3 1,200
9,th
e
br
anchprepa
reda ni
ncomestat
ementi
ndi
cat
in
gan etl
ossofP1
1,500forMar
chande n d
ingi
nvent
or
ie
sat
bi
l
ledpri
cesofP25,00
0.
5
4.Whati
sth
eamount
ofadj
ust
men
tfo
rAl
l
owa
ncef
orOv
erv
alu
ati
ono
fIn
ven
tor
i
est
ore
fl
ect
thet
r
ueb
ran
chn
et
i
nco
me?
A.P3 9,
257d
ebit
B.P4 6,
000c
redi
t
C.P3 9,
333d
ebit
D.P4 6,
000d
ebit
ChongCo mpanyest
abli
she
dit
sfir
stb
ranc
ho nMay1, 2
009.Dur
ingthefi
r
s t
mo nt
hofop
era
ti
on,
the
ho
meo ffic
eshipp
edme r
chand
iset
othebra
nchwort
hP1 38,
000wh i
chinc
ludedamarku
pof15%oncost
.
Sal
esfor ca
shwe r
eP80,0
00whil
esal
esona cc
ountwereP250,
000.Atmo n
th’
send,
thebr
anc
hrepor
te
d
op
erati
nge xpe
nsesofP38,
000andaclo
sin
ginven
toryofP2
3 ,
000atbil
l
edp r
ic
e.
5
5.Asf
ara
sth
ehomeoffic
eisc
onc
ern
ed,
thet
r
ueb
ran
chn
eti
nco
mef
orMa
y,2
009i
s
A.P8 2,
000
B.P147,
000
C.P177,
000
D.P192,
000
J
uneMarket
ingCo.openedab ranchi
nSanCarl
osCitya tt
heb egi
nni
ngof2009.
Thebranc
h
e
xte
ndscredit
,makescol
l
e c t
ion
s, p
aysexpe
nsesfr
omc ashre cei
pt
s,andac
quir
esgoodsexc
lusi
vel
yfr
om
t
hehomeoffic
e.Dur
ing200 9,goodsshi
ppedbythehomeo ffic
etoth
eb r
anch
,atabi
ll
in
gp r
iceof12
5%o f
c
ost
,amountedtoP104,
00 0 ,of
wh i
chP12,
500remai
ne dinth ebr
anch’
syear
-e
ndinv
entor
y.Othe
rbranc
h
t
r
ansact
i
onsi n200
9we r
ea sfol
lows:s
ale
s,al
loncre
dit
, P117 ,
430;e
xpense
s,ofwhi
chP1,500ar
eu n
paid
a
tyear
-e
nd,P2 0,
000;co
ll
e c t
i
onso nacc
ount
,aft
erdeducti
ngd is
count
sofP1,
480,P8
4,000;
a ndt
ota
l
r
emit
t
ancestothehomeo ffic
e,P62,50
0.
5
6.Asf
ara
sth
eh omeoffic
eisco
nce
rne
d,t
heo
per
at
io
nso
fth
ebr
anc
hin2
009r
esu
lt
edi
na
A.P4,45
0n e
tinc ome
B.P9 ,
550netl
os s
C.P18,
300neti
n come
D.P22,
750neti
n come
Th
ea c
count
bal
anc
essho
wnb e
lowwer
eta
kenf
r
omt
het
r
ial
bal
anc
ess
ubmi
t
tedt
oNa
net
t
e
Cor
por
ati
onbyi
t
sSta.
Barba
rabran
ch:
2008 2009
Pe
tt
ycashfu
nd P1 ,
500 P 1,
500
Ac
count
srec
eiv
abl
e 4
3,800 49
,140
I
nven
tor
y - 37
,170
Sa
les 17
3,180 195
,120
Shi
pment
sfr
omh o
me(1
40%o
fco
st) 10
7,450 136
,080
Ex
penses 5
1,260 57
,930
Ac
count
swri
tt
enoff 1,220 1
,920
Al
lbr
anc
hco
ll
ect
i
onsar
ere
mit
te
dtoth
eh omeoffic
e.Al
lbr
anchex
pens
esarepa
idou
tofth
epett
ycas
h
f
und.
Whent
hepet
tyc
ashf
undi
srep
leni
shed
,theb ra
nchdeb
it
sappr
opr
ia
teex
pens
ea c
count
sand

lOMoARcPSD|4644109
c
redi
t
sHomeOffic
eCu
rr
ent
.Th
epe
tt
yca
shi
sco
unt
ede
ver
yDe
cemb
er3
1,a
ndi
t
sco
mpo
sit
i
onwa
sas
f
ol
lo
ws:
1
2/3
1/0
8 1
2/3
1/0
9
Cu
rre
ncyandc
oin
s P5 80 P860
Ex
pensev
ouch
ers 920 6
40
5
7.Th
eb r
anc
hinv
ent
or
yonDe
cemb
er3
1,2
009wa
sP4
1,3
70.
Thec
orr
ect
bra
nchn
eti
nco
mef
or2
00wa
s:
A.P3 ,
390
B.P3 ,
670
C.P41,
070
D.P41,
350
Vi
l
maCo .hasabran
chinLip
aCity
.Duri
ng2009
,thehomeoffic
eship
pedtot hebran
ch
me r
chand
isebi
l
le
da tP15
0,00
0incl
udi
ngama r
kupof20%onc ost
.Thebran chre
port
sopeni
ngand
cl
osi
nginv
ento
ri
esofP90,
000andP120,0
00,r
espec
ti
vel
y,whi
lethehomeo ffic
ehasacl
osi
nginve
nto
ri
es
ofP210
,000whi
chin
clud
esme r
chand
isewhi
char
eh el
doncon si
gnment
valu edatP10,
000
.Bothl
ocat
io
n
us
etheperi
odi
cinv
entor
ysyst
em.
5
8.Wh
atcl
osi
ngi
nve
nto
rywo
uldb
ere
por
te
dint
hec
omb
ine
dst
at
eme
nto
fin
comef
ort
hey
ear
220
09?
A.P296,
000
B.P300,
000
C.P320,
000
D.P330,
000
Wi
ll
yCorpo
rat
io
ns t
ar
tedope
rati
ngab ranc
ho nMay1,20
09withaship
mentof
merc
handi
sebi
ll
edat
P2
50,0
00.Addi
ti
onal
shi
pmentsdur
ingthemo nt
hwerebi
l
ledatP125
,000.
Thebr
anc
hretu
rne
dd ama
ged
mer
chand
isewor
thP10,
000.I
nter
-o
ffic
es h
ipment
sarebi
l
leduni
fo
rmlyat1
25%ofco
st.
OnMa y31,2
009
,
t
hebr
anchrepo
rt
edan et
los
so fP5
2, 500andanin
vent
or
yo f
P1 5
0,0
0 0
.
5
9.Wh
ati
sthebra
nchne
tin
come(
l
oss
)re
fl
ect
edi
nth
eco
mbi
nedi
nco
mes
tat
eme
ntf
orMa
y20
09?
A.(P9 ,
500)
B.P4 3
,000
C.(P52,
500)
D.P9 5,
000
Da
gup
anBr
anchwasb
il
l
edbyh
omeOffic
efo
rmerch
andi
seat
140%o
fco
st.
Att
hee
ndo
fit
sfi
r
s t
mon
th,
Da
gup
anbr
anc
hs u
bmi
tt
eda
mongot
herthi
ngs
,th
efol
lo
win
gdat
a:
Mer
chan
disef
romHomeOffic
e(a t
bil
l
edpr
ice
) P9
8,00
0
Mer
chan
disepur
cha
sedlo
call
yb yBra
nch 40,
000
I
nve
nto
ry,Dec
ember31ofwhichP7,0
00areofl
oca
lpu
rch
ase 28,
000
Net
sal
esfort
hemonth 180,
000
6
0.Th
eb r
anc
hinv
ent
or
yat
cos
t
A.P92,
000
B.P22,
000
C.P20,
000
D.P18,
000
6
1.Th
eg r
o s
sprofi
toft
hebranchasfa
rasthehomeo ffic
eisconcer
n e
d :
A.P2 2
,000 C.P70,0
00
B.P9 2
,000 D.P90,0
00
TheQuezonCitybr
anchofth
eEu r
oPa c
ifi
cCo mp anyi
sbil
l
edf ormerc
handi
seb
ytheh
omeo ffic
eat20
%
ab
o v
ecost.Thebranc
hintur
npri
cesme r
ch an
diseforsa
lesp ur
posesat2
5%a b
ovebi
l
ledp
ri
c e .On
Fe
b r
uar
y1 6a l
lof
thebran
chme r
chandi
seisd estr
oyedbyfi
r
e .Noin
s u
ran
cewas
ma i
nt
ai
ned. Br
anchaccoun
tsshowthef
o l
l
o wi
ngi nf
orma
tio
n:

lOMoARcPSD|4644109
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mb er
31,
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sfr
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s 1
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AS?
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ft
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lOMoARcPSD|4644109
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bil
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ight
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r31,
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egut
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30,
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,2009
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mer
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lOMoARcPSD|4644109
Ho
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lOMoARcPSD|4644109
Ca
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lOMoARcPSD|4644109
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lOMoARcPSD|4644109
A.P1
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hei
nf
or
mat
i
onf
r
omt
heDe
cemb
er3
1,2
009
t
ri
alb
ala
nceareasf
ol
lo
ws:
Ho
meOffic
e Br
anc
h
Sa
les P840,
000 P42
0,0
00
Shi
pment
stobr
anch 28
0,000
Pur
chas
es 49
0,000
Shi
pment
sfr
omhomeoffic
e 3
50,
000
I
nven
tor
y,J
anuar
y1,20
0 9 1
40,
000 56,
000
I
nve
nto
rya
tDe
cemb
er3
1,Ho
meOffic
eP4
2,0
00;
Bra
nch
,P8
4,0
00.
8
3.Th
er e
ali
zedi
nvent
or
yp r
ofi
tof
homeo
ffic
efr
oms
ale
sma
deb
yth
ebr
anc
h(t
heo
ver
val
uat
i
ono
f
co
stofgood
ssold
)?
A.P 5 6,
000
B.P1 20
,400
C.P6 4
,400
D.P8 0
,000
. TheBa
gui
oCi
tybr
anc
hofBl
oss
omsCo.
,wasbi
l
ledf
ormer
chan
d i
seshi
pme
ntsf
r
omh
omeo
ffic
eat
cos
t
pl
us25
%in20
0 8a
ndcos
tpl
us20%i
n2009
. Ot
herp
ert
i
nent
datafor2
009s
how:
Ba
gui
oBra
nch Ho
meOffic
e
Sa
les P63
,00
0 P2
12,
0 00
I
nven
tor
y,b
egin
ning
Atcos
t 2
3,0
00
Atbi
ll
edpri
ce 8
,90
0
Pur
chas
es 1
64,
000
I
nven
tor
ytr
ansf
ers
ToBagui
o,atc
ost 4
2,0
00
Fro
mBl o
ssoms,a
tbi
l
le
dpr
i
ce 5
0,4
00
I
nven
tor
y,e
nd
Atcos
t 2
8,5
00

lOMoARcPSD|4644109
At
bil
l
edp
ri
ce 1
1,7
00
Ex
pen
ses 2
0,3
00 7
6,4
00
8
4.Th
en et
inc
ome(l
oss
)of
Bag
uioCi
t
ype
rbr
anc
hbo
oks
A.P(4,
900
)
B.P(3,
900
)
C.P3 ,
330
D.P8 ,
230
8
5.Th
ec o
mbi
nednet
inc
ome(
l
oss
)of
Blo
sso
msCo
.:
A.P1
8,74
0
B.P2
2,43
0
C.P2
2,00
0
D.P2
5,27
0
TheMangal
danb
ran
cho fSt.
Thoma
sAqui
nasCo
.,Ma
nil
abr
anc
h,wasb
il
l
edf
orme
rch
and
ise
sh
ipment
sfr
omhomeoffic
eatco
stp
lus2
5%in200
8andcos
tpl
us20
%in200
9.Ot
her
per
ti
nent
da
tafo
r2009sho
w:
Ma
nga
lda
nBran
ch HomeOffic
e
Sa
les P63,
000 P2
1 2
,00
0
I
nven
tor
y,beg
inni
ng
Atcost 2
3,0
00
Atbi
ll
edpri
ce 8
,90
0
Pur
chas
es 1
64,
000
I
nven
tor
ytr
ansf
ers
ToMa ng
alda
n,atc
ost 4
2,0
00
FromMa n
il
a,at
bil
l
edpr
ic
e 5
0,4
00
I
nven
tor
y,end
Atcost 2
8,5
00
Atbi
ll
edpri
ce 1
1,7
00
Ex
penses 2
0,3
00 7
6,4
00
8
6.Th
er e
ali
zedi
nven
tor
ypr
ofi
tfr
omb
ran
chs
ale
s(o
rov
erv
alu
ati
ono
fco
sto
fgo
odss
oldi
s:
A.P8 ,
230
B.P8 ,
030
C.P7 ,
933
D.P9 ,
520
8
7.Th
ee nd
ingin
vent
or
yth
ats
hou
ldb
epr
ese
nte
dint
hec
omb
ine
din
comes
tat
eme
nti
s:
A.P4 0
,200
B.P3 8
,250
C.P3 0
,250
D.P3 7
,860
Se
lect
eda
cco
unt
sfr
omt
heDe
cemb
er3
1,2
009t
r
ial
bal
anc
eof
Lei
sur
eCo
ast
Co.
andi
t
sbr
anc
h
f
ol
lo
w:
Ho
meOffic
e Br
anch
I
nvent
or
y, Ja
n.1 P4 6
,000 P2 3
,100
Br
anchCu r
rent 11
6,600 -
Pur
chase
s 38
0,000 -
Shi
pment
sf r
omh omeoffic
e - 20
9,00
0
Fr
ei
ghti
n - 1
0,45
0
Ex
p e
nses 10
4,000 5
8,10
0
HomeOffic
eCurre
n t - (10
6,600
)
Sal
es (31
0,000) (28
0,000
)

lOMoARcPSD|4644109
Sh
ipment
stob
ranch (2
00,
000
)
Br
anchmer
chand
isema
rku
p (22,
000
)
AsofDec
ember31
,2009,as
hipmentwi
thabi
l
li
ngofP11,
000wasi
ntr
ansi
tt
otheb
ranc
h.Fr
ei
ghtc os
t,
t
ypi
cal
ly5
%o ft
hebi
ll
i
ngpri
ce,
isinv
ento
ri
abl
e.Merc
han
dis
eo nh
a n
datye
ar-
endwer
e:ath
omeoffic
e,
P64
,000atc
ost
;atb
ranc
hP33,000atbi
l
li
ngpr
ice
.
8
8.Th
eb r
anc
hneti
nco
mei
nsof
ara
sho
meo
ffic
eisc
onc
ern
edi
s:
A.P40,
900
B.P32,
100
C.P32,
000
D.P33,
000
8
9.Th
ec o
mbi
nednet
inc
omef
or2
009i
s:
A.P8
4,90
0
B.P7
6,10
0
C.P7
6,00
0
D.P7
7,00
0
CSIop
era
tesab
ran
chi
nCa
las
iao
.Op
era
ti
ngd
ataf
ort
heh
omeo
ffic
ean
dth
ebr
anc
hfo
r20
09a
rea
s
f
ol
lo
ws:
Ho
meOffic
e Br
anc
h
Sa
les P365,
000 P17
4,5
00
Shi
pmentst
ob ran
ch 90,
000
Pur
chasesf
romo ut
sid
er s 2
20,
000 35,
000
Ad
vert
isi
ngex p
enses 13,
700 2,
500
Sa
lar
ies&c ommissi
one x pe
nse 35,
000 9,
500
Ren
texpense 10,
000 2,
000
Mi
scel
l
a neousexpe
nse 3,
300 500
Shi
pmentsfr
omh omeo ffic
e 1
12,
500
I
nven
tori
es,Jan.1
:
HomeOffic
e 8
5,0
00
Bra
n ch
:
Acqui
redf romout s
iders 9
,50
0
Acqui
redf romoffic
ea tb i
ll
ed
Pri
cewh i
chis20 %a bo vecos
t 4
2,0
00
I
nven
tori
es,Dec.31:
HomeOffic
e 6
5,0
00
Bra
n ch
:
Acqui
redf romout s
iders 6
,50
0
Acqui
redf romhomeo ffic
e
At 200
9b i
l
ledp ri
ce 3
0,0
00
9
0.Th
ec o
mbi
nednet
inc
omeo
fCSI
is:
A.P1
11,0
00
B.P63,0
00
C.P2
50,5
00
D.P1
74,0
00
. Dagu
panCo. ope
rat
esab r
anchi
nLaUni
on.Th
erear
eshi
pme
ntsi
ntr
ans
itf
r
omh o
meo ffic
etot
he
br
anch.
Theh omeoffic
eshipmer
cha
ndis
etobr
anchat
125%ofco
sti
nye
ar200
9.Pro
fi
t andlos
sdat
afo
r
t
hehomeoffic
eandb ranc
hfor20
09fo
ll
ows:
HomeOffic
e Bra
nch
Sa
les P250
,00 0 P7
5,00
0

lOMoARcPSD|4644109
Pur
chas
esfr
omo utsi
der
s 2
00,
000 1
5,0
00
Shi
pment
stobr
an ch:
Cos
ttoHomeOffic
e 3
0,0
00
Bi
l
li
ngpri
cet
ob r
anch 32
,50
0
Ex
penses 4
0,0
00 1
0,0
00
I
nven
tor
ie
s,Jan.
1 ,200
9 :
HomeOffice,
acqui
redf
romouts
idersatco
st 8
0,0
00
Branc
h:Ac q
uir
edfro
mo u
tsi
der
s,a tco
st 7
,50
0
Ac qui
redf
romHomeOfficeatbi
ll
i
ng
pri
ce,whi
chave
rage20%a b
ovecos
t 2
4,0
00
I
nven
tor
ie
s,Dec.31,2009:
HomeOffice,
acqui
redf
romouts
idersatco
st 5
5,0
00
Branc
h:Ac q
uir
edfro
mo u
tsi
der
s,a tco
st 5
,50
0
Acquir
edfr
omHo meOffic
ea t
2009
bi
l
ledpri
ce(
physi
cal
co unt
) 2
1,0
00
9
1.Th
ea mou
ntofmerch
andi
sei
ntr
ans
iti
s:
A.P5,0
0 0
B.P5,5
0 0
C.P3,5
0 0
D.P3,0
0 0
9
2.Th
ec omb
inedcos
tofgo
odss
oldi
s:
A.P241,2
00
B.P240,0
00
C.P242,4
00
D.P245,2
00
Magi
cCo .br
anc
hinMa p andanbeganope
rat
i
onsonJ an
uary1,2009
.Duri
ngth
efi
rst
yearof
op
erat
i
o n s,
thehomeofficeshi
ppedmerch
andi
setotheMapandanbra
nchth
atcos
tP250,
000ata
bi
l
le
dp r
ic eofP30
0 ,
000. One-f
our
thoft
hemerch
an d
isere
ma i
nedunsol
datt
heendof20
0 9
.The
ho
meo ffic
ereco
rdsthes hip
me nt
stoth
ebran
chattheP300,0
00b i
l
le
dp r
i
ceatt
heti
mesh i
pmen
tsar
e
made.
9
3.Fr
ei
g h
t-
ino
fP2,
000onth
eship
me n
tsf
romthehomeo ffic
ewa spai
dbyth
eb r
anc
h.Th
eho
meo
ffic
esh
oul
d
makeanadj
ust
i
ngent
ryf
orf
rei
ght
-i
nasfol
l
ows:
A.Ay e
ar-
endad
jus
ti
ngent
rydeb
it
in
gtheb r
ancha ccountf
orP50
0.
B.Ay e
ar-
endad
jus
ti
ngent
rydeb
it
in
gtheb r
ancha ccountf
orP2,
000.
C.Ay e
ar-
endad
jus
ti
ngent
rycr
edi
ti
ngthebra
ncha cco
untf
orP500.
D.Noy ea
r-e
ndadj
ust
i
ngentr
yfo
rthef
reig
htcharg e.
Dagu
p a
nSuppl
yCompanyi
senga
gedinmer
chan
dis
ingbo
that
it
sHomeOffic
einDagup ana
ndi
ts
br
anchinUr
dan
etaCi
t
y.Sel
ect
edacco
unt
sta
kenfr
omthet
ri
alb
ala
nce
soft
h eHo meOffic
eandt
he
br
anchasofDe
cembe
r31,200
9fol
lo
w:
De
bit
s Ho
meOffic
e Br
anc
h
I
nven
tor
y,J
anuar
y1,200 9 P23
,000 P1
1,5
50
Ur
danet
aBran
ch 5
8,30
0
Pur
chas
es 19
0,00
0 1
05,
000
Fr
ei
ghti
nfr
omHo meOffic
e 5,
500
Sun
dryExp
enses 5
2,0
00 2
8,0
00
Cr edi
t
s
HomeOffic
e P53,
000
Sa
les P155
,000 14
0,000
Sa
lest
ob ranc
h 1
10,00
0
Al
l
owanceforOve
rva
lua
ti
ono
fBr
anc
hIn
ven
tor
y

lOMoARcPSD|4644109
At
Jan
uar
y1,
200
9 1
,00
0
Ad
dit
i
ona
lIn
for
mat
i
on:
- Ur
danetaci
tyb r
anchget
sal
lofit
sme r
chan
dis
ef r
omthehomeoffic
e.Thehomeoffic
ebil
lsth
egood
s
at
costplu
sa1 0
%ma rk-
up.AtDecember31
,2009,ashi
pmentwithabil
l
edval
ueo fP5,000wass
ti
l
l
i
ntr
a n
sit
.Freightonthi
sshi
pmentwasP250andistobetr
eat
eda spartoft
hei
nven t
ory
.
- I
nvent
ori
eso nDe cember31
, 2
0 0
9,excl
udi
ngtheshi
pmenti
ntr
ans i
t,f
ol
lo
w:
Homeo ffic
e,atco
st P3 0,000
Bra
nch, atbil
l
edpri
ce(exc
ludi
ngfr
ei
ghtofP520)1 0
,400
9
4.Th
en et
inc
omeoft
heh
omeo
ffic
efr
omo
wno
per
at
io
nsi
s:
A.P30,4
70
B.P20,0
00
C.P22,0
00
D.P30,4
70
9
5.Th
en et
inc
omeoft
heb
ran
chi
nsof
ara
sho
meo
ffic
eisc
onc
ern
edi
s:
A.P 8 70
B.P10,4
70
C.P 9 70
D.P10,2
70
St
arCor
por
at
ion,
oper
at
esan umberofbr
anchesinPanga
sin
an.OnJun
e30, 200
9,it
sLin
gayen
br
anchs
howedaHomeOffic
eacco
u nt
bala
nceo fP27,
350andt
heHomeOffic
eb oo
ksshoweda
Li
nga
yenbr
anchacc
ount
ba l
anc
eof P25
,550.
Th efo
ll
owi
nginf
or
mati
onmayh el
pinrec
onci
li
ng
bo
thacc
ount
s:
1
.AP1 2,0
00s hi
pment
, c
hargedb
yHo meOffic
etoL i
ngay
enb r
anch,wasactua
ll
ysentt
oa n
dr et
ai
n e
d
byBugal
l
o nbr
anch.
2
.AP1 5,0
00s hi
pment
, i
nt
endedandchar
gedtoBinma l
eybranc
hwa sshi
ppedtoLing
ayenbranchand
r
etai
nbythela
tt
er.
3
. AP2 ,
000e mer
gencycasht
ran
sferf
ro
mBu gal
lo
nb r
anchwasn o
ttak
e nupintheHomeOffic
eb ook
s.
4
.Ho meOffic
ecol
lec
tsLin
gayenbr
anchaccountsrec
eiv
ableofP3,
600a ndfai
l
stonot
if
ythebranch.
5
.Ho meOffic
ewaschargedfo
rP1,20
0forme r
chandi
seret
u r
nedbyLin
g aye
nb r
anchonJune2 8.The
merc
handisei
sint
ransi
t
.
Homeoffic
eer
rone
ous
lyr
ecor
dedLi
nga
yen
’sn
eti
nco
mef
orMa
y,2
009a
tP1
6,2
75.
Theb
ran
ch
r
epor
te
dan et
inc
omeofP12
,675
.
9
6.Wh
ati
sth
erec
onci
l
eda
mou
nto
fth
eHo
meOffic
ean
dLi
nga
yenb
ran
chr
eci
pr
oca
lac
cou
nts
?
A.P21,
750
B.P23,
750
C.P27,
350
D.P20,
150
. OnDe c
ember
31,
2009,
theI
nve
stmenti
nBr
anc
hac
cou
nto
ntheh
omeoffic
e’sb
oo k
sh a
sab a
lan
ceo
f
P102,
000.
Ina
nal
yz
ingt
heac
ti
vi
tyine
achof
the
sea
cco
unt
sfo
rDec
emb
e r,youfi
ndthef
oll
owi
ng
di
ff
ere
nces
:
1
.AP1 2,000b ra nchr
emitt
ancetothehomeoffic
eini
ti
at
edo nDe c
ember27,2009
,wasre
cor
dedonthe
h
omeo fficeb ooksonJanuary3,2010
.
2
.Ah omeo ffic
ei nvent
or
ys hi
pmen tt
oth
ebranc honDecemb er28,2
009,wasrec
ord
edbyth
ebranc
h
o
nJan uary4 , 2010
;thebi
ll
i
ngo fP24,
000wa sa t
cost
.
3
.Theh omeo ffic
eincu
rr
e dP14,4
0 0ofa
dver
ti
si n
ge x
pensesan dal
l
ocat
edP6 ,
000oft
hi
samount
tot
he
b
ran
c honDe cember15,2009.Thebr
anchh asnotr
ecor
d edthi
str
ans
ac t
i
on.

lOMoARcPSD|4644109
4
.Ab r
anchcus
tomerer
roneo
usl
yremi
tt
edP3 ,
600toth
eh o
meo ffice .Theho
meoffic
ereco
rde
dth
is
c
ashcol
le
cti
ononDecemberonDecember23,2
0 0
9.Meanwhil
e , ba c
katt
hebr
an ch,
noent
ryh
as
b
eenma d
eyet.
5
.Inve
ntor
ycost
in
gP5 1,
600wassent
tothebr
anchbythehomeo ffic
eo nDec
embe r10
,2009
.Th
e
b
il
l
ingwasatco
st,b
utthebr
anchr
ecord
e dt
hetr
ansact
i
onatP4 0,80 0.
9
7.Th
eUn a
dju
ste
dBala
nceo
fth
eHo
meOffic
eac
cou
nta
sof
Dec
emb
er3
1,2
009i
s:
A.P7 6,
800
B.P5 2,
800
C.P151,
200
D.P5 2,
000
9
8.Th
eAd j
ust
edBal
anc
eof
theRe
cip
roc
ala
cco
unt
aso
fDe
cemb
er3
1,2
009i
s:
A.P114,
000
B.P9 3,
600
C.P139,
200
D.P9 0,
000
Gol
dEn te
rpr
ise
soper
atesabranc
hinDa gupa
nCity.
Atcl
oseo
fbusi
nes
sonDecember
31,200
9,
Dag
up a nBranc
haccounti
nthehomeoffic
ebook
ss h
owedadebi
tba
lan
ceofP22
5,7
70.The
i
nt
eroffic
ea c
count
swereinagr
eement
a t t
hebeg
inni
ngoft
hey
ear
.Forpur
pos
esofr
econc
il
i
ngthe
i
nt
eroffic
ea c
count
s,t
hefol
lo
wingf
act
swe r
easce
rta
ined
:
1
.Ano ffic
ee quipmentcost
i
ngthehomeo ffic
eP3,500wa spick
edupb yt hebra
nchasP350.
2
.Insur
a nc ep remiumo fp
675charge
db yth ehomeo ffic
ewa stak
enu ptwicebythebra
nch.
3
.Frei
gh tc h ar
geo nme r
chand
isemadeb yt hehomeo ffic
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anchbook
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a
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e s
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t memofromt hehomeo ffic
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ert
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ance
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ste
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meOffic
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s:
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ust
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ocala
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ifi
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ti
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thnamel
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ngfrei
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er
.Ift
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heheadofficetot
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,the
f
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swo ul
dhavebeenP9,0
0 0
.
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ult
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ff
ere
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ight
char
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ldb
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sedofasf
ol
lo
ws:
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hargetoCebubr
anchbyDi
polo
gb ra nch.
B. P1 ,000c
hargetoCebubr
anchbyHeadoffice .
C. P1 ,000t
obee qua
ll
ychar
geamongHeado ffic
e,Dip
olo
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avi
ngs.

lOMoARcPSD|4644109
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l
ver
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ss e
ver
alb ra
nches.Good
scost
ing
P1 0,
000wer
etr
an sf
err
edbytheheadoffic
etoCebubranchwi
th
t
hela
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erpay
ingP600f orf
r
eigh
tcost
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l
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doffic
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thor
iz
edCe b
uBr a nc
htotr
ans
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s
t
oDavaoBran
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wh i
chthel
att
erwasbi
l
ledf
o rt
heP10,
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tofth
eg oo
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e i
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ra
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ft
heheadoffic
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edthegoodsdir
ect
l
ytoDav
aob r
anch,
thefr
ei
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gewo u
ldha
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P70
0.
1
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eP1
00d
iff
ere
nceinf
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ghtc
os two
uldb
edi
spo
sedo
fasf
ol
lo
ws:
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d e
redassav
ing
s
B. ChargedtoCeb
ub r
anch
C. ChargedtoDav
aobranc
h
D. Chargedtot
heHeadOffic
e
OnDe
cember3
,2009
, t
heho
meo ffic
eofGo
odOfficeSu
ppl
yCo
mpa
nyr
eco
rde
das
hip
men
tof
me
rch
andi
setoi
tsDagu
panBr an
chasf
ol
lo ws:
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gup
anBranc
h P3
0,0
00
Sh
ipment
stoBranch P2
5,000
Un
real
i
zedProfi
tinBr
anchi
nve
nto
ry 4,0
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Ca
sh(f
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c har
ge) 1,0
00
Th
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anc
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ll
s4 0%oft
hemer
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iset
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ti
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ofDec
ember
200
9.
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heho
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sedonDe
cembe
r31of
eachy
ear
.
OnJa
nuar
y5,
2010,
theDag
upanb
ran
chtr
ans
ferh
alf
oft
heo
ri
gi
nal
shi
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oth
eBa
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anc
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nd
t
heDagu
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ran
chpaysP50
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heshi
pment
.
1
03. Th ee n
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ksoft
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panBr
anc
htor
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ipt
oft
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9,0
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in 1
,00
0
HomeOffic
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0,0
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1
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for
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9bein
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Dec
emb er3
1 ,
2009i
s:
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,600
B. P1 7
,400
C. P1 8
,000

lOMoARcPSD|4644109
D. P1
8,4
00
1
05. Th
ep u
bli
shedb
ala
nces
hee
tof
Sil
verOffic
eSup
plyCo
mpa
nya
tDe
cemb
er3
1,2
009s
hows
i
nve
ntor
yat:
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0 C.P15,6 00
B.P15,00
0 D.P16,0 00
1
06. Usi
ngthes
ameinf
or
mati
oninNo.
101,what
ist
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ryo
ntheb
ooksofBag
uioBr
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Ja
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2010t
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r,a
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ngth
atth
efrei
ght
cos
toft
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chan
disef
ro
mt h
ehomeoffic
etoBa
gui
o
br
anchwoul
dhav
ebeenP600.
A.Sh
ipme
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5,1
00
HomeOffic
e P1
5,1
00
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ipment
s P1
4,5
00
Fre
ight
in 600
HomeOffic
e P1
5,1
00
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ipment
s P1
5,00
0
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ight
in 6
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e P1
5,6
00
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pments P1
4,50
0
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ei
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tin 1,
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HomeOffic
e P1
5,6
00
1
07. Us
ingth
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nfor
mat
ioninNos
.10
1,102
,and1
03,
wha
tist
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ntr
yont
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ook
sof
Dag
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n
Br
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nre
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ttoJan
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010t
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r:
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meOffic
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5,5
00
In
ven
tory P1
5,5
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ipme nt
sIn
ven
tor
y P1
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char
ges
) 1
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meOffic
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5,5
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ory P1
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orfr
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s) 5
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00
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nvent
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00
Cash(f
orfr
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s) 500
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ighti
n 600
1
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ngth
esamein
for
mati
oni
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,an
d10
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yont
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omeo
ffic
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oksi
n
r
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ttoJ
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10tr
ans
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:
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meOffic
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5,5
00
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ory 15,
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ei
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tin 6
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rr
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hCurr
ent
–Ba
gui
o P1
5,1
00
Ex
ces
sfr
ei
ght 400

lOMoARcPSD|4644109
Br
anc
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rr
ent
-Da
gup
an P1
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00
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anc
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ren
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io P1
5,1
00
Ex
ces
sfrei
ght 600
Bran
chCu r
re
nt-Dagu
pan P1
5,7
00
1
09. LadyComp
anyh
ada
nag
enc
yinRo
sal
es.
For
thep
eri
odj
ust
end
ed,
thea
gen
cyt
r
ans
act
i
onss
howe
dth
e
f
ol
lo
win
g :
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cei
ptf
romsale
s P3
50,
000
Di
sbu
rse
me n
ts:
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chases 4
00,
000
Sal
ari
esandcommis
si
ons 70,
000
Rent 20,
000
Adve
rt
isi
ngsuppl
i
es 10,
000
Oth
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es 5,
000
Theagen
c yhadP100,000rec
eiv
abl
esa ndP50,
000payabl
esasoft
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i
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so,
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e
i
nvent
or
iesonh an
do fP90,
000andunus e
da dv
ert
is
ingsuppl
i
esofP6,
000.
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cywassetu
pa san
ex
p e
ri
ment f
oroneper
iodandwo ul
dbec l
osedi
flos
seswereinc
urr
ed.
Theagenc
yshou
ld:
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ewa gai
nb e
causeit
wasab r
eakevenoper
at
ion.
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ewithth
ep eri
od’
soper
ati
on a
llo
ssofP155,
000.
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ewithth
ep eri
od’
soper
ati
on a
llo
ssofP9,00
0.
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nuewit
htheperi
od’
sprofi
tofP25,
000.
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eMDGCo mpanyope
nedana
gen
cyi
nMa
kat
ii
n20
09.
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ol
lo
win
gisas
umma
ryo
fth
e
t
ra
nsa
cti
onso
fth
ea g
ency:
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esorder
ssenttohomeo ffice P66,
000
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esorder
sfi
l
ledb yhomeo ffic
ein200
9 5
5,8
00
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eig
htonship
me nttoagency 1,3
20
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le
cti
ons,n
eto f2%d i
sco
u n t 4
7,6
28
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li
ngexpen
sesp ai
dfromthea gen
cywor
ki
ngf
und 3,3
84
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nis
tra
ti
veex p
e ns
escharg edtoage
ncy 5
%o fg
ros
ssa
les
Sampl
esship
pe dtoagency
:
Cost P3
,60
0
I
nvent
ory,December3 1,
2009 1
,32
0
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mp anymai
nt
ai
nsi
t
sgr
ossma
rgi
nona
gen
cyg
ros
ssa
lesa
t30
%ex
cl
udi
ngt
hef
r
eig
htc
ost
on
sh
ipment
stoage
ncy.
1
10. Th
eag
ency’
sco
sto
fsa
lesi
ncl
udi
ngf
r
eig
ht
A.P3
9,0
00
B.P4
7,5
20
C.P4
0,3
80
D.P4
0,6
80
1
11. Th
eag
ency’
sne
tin
comewo
ulda
mou
ntt
o:
A.P5
,99
4
B.P7
,66
8
C.P5
,09
4
D.P7
,32
0
1
12. J
oy,
Inc
.open
sas al
esa
g en
cyinDagu
panCi
t
y,an
dawor
kin
gfundfo
rP20,
000i
sest
abl
i
shedo
n
t
hei
mpres
tbasi
s.Th
efi
r
s t
payment
fr
omthef
undi
sP3
,00
0forr
ent.
Thist
r
ansac
ti
ons
houl
dbe

lOMoARcPSD|4644109
r
eco
rde
dbyt
heh
omeo
ffic
easf
ol
lo
ws:
A.NoEn
tr
y
B.Re
nt P3
,00
0
Cas
h P3
,00
0
C.Da
gup
anAg
enc
y 3
,00
0
Cas
h 3
,00
0
D.Da
gup
anAg e
ncy 3
,00
0
Work
ingFun
d 3
,00
0
1
13. Sunr
iseCo.ha
sas a
lesag
encyinDa
u.Agenc
yre
venuesande xpe
nsesar
ereco r
dedins
epara
te
ag
en c
ya c
count
s,wi
t
htheoper
ati
ngr
esul
t
sofbot
htheage
ncya ndtheho
meo ffic
egener
ate
dat
ea
chmo nth
-end
.Fort
hemo n
thofOc
tob
er,2
009,t
hehomeoffic
ep a
idP1
0,00
0f ora
dver
ti
si
ng
co
stsonbehal
foft
heagenc
ya n
drec
ord
edthi
sasfo
ll
ows:
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uAgen
cy P1
0,0
00
Ca
sh P1
0,0
00
B.Ad
ver
ti
si
nge
xpe
nse 1
0,0
00
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0,0
00
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cou
ntsr
ece
iva
ble–Da
uAg
enc
y 1
0,0
00
Cash 1
0,0
00
D.Ad
ver
ti
si
nge
xpe
nse 1
0,0
00
Cash 1
0,0
00
1
14. BBI n
c.,
DDInc.,andGGI nc.agr
eetoc o
nsol
ida
te.I
twasagre
edtha
t t
henewcor
por
ati
onwil
li
ssuea
si
ngl
ecl
assofst
ockatP1 0
0p arva
lue.Thenews h
areswi
ll
bee xc
hang
edforneta
sse
tstr
ansf
er
redtaki
ng
i
nt
oaccountt
heeff
ectofgoodwi
llr
epr
es e
ntedbyannual
earni
ngsi
nexcessof
6%o nass
etcont
ri
buti
ons
,
ca
pit
al
iz
edat20%.Go o
d wi
llc
a l
cul
at
ion
sa remadeonlyf
ort
hep ur
pos
eo fmak
inganequ
it
abl
ea l
l
otmentof
t
henewshare
samo ngtheconsti
t
uentcorpor
ati
ons
.Thei
rasset
sandest
imat
edannua
learn
ing
sfol
low:
As
set
Cont
ri
but
i
ons Ea
rni
ngsCont
r
ibu
ti
ons
BB P200,
000 P30,
000
DD 3
00,
000 30,
000
GG 5
00,
000 40,
000
I
ft
hen
ewcor
por
at
ini
o st
obeis
sue
d1,
000sha
res
,ho
wwi
l
lt
hes
ebed
ist
r
ibu
teda
mon
gBB,
DD,
an
dGG,r
esp
ect
i
vel
y?
BB DD GG
A. 2 00 300 50
0
B. 3 00 300 40
0
C. 4 50 300 25
0
D. 2 42 300 45
8
Co
mpa
nie
sYa
ndZd
eci
det
oco
nso
li
dat
e.As
set
ande
sti
mat
eda
nnu
ale
arn
ing
sco
ntr
i
but
i
onsa
rea
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ll
ows
:
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Y Co
.Z Tot
al
Net
ass
etc
ont
ri
but
i
on P30
0,0
00 P40
0,0
00 P7
00,00
0
Es
ti
mat
edann
uale
arn
ing
sco
ntr
i
but
i
on 5
0,0
00 8
0,0
00 13
0,0
00

lOMoARcPSD|4644109
St
ockho
lder
soft
hetwoc ompan
iesagreet
hatasin
glecl
assofst
ockbei
ssued
,that
thei
r
co
ntr
ibu
ti
onsbemeasuredbynetass
e t
spl
usa l
l
owancesfo
rgoodwi
ll
,an
dthat10
%b econsi
der
edasa
nor
malra
teofr
et
urn.Earni
ngsi
ne x
cessofth
en or
malrat
eofre
tur
nshal
lbecapi
t
ali
zedat2
0%in
ca
lcu
lat
i
ngg o
odwi
ll
.I
t wasal
soagreedtha
ttheaut
hori
zedcap
it
alst
ockoft
henewcorpo
rat
i
onshal
lbe
20,
000shar
eswi
thap arval
ueofP100ashare.
1
15. Th
eamount
ofg
ood
wil
lc
red
it
edt
oCo
mpa
nyY:
A.P10
0,0
00
B.P15
0,0
00
C.P20
0,0
00
D.P25
0,0
00
1
16. Th
eto
tal
cont
ri
but
i
ono
fCo
mpa
nyZ(
net
ass
etsp
lusg
ood
wil
l
):
A.P400
,00
0
B.P500
,00
0
C.P600
,00
0
D.P300
,00
0
Co
mpa
nie
sA,
B,a
ndC,
par
ti
est
oac
ons
oli
dat
i
on,
hav
eth
efo
ll
owi
ngd
ata
:
ACo. BCo. CCo .

Net
Asset
s P4
00,00
0 P6
00,00
0 P1
,00
0,000
Av
erag
eannu
ale
arn
ing
s 60
,000 60
,000 80,
000
Thepar
ti
esco
ll
ect
i
vel
yagr
eedt
hat
then
ewc
orp
ora
ti
onZCo
mpa
nywi
l
li
ss
ueas
ing
lec
las
sof
sto
ck
ba
s e
dontheear
ni
ngsr
at
io
.
1
17. Wha
tisth
estoc
kdi
st
ri
but
i
onr
at
iot
oco
mpa
nie
sA,
B,a
ndC,
res
pec
ti
vel
y?
A.20:3
0:50
B.30:3
0:40
C.30:4
0:30
D.40:4
0:20
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ows:
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and
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ood
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lt
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gni
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ad:
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orth
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sa r
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ows:
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l
?
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000
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p.,o
rgani
zedtocons
oli
dat
eBCo .
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lli
ss
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toc
ktobei
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shal
lbeequal
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ageannu
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ea
rni
ngscap
it
al
izedat10%.Rel
evan
tdat
afol
l
ows:
BCo. CCo .
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tal
asse
ts P1
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li
abi
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000 518,
000
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000 750,
000
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1
22. Asare
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tof
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li
dat
ion
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yshar
eso
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re
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ldBCo.(
wit
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ve
?
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ef
er
red Common
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B. 5 76 2
88
C. 8 80 2
30
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15

lOMoARcPSD|4644109
GECo
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23. Th
est
ocke
xch
ang
era
ti
ofo
rGEs
har
est
oIl
aws
har
es:
A.1:
2
B.2:
1
C.3:
1
D.1:
3
T
ocompl
ywit
hcer
ta
incap
it
alr
equ
ir
emen
ts,
compan
iesD,Ea
ndFagr
eedtoc
ons
oli
dat
e.T
henew
c
orp
ora
ti
onwi
ll
beknownasAAACor
por
at
ion,
andt
hefol
l
owi
ngp
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nenti
nf
or
mat
ionwer
egat
her
ed:
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mp a
nyD Co
mp a
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mp a
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To
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0,00
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To
tall
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abi
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it
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es 800,
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come 105,
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mat
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ti
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1
24. Th
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tal
pre
fer
re
ds h
are
stob
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sue
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A.13,
000sh
ares
B.12,
900sh
ares
C.13,
000sh
ares
D.13,
700sh
ares
1
25. Pr
emi
umo
nco
mmo
nsh
are
s:
A.P429,
000
B. P3
77,
500
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87,
500
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39,
000
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ppai
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fth
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ZZCo mpa
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abi
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it
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esofZZCompan
yon
Apr
i
l5,20
09fol
low:
Cas
h P60,
000
I
nve
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80,
000

lOMoARcPSD|4644109
Pr
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ant
andequi
pment
(net
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fP220,
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or
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rt
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lan
tan
d
eq
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t)h
adafa
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P38
0,000
.
1
26. Th
eamount
ofg
ood
wil
lr
eco
rde
dint
heb
ook
sof
AAa
sar
esu
lto
fth
ebu
sin
essc
omb
ina
ti
ons
hou
ldb
e:
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0,0
00
B.P12
0,0
00
C.P50,0
00
D. 0
Be
aut
yCo
mpa
nyh
adt
hes
eac
cou
ntsa
tth
eti
mei
twa
sac
qui
r
edb
yPr
et
tyCo
.:
Cas
h P36,
000
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count
sre
ceiv
able 457,
000
I
nve
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000
Pl
ant
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6,4
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count
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000
Pr
et
tyCo.p
aidP1
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0,0
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etas
set
sof
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tyCo
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sde
ter
mine
dthat
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ketva
lue
sof
i
nve
nto
ri
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ant
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rt
y,ande
qui
pmen
twer
eP133
,00
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ti
vel
y.
Anassumedco
nti
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i
abi
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t
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hafai
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ueamoun
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ngtoP10,
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ha moun
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s
co
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abl
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t.Al
so,
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estr
uct
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in
g
co
stsar
ee x
pect
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ob ein
cur
redasares
ult
oft
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ine
sscombi
nati
on.
1
27. I
nth
ebook
sofPret
tyCo.
,th
ist
ra
nsact
i
onres
ult
edi
n:
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dwil
lr
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P441,
000
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dwil
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eda t
P224,
800
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eda t
P234,
800
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re
ntass
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n c
rea
sedbyP234
,800
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ll
Inc
.wasmerge
dint
oGoo
dInc.
inacombi
nat
i
onpro
per
l
yacco
unt
edf
ora
sap
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has
eof
i
nt
er
est
s.The
irc
onden
sedb
alan
ceshe
etsbe
for
ethec
ombi
nat
i
onsho
w:
Goo
dInc. Wi
ll
Inc
.
Cur
ren
tass
ets P2
,288
,00
0 P1,
627,
600
Pl
anta
ndequi
pme
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net 4,
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000
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s - 260,
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tal
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,00
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927,
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ed.Good
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l
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lOMoARcPSD|4644109
1
28. Howshou
ldt
hed
iff
ere
nceb
etwe
ent
heb
ookv
alu
eof
Wil
l
’sn
eta
sse
tsa
ndt
hec
ons
ide
rat
i
onp
aidb
yGo
od
bec
ons
ide
red
?
Go
odwi
ll I
ncr
eas
einAsse
ts
A. 0 P234,
000
B. 0 P312,
000
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000 P234,
000
D.P338,
000 P7 8,
000
J
oyIn
c.,asupp
li
ero
fsno
oke
requi
pmen
t,agr
eedt
oac
qui
r
eth
ebu
sin
esso
far
i
val
fi
rm,
Lan
dIn
c.t
aki
ng
o
veral
lass
etsandl
i
abi
l
it
i
esasa
tJune1,2
009.
Thep
ri
ceag
ree
du p
onwasP4
0,0
00,
pay
abl
eP20
,000cas
handt
heb
ala
ncebyt
hei
ss
uet
oth
ese
ll
i
ng
co
mpanyo
f16,
000ful
l
ypa
ids
har
esi
nJo
yInc
.wi
thafa
irv
alu
eof
P2.
50pers
har
e.
Th
etr
i
alb
ala
nce
sof
thet
woc
omp
ani
esa
sat
Jun
e1,
200
9we
rea
sfo
ll
ows
:
Jo
yCo . L
andCo
.
Dr
. Cr. Dr
. Cr
.
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arecapi
t
al P100
,000 P9
0 ,
000
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ai
nedear
nin
gs 12,
000 P2
4,0
00
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count
spayab
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000 2
0,0
00
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h P30,
000 -
Pl
ant(
net
) 50,
000 30,
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nve
ntor
y 14,
000 26,
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000 20,
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ernment
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P1
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Al
lt
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ent
i
fi
abl
enet
asset
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c.wer
erec
orde
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dIn
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ort
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in
vent
or
ywhi
chwascon
sid
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dtobewor
thP28
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lan
tha
danexpe
cte
dre
ma i
ni
ngl
i
feof
fi
ve
ye
ars
.
Thebus
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sscombi
nati
onwascompl
ete
dandLandI
nc.
wenti
nt
oli
qui
dat
i
on.
Cos
tsofl
iq
u i
dat
i
on
amount
edt
oP1 ,
000
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c.i
ncurr
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nci
dent
alc
ost
sofP5
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el
ati
ont
oth
eacqu
isi
t
ioncos
ts.
Cost
sofi
ssui
ngsha
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nJoyIn
c.wereP40
0.
1
29. Th
eamount
ofg
ood
wil
l
:
A.P 0
B.P2,
500
C.P2,
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D.P3,
900
Cok
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ncandCol
aCompany,
agreet
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e.Cok
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quir
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ta s
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Col
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chan
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r
3,
125s
har
esofCokecap
it
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toc
k(parP1
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kesharesont
hisdayhav
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ketv
alu
eofP1
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pe
rsha
re.
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sedbal
ancesh
eetofCol
apr
i
ortocombi
nati
onshow:
Cur
rentasse
ts P1,52
5,000
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antandequip
me nt 2
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000
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ll 250,
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talasset
s P4,07
5,000
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abi
l
iti
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000
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t
a l
s t
ock 2,
000,0
00
Addi
t
ionalpai
dincapi
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al 6
50,
000
Ret
ai
n edear
nings 475,0
00
To
tall
ia
b i
l
it
ie
sa ndequ
it
y P4,07
5,000

lOMoARcPSD|4644109
Anappr
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fCo
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etsar
e
P1,
125,
000fo
rcurr
enta
sset
sandP2,
500,
000f
orpl
antandeq
uipment
.Thec
ombi
nat
i
onis
app
rop
ri
atel
yrec
konedasapur
chas
edofi
nt
eres
ts.
1
30. Howshoul
dthedi
ff
ere
n c
eb e
twee
nthef
airval
ueof
Cola
’snet
asse
tsandt
hefa
irv
alu
eof
shar
es
i
ss
u e
db yCokebet
a k
enu pi
nCoke’
sbooks.
Showsas(1)
goodwi
l
lan
d/or
(2)p
remi
umonst
ock
s.
Goodwi
l
l Premi
umo ns
toc
k s
A.P1 ,
137,
500 P937,
500
B.P1 ,
137,
500 0
C.P1 ,
387,
500 0
D.P1 ,
387,
500 937,5
00
OnDecember1
,2009,
MoonCo.
acq
uir
edal
lt
heasse
tsa
ndli
abil
i
ti
esofL
igh
tCo.wi
t
hMoon
i
ssu
ing100
,00
0s h
are
stoa
cqui
r
ethe
senet
asset
s.Th
efai
rva
lueofLi
ght
Co.’
sas
set
san
dli
abi
l
it
i
esa
t
t
hi
sdatewer
e:
Cas
h P50,
000
Fu
rni
tu
reandfi
tt
in
gs 2
0,000
Ac
count
srecei
vabl
e 5,000
Pl
ant 12
5,000
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count
spayabl
e 1
5,000
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ren
tta
xlia
bil
it
y 8,000
Pr
ovi
si
onforannu
all
eav
e 2,000
Th
efi
nan
cia
lye
arf
orMo
onCo
.isJ
anu
ary–De
cemb
er.
Th
efai
rval
ueofea
chMo onCoshareatacqu
isi
t
iondat
eisP1.9
0.Atacq
uisi
t
iondat
e,t
heac
qui
recou
ld
on
lyde
ter
mineapr
ovi
si
onalf
airv
aluefort
hepl
ant.OnMa r
ch1,20
09Mo onCo.rec
eiv
edt
hefi
nal
val
ue
f
ro
ma ni
ndepen
dentapp
rai
sal
,th
ef a
irval
ueatacqui
si
t
iondat
ebei
ngP131,000.
As
sumin
gthepl
antha
daf ur
th
erfi
ve-ye
arli
f
efro
mt heacqui
si
t
iondat
e.
1
31. Th
eamount
ofg
ood
wil
lar
i
sin
gfr
omt
heb
usi
nes
sco
mbi
nat
i
ona
tDe
cemb
er1
,20
09:
A.P15
,00
0
B.P13
,00
0
C.P5,00
0
D. 0
Co
nde
nse
dba
lan
ces
hee
tso
fACo
.,BCo
.,a
ndCCo
.,a
sof
Dec
emb
er3
1,2
009
,ar
esh
ownb
elo
w:
ACo. BCo. CCo.

As
set
s P2
,00
0,0
00 P2
,75
0,0
00 P2
50,
000
Li
abi
l
it
ie
s 1
,425
,000 750,
000 87
,500
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t
alst
ock(
allP5par
) 750
,000 500,
000 125
,000
Addi
t
ion
alpai
dincapi
ta
l - 200,
000 62
,500
Ret
ai
nedearn
ings(d
efi
ci
t) (
175,
000) 1,
300,
000 (25,
000)
To
tale
quit
i
es P2,
000,
000 P2
,75
0,00
0 P2
50,00
0
ACo.’
sst
ockha
samarket
valu
eofP6.
50wh i
l
etheo
the
rcompani
esha
ven oava
il
abl
est
ockmark
et
quo
tat
io
ns.ACo.a
cqu
ir
edthenet
asse
tsoft
hetwoot
herc
ompani
esbyis
suin
g,i
nexcha
nge,u
nis
sue
d
sh
aresofi
t
sst
ockasf
ol
lo
ws:300,
000sha
restoBCo.
;25,
000s
harest
oCCo .
1
32. Us
ingt
hepur
cha
seme
tho
d,ACo
.th
ega
ino
nac
qui
si
t
iona
ft
err
eas
ses
sme
ntwo
uldb
e:
A.None
B.P5 0,
000
C.P325,
000

lOMoARcPSD|4644109
D.P8
12,
500
SunCor
pora
ti
ononJun
e30,200
9,hasas
set
swit
hfa
irv
alu
esasf
oll
ows
:cur
re
nta
sset
s,P9
0,0
00;
an
dn on
-cu
rr
enta
sset
s,P1
10,
000.I
thadl
i
abi
l
it
ie
swit
hfai
rval
ueo
fP20,
000
,andi
tha
sno
i
nves
tment
sinmar
ket
abl
esec
uri
t
ies
.
OnJ
uly1
,20
09,
Ris
eCo
rpo
rat
i
onp
urc
has
edt
hen
eta
sse
tso
fSu
nCo
rpo
rat
i
onf
orP1
60,
000c
ash
.
1
33. Hows
houldt
heP20,00
0d i
ff
erenc
eb e
twe
enthefa
irv
alu
eoft
hen
eta
sse
tsa
cqu
ir
eda
ndt
he
ac
qui
si
t
ioncos
tbeaccount
edforbySunCorpo
rat
i
on?
A.Deduct
edfr
omn on
-cur
rentass
ets
B.Cred
it
edtoret
ai
nedearn
ings
C.Rat
ablyded
ucte
dfromcu r
re
ntandnon-
cur
ren
tass
ets
D.Gai
no nacqu
isi
t
ion
De
lCompan
yandMont
eCompan
yagre
etocombi
ne.
Delpu
rch
asest
henetas
set
sof
Mon
tef
or
P2
,65
0,0
00.Mo
nte
’sc
onde
nse
dbala
nceshe
et,p
ri
ort
oth
ecombin
ati
on,
fol
l
ows:
Cur
re
ntass
ets P1
,83
0,00
0
Pl
anta
ndequi
pme
nt 2,
760,
000
Good
wil
l 350,
000
To
tal P4
,89
0,00
0
Cur
rent
li
abi
l
it
ie
s P 140,
000
Lo
ng-t
ermli
abi
l
it
ie
s 1,
000,
000
Capi
t
alst
ock/
Shar
ecapi
tal 2,
400,
000
Addi
t
ion
alpai
d-
incap
it
al
/Shar
epr
emiu m 780,
000
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ai
nedearn
ings
/Ac
cumula
tedp
rofi
t
s 570,
000
To
tal P4
,89
0,000
Anapp
rai
sal
madebyi
nde
penden
tap
pra
ise
rsi
ndi
cat
est
hat
thef
air
val
ueo
fMo
nte
’sa
sse
tsa
re
P1,
890
,00
0forc
urr
ent
ass
etsa
ndP2,
900,
000f
orpl
anta
ndequi
pment
.
1
34. Howshoul
dthedi
ff
erenc
eb e
tweenth
ea moun
t o
fconsi
der
at
io
npa
idb
yDe
lCo
.an
dth
efa
irv
alu
eof
the
Mo
nteCo
.’
snetasset
sbetakenupint
hebooksofDelCo.
?
A.Ga i
nonacqui
sit
io
no fP1
,000,
000
B.Reduct
ionofpl
antandequi
pmentt
oP1 ,
900,
000
C.Defer
redcre
ditof
P1,000,
000
D.Reduct
ionofpl
antandequi
pmentbyP1,
900,000
Pi
aCo mpa
nyhadnetass
etsac
cord
ingt
oit
sbooksof
P1,00
0,0
00onJanua
ry1,2
010.Ont
hes
amed
ate
,
Rut
hCo mpan
yo wn
ed9,00
0o f
the12,
000out
st
andi
ngshar
esofPi
a’
son
lycl
assofs
toc
k,a
ndi
t
s
i
nve
stmenti
nPiaCo.a
ccount
hadab al
anc
eofP795
,000
,
1
35. If,
onJan
uary1,
2010
,Pi
are
pur
cha
sed2
,00
0sh
are
sfr
omRu
thf
orP2
00,
000
,th
ega
ino
nth
esa
leo
fth
e
st
ockr
eco
gni
zedbyRut
hwas
:
A.P3 ,
000
B.P7 ,
000
C.P10,
000
D.P23,
333
Summa
ryi
nfo
rmat
i
oni
sgi
venf
orRayComp
anyan
dMa r
kComp
anya
tJu
ly1
,20
10.
Theq
uot
edma
rke
t
pr
i
ceofRa
ycommons
toc
konJul
y1,20
10i
sP40pers
hare
.
RayComp a
ny Ma
rkCo
mp a
ny
PerBook
s Pe
rBook
s F
airVa
lue
s
Cu
rr
ent
ass
ets P2 4
,000
,000 P8,0
00,
000 P9 ,00
0,00
0

lOMoARcPSD|4644109
Pl
anta
sset
s 2
6,00
0,000 2
2,00
0,000 26,0
00,00
0
To
tal
asse
ts P50
,000,
000 P30
,000,
000 P3
5,000
,000
Li
abi
l
it
ie
s P15
,000,
000 P5 ,
000,
000 P5
,00
0,0
00
Commonst
ock,
P10par 20
,000
,000 1
0,000
,000
Addi
t
ion
alp
aid
-i
ncap
it
al 1,
000,
000 1,000
,000
Ret
ai
nedear
ni
ngs 14,
000,
000 1
4,000
,000
To
tal P50
,000,
000 P30
,000,
000
RayCo.i
ssu
es1,
000,
000sh
aresofi
t
sownst
ockfo
ral
lth
eout
sta
ndi
ngs
toc
kof
Mar
kCo
.onJ
uly1
,20
10,
i
nap u
rch
asebu
sin
esscombi
nat
io
ninwhi
chMarkCo.
isdi
ss
olv
ed.
1
36. Th
eto
tal
pai
d-i
nca
pit
alo
fRa
yCo
mpa
nya
ft
ert
heb
usi
nes
sco
mbi
nat
i
onu
nde
rpu
rch
aseme
tho
d?
A.P61,
000
,00
0
B.P31,
000
,00
0
C.P32,
000
,00
0
D.P30,
000
,00
0
Th
es t
ock
hol
der
s’e
qui
t
ieso
fSwe
etCo
rpo
rat
i
ona
ndSo
urCo
rpo
rat
i
ona
tJa
nua
ry1
,20
10,
wer
eas
f
ol
lo
ws:
SweetCorp. SourCor
p.
Cap
it
alst
ock
,P10par P1,50
0,000 P8 00,
000
Ad
dit
i
onalpa
id-
incap
it
al 2
00,
000 400
,00
0
Re
tai
nedEarn
ings 600,0
00 300,
000
P2,30
0,000 P1 ,5
00,
000
OnJanua
ry2,2
010,
Sweet
iss
ued150,
000o
fit
sshar
eswit
hamar
ket
val
ueofP2
0p er
sharef
ora
llo
f
Sour
’
sshare
s,an
dSour
wasdis
sol
ved
.Onthesameday
,Swee
tpa
idP10
,00
0forot
herdi
r
ectc
ost
s
co
mb i
nat
i
on.
1
37. Th
est
ock
hol
ders
’eq
uit
yaf
t
ert
heb
usi
nes
sco
mbi
nat
i
oni
s
A.P5
,300
,00
0
B.P5
,295
,00
0
C.P3
,800
,00
0
D.P3
,785
,00
0
Sel
ect
aCo.wil
li
ssu
eshar
eofP1
0p a
rcommonst
ockf
ort
hene
ta s
set
sofNe
stl
eCo.Sel
ect
a’
s
co
mmo ns
tockhasacu
rr
entmar
ket
val
ueofP40p
ersha
re.
Nest
lebal
anc
esheet
acc
o u
ntsf
ol
lo
w:
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re
ntas
set
s P32
0,000 Commonst
ock,
parP4 P(
80,
000)
Pr
oper
tya
ndEqu
ipme
nt 88
0,00
0 Ad
d i
t
ion
alp
aid
-i
n-c
api
t
al (
320,
000
)
Li
abi
l
it
i
es (
400,
000) Re
tai
nedear
ni
ngs (
400,
000
)
Nest
lec
urr
entas
set
sandpro
pert
yandequ
ipme
nt,r
espe
cti
vel
y,a
reapp
rai
sedat
P400,
000an
d
P1,
600,
000;
it
sli
abi
l
it
i
esaref
air
l
yvalu
ed.
Accor
di
ngl
y,Sel
ect
aCo.is
sueds
hare
so f
it
scommon
st
ockwi
tht
ota
lmark
etva
lueequal
tot
hat
ofNest
l
enetasse
ts.
1
38. Tor
eco
gni
zeg
ood
wil
lof
P20
0,0
00,
howma
nys
har
eswe
rei
ss
ued
?
A.40,
000
B.45,
000
C.50,
000
D.55,
000

lOMoARcPSD|4644109
Ros
e,In
c.i
stoacq
uir
eSampagui
t
aInc.
byabsor
bi
nga l
lt
heas
set
sa n
da s
sumi
ngal
lt
hel
ia
bil
i
ti
esf
ort
he
l
at
te
rinexc
hangef
orsha
resof
thef
ormer
’sst
ock
.Belo
wa r
eth
eb a
lanc
esheet
sof
thet
wocompan
ies
,
wi
t
hthecor
resp
ondi
ngappr
ai
sedval
uei
ncre
mentfo
rSampagui
t
aInc.
Rose Sa
mpagui
ta
As
set
s,p
erb
ook
s P4
,00
0,0
00 P2
,50
0,0
00
As
set
s,a
ppr
ai
sal
inc
rea
se P3
00,
000
L
iab
il
i
ti
es P1
,50
0,0
00 P8
00,
000
Commonstoc
k(Nopar
:P100p
ar) 2
,000
,000 1
,000
,000
Addi
t
ion
alpai
d-
inca
pit
al 700
,000 300
,000
Ret
ai
nedearn
ings(
defi
ci
t) 200
,000
) 400
,000
To
tale
quit
i
es P4,
000,
000 P2,
500,
000
Th
epart
ie
sagr
eet
ou s
etheap
pra
ise
dval
ues
,aga
ins
twhi
chthef
ai
rmark
etv
alu
eof
thes
har
eswi
l
lbe
mat
che
d.Ros
eInc
.’
scommonst
ocki
scu
rr
ent
lys
ell
i
ngat
P1 0
0p e
rsha
re.
1
39. Th
enumber
ofs
har
est
obei
ss
uedb
yRo
seI
nc.
is:
A.10
,00
0
B.13
,00
0
C.17
,00
0
D.20
,00
0
OnAugust31
,200
9Wi l
lCo.i
ssued100,
000sha
resofi
tsP20parval
uecommonst
ockfo
rthenetass
ets
ofVi
naIn
c.,i
nabusi
nesscombi
nati
onacc
ount
edforbyth
ep u
rch
a s
eme t
hod.
Thema r
ketv
alueofWil
l
’s
co
mmo nst
ockonAugust31wasP36persha
re.Wil
lpai
dafeeofP160,
000t
othec
onsult
antwho
ar
rang
edthi
sacqu
isi
ti
on.Cost
sofre
gis
ter
i
ngandiss
uingth
eequi
tysecur
i
ti
esamou
ntedtoP80,0
00.No
good
wil
lwasi
nvol
vedi
nthepurch
ase.
1
40. Wha
tamoun
tshou
ldWi
l
lca
pit
al
iz
east
hec
ost
ofa
cqu
ir
in
gVi
na’
sne
tas
set
s?
A.P3,
600
,000
B.P3,
680
,000
C.P3,
760
,000
D.P3,
840
,000
I
te
ms1 39and140ar
ebas
edonth
efol
l
owin
ginf
or
mat
ion
:
Compar
ati
veba
lanc
eshe
etsf
orGr
apeandBer
ri
esCo
rpor
at
io
nat
Dec
emb
er3
1,2
009a
rea
s
f
ol
lows
:
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y
Cur
rentas
set
s P13
0,000 P60,000
La
nd 50,0
00 1
00,0
00
Bui
l
ding–net 3
00,0
00 1
00,0
00
Equi
pment–ne
t 2
20,0
00 2
40,0
00
To
talass
ets P70
0,000 P50
0,000
Cur
rent
li
abi
l
iti
es P50,000 P6 0,
000
Capi
t
alst
ock,P10pa
r 5
00,0
00 20
0,000
Addi
t
ion
alpai
d-i
ncapi
t
al 50,
000 14
0,000
Ret
ai
nedearni
ngs 1
00,0
00 10
0,000
To
tall
i
abi
li
t
iesandequ
it
y P70
0,000 P5
00,00
0

lOMoARcPSD|4644109
OnJanuar
y2,201
0,Grapeis
sues30,
000shar
esofsto
ckwit
hama rk
etval
ueo f
P12persh
arefo
ral
lth
e
out
st
andi
ngshar
esofBerr
yCorpor
at
io
ninap u
rchasebusi
nessco
mbina
ti
on,Berr
yisd
iss
olv
ed.The
r
ecord
edbookval
uesre
fl
ectf
ai
rval
ues,ex
cept
fort
heb ui
l
di
ng so
fGrape
,whichhav
ean e
treal
i
zabl
e
va
lueofP40
0,0
00,andthecur
re
ntass
etsofBer
ry,
wh i
chhaveanetr
eal
iz
ableval
ueof
P100,00
0.
Gr
apep
ayst
hef
ol
lo
win
gex
pen
sesi
nco
nne
cti
onwi
t
hth
ebu
sin
essc
omb
ina
ti
on:
Co
stso
fre
gis
ter
i
ngandi
ssu
ings
ecu
ri
ti
es P1
5,00
0
Di
r
ectc
ost
sofcomb
ina
ti
on 25,
000
P4
0,00
0
OnJ
anu
ary1
,20
10b
ala
nces
hee
t:
1
41. Th
ead
dit
i
ona
lpa
id-
i
nc a
pit
ala
mou
nte
dto
:
A. P5 0
,000 C P95,
000
B. P7 0
,000 D. P1
10,
000
1
42. Th
ega
ino
nac
qui
si
t
ionamo
unt
edt
o:
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,00
0
B. P9 5
,00
0
C. P1 20
,00
0
D. P3 95
,00
0
OnAug
ust
1,200 9
.Yel
lo
wCo mpan
ypai
dP1,
240,
000f
oral
lt
heis
suedandou
tst
and
ingc
ommo
nsh
are
sof
Gre
en,
I
nc.
Theba
sicfi
nanci
ali
nf
or
ma t
i
onofGr
eenI
nc.
asofs
aiddat
ereg
ist
er
edasf
oll
ows:
Cas
h P120,
000
I
nve
ntor
y 360,
000
Pr
oper
tyan
dEq u
ipme
nt(
net
ofa
ccu
mul
at
edd
epr
eci
at
io
n,P4
40,
000
) 6
40,
000
Good
wil
l 200,
000
Bo
ndsPayabl
e (2
40,
000)
Thefol
l
owingin
for
mati
onisrel
eva
n t
:
- Gr eenownsit
sfac
tor
ywh i
chisi
ncl
udedi
ntheacc
ount
satP100,
000an
dnoadj
ust
menthadbee
n
madetorecog
niz
ethevalu
ati
onofP220,
000put
onthepr
oper
tywheni
twa
sprof
ess
ion
all
yre
val
ued
onJuly15,
2009.
- Th efai
rval
uesofGre
e n
’si
nvent
oryo
nAu gus
t1,20
09ise
sti
matedt
obeP60,
000l
esst
hanit
sbook
val
uea t
tha
tdate
.
1
43. Th
eamounto
fgo
odwi
l
lge
ner
at
edt
her
ef
ro
m:
A.Zer
o
B.P300
,00
0
C.P240
,00
0
D.P100
,00
0
Th
eba
lan
ces
hee
tof
Blu
eCo
mpa
nya
sof
Dec
emb
er3
1,2
009i
sasf
ol
lo
ws:
As
set
s L
iab
il
it
i
es&St
ock
hol
der
s’Eq
uit
y
Cas
h P 17
5,00
0 Cur
rent
li
abi
li
ti
es P2 50,
000
Ac
count
sre
cei
vab
le 2
50,0
00 Mort
gagepaya
ble 45
0,000
I
nve
nto
ri
es 7
25,0
00 Commons t
ock 20
0,000
Pr
oper
ty
,pl
ant
&e qu
ipme
nt 950,
000 Ad
d i
t
ion
a l
pai
dincap
it
al 40
0,000
Re
tai
nede a
rni
ngs 80
0,000
P2
,10
0,0
00 P2
,100,
000

lOMoARcPSD|4644109
OnDecember
31,2009,Bl
ueCompanyboug
h t
all
theouts
tan
din
gstoc
kofRedCompanyfo
r
P1,
800,
000ca
sh.Onthedat
eo f
purc
hase
,thefai
rval
ueofBl
ueinv
ent
ori
eswasP675,
000
,whi
le
t
hefai
rval
ueof
Blue’
sprop
ert
y,pl
anta
ndequi
pme nt
wa sP1,
100,
000.
Thefai
rva
lue
sofal
lot
heras
set
s
an
dli
abil
i
ti
esof
Bluecompanywer
eequalt
othei
rbookval
ues.
1
44. Comp
utet
heamo
unt
ofg
ood
wil
li
nth
ebo
okso
fRe
dCo
mpa
ny.
A.P300,
000
B.P200,
000
C.P100,
000
D.P 0
1
45. Compu
tetheamo
unt
ofg
ood
wil
li
nth
eco
nso
li
dat
edb
ala
nces
hee
t.
A. P300
,000
B. P200
,000
C.P100,
000
D.P 0
Al
li
ssu
eda n
do u
tst
and
ingco
mmo ns
toc
kofDa
gupanCo
mp a
nywer
ebou
ghtbyPang
asi
nanCo
mpa
nyo
n
Oct
ober1
,2009fo
rP700,
000.T
heass
etsa
ndl
iab
il
it
i
esof
Dagup
anCompan
ywe r
e:
Cas
h P50,
000
Ac
count
sre
cei
vabl
e(ne
tofP25
,00
0all
owanc
efo
rdou
btf
ula
ccoun
ts) 2
50,
000
I
nve
nto
ry 150
,000
Pr
oper
ty&Equi
pment(
net
ofP100
,00
0a c
cumul
at
eddep
rec
iat
i
on) 300
,000
Ac
count
s/
Note
spayab
le 1
30,
000
OnOc
tob
er1
,20
09t
hef
ai
rva
lueo
fth
efo
ll
owi
nga
sse
tswe
rea
sfo
ll
ows
:
Ac
count
sre
cei
vabl
e(ne
t) P2
35,0
00
I
nve
nto
ry 130
,000
Pr
oper
ty&equ
ipment
(net
) 400
,000
I
nSept
ember200
9,Dag
upanComp
anyann
ounc
edi
tsdec
is
iont
ocl
osedownasmal
lwor
ksh
op
wi
t
hthel
ossofso
mejobs
.Thec
ost
sofc
los
urea
ree
sti
mat
eda t
P20
,000
.Nopro
vis
ionh
asbeen
madeat
Octob
er1,2
009.
1
46. Th
eamount
ofg
ood
wil
lasar
esu
lto
fth
ebu
sin
essc
omb
ina
ti
ons
hou
ldb
e:
A.P 0
B.P35,0
00
C.P65,0
00
D.P10
0,0
00
1
47. Usi
ngthesamein
for
mat
ionabo
ve,
theamo
unt
ofg
ood
wil
lr
eco
rde
dint
heb
ook
sof
Pan
gas
ina
nCo
.asa
r
esu
lti
nth
eb u
sine
sscombi
nat
io
nshou
ldbe
:
A. P 0
B.P3 5,0
00
C.P6 5,0
00
D.P1 00,
000
Whi
teCompanya
cqu
ir
ed70%ofth
enetas
set
so f
Blac
kCompanyfo
rP1.
1mill
io
n.Th
ea s
set
sofBl
ackhav
ea
bo
okval
ueofP1.
2mil
l
io
nandafai
rmar
ketv
alu
eo fP1
.3mi
ll
i
on;i
tsl
i
abi
li
t
iesar
e.2mil
l
io
n.
1
48. Wh a
tist
heamoun
tof“
exc
essofc
osto
verbookva
lueo
fsub
sidi
ar
y”onth
ec o
nso
li
dat
edbal
anc
es h
eet
?

lOMoARcPSD|4644109
A.P 0
B.P
.1mi
l
li
on
C.P
.2mi
l
li
on
D.P
.4mi
l
li
on
Or
angeCorpo
rati
oni
ssue
s45,00
0shar
es0fp
rev
iou
slyu
nis
suedP10p
arva
lueco
mmons t
ockwi
thaf
air
mar
ketv
alu
eo fP32p
e rs
har
eforne
tas
set
sofYel
l
owCo r
por
at
ion.
Ora
ngepayst
hef
ol
lo
wingcos
tsan
d
ex
pens
esrel
ate
dtothebusi
nes
scombi
nat
i
on:
Re
gist
er
in
ga ndi
ssui
ngsec
uri
ti
es P1
5,00
0
Ac
count
ant
s’andle
galf
ees 8,
000
Sa
lar
ie
sofOrange’
sempl
oyeesass
ign
edt
oth
eimpl
eme
nta
ti
on
oft
heme rg
er 1
6,0
00
Cos
tofcl
osi
ngdupl
ica
tef
aci
li
t
ies 1
2,0
00
Cos
tsofs
harehol
der
s’mee
ti
ngtovot
eont
hemer
ger 5
,00
0
1
49. Th
eex
pense
samo
unt
edt
o:
A.P2
1,0
00
B.P3
3,0
00
C.P4
1,0
00
D.P5
6,0
00
Mi
xCorpor
ati
oniss
ued100,
000shar
esof
P20forc
ommonsto
ckf
oral
lt
heout
st
andi
ngst
ockof
Mart
Cor
por
at
ioninab u
sin
esscombi
nat
i
oncons
umma t
edat
Jul
y1,20
09.
MixCor
pora
ti
oncommonst
ockwas
se
ll
i
ngatP30pe rs
hareat
theti
meoft
hebus
ine
sscombi
nat
i
onwasc
onsummat
ed.Out
-
o f
-
pock
etcos
tso
f
t
hebus
inesscombin
ati
onwereasf
ol
lo
ws:
Fi
nder
’sf
ee P5
0,00
0
Acco
untan
t’
sfee(
advis
ory) 10,
000
Lega
lfee
s(advi
sor
y) 20,
000
Pri
nt
in
gc o
sts 5,
000
SECregi
st
rat
io
ncostsandf
ees 1
2,0
00
P9
7,00
0
1
50. Th
eac
qui
si
ti
onc
ost
oft
hec
omb
ina
ti
onu
nde
rpu
rch
asea
cco
unt
i
ngwi
l
lbe:
A.P3
,09
7,0
00
B.P3
,08
0,0
00
C.P3
,01
7,0
00
D.P3
,00
0,0
00
OnJuly1,20
09.SunCo.
acqu
ir
edall
thei
ssuedshar
ecapi
ta
lo f
ShineCo.gi
vi
nginexc
hangeof
100
,000shar
esinSunCo.
havi
ngafai
rval
ueofP5pers
hare.Atacqui
si
ti
ondat
e,t
hebal
ance
sh
eetsofSunCoandShi
neCo.an
dthefai
rval
uesofSh
ineCo ’
sasset
sandli
abi
l
it
ie
s,wer
ea s
f
ol
lows:
SunCo. Shi
neCo.
Carr
yi
ngAmo unt Carr
yingamo u
nt Fai
rval
ue
EQUITY&L I
ABILI
TI
ES
Equi
ty
Shar
eCa pi
t
al P550,
000 P300,0
00
Ret
ainedEar
nin
gs 350,
000 1 4
0,000
Tot
alEqui
ty P900,
000 P4 40,
000
Li
abi
li
ti
es:
Pr
ovisi
ons P3 0,
000 P6 0,
000 P6 0,
000
Pay
a bl
es 27,
000 3
4,000 34
,000

lOMoARcPSD|4644109
T
axli
abi
l
it
i
es 10,
000 6,
000 6
,00
0
Tot
all
i
abi
li
ti
es P67,
000 P1
00,
000
T
ota
lequi
t
y&liab
il
i
ti
es P9
67,
000 P5
40,
000
ASSETS
Land P120
,000 P15
0,00
0 P1
70,0
00
Equi
pment 6
20,00
0 4
80,0
00 330
,000
Accu
mu l
at
eddep
reci
at
ion (1
80,000
) (1
70,0
00)
I
nvest
menti
nsubs
idi
ar
y
(
shar
esi
nShineCo.
) 5
00,0
00
I
nvent
ory 92,0
00 75,
000 8
0,0
00
Cash 15,0
00 5,
000 5,0
00
Tot
alas
set
s P96
7,00
0 P5
40,
000
Atac
qui
si
t
iond
ate
,Shin
ec o
.hasanu
n r
ecor
dedpat
ent
wit
haf
ai
rva
lueo
fP2
0,0
00a
ndac
ont
i
nge
nt
l
ia
bil
i
tywi
t
hafai
rval
ueofP15,
000
.Thetaxr
atei
s30%.
1
51. Th
eamo
unt
ofg
ood
wil
lac
qui
r
edo
nJu
ly1
,20
09:
A.P2 5
,000
B.P1 5
,000
C.P1 0
,000
D.Z e
ro
. Usi
ngthesamei
nfo
rmati
oni
nNo.10,
con
sid
ert
hesamesi
t
uat
io
nwher
ethea
sse
tsr
ecor
dedbyt
he
su
bsi
diar
yatacq
uis
it
io
nd a
tear
eth
esameaspr
ese
nteda
bove
,exc
ept
tha
tnowt
her
eisr
ecor
ded
goo
dwil
l
, a
sfol
l
ows:
Shi
neCo
.
Ca
rryi
ngamount F
air
val
ue
Cas
h P 5 ,
000 P5 ,
000
La
nd 1
50,000 170,
000
Equ
ipment 4
80,000 330,
000
Acc
umula
tedd
epr
eci
at
io
n (170
,000
)
Goodwi
l
l 10,000
I
nvent
or
y 75,000 80,
000
P550,
000
As
sumet
hat
ther
et
ai
nede
arn
ing
sba
lan
cei
sP1
50,
000r
at
her
tha
nP1
40,
000
.
1
52. Th
eamounto
fgo
odwi
l
li
nth
eco
nso
li
dat
edb
ala
nces
hee
tonJ
uly1
,20
09:
A.P25,
000
B.P15,
000
C.P10,
000
D.Zer
o
1
53. Us
ingt
hes
amei
nf
or
mat
i
ona
bov
e,t
hea
mou
nto
fun
rec
ord
edg
ood
wil
lac
qui
r
edo
nJu
ly1
,20
09:
A.P25
,00
0
B.P15
,00
0
C.P10
,00
0
D.Ze
ro
1
54. Usingt
hes a
meinf
or
ma t
i
onabove
,SunCo
.acq
uir
ed90%o
fth
esh
are
sof
Shi
nec
o.f
orP4
75,
000
,
co
mp u
teth
ea moun
tofgo
odwil
lac
qui
redo
nJul
y1,2
009:
A.Zero
B.P35,0
0 0
C.P47,5
0 0

lOMoARcPSD|4644109
D.P4
8,5
00
1
55. Us
ingt
hesa
mei
nf
or
mat
i
ona
bov
e,c
omp
utet
hea
mou
nto
fun
rec
ord
edg
ood
wil
lac
qui
r
edo
nJu
ly1
,20
09:
A.P79,
000
B.P45,
000
C.P39,
500
D.P38,
500
1
56. As
sumetha
toneofthepay
abl
esata
cqu
isi
t
iond
atei
sadi
vi
dendpay
abl
eofP8,
000.
Thepar
ent
ac
qui
re
stheshar
esinth
esubsi
di
ar
yonacumdiv.
bas
iso
r“d
ivi
den
ds-o
n”a
rra
ngement
.Th
ea mo
unt
of
go
odwi
ll
acqui
r
edo nJul
y1,20
09:
A.P27,
000
B.P17,
000
C.P12,
000
D.Zer
o
Th
eba
lan
ces
hee
tso
fMi
l
dCo
.an
dDe
wCo
.onJ
une3
0,2
009we
rea
sfo
ll
ows
:
Mi
l
dCo . De
wCo
.
Cur
ren
tasse
ts P 5 00 P 700
Non-
cur
re
ntass
ets 1,300 3,
000
To
tal
asset
s P1 ,
800 P3,
700
Sh
arecap
it
al
:
100sh
are
s P 3
00
60sh
are
s P 600
Re
tai
nedEar
ni
ngs 80
0 1,
400
P1
,100 P2,
000
Cu
rr
entl
i
abi
l
it
ie
s P 300 P 600
No
n-c
urr
ent
li
abi
li
t
ies 400 1,
100
P 700 P1,
700
T
ota
leq
uit
yan
dli
abi
l
it
i
es P1,
800 P3,
700
OnJuly1,2
009,
Mil
dCo.a
cqui
r
edall
thei
ssu
eds
hareso
fDewCo.g
ivi
nginex
cha
nge2½Mi
ldCo.
sh
aresfo
reachor
di
nar
ysha
reofDe
wCo .
Mil
dCo.t
husi
ssu
ed15
0sharestoa
cqu
ir
eth
e60s
hare
s
i
ssue
db yDewCo.
Thefai
rval
ueofe
a chor
dina
ryshar
eofDewCo.onJul
y1,2
009isP40,
whil
ethequot
edmar
ket
pr
i
c eofMil
dCo’
ssha r
eisP16.T
hefai
rval
uesof
Mil
dCo’si
dent
i
fi
abl
easset
sandli
abi
l
it
i
esat
ac
q ui
si
t
iondat
earethesameasthei
rca
rry
inga
mo u
ntse
xcep
tfort
henon
-cur
re
n t
asse
tswh
osefa
irv
alu
e
wasP1,500
.Thetaxrat
eis30%.
1
57. Theamountofgoo
dwil
lonJul
y1,20
0 9
:
A.P1 ,
160
B.P 8 56
C.P 4 00
D.P 3 60
Moon,apri
vat
eli
mit
edcompany
,hasarr
angedfo
rSun,
ap ub
li
cli
mit
edc
ompany
,toacq
uir
eit
asame an
s
of
o b
tai
ni
ngas t
ockexc
hangeli
st
i
ng.Sunis
sues15mil
l
io
ns h
arest
oacq
uir
eth
ewh o
leoft
heshar
e
ca
p i
t
alofMoon(6mil
l
io
ns h
ares)
.Thefa
irv
alueoft
henet
asset
sofMoo
nandSunareP30mil
li
onan
d

lOMoARcPSD|4644109
P18mi
ll
io
nrespe
cti
vel
y.T
hefa
irv
alu
eofeac
hoft
hesh
areso
fMooni
sP6an
dthequ
otedma
rke
tpr
i
ce
of
\su
n’ssha
resi
sP2.Thesh
arecap
it
alo
fSuni
s25mi
ll
i
onshar
esaf
t
ert
heac
qui
si
t
ion
.
1
58. Th
eva
lueo
fgood
wil
li
nth
eab
ovea
cqu
isi
t
ion
:
A.P1
6mil
li
on
B.P1
2mil
li
on
C.P1
0mil
li
on
D.P6mil
li
on
OnSe p
tember3,2
009,Piapl
ace
danonc
ancel
l
ablepur
chas
eo rd
erwi
thaJapan
esec o
mp an
yfora
cu
stom-bui
l
tmachi
ne.Thecont
ra
ctp
ri
cewas1,
000,0
00yens.Themachi
newasdeli
ver
edonDe ce
mb e
r
23,2
009.Theinv
oic
ewa sdat
edNov
ember13,
2009,t
heshi
pp i
ngdat
e(FOBshi
ppin
gp oi
nt
).Theven
dor
waspai
do nJanu
ary7,2010
.Thespo
tdi
rec
texc
hangerat
esf
o rt
heJapa
n e
seyensonther
es p
ect
iv
e
da
tesareasfol
l
ows:
Se
pt.
3,2
009 No
v.1
3,200
9 De
c.2
3,20
09 De
c.3
1,20
09 J
an.
7,2
010
P.
20 P.2
1 P
.22 P.
23 P
.24
1
59. Wha
tamount
ist
hec
api
t
ali
zab
lec
ost
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1
74. OnJ anau
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l
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me dafor
ei
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ocalcur
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ndtheave
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lOMoARcPSD|4644109
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000
1
84. Net
Boo
kValu
e:
A.P37
5,0
00 C. P 0
B.P16
5,0
00 D. P2
50,
000
AsofJanu
ary1,201
0,JohnCorp
.sol
dawar
ehousewit
hab o
o kval
ueofP80
,000anda20
-year
r
ema i
ni
ngusef
ull
if
etoi
tswhol
ly
-own
edsubs
idi
ar
y,Carl
oCorpora
ti
on,f
orp1
20 ,
000.
Bot
hJohnandCa
rl
o
uset
hestr
aig
ht-
li
nedepr
eci
ati
onmet
hod.
OnDe ce
mb er3
1,2010,th
esepar
atecompan
yfi
nanc
ial
st
ate
me n
tscont
ai
nedth
efoll
owi
ngbal
anc
esconnec
tedwit
hthewareho
use:
Jo
hn Ca
rl
o
Gai
nonsal
eofwar
eho
use P40,
000
Dep
rec
iat
i
onexpe
nse P 6,
000
War
ehous
e 120
,000
Ac
cumul
atedd
epr
eci
at
io
n 6
,000
1
85. Awork
ingpape
rentr
ytocon
sol
id
ateth
efi
n a
nci
als
tat
eme
ntso
fJo
hna
ndCa
rl
oonDe
cemb
er3
1,2
010
wi
l
li
ncl
ude
:
A.Ad ebi
tt
ogainonsal
eofwar
ehousef
orP38,
000.
B.Ad ebi
tt
ogainonsal
eofwar
ehousef
orP40,
000.
C.Ad ebi
tt
oaccumul
ate
dd e
pre
ciat
i
onforP2,
000
.
D.Ac r
edi
ttodepr
eci
at
io
ne x
penseofP6
,000.
1
86. Da r
l
e n
eCo r
por
ati
onisan80%ownedsubsi
di
aryof
Juani
t
oCo r
por
ati
on.
In20
10,Darl
enes
oldl
andnet
co
stP15,
000toJuani
t
oforP25,
000
.Juani
t
oh el
dthel
andf
orei
ghty
earsbef
or
eres
ell
i
ngiti
n2011t
oSyndel
le
Company,
anu n
rel
at
edenti
ty
,fo
rP55,
000.Thecon
sol
id
ate
dinco
mes t
ate
mentf
orJua
nit
oandi
tssu
bsid
iar
y
i
n2011,Darl
ene
,wil
lsh
owag ai
nonsal
eof l
andof:
A.P4 0,
000 C. P3 0,
000
B.P3 2,
000 D. P2 4,
000

lOMoARcPSD|4644109
1
87. Du r
in
g2 01
0,JohnCor
p.so
ldtoit
s80%ownedsubs
idi
ary
,Car
loCorp
.AtDecember31,2
010,one-
hal
f
(
1/2)o
fthe
segoodswerei
ncl
udedinCar
lo
’sen
din
ginve
ntor
y.Re
port
ed2010sel
l
ingexpen
seswe r
e
P1,
100,
000andP400,0
00fo
rJohna n
dCarl
o,r
espec
ti
vel
y.J
ohn’
ssel
l
ingexp
ensesin
clu
dedP5 0
,000i
n
f
rei
ght
-ou
tcost
sforg
o o
dssol
dtoCa r
l
o.What
amountofse
ll
i
ngexpens
esshoul
dberepor
tedi
nJ oh
n’s
co
nsol
ida
tedi
ncomestat
ement
?
A.P1 ,
500,
000 C. P1 ,
475,
000
B.P1 ,
480,
000 D. P1 ,
450,
000
1
88. At Dece
mb e
r 3
1,2010,
Vi,I
nc. owned90%o fAlCor
p .
,acons
oli
dat
edsubs
idi
ar
y,a
nd20%o f
JimCor
p.,
ani
nvest
eeoverwhi
chVicann
otex erc
isesi
gni
fi
canti
nfl
uence
.Onthesamedat
e,Viha
drec
eiv
abl
esof
P30
0 ,
000fr
omAla ndP200,
000fr
o mJ im.
Init
sDe c
e mber31,
2010cons
oli
dat
edbal
anc
esheet
,Vish
oul
d
r
eport
a c
count
srece
iva
blef
romaffil
i
atesof:
A.P5 00
,000 C. P2 30,
000
B.P3 40
,000 D. P2 00,
000
1
89. Mr.Garc
iaownsf
ourc
orp
orat
io
ns.Combi
nedfi
nanci
als
tat
ement
sarebei
ngprep
aredf
ort
hese
cor
por
at
io
ns,whi
chhavei
nt
er
companylo
ansofP200,
000andin
ter
compan
yprofi
t
sofP500
,000.
Wh a
t
amoun
toft
hesein
ter
comp
anylo
ansandpro
fi
tssh
ou l
dbein
clu
dedinth
ecombine
dfin
anci
als
tat
ement
s?
I
nt
er
compan
ylo
ansI
nt
er
compan
yProfi
t
s
A.P200
,00
0 P 0
B.P200
,00
0 P5
00,0
00
C.P 0 P 0
D.P 0 P5
00,0
00
Dan
iel
Compa
n yp
aidP11
0,000f
ort
henet
asse
tso
fEGCor
p.a
tth
eti
meo
fth
eac
qui
si
t
iont
hef
ol
lo
win
g
i
nf
ormat
i
onwasava
il
abl
erel
at
edtoEG’
sbal
anc
eshee
t:
Boo
kVa l
ue F ai
rVal
ue
Cur
rent
asse
ts P50
,000 P5 0,
000
Bui
l
ding 8
0,0
00100,0
00
Equ
ipment 4
0,00
0 5 0
,00
0
Li
abi
l
it
ie
s 3
0,00
0 3 0
,00
0
1
90. Wha
tist
heamo
unt
rec
ord
edb
yDa
nie
lfo
rth
eBu
il
di
ng?
A.P20,
000 C. P10
0,0
00
B.P80,
000 D. P11
0,0
00
1
91. Usi
ngt
hesamei
nf
orma
ti
ona
bov
e,wh
ata
mou
nto
fga
in(
l
oss)o
nd i
spo
salof
abu
sin
esss
hou
ldEGCo
rp.
r
eco
gni
ze
?
A.Ga i
nof
P30,
000 C. L o
ssofP30,
000
B.Ga i
nof
P60,
000 D. L o
ssofP60,
000
OnFebr
uary14,20
1 2,
The r e
seCo mpan
ye s
tabl
i
shedasalesag
encyi
nT ag
bil
ar
an.
Up ones
tab
li
shmentoft
he
sa
lesage
ncy,t
hehomeo fficese
nt sa
mplescos
ti
ngP8,000andaworki
ngfu
ndofP3,
0 00tobemaint
ai
n e
donthe
i
mpres
tbasi
s.Dur
ingthes i
xmo nt
h sper
i
od,t
hes a
lesagenc
yrepor
te
dtothehomeoffic
esal
esord
ers.Thes
e
wer
ebil
l
eda t
P70,000ofwh i
chofP40,
000wascoll
ect
ed)th
esale
sagencypai
dexp
e n se
sofP5,
800butwas
r
ei
mb u
rsedbyth
eh omeo ffic
e.
OnAug
ust15,2
012,t
hesa
lesa
genc
ysamp
leswerev
alu
eda
tP2
,00
0.I
twa
ses
ti
mat
edt
hat
theg
ros
spr
ofi
ton
go
odsshi
ppe
dtofi
l
lsal
esor
dera
ver
age
d40%o f
cost
.

lOMoARcPSD|4644109
1
92. Th
eco
sto
f s
ale
softh
esa
lesa
gen
cyf
ort
hes
ixmo
nth
spe
ri
odi
s
a.P42,
000 c
.P4
8,0
00
b
.P4
4,0
00 d
.P5
0,0
00
1
93. Th
ene
tin
comeoft
hes
ale
sag
enc
yfo
rth
esi
xmo
nth
spe
ri
odi
s
a.P16
,20
0 c
.P1
0,2
00
b
.P1
4,2
00 d
.P8
,20
0
1
94. Ab ran
ch’
sendi
ngin
vent
oryofmer
chandi
ses hi
ppedbythehomeoffic
ea n
dpurch
asedfro
mo ut
si
de
ve
ndorsamoun
tst
oP5 0,
000.Thepost
-
clos
ingt r
i
albal
ancei
ntheUnrea l
iz
edGros
sProfi
tinBra
nch
I
nvent
oryac
count
isP6,0
00duetoth
eh omeoffic
epract
i
ceof s
hip
pin
gme rc
hand
iseat2
0%a b
ovecos
t.The
merc
handi
sepur
chas
edfro
mo ut
si
devendor
sco ntai
nedi
ntheendi
nginventor
yoft
hebranchamount
sto:
a
.P3
8,0
00 c
.P3
0,0
00
b
.P1
8,0
00 d
.P1
4,0
00
Th
ein
comes
tat
eme
nts
ubmi
t
tedb
yLo
onBr
anc
htot
heHo
meOffic
efo
rth
emo
ntho
fDe
cemb
er3
1,2
013f
ol
lo
ws:
Sa
les P6
00,
000
Co
sto
fSa
les
:
I
nve
nto
ry,
Dec
emb
er3
1,2
013 P8
0,0
00
Sh
ipme
ntsf
r
omHo
meo
ffic
e 3
50,
000
Pu
rch
ase
dlo
cal
l
ybyb
ran
ch 3
0,0
00
T
ota
l P4
60,
000
I
nve
nto
ry,
Dec
emb
er3
1,2
013 1
00,
000 3
60,
000
Gr
ossMa
rgi
n P2
40,
000
Op
era
ti
ngEx
pen
ses 1
80,
000
Ne
tIn
comef
ort
hemo
nth P6
0,0
00
Th
eBr
anc
hin
ven
tor
i
esc
ons
is
tedo
f:
1
2 /
1/
2012 1
2 /
31/
201
2
Mer
chandi
sepur
cha
sedf
r
omh
ome P70,
000 P84
,00
0
Lo
calpu
rchas
es P10,
000 P16
,00
0
To
tal P80,
000 P100
,00
0

lOMoARcPSD|4644109
Af
t
ereff
ect
ingt
hen
ece
ssa
rya
dju
stme
nts
,th
eHo
meOffic
eas
cer
ta
ine
dth
etr
uen
eti
nco
meo
fth
eBr
anc
htob
e
P1
56,
000 .
1
95. Atwh
atp
erc
ent
ageo
fco
std
idt
heh
omeoffic
ebi
l
lt
heb
ran
chf
orme
rch
and
ises
hip
pedt
oit
?
a
.10
0% c.1
20%
b
.14
0% d.1
50%
196. Wh a
tist
hebal
anceoft
heAl
lowancef
orOverv
alu
a t
i
oninth
ebran
chi
nve
nto
rya
tDe
cemb
er31
,
201
3?
a.P10,000 c
.P1 6,00
0
b.P24,000 d.P34,00
0
Thefol
l
owinginfo
rmati
onisext
ract
edfr
omt hebooksandrecordsofEl
ai
neCo
mpa n
yandi
t
sbra
nch.
The
bal
ancesareatDecember31
,2012oft
hec ompany
’soperat
ions.
Ho
meOffic
e Br
anc
h
Sa
les P2
60,
000
Sh
ipme
ntst
obr
anc
h P7
8,0
00
Sh
ipme
ntsf
r
omh
omeo
ffic
e 1
04,
000
Pu
rch
ase
s 3
9,0
00
Ex
pen
ses 7
8,0
00
I
nve
nto
ry,
Jan
uar
y1,
201
2 2
6,0
00
Al
l
owa
ncef
oro
ver
val
uat
i
ono
fbr
anc
hin
ven
tor
y 3
1,2
00
Howeve
r,nosh
ipmen
tsi
ntr
ansi
tbe
tweenhomeoffic
ea ndt
heb r
anchweremade
. Bo t
hshi
pme nt
sacc
oun
ts
ar
eproper
l
yrecor
ded
.Theendi
ngi
nven
tor
yinc
ludesme rch
andi
sea cq
uir
edfr
omtheh o
meo ffic
eint
he
amounto
fP26,
000andP7,
800acq
uir
edfr
omo ut
si
d ersacqu
ir
edfro
mt hehomeoffic
einth
ea mo unt
of
P26,
000andP7,
800acq
uir
edfr
omouts
ide
rsfo
rato ta
l o
fP33,8
00.
1
97. What
ist
here
ali
zedp
rofi
tinb
ran
chi
nve
nto
ry?
a.
P21,
000 c
.P2
2,5
33
b
.P3
1,2
00 d
.P2
4,7
00
1
98. What
ist
heamo
unt
ofb
ran
chme
rch
and
iseb
egi
nni
ngi
nven
tor
yth
atwa
sac
qui
r
edf
r
omt
heh
omeo
ffic
e?
a.
P14,
000 c.P1
5,6
00
b
.P1
9,0
00 d
.P2
0,8
00

lOMoARcPSD|4644109
Au
toSup
plyCo
mpanyiseng
agedi
nme
rch
and
isi
ngb
othat
it
shomeo ffic
einCe
buCit
yan
ditsbr
anc
hinTol
edo
Ci
ty
.Se
lec
teda
cco
untsta
kenfr
omt
het
r
ial
bal
anc
esoft
hehomeoffic
ea ndt
hebr
anc
hasofDec
ember31
,2012
f
ol
lo
w:
Debi
ts Ce
buCit
y T
ole
doBra
nch
I
nvent
ory,
Janua
ry1
,20 12 P23,
000 P11,5
50
To
ledoBranc
h 58,
300
Pur
chases 190,
000 1
05,
000
Fr
eig
htinfr
omhomeoffic
e 5,
500
Sundr
yExpense
s 5
2,0
00 28,
000
Cr
edit
s
HomeOffic
e P53,
300
Sa
les P15
5,000 14
0,000
Sa
lestobranc
h 1
10,0
00
Al
l
owan c
eforOver
val
uat
i
ono
fbr
anc
hin
ven
tor
yat
J
anuary1,20
12. 1
,00
0
Ad
dit
i
onal
inf
ormati
on:
 Th eTole
d oCi t
ybranc
hg e
tsal
lofi
tsmerc
handisef
romthehomeoffic
e. T
hehomeoffic
eb i
l
lsth
e
goodsatcostp l
usa10%ma r
k-up.At
Decemb er3
1,2012,
as hi
pme ntwit
habil
l
edva l
ueof P5,
000
wassti
l
lintr
a nsi
t.Fr
ei
ghtont
hisshi
pmentwasP2 5
0a n
distobetr
ea t
e daspa
rtoft
hei n
ventor
y.
 Invento
ri
eso nDe cember31,
2012,exc
lud
ingt
h eshi
pmenti
ntra
nsi
t, f
oll
ow:
Homeo ffic
e,atco
st…………………………………. ………. . P30,
000
Branch,atbil
l
edpri
ce(ex
clud
ingfr
ei
ghtofP520…… 10
,00 0
1
99. What
ist
hene
tin
comeo
fth
eho
meo
ffic
efr
omo
wnope
rat
i
ons?
a.
P30,
470 c.
P21,
000
b.
P20,
000 d.
P30,
470
2
00. What
ist
hene
tin
comeo
fth
ebr
anc
hins
ofa
rast
hehomeoffic
eisc
onc
ern
ed?
a.
P870 c.P1
,50
0
b.
P10,
470 d.P1
2,0
00
2
01. Du ra
bleText
i
leCompanyhasas i
ngl
eb ranc
hi nBohol
.OnMa rch1,2012,t
heh o
meo fficeaccou
nti
ng
r
ecordsi
ncl
udedanAll
owancef
orOv er
val
ua t
i
ono fIn
vent
ori
es–Bo holBr
anchled
geraccoun twit
hac r
edi
t
bal
anceofP32,
000.
Duri
ngMa r
ch,merch
and i
secost
ingP36,
000wass h
ippedt
otheBoholBra nchandbi
ll
ed
atapri
cerep
rese
nti
nga40%ma rk
upo nthebil
l
edp r
ice.
OnMa rc
h3 1
, 2
0 1
2,th
eb r
anchprep
a redanincome
st
atementi
ndi
cat
i
ngan e
tlo
ssofP1 1
,500forMarchande n
dingi
nvent
ori
esatbi
ll
edpri
cesofP2 5,0
00.Wh a
t
i
st h
ea mountofadj
ust
mentfo
ra l
lo
wa n
cef orOverval
uat
io
no fIn
vent
o r
i
estorefl
ectthetr
u eb r
anchn e
t
i
ncome?
a.P39,
257debi
t c
.P39,3
33debi
t
b.
P4 6,
000cr
edit d
.P46,00
0debit
Yu
lTradi
ngCorp.o
per
ate
sabra nchi
nTal
is
ayCit
y.Att
hecl
oseofb
u s
ine
ssonDe cember3 1,201
2,Tal
i
say
Br
anchaccoun
tint
hehomeoffic
eb o
okss
howedad e
bit
bal
anceofP225,
770. Thei
nte
roffic
ea c
count
swerei
n
ag
reementatt
hebegi
nni
ngo
f t
h eyear
.Fo
rpur
posesofr
eco
ncil
i
ngthei
nter
offic
ea c
count
s ,thef
oll
owi
ngfa
cts
wer
ea s
cert
ai
ned:
1
.Ano ffic
ee qui
pmentc
ost
ingt
hehomeo ffic
eP3 ,
5000wa spick
edupbyth
ebranc
ha sP350.
2
.Insur
a nc ep re
miumofP675char
gedbyth eh o
meo fficewa stake
nuptwi
cebyth
eb r
a n
ch.
3
.F r
ei
gh tc h ar
gesonmerc
handi
semadeb yt hehomeo ffic
eforP1,
125wer
erec
ordedinth
ebran
chboo
kas
P1,
215 .
4
.Ho meo ffic
ecred
itme
mor ep
rese
nti
ngad i
scounto
nme rc
handi
sefo
rP800wasnotrec
orde
dbyth
e
br
anch .

lOMoARcPSD|4644109
5
.Theb r
anchfa i
l
edtota
keupaP700deb
tmemofr
omt
hehomeoffic
erepr
esen
ti
ngth
esha
reoft
hebra
nch
i
nth
ea dv
ert
is i
ng.
6
.Theh o
meo ffic
einad
vert
ent
l
yre
cor
dedare
mit
t
ancef
orP3
,00
0fr
o mt h
eCe b
ub r
anc
hasare
mit
tan
ce
f
r
omitsTal
isayb r
anch
.
2
02. What
ist
hebal
anc
eof
theHo
meOffic
eac
cou
ntb
efo
rea
dju
stmen
taso
fDe
cemb
er3
1,2
012
?
a.
P225,
000 c.P228,
485
b
.22
5,7
70 d
.22
6,4
85
2
03. What
ist
headj
ust
edb
ala
nceo
fth
eHo
meOffic
eacco
unta
sofDe
cemb
er3
1,2
012
?
a.
P225,
000 c
.P225
,770
b
.22
6,4
85 d
.22
8,7
70
Quest
ions13a nd1 4a r
ebas e donthefol l
owingi nfor
ma ti
on.
PTTCo r
pora
ti
onr etail
sme r
ch a ndi
set
hrou ghi
tsh omeo ffic
es t
or
ea ndthr
oughabra
n c
hstor
einadi
st
antc
it
y.
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ai
n e dbyth
eh o meofficeandth ebranch
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eb ra
nchst
or
ep ur
chase
smerc
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se
f
romthehomeo ffic
e( at120%o fhomeofficec
o st),aswel l
asfromoutsi
desuppl
i
es.Sel
ect
edinf
or
mat
ionf
ro
mthe
Dece
mb er31,201 2tri
albal
an c esoft
heho meo ffic
ea n
db ra
nchisasfol
lows:
HomeOffice Bra
nch
Sa l
es P120,000 P50
,000
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pmentstob ran c
h 16,0
00 --
--
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hases 70,0
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1,000
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ory
, Janu ary1,201 2 40,0
00 3
0,000
Sh i
pmentsfromh omeo ffic
e ---
-- 1
9,200
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es 28,0
00 2,000
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ali
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tinbra
nc hi nv
ent
ory 7,2
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--
--
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dit
i
ona
linf
or
ma t
io
n :
 Th eent
ir
ediff
eren c
eb et
weent
heshi
pmen
taccou
ntsisduet
othepra
cti
ceofb il
l
ingtheb ran
chatc
ost
pl
us20%.
 Th eDecember 3
1 ,2012inv
ent
ori
esar
eP40,
000andP20,00
0fort
hehomeo ffic
ea ndt hebr
anc
h,
r
espect
i
vel
y.(Theb r
anchpur
cha
sed16%ofi
tsen
dingin
vent
oryf
romout
sid
es uppli
es. )
 Branchbegi
n ni
nga nde nd
ingi
nve
nto
ri
esi
ncl
udemercha
ndis
ea c
qui
redf
romh o meo ffic
eisi
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nto
ri
edat
12
0 %ofhomeo ffic
ec o
st.
2
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sth
ere
ali
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ran
chi
nve
nto
ry?
a
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00
b
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0 d.4 ,
400
2
05. What
ist
hen e
tin
comeo
fth
ebr
anc
hasf
art
hehomeoffic
eisc
onc
ern
?
a.P5
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6 0
0
b.15,0
00 d.1 2
,200
Kul
asCorp
orat
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nh asonebranc
ho pe
rat
i
onl o ca t
ed5 00mil
esawayfr
omtheh omeo ffic
e.Thebr
anchoffic
esal
es
mer
chandi
sewhichi sshi
ppe
dtoitf
romtheh omeo ffic
e.Themerc
handi
seist
ra nsf
er
re da t
costb
utth
eb ranch
pa
ysreas
onabl
ef reigh
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ges.Thebr
ancho ffic
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esandi
ncursandp ay
so p era
ti
ngexpe
nses. Att
he
en
do f
thecur
renta ccoun
ti
ngper
iodth
etruea d justedb al
ancef
orth
eh omeoffic
eacco untonth
eb r
anch’
sb ook
s
an
dthebranc
ho ffic
ea c
count
onthehomeo ffice ’
sb o ok
sisP500,
000.
Th
efo
ll
owi
ngi
t
emsma
yorma
yno
tber
eco
nci
l
in
git
ems
.Th
ecu
rr
ent
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ris2
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.

lOMoARcPSD|4644109
1
)Th eho meo ffic
eh ass hi
ppedme r
c ha nd i
setot hebr
a n chofficewh ichc o stP1 0,
000andwh i
chi ncu rs
P500freight c har
ge sp ai
db ytheho meo ffic
eb utch
a r gedt
ot heb r anch . Thi
sme rchan
d i
seisr ece i
ved
bytheb r
a ncho nJa n uar
y5 ,2012.
2
)Th ebran chh a str
an s mit
tedP17,00 0i ncas hb ackt
ot hehomeo ffic
ea sap art
ialp
ayme nt
ons uch
pur
cha sedme rc
han d i
se.Thi
sc ashisr ec
e ivedbytheh omeo fficeo nJ a nuary6,2012.
3
)Th ebran cho ffic
ere turnssomed efec ti
veme rchand
is etotheh o meo ffice.Thec osto
ftheretu r
ned
merchand i
sei sP75 0 .Thebrancho ffic
ep a ysP2 5off r
eigh
t c os t
swh i
c hwi llbecharg
edb ackt oth e
homeo ffic
e.
4
)OnDe ce mb er 1,20 1 2,t
heh o
meo fficesen dsac heckf orP2 5 ,
0 0 0t ore p l
e n
ishthebranch
’sc harg ed
backtoth eh o meo ffice
.
5
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is
ingex pe nseo f
P8 00th
a t shoul
dh a v eb e e np ai
db ythehomeo ffic
es i
nce
i
tappli
edt oa d vert
i
s i
n gfeesincurr
e db yt
h eh omeo ffic
eo fi
t so wnb en e fi
t
.
6
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ea l
l
o c at
edP1 2,
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tra t
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st othebran
c h
.Th eb ra nc
h
hadno te nt
e r
e dthea ll
ocat
i
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heye a r
.
7
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ep aysi nsur
ancep remi umso nthebra nchs t
o re. T h ea mo untpai
db ythehomeo ffic
eis
P1,
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an c herr
oneouslyre co r
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00
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sth
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ust
edb
ala
nceo
fth
eHo
meOffic
eac
cou
nt?
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425 c.P5
00,
000
b. 452
,276 d.518,
575
2
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sth
eunadj
ust
edb
ala
nceo
fth
eBr
anc
hac
cou
nt?
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75
b. 500
,000 d
.452,
276
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ect
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ormat
i
onfr
omth
etr
i
albal
anc
esfor
theho
meoffic
eandt
heb r
anc
hofLal
ayCompanya
tDe
cemb
er3
1,
20
12ispr
ovi
ded
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anc
hacqu
ir
esmerc
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er
s.
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meOffic
e Br
anc
h
Sa
les P6
0,0
00 P3
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ipme
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anc
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l
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ven
tor
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ffic
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and
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2.0
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2 2
0,0
00 1
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Ex
pen
ses 1
4,0
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,00
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Ad
dit
i
ona
lin
for
mat
i
on:
Me
rch
and
isei
nve
nto
ry,
Dec
emb
er3
1,2
012
:
Ho
meo
ffic
e P2
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anc
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ffic
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omo
uts
ide
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08. Theb
il
l
ingr
at
eof
homeo
ffic
etob
ran
chf
orme
rch
and
ises
hip
mentsi
s
a.
120
%o fc
ost c.130
%o fc
ost
b
.12
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fco
st d
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5%o
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st

lOMoARcPSD|4644109
2
09. Ho wmu choft
heDe cemb
er1i
nvent
or
yo f
theb
ran
chr
epr
esen
t p
urc
h asesf
romout
si
der
sandgoods
sh
ipp
edfr
o mh o
meo ffic
e
a.Ho
meo ffic
e,P5,
000a ndOut
si
der
s,P10,
000 c.Homeoffic
e,P8
,000a
ndOutsi
der
s,P7
,000
b
.Ho
meo
ffic
e,P1
5,0
00a
ndOu
tsi
der
s,P0
0,0
00 d
.Ho
meo
ffic
e,P1
2,0
00a
ndOu
tsi
der
s,P3
,00
0
2
10. Thene
tin
comer
epo
rt
edb
yth
ebr
anc
his
a.
P4,
500 c
.P3
,50
0
b
.P5
,60
0 d
.P2
,50
0
2
11. Thec
omb
ine
dne
tin
comef
orHo
meo
ffic
ean
dbr
anc
hop
era
tio
nsis
a.
P22
,50
0 c.P25,
100
b
.P2
4,6
00 d
.P2
1,5
00
2
12. Clan
g-cl
angCorpo
rati
on’
sh omeo
ffic
eshi
psmer
chan
dis
etoi
t
sTo
led
obr
anc
hat
abi
l
li
ngp
ri
ceo
f12
5%o
f
co
st.
Duri
ng2012th
eh omeoffic
emake
st hef
ol
lo
win
gent
ry:
Tol
edoBran
c h 75
,000
Sh
ipme
ntst
oTo
led
obr
anc
h 7
5,0
00
At
yea
r-
end2
012
,P1
2,0
00o
fth
isme
rch
and
iser
ema
insa
tTo
led
obr
anc
hin
ven
tor
y.
Th
een
tr
ytoa
dju
stt
heb
ran
chi
nco
mei
nth
ebo
okso
fth
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meo
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li
ncl
ude
a
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bit
toAl
l
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eforo
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val
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io
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b
.Cr
edi
tt
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anc
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nt,
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c
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bit
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anch,
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d
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tt
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hinv
ent
ory
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2
13. Ma yCo rp
orati
ono pe
rat
etwost
o res:th eHe adOffic
estor
ean dRo sebranch.OnDe ce
mb er31,2012,t
he
RoseBranchaccountint
heh o
meo ffic
eb o oksh asab al
anc
eo fP3 40 ,
000.Bothst
o re suseas tanda
rd120%
mar
k u
po ncost.HoweverMay’
shomeo fficeshi psmer c
handi
setot hebra
nc h
e satc ost.Rose’
se ndi
ng
i
nvent
oryin
c l
udesP2 0,
000ofmer
ch a nd
is erece i
vedfromh omeo ffic
e
Rosebranchremit
t
e dP15,0
00tohomeo fficeonDe cemb er3
0,2 01 2.TheHo meo ffic
ewi l
lnotrecei
veth
e
r
emitt
anceunti
lJanuary4,201
3.TheHo meo ffic
ea l
lo
c at
edP5 ,
00 0g enera
l e
xp e
ns e stoeacho fth
eb r
anche
s
bu
tRo sebranc
hh aven o
tyetr
ecor
de dthee xpe nsesa ty
ear-
end) Ro sebranchpaidP2 ,
0 0
0for adver
ti
si
ng
“
aft
erCh r
i
stmas”salesth
atweret
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o catede qual
lyb et
weent het wost
o r
es.Th eHo meoffic
eh a
sn o
t
r
ecord
editsshareintheexpen
ses.
Th
eun
adj
ust
edb
ala
nceo
fth
eHo
meo
ffic
eac
cou
nti
nth
ebo
okso
fRo
seb
ran
chi
s
a
.P3
24,
000 c
.P3
23,
000

lOMoARcPSD|4644109
b
.P3
19,
000 d
.P3
18,
000
.
OnDec
ember31
,201
2,t
hehomeoffic
ea c
cou
nto
nth
eb ran
chboo
kss
howsab
ala
nceo
fP9
,73
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efo
ll
owi
ng
r
eco
nci
l
ingd
ataar
edet
er
min
edina
c c oun
ti
ngf
ort
hed
iff
ere
nce.
a
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h a
ndis
eb il
l
eda t
P615shi
p p edbythehomeofficet
othebra
nchonDe c
ember28i
ssti
llint
r
a n si
t
.
b
.Th ebranc
hc o l
lec
tedahomeo ffic
ea c
count
srece
iva bl
eofP2,
500,bu
tfai
l
edtonot
if
yth
eh o meoffic
eof
t
hi
sc ol
l
ecti
on .
c
.Th ehomeo ffic
erecor
dedthebra nchneti
ncomef
or Nov
emb e
ratP1,
125.Thi
swasi
ne r
ror
, ast
he
br
anchreport
e dnetinc
omewa sP1 ,
215.
d
.Th ehomeo ffic
ewa schar
gedP6 40whenthebr
anchr et
ur
nedme r
chan
dis
etothehomeoffic
eon
December31 .Theme r
chandi
sei sint
ransi
t
.
2
14. Theun
adj
ust
edb
ala
nceo
fBr
anc
hac
cou
nti
s
a.
P9,
735 c
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0,9
90
b
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0,3
50 d
.P8
,40
0
2
15. Th
ea dj
ust
i
nge n t
ryt ocor
re
c t
b r
anc
hneti
ncomeforNo vemb e
ris
a.Debi
t
,Branc
hp r ofi
tandlo
ssP9 0andCre
dit
,Br
ancha c co u
ntP90
b.Debi
t
,Homeo ffic
ea cc
ountP90andCred
it
,Bra
nchp ro fi
tandlos
sP90
c.Debi
t
,Branc
ha c cou nt
P90a ndCre
dit
,Br
anchpr
ofi
ta n dlossP90
d.Debi
t
,Branc
hp r ofi
tandlo
ssP9 0andCre
dit
,Homeo fficeaccountP9
0
2
16. KL
MCo
mpa
nyh
ast
hef
ol
lo
win
gin
for
mat
i
onf
orF
ebr
uar
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it
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te
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nco
mpl
et
e) 2
0,0
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nit
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oil
age 3
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it
s
a
bno
rma
lSp
oil
age 5
,00
0un
it
s
EWI
P(3
0%i
nco
mpl
et
e) 1
4,5
00u
nit
s
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ran
sfe
rr
edo
ut 9
7,0
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nit
s
Be
gin
nin
gWI
PCo
sts
:
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ter
i
al P1
5,0
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nve
rsi
on 1
0,0
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Al
lmat
eri
al
sareaddedatt
hest
ar
tofthepro
duct
i
onpro
cess.
KLMc ompanyi
nspec
tsgo
odsat7
5%c o
mple
ti
onas
t
oconve
rsi
on.Assumeth
atth
ec o
stsperEUPformat
eri
al
sa n
dc onv
ers
ionareP2.
50andP3.
75,r
esp
ecti
vel
y.
Usi
ngFI
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tisth
etot
alc
ostas
sig
n e
dtoth
etra
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err
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it
s(rounde
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so)
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94 b
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54 c
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lOMoARcPSD|4644109
2
17. T UVCo
mpa
nyp r
odu
cesfo
ursol
ven
tsfr
omth
esa
mep
roc
ess
:C,D,Ea
ndG.J
oin
tpr
odu
ctc
ost
sar
e
P9
,00
0.(
Rou
nda
lla
nswert
oth
en e
are
stpes
o).
Sa
lesPr
ic
e Di
spos
alCo
st F
urt
her
pe
rba
rre
lat pe
rba
rre
lat Pr
oce
ssi
ng
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rre
ls Spl
i
toff Spl
i
toff Co
sts
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fTUVsel
l
sth
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ur
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rr
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50;D-
1.
00;E-
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18. Us
ingt
hes
ale
sva
luea
tsp
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toff
,Wh
ata
mou
nto
fjo
int
pro
ces
si
ngc
ost
isa
ll
oca
tedt
opr
odu
ctE?
a
.4,
433 b
.2,
276 c
.1,
182 d
.1,
106
2
19. OnDe c
emb e
r31,20
09,Bat
anga
sCorp
orat
io
nh adth
efoll
owi
ngfor
ei
gncurr
enc
yd enomi
nat
edba
lan
ces
.
Th
efunc
ti
onalc
urr
enc
yo f
theen
ti
tyi
sth
ePhil
i
ppin
esp es
o.Ift
heexc
hangera
tewil
lfl
uct
uat
eby10%inf
avo
r
of
theUSdol
la
rfr
omthecl
osi
ngra
te,
Whati
stheeff
ecti
ninc
omebefor
etax
?
Ac
cou
nt Amo
unt T
ran
sac
ti
ond
ates
pot
rat
e Cl
osi
ngr
at
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lOMoARcPSD|4644109
2
20. D,EFf o
rmedajoi
ntven
tur
e.Fistoac
tasama n
agerandi
sdesi
gn a
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1,2009.Thefa
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n
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meOffic
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41. Howmuchof
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ase
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rs?
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42. Th
erea
li
zedbr
anc
hp r
ofi
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s:

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Th
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lOMoARcPSD|4644109
2
43. Th
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:
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das
hip
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t
oit
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l
abr
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ll
ows:
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...
...
...
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0x5
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f
t
heho
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il
aBr
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recl
ose
do nDecemb
er31of
eachyea
r.
OnJanu
ary5,2
0x5t
heMan
il
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ans
fer
shalfo
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i
gin
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ran
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ndt
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il
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ysP5
00f
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r
eig
htont
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pment
s.
At
wha
tamo
unt
ssh
oul
dth
e60
%of
theme
rch
and
iser
ema
ini
ngu
nso
lda
tDe
cemb
er3
1,2
0x4b
ein
clu
dedi
n:
2
45. Th
ein
vent
or
yoft
heMani
l
abran
chatDec
embe r31,
20x4amoun
tedt
o:
2
46. Th
epubl
i
shedb
ala
nces
heet
ofBer
nade
tt
eOfficeSup
plyComp
anyatDe
cemb
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1,2
0x4
.

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TheMani
l
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l
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t.The
br
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ri
cesmer
cha
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orsal
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pose
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all
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h
merc
han
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r
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re.Noin
sur
ancewasmain
tai
ned
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ha c
coun
tsshowt hefo
ll
owi
nginf
or
mati
on:
Me
rch
and
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nve
nto
ry,
Jan
uar
y1(
atb
il
l
edp
ri
ce).
...
...
... P2
6,4
00
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ipme
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r
omh
omeo
ffic
e(J
anu
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uar
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)..
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2
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est
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e ?
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. P3
6,0
00 c
. P3
6,8
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b
. P3
0,6
67 d
. P3
0,0
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48. OnSe p
tember1
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nCorp.
rece
ive
da nord
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pmentf
r
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gncus
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for
300,
000
l
oca
lcur
re
ncyuni
ts(
LCU)whe
ntheUSd ol
l
arequi
val
entwas$
96,0
0 0
.Bai
nshi
ppedt
heequi
p mento
n
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obe
r15,200
3,andbi
l
le
dthecu
sto
me rf
or300
,000LCUwhentheUSdol
la
requi
val
ent
wa s$100,
000
.Bai
n

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r
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n
i
t
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ati
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ought
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omas uppl
i
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gent
inaonNo v
ember5,2002,
for
10
0,000Arge
nti
nepes
os,whent
hespotr
at
ewa s$.
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r 3
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002year
-en
d ,
thespot
r
at
ewa s$.42
45.OnJanua
ry15,
2003,Li
ndyboug
ht100
,000pesosatt
hespotr
ateof$.
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5a ndpai
dthe
i
nvoi
ce.Howmuchshoul
dLi
ndyr
eport
aspa r
tofn
eti
ncomefor2002an
d2 0
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ei
gnexch
ange
t
ra
nsacti
ongai
norl
oss?
2
002 2
003
a
. $5
00 $
(1,
000
)
b
. $
0 $(
500
)
c
. $(
500
)$0
d
. $
(1,
000
)$5
00
2
50. OnNo vember30,
20 0
3,Tyr
ol
aPu b
li
shi
ngCo mpany
,l
ocat
edinCol
orad
o,exe
cut
edacontr
actwit
hErnes
t
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yton,
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orfr
omCa nad
a,pro
vid
ingf
orpaymentof10
%r o
yal
ti
esonCanadi
ansal
esofBl
yt
o n
’sbook
.
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stobemadeinCanadi
andol
lar
seachJanuar
y10fort
hepre
vio
usyear
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ale
s.Canadi
ansale
so f
t
heb oo
kfort
heyeare
ndedDe c
ember31,200
3 ,
tot
al
ed$ 5
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00Canadi
an.Ty
rol
apai
dBlyt
onhis2003
ro
yalt
i
esonJanuar
y10,2004.
Tyro
la’
s2003fi
nanci
als
tat
ement
swerei
ssuedonFeb
ruar
y1,2004.Spotr
at
es
f
orCanadi
andoll
ar
swereasfol
l
ows:
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December 31, 2003 $.89 January 10, 2004 $.90
Howmuchs hou l
dTyrol
aac
cru
efo
rro
yal
t
iespa
yab
leat De cember3
1,2
003
?
a
.$4
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0 c
..$
4,4
50
b
.$4
,42
5 d
.$4
,50
0
2
51. OnDece
mber12
,200
3,ImpCo.e
nte
redi
nt
othr
eef
orwa
rde
xchang
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tr
act
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acht
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rch
ase
10
0,0
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urosi
nni
net
yday
s.Ther
el
evan
texc
hang
erat
esar
easfo
ll
ows:
Sp
otr
at
e F
orwa
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at
e
(
fo
rMa
rch1
2,2
004
)
No
vemb
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0,2
003 $
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De
cemb
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2,2
003 .
88 .
90
De
cemb
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1,2
003 .
92 .
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.mpe
nte
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nt
oth
efi
r
s t
for
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ntr
act
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yinNo
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hep r
evai
l
ingma r
ketr
ateonthesamedateis12%).Theacquir
ersh
allal
sotra
nsferi
ts
pi
eceofl
andwithbooka ndfai
rvalueofP500,0
00a n
dP3 00,0
00,re
spect
iv
ely.I
ncl
udedintheli
abi
l
it
ie
sa ssumedisan
es
ti
matedli
abi
li
tyf
ord efi
ci
encytax
e s
.Theca r
ryi
ngamou n
ta n
dfai
rvalu
eo fthi
sprovi
si
onamo unt
edtoP12 0,
000a n
d
P97,
500,r
espect
iv
ely
. T
h ea c
qui
reeguara
nteestha
tthi
sprovi
si
onwouldonl
ybes et
t
ledfor
P9 0,
000.
Bas
edontheforego
ing,de t
er
minethefo
ll
owing:
2
70. Th
eamo
unt
ofi
nde
mni
fi
cat
i
ona
sse
ttob
ere
cog
niz
ed,
ifa
ny
a
.P3
0,0
00 b
.P2
2,5
00 c
.P7
,50
0 d
.P0
2
71. Th
en e
toft
hea c
qui
si
t
ion-
dat
eamo
unt
soft
hei
den
ti
fi
abl
eas
set
sac
qui
r
eda
ndt
hel
i
abi
l
it
i
esa
ssu
med
me
asu
redi
nacc
ord
ancewi
thPFRS3

lOMoARcPSD|4644109
a
.P7
30,
000 b
.P7
22,
500 c
.P7
07,
500 d
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00,
000
CP,LKan
dTQs h
arepr
ofi
t
sint
her
at
ioo
f3:
5:
2.OnAp
ri
l30
,LKo
pte
dtor
et
ir
efr
omt
hep
art
ner
shi
p.T
hec
api
t
al
ba
lan
ceso
nth
isd
atef
ol
lo
w:
CP P2
80,
000
LK P3
50,
000
TQ P3
20,
000
2
72. Ass
umin
gL Kso
ldh
eri
nt
er
estt
oTQf
orP3
75,
000
,wh
icho
fth
efo
ll
owi
ngs
tat
eme
ntsi
sfa
lseu
pon
r
et
ir
emen
tofLK?
a
. LK’
sper
sonal
asset
swi
ll
inc
reas
eb yP37
5,000
.
b
. Theca
pit
alac
count
ofCPwil
lnotc
hange.
c
. TQ’
scapi
ta
lacco
unti
nth
ep ar
tn
ershi
pwi
lli
ncr
easeb
yP670
,000
.
d
. Thet
ot
alcapi
t
aloft
hepa
rt
nersh
ipaft
ert
heret
i
remen
tof
LKisP950
,00
0.
Th
epr
odu
cti
ond
ataf
orDe
par
tme
nt1f
orAu
gus
t20
16a
rea
sfo
ll
ows
:
Ac
tua
lun
it
s
WI
P,Au
gus
t1(
1/
4do
nea
stoc
onv
ers
ionc
ost
s) 4
0,0
00

lOMoARcPSD|4644109
St
ar
te
dinAu
gus
t 2
96,
000
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ran
sfe
rr
edo
utd
uri
ngAu
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t 2
44,
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oil
edu
nit
s 3
2,0
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sto
fbe
gin
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rk-
i
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:
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ter
i
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000
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nve
rsi
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ost
s 0
₱6,0
00
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rr
ent
cos
ts:
Ma
ter
i
als ,
₱296
0,0
00
Co
nve
rsi
onc
ost
s ,
₱188
4,0
00
Un
itc
ost
s:

lOMoARcPSD|4644109
Ma
ter
i
als 0
₱1
Co
nve
rsi
onc
ost
s ₱6
● Mat
eri
al
sareaddedatt
hest
ar
tofth
eproc
ess.
● Con
vers
ioncos
tsareadd
edeven
lydur
i
ngthepro
cess
.
● Th
ec o
mp an
yusestheFI
FOme t
hodofc
ost
ing.
● I
nspe
cti
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rs,whenpr
odu
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et
e.
● Nor
malspoi
l
ageis11%ofgoo
du ni
t
str
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err
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uri
ngAu
gus
t.
Wh
ata
ret
hec
ost
sal
l
oca
tedt
oth
efo
ll
owi
ng?
2
73. Ne
xtDe
par
tme
nt
a
.P3
,26
4,0
00 b
.P4
,45
6,0
00 c
.P4
,43
3,4
40 d
.P3
,94
4,0
00
2
74. I
n-
pr
oce
ss,
endi
nDe
par
tme
nt1

lOMoARcPSD|4644109
a
.P1
,37
0,5
60 b
.P1
,31
7,4
40 c
.P8
88,
000 d
.No
tde
ter
min
abl
e
2
75. Pe
ri
odc
ost
a
.P5
12,
000 b
.P8
2,0
00 c
.P8
2,5
60 d
.No
tde
ter
min
abl
e
BTSCompanya
cqui
r
edall
o ft
heout
st
andi
ngsha
resofBi
gBa
ngComp
anybyi
ssui
ngit
sownP15pa
rval
ueor
di
nar
y
sh
are
stot
al
in
g46,
667sh
aresatma
rke
tpri
ceoP1
f 5.
70.BT
SCompa
nyhadt
hef
ol
lo
wingexp
end
it
ur
esi
ncu
rr
ed:
F
ind
er’
sfe
epa
id P5
0,0
00
Pr
e-a
cqu
isi
t
iona
udi
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cco
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i
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ued
il
i
gen
ce,3
0% wa
s 4
0,0
00
pa
id
Ge
ner
ala
dmi
ni
st
ra
ti
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ega
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ort
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omb
ina
ti
onp
aid 3
2,0
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dit
andl
ega
lfe
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orSECr
egi
st
ra
ti
ono
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arei
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ue 4
6,0
00

lOMoARcPSD|4644109
L
ist
i
ngf
eesp
aidf
ort
hes
har
esi
ss
ued 1
0,0
00
Ot
her
sha
rei
ss
uan
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ost
spa
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i
ncl
usi
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yta
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Ot
her
ind
ir
ect
cos
tsp
aid 1
6,0
00
Do
cume
nta
rys
tampt
ax(
DST)
pai
dont
heo
ri
gi
nal
is
sua
nce 3
,50
0
2
76. The total amount debited to expense should be
a. P1
53,
000 b. P1
63,
000 c. P1
76,
333 d. P1
79,
833
CVandLXarepar
tn
erswit
hprofi
tan
dlos
sof80:
20a
ndc
api
ta
lbal
ance
sofP700
,000andP350
,000,
resp
ect
ive
ly
.TMis
t
obeadmit
t
edint
othepart
ner
shipbypur
cha
sin
ga30%i
nt
er
esti
nthecap
it
al
,pr
ofi
tan
dloss
esforP420
,000
.Assumi
ng
t
hat
noassetr
eva
luat
i
onistobema de
,
2
77. Wh
icho
fth
efo
ll
owi
ngi
str
uei
nth
ebo
okso
fth
epa
rt
ner
shi
pup
ona
dmi
ss
ioni
fTM?

lOMoARcPSD|4644109
a
. I
ncr
easeinasse
tsi
ntheamounto
fP4 2
0,00
0.
b
. Cr
edi
tcapit
alac
coun
tsoft
hesel
li
ngpart
ner
switht
otal
amount
ofP315,
000
c
. Th
ee n
tryuponadmi
ssi
onwil
lno
taff
ectt
hetot
alcapi
t
alof
thepa
rt
ners
hip
.
d
. Dec
reaseincap
it
ala
ccount
oft
hea c
q u
ir
in
gp a
rt
n e
rint
heamounto
fP105,
000
.
2
78. Assumethi
sti
me,u
pona
dmi
ss
iono
fTM,t
hee
qui
pme
nto
fth
epa
rt
ner
shi
pisu
nde
rva
lue
d,wh
icho
fth
e
f
ol
lo
win
gisfa
lse
?
a
. Inc
rea
seinasse
tsintheamoun
tofP350
,000
.
b
. Thecapi
talac
countofCVwi l
lbecr
edit
edint
heamo
unto
fP280
,000forhi
sshar
einth
ea d
jus
tmento
fth
e
u
nde
rva
lue
de q
uipment
.
c
. Thecapi
ta
lacco
u n
t o
fL Xwi
l
lbedebi
t
edinth
eamou
nto
fP56
,00
0upontr
ansf
erof
capi
t
alt
othen
ewp a
rt
ner
.
d
. Th ec
api
t
ala
cco
unt
ofCVwi
l
lha
vean
etd
ecr
eas
eof
P14
,00
0asar
esu
lto
fre
val
uat
i
ono
fas
set
anda
dmi
ss
iono
f
TM.
XXXInc.s
ell
saut
omati
cweap
onsc o
sti
ngP700,0
00atapri
ceofP1
,200,
000
.Divi
si
onCor
p.buy
sad oze
nofau
tomat
i
c
weapo
nso nins
tal
l
mentan
dtradeinsixofit
soldweap
onsatatrad
e-i
nvalueofP30
0,0
00each.XXXIn
c.spend
s
P25,
000tore
condi
ti
ont
heol
dg u
n sandsel
lst
hemforP315
,00
0.XXXInc.ex
pect
sa10%g r
osspr
ofi
tfr
omt
hesaleof
use
dg u
ns.
2
79. Wh
ati
sth
eun
der
-a
ll
owa
nceg
ran
tedb
yXXXI
nc,
ont
het
r
ade
-i
ntr
ans
act
i
on?

lOMoARcPSD|4644109
a
.P2
49,
000 b
.P2
34,
000 c
.P9
9,0
00 d
.P0
OnDe
cemb
er3
1,2
016
,th
efo
ll
owi
ngfi
gur
eswe
ret
ake
nfr
omt
het
r
ial
bal
anc
eso
fBl
ack
pin
kCo
mpa
nya
nd2
ne1Co
.:
Bl
ack
pin
k 2
ne1
Cu
rr
ent
ass
ets P1
75,
000 P 6
5,0
00
No
ncu
rr
ent
ass
ets 7
25,
000 4
25,
000
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iab
il
i
ti
es 6
5,0
00 3
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di
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pit
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r 5
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000
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um 3
5,0
00 2
5,0
00
Ac
cumu
lat
edp
rofi
t
s(l
oss
es) 2
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000 1
30,
000

lOMoARcPSD|4644109
OnJ a
nuary1,201
7,Blac
kpi
nkissues35,
000s h
areswithama r
ketval
ueofP2 5/
sha
ref
ortheneta s
set
so f2ne1.The
boo
kv al
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fl
ect
sthefai
rva
lueofth
ea sse
tsandli
abil
it
i
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eptth
atth
en on
c u
rr
entas
set
so f
2ne 1havefai
rval
ueo f
P630,
000andBlack
pin
kd i
sco
veredane r
roronit
sboo k
st h
atre
sult
edin
toano ve
rst
at
ednoncur
rentassetofP30,
000.
Cont
inge
ntconsi
der
at
ionpay
ableaft
er2y e
a r
sifp
rofi
ttar
getwi
llbeachi
eve
d,wh i
chi
sdete
rmin
able,haveane xp
e c
ted
va
lueofP18,
151.Appl
i
cabl
ed i
scoun
t r
at
eo nthi
stypeofa g
ree
me nti
s10%.Black
pin
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op ai
dforthesharei
ssuance
co
stswort
hP3 4,
000andoth
era c
quisi
t
ionrel
at
edcos t
sa mount
i
ngtoP1 9
,000.Base
donthefor
eg oi
ng,det
e r
minethe
f
ol
lowi
ng:
2
80. Th
eamo
unt
ofg
aino
nba
rga
inp
urc
has
ere
cog
niz
ed
a
.P2
15,
000 b
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33,
151 c
.P2
30,
000 d
.P0
2
81. Co
mbi
nedt
ot
ala
sse
tsa
ft
ert
heme
rge
r
a
.P1
,74
2,0
00 b
.P1
,74
5,1
51 c
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,77
5,1
51 d
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2,0
00
Th
ec o
mp a
nys i
gne
da nP80
0,0
00c o
ntr
actt
obui
ldanenvi
r
onment
al
lyf
ri
end
lyacc
esstr
ai
lt
oMoray
ta,Man
il
a.Th
e
pr
oj
ect
wase x
pect
edtot
akea
ppro
ximat
el
y3year
s.Th
efo
ll
owi
ngin
for
mati
onwasc
oll
ect
edf
ore
achy
earoft
hepr
oj
ect
–
Ye
ar1,Ye
ar2,andYear
3:
Cost Expe
cted Suppor
t Addi
ti
onal T r
ail
fee
t Ad
dit
i
onalt
rai
l
Ex
p e
nded a
ddi
ti
onal
costt
oti
mber
slai
dsu
p po
rtt
i
mb er
scons
tr
uct
ed fee
ttobe
du
rin
gthe c
omple
ti
on d
uri
ngt
he tobela
id d
uri
ngth
e const
ruc
ted

lOMoARcPSD|4644109
Y
ear y
ear y
ear
Y
ear
1 P1
00,
000 P4
50,
000 1
50 8
50 3
,00
0 1
5,2
00
Y
ear2 1
50,
000 2
80,
000 3
00 5
20 7
,50
0 8
,20
0
Y
ear3 2
50,
000 -
0- 5
00 -
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,00
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Co
mpu
tet
hea
mou
nto
fre
ven
uet
ober
eco
gni
zedi
nYe
ar3
,as
sumet
hat
thec
omp
anye
mpl
oys
2
82. theeff
ort
s-
exp
end
edmet
hodofest
imat
in
gp e
rce
nta
geo
fco
mpl
et
io
n,i
fth
eco
mpa
nyme
asu
resi
t
s
pr
ogr
essbyth
enumbe
rof
sup
por
tt
imb
ersla
idi
nth
etra
il
a
. P4
28,
864 c
. P4
28,
864
b
. P4
22,
640 d P3
50,
800
.

lOMoARcPSD|4644109
2
83. anout
putme
asu
re,i
fth
eco
mpa
nyme
asu
resi
t
spr
ogr
essb
yth
enu
mbe
roft
r
ailf
eett
hath
aveb
een
co
mpl
et
ed:
a
. P4
28,
864 c
. P4
28,
864
b
. P4
22,
640 d P3
50,
800
.
Th
eBr oo
keCorpo
rat
io
nh astwob ran
ches,Bra
nchPa ndBra
nchQ. Thehomeoffic
eship
pedP80,0
00inme r
chand
ise
t
oBr a
nchPa ndprep
aidthef reigh
tc h
argesofP500.Ashortt
imether
eaft
er
,Br anc
hPwa si
nst
ruct
edtoshipt
his
mer
chandi
setoBra
nchQa tap re
paidfr
ei
ghtcosto
fP7 0
0.Frei
ghtch
a r
gesf
orth i
sme r
cha
ndis
en o
rmall
ycostP800
whenshi
ppe
dfro
mt h
eh omeo ffic
ed i
r
ectl
ytoBran
chQ.
2
84. Co
mpu
tet
hee
xce
ssf
r
eig
hto
ntr
ans
fer
sof
mer
cha
ndi
se:
a
.P7
00 b
.P8
00 c
.P5
00 d
.P4
00

lOMoARcPSD|4644109
OnMay3 1,2
016,TVDCo mpany,
as u
bsi
dia
ryo f
CWPh il
i
p p
inesCor
por
at
ion,t
hr
oughTOInc.,
compl
etedth
ep ur
chase
oft
henetasset
s(i
ncludi
ngcer
tai
ncont
rac
ts)ofArc
hieCompany.Th
etrans
act
ionbet
weenTVDCo mp a
nyandAr c
hie
Companyqual
i
fi
esforrec
ogni
ti
onunde
rPFRS3s i
ncei
ti
nvolv
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si
t
ionofgr
oupofass
etsqua
li
fy
ingasab u
sine
ss.
Thet
ota
l p
urcha
sepricepai
dfors
aidacq
uis
iti
onisP2M. Base
do nt
heguid
ancepro
vid
edforund
erIFRS3 ,b
eloware
t
hefai
rval
uesofAr
chieCompany’
sasset
sandli
abil
i
ti
es:
Re
alPr
ope
rt
yLe
ase
s [
ni
l]
Pe
rso
nal
Pro
per
ti
es(
BVi
sP6
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000
) 8
00,
000
Bu
sin
essCo
ntr
act
s [
ni
l]
Cu
sto
mer
andSu
ppl
i
erL
ist [
ni
l]
Tr
ans
por
ta
ti
onand Wa
reh
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e
Mana
gement
Sys
tem [
ni
l]
Un
ear
nedRe
ven
ues [
ni
l]
Ke
yemp
loy
ees [
ni
l]

lOMoARcPSD|4644109
Ent
i
ti
esin
volv
eda r
eall
subj
ectt
othe30%reg
ularc
orpor
at
einc
o metax(RCIT)
.Basedonth
etaxrul
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ePh i
l
ip
pine
s
f
orth
istypeofacqui
si
ti
on,TVDCo mpan
ycand epr
eci
at
ethea cqu
isi
t
ionc os
toftheasset
sotherth
anland(i
fany)
ac
qui
redoverth
eremaini
ngli
f
ether
eofandcl
ai
mthes a
mea sad educ
ti
onf o
rinc
ometaxp u
rpose
s.TVDCo mpanyi
s
ex
pect
edtob einnetin
come/t
axabl
ein
comep os
it
i
oninthefutu
rea n
di snotexpec
tedtoinc
ura n
ylosse
sforbot
h
ac
count
in
ga ndta
xp u
rpos
es.Base
do nt
hefo
regoi
ng,d
eter
mineth
efoll
owi
n g:
2
85. Tot
ala
mountof
netas
set
s(i
ncl
udi
ngDT
A/DT
L,i
fan
y)t
hat
wil
lbec
ons
ide
redi
nde
ter
min
ingt
heg
ood
wil
l
or
gai
nonbar
gai
npurc
has
e
a
. P1
,22
0,0
00 c
. P8
00,
000
b
. P1
,16
0,0
00 d P0s
inc
eac
qui
si
t
iono
fas
set
son
ly
.
2
86. Th
eamo
unt
ofDT
Aor
DTLt
ober
eco
gni
zedr
el
at
edt
oth
ego
odwi
l
l(GW)
,i
fan
y
a
.P0si
ncein
it
ia
lre
cogni
t
ione
x ce
pti
onper
PFRS3
b
.P0si
ncein
it
ia
lre
cogni
t
ione
x ce
pti
onper
PAS12
c
.P0si
nceuponact
ual
wri
teoffo
fgood
wil
l
,th
esa
mei
sno
tal
l
owe
dtob
ede
duc
tedf
ori
nco
met
axp
urp
ose
s
d
.P23
4,0
0 0DTA
e
.P23
4,0
0 0DTL

lOMoARcPSD|4644109
2
87. Th
ene
timp
act
ont
ot
ala
sse
tof
thet
r
ans
act
i
ona
bov
eis
a
.P0 b
.P6
00,
000 c
.P8
00,
000 d
.P1
,80
0,0
00
CASE1 5
OnJa n
u a
ry1,2016anenti
t
ypurc
hase
dat r
actofv
aca
ntla
ndtha
tiss
it
uat
edove
rse
asforBa
ht9
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i
ty
cl
ass
ifi
edthel
andasi
nves
tment
prop
ert
y.T
hefai
rval
ueo
fth
elan
da t
Dec
ember3
1,2013i
sBaht
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000.T
heen
ti
ty’
s
f
unct
i
o nal
curr
enc
yisPhp(
Peso)
.
Sp
otc
urr
enc
yra
tes
:
Ja
nuar
y1,
201
3: 1Baht
=P2
Wei
ght
eda
ver
ageexc
hanger
at
ein2
013:
1Ba
ht=P2
.04
De
cemb
er3
1,2
013:
1Ba
ht=P2
.10
2
88. Wh a
tist
hecarr
yi
ngamoun
toft
hei
nve
stme
ntpr
ope
rt
ya t
Decemb
er3
1,2
016a
ndwh
ata
mou
ntwo
uldb
e
pr
ese
nte
dinpr
ofi
torl
ossf
ort
heye
aren
dedDecemb
er31,
2016?
a
.Ca
rry
ingamoun
t o
fin
vest
mentpr
oper
ty=P210,
000.Profi
tfo
rtheyea
rin
clu
desP30,
000i
ncr
easei
nthef
airv
alu
e
oft
heinv
est
mentpro
per
ty.
b
.Ca
rry
ingamoun
t o
fin
vest
mentpr
oper
ty=P210,
000.Profi
tfo
rtheyea
rin
clu
desP20,
400i
ncr
easei
nthef
airv
alu
e
oft
heinv
est
mentpro
per
tyandP9,
600for
ei
gnexc
ha nge(fo
rex)g
ain
.
c
.Ca
rry
ingamountofi
nves
tmentpr
opert
y=P180,0
00 .Profi
tfo
rtheyeari
ncl
ude
sn oamoun
tinres
pectofth
e
i
nvest
mentp
roper
ty.
d
.Ca
rry
ingamou
nt o
fin
vest
mentpr
oper
ty=P189,
000
.Pr o
fit
forth
eyeari
ncl
udesP9
,00
0for
exgai
n.

lOMoARcPSD|4644109
TheABCCh e
micalCompanyprodu
cesaproduc
t k
no wna s“mi
nergy”f
romwhichby-pr
oduc
tres
ult
s.
• Thi
sby-pr
oduct
c a
nb esol
dat₱10perpound.
• Thema nu
fact
ur
ingcost
so ft
hema i
nproducta ndb y
-pr
oductuptothepointofsep
arat
i
onforthet
hre
emo n
ths
ende
dMa rc
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ows:Mate
ri
al
s,₱1 75,000;Labo
r,₱100,
000;Overh
e ad
,₱100,
000.
• Theuni
tspr
ocessedwere35,
000poundsoft
h ema inpro
ductand3,5
00p oundsoft
heby-
prod
u c
t.
• Duri
ngtheperi
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undsofth
e“ minergy”weresoldat₱48;whil
ethec o
mp a
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l2,
625
poun
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heby-pr
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.
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li
ngandadmini
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ntedto₱2 1
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• Di
sposalc
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heby-
producti
s₱2 .
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sumetha
ttheby-
pr
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tisin
ven
tor
ie
da ndrec
ord
eda
tne
tre
ali
zab
lev
alu
e.T
hen
etr
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i
zab
lev
alu
eoft
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y-
pr
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ctr
educ
esth
ema n
ufa
ctu
ri
ngcos
tsof“
mine
rgy”
.
2
89. Wh a
tist
heuni
tco
stof
“mi
ner
gy”
?As
sumet
hat
theb
y-p
rod
uct
isr
eco
rde
dasr
eal
i
zed
.Wh
ati
sth
eco
st
of
inv
ent
oryo
f“mi
ner
gy”
?
a
.P1
0.7
1;P3
7,5
00 b
.P9
.91
;P3
7,5
00 c
.P9
.91
;P3
4,7
00 d
.P1
0.7
1;P3
4,7
00
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heh
ist
or
ic
alc
omp
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iv
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eme
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or2
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ess
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nto
ry,
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uar
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000

lOMoARcPSD|4644109
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ase
s 1
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0,0
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ess
:In
ven
tor
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cemb
er3
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000 1
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5,0
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ossp
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t 1
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5,0
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ess
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ti
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xpe
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rth
and
epr
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n 1
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0,0
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pre
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ti
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ss 6
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eswe r
ee a
rned,pur
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rt h
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inginv
ent
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nse
sot
hert
han
de
pre
cia
ti
onexpens
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eincu
rr
ede v
enlyt
hrou
ghoutt
heyear
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● Endi
ngin
vent
orywasacqui
r
edd ur
i
ngthelas
tweekofDece
mb e
r20
16
● Depr
eci
abl
easset
swe r
eacqui
redonJanuar
y1,2013
● Gener
alpr
ic
eindi
ceswere
:

lOMoARcPSD|4644109
Ja
nuary1,2
013 1
25
Ja
nuary1,2
016 1
40
Dece
mb e
r31,2
016 3
60
2
90. IfRe
eseComp
anywa
sop
era
ti
ngi
nah
ype
ri
nfl
ati
ona
rye
con
omy
,th
eamo
untt
ober
epo
rt
eda
sne
t
i
nco
me(l
oss
)is
a
.P2
,72
0,0
00 b
.P2
,41
2,0
00 c
.P9
72,
000 d
.P6
75,
000
OnDecember31,2016,
Co n
ti
’sI
nc.au
tho
ri
zedMaryGrac
eCo .t
oo p
erat
easafr
anchi
seefo
rani n
it
ia
lfr
anchi
se
f
eeofP3.
40mil
li
on(M).Uponsig
nin
gthecon
tr
act
,P0.
90Mwa srec
eiv
edandth
eb a
lancei
spai
db yanote
,duein
5eq
ualannual
inst
al
lment
s,begi
nni
ngDece
mb e
r31,20
17.Theprev
ail
i
ngmark
etrat
eis12%.Thedownpayment
i
snonre
fun
dabl
ea nditre
presen
tsafai
rmeasur
eoftheser
vic
esa l
r
eadyper
for
medb yCont
i’
sa ndsubs
tan
ti
al
f
ut
ur
es er
vi
cesarest
il
lr
equi
red.
2
91. How much is the deferred revenue to be recognized as of December 31, 2016?
a. P1
,51
8,6
77 b. P1
,80
2,3
90 c. P2
,50
0,0
00 d. P2
,70
2,3
90
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orr
estCo
mpanyuse
sst
andar
dcost
sys
temf
ori
t
sprodu
cti
onp
roce
ssandap
pli
eso
ver
hea
dond
ir
ect
lab
orh
our
s.Th
e
f
ol
lo
wingi
nf
or
mati
oni
sav
ail
abl
efo
rAugu
stwh
enFor
re
stmade4,
500un
it
s:

lOMoARcPSD|4644109
St
andard
s:
DLHperuni
t 2.
50
Va
ri
ableoverh
eadperDLH P1.
75
Fi
xedover
headperDLH P3.
10
Budge
tedvari
abl
eover
head P21
,87
5
Budge
tedfi
xedover
head P38
,75
0
Ac
tual
:
Di
rect
labor
h our
s 10
,000
Va
ri
ableoverh
ead P26
,250
Fi
xedover
head P38
,000
2
92. Us
ingt
wo-
var
i
anc
eap
pro
ach
,wh
ati
sth
eco
ntr
ol
la
blev
ari
anc
e?
a
.P5
,81
2.5
0U b
.P5
,81
2.5
0F c
.P4
,37
5U d
.P4
,37
5F
2
93. Wh
ati
sth
eno
n-c
ont
r
oll
abl
eva
ri
anc
e?
a
.P3
,12
5F b
.P3
,87
5U c
.P3
,87
5F d
.P6
,06
2.5
0U
OnJan
uary2
,2016
,GCCCo r
por
at
io
npurc
hase80
%o fVI
PComp
any’
sout
st
andi
ngsha
resfo
rP19,
000
,00
0.I
ncl
ude
d
i
nth
ep r
ic
epai
discon
tr
olp
remi
uma mo
unt
ingt
oP500
,000
.Th
edi
rec
tcos
t(ac
qui
si
ti
onrel
at
ed)a
mount
edtoP45
,000

lOMoARcPSD|4644109
wasd e
bit
e dasp artofthein
vest
me ntinsubsi
diar
ya ccoun
ts i
nceGCCo p t
edtou s
ethec o
stme thodofa ccount
i
ngits
i
nvest
me ntinacc or
dancewithPAS2 7
.NCIi sme asur
eda tt
h epres
entownershi
pinst
ru
me n t
s'pr
o por
ti
onatesharein
t
her e
cogn i
zeda mountsoftheVIP'
si d
e n
ti
fi
ablenetasset
s.Atthatdat
e,VIPha dP16Mo fordi
narys h
areso ut
sta
nding
andaccumu l
atedp r
ofi
t
so fP6.
40M. GCC’saccumu l
atedpro
fit
sa t
thedat
eo fac
qu i
si
ti
onwasP1 3.
8 0M.
VIP’
sequipme n
t wit
hre mai
ni
ngli
feo f5year
sh adab ookvalueofP9.00
Ma ndaf ai
rval
ueof P10.5
2 M.VIP’sremai
ning
asset
sha dbookv alu
ee qualt
hei
rfairval
ues.Alli
nt
a n
g i
bl
ea sset
sexceptgood
willa
reexpect
e dtoha v
erema in
ingli
ves
of8years.Thei ncomea nddiv
idendfigur
eso ntheseparat
efinanci
alst
ate
me nt
s(SFS)forb ot
hGCCa n dVIPa r
ea s
f
oll
ows:Ne ti
ncomeo fGCCin2 0
1 6isP3.60M; 2
017isP4 .
4 0
M. Neti
ncomeo fVIPin201
6i sP1.36M; 20
1 7isP2.04M.
Divi
dendsde c
lar
e dbyGCCi n2 016isP0 .
88M; 2017isP1.56M.Divi
dendsdecl
aredbyVIPin2 016isP0.28 M;2017is
P0.52
M.
Basedont hefo
reg oi
ng,det
ermi
neth efol
l
owing:
2
94. Non-controlling interest in net assets (NCINAS) in 2017
a. P5
,00
0,0
00 b. P5
,20
9,6
00 c. P5
,15
8,0
00 d. P5
,18
2,4
00
2
95. Consolidated accumulated profits attributable to GCC in 2017
a. P2
0,9
53,
600 b. P2
0,9
29,
600 c. P2
1,0
89,
600 d. P2
1,0
44,
600 e. P2
1,3
32,
800
Atax
pay
e rf
ro
mt h
ec i
t
yofLasPi
nashasth
efo
ll
owi
nginf
or
mat
i
onrel
at
in
gwit
hhi
sre
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roper
ty
:FMVo fLa
nd,
P5
00,
000;FMVofRes
.Hou
se,P1
,50
0,0
00.T
heonepe
rce
nt(1
%)r
eal
prope
rt
yta
xan
d1%spec
ial
educ
ati
ont
axare

lOMoARcPSD|4644109
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othbas
edo nt
hea
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sse
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ere
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hef
ai
rma
rke
tva
lue
.Ga
rba
ge
f
eesa
mo un
tedt
oP5
00.
2
96. How much is the total amount collected from the taxpayer?
a. P4
0,5
00 b. P8
,50
0 c. P4
00,
500 d. P4
,50
0
OnJu n
e1 ,2013,El
la
ineCo.es
tabl
i
shedana g
encyinDa v
a o
,s e
ndingsampl
escost
ingP4 ,2
0 0 ,
000whic
ha re
us
efulunt
ilMay3 1,
2014andhaveas al
vag
ev al
ueo f20%o fcost
.Awo r
ki
ngfundo fP3,41 2,
500istob e
mai
ntai
nedu s
ingth
eimpre
stbas
is.
Duri
ng2013,t
hea gen
cys ubmi
tt
e dt
othehomeoffic
es a
leso r
deramoun
tin
g
t
oP3 5,
437,50
0.Sal
esperi
nvoi
cewereP27,
562,
500wh i
chwe redulyappr
ove
db yt
heh omeo ffic
e.Thecostof
merc
handi
s e
ds ol
dduri
ngt
heyearamount
edtoP14,
7 8
4,000netof4%s al
esdi
scou
nt.T hecosto fmerch
andis
e
so
ldduri
ngtheyeari
sequal
to70%ofth
egrosssel
l
ingpri
ce.Vouche
rsfore
xpens
esamo untedtoP1 ,83
7,5
00
2
97. Ho
wmu
chn
eti
nco
mewo
uldb
ere
por
te
dbyt
hea
gen
cyo
nDe
cemb
er3
1,2
013
?
Dav
aoCo r
por
at
io
nhast
wobran
che
s,Ceb
ua n
dMani
lat
owhi
chmer
cha
ndi
sei
sbil
l
edat20%a
bov
eco
st.
Par
ti
al
t
ri
alb
ala
nceacco
unt
sof
thet
hr
eeent
it
i
esatDec
emb
er31,
201
4ar
esummar
i
zedasf
oll
ows
:
Mani
l
a
Homeoffic
e CebuBr
anc
h Br
anch
I
nvent
ory 80
0,0
00 18
0,000 24
0,0
00
CebuBranch 45
0,0
00
Mani
laBranch 42
0,0
00
Shi
pmentsfr
omh omeoffic
e 60
0,000 36
0,0
00
Pur
chases 1,
600
,000
Expens
es 90
0,0
00 25
0,000 20
0,0
00
HomeOffic
e 45
0,000 30
0,0
00
Lo
ading-
Ce buBra
nch 13
0,0
00
Lo
ading-
Ma ni
laBr
anch 12
0,0
00
Sal
es 1,
950
,000 9 0
0,000 75
0,0
00
Shi
pmentstoCebuBra
n ch 50
0,0
00
Sh
ipme
ntst
oMa
nil
aBr
anc
h 4
00,
000
Add
iti
ona
linf
orma t
ion:
Physi
cali
nven t
ori
esonhandatDece
mb e
r31,
201
4we r
easf
ol
lo
ws :
Physi
cali
nve nt
ori
esonhandatDecember
31,
2014wer
easf
oll
ows:
Homeo ffic
eP7 00
,00
0a tc
ost
Cebubra
nchP2 10,
000atbi
l
ledpr
ic
es

lOMoARcPSD|4644109
Ma
nil
aBr
anc
hP1
50,
000a
tbi
l
ledp
ri
ces
2
98. Th
ee n
din
ginve
ntor
yofDava
oCo r
porati
onmus
tbe:
2
99. Th
ecombine
dn et
inc
omeofhomeoffic
eandbr
anc
hesf
or2
014mu
stb
e:
3
00. Cor
re
ctneti
nco
meo fbr
anc
hesfo
r201 4must
be:
Thef
ol
lo
win
ginf
or
ma t
i
onca
mefro
mt hebook
sandrec
ordsof
Phi
li
pCor
por
at
io
nan
dit
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anc
h.T
heb
ala
nce
sar
e
asDec
ember3
1,20
14,t
hef
our
thyea
ro f
thecor
por
at
io
n’sex
is
ten
ce.
Homeoffic
e Br
anch
Dr
.(Cr
.) Dr
.(
Cr.
)
Sa
les P(
80,0
00) P( 320,
000
)
Sh
ipment
stobran c
h
Sh
ipment
sfr
omh omeoffic
e 1
20,
000
Pu
rcha
ses 50,
000
Ex
penses 80,
000
I
nve
ntor
y,Ja
nu a
r y1,
2014 36,
000
Unr
eal
i
zedprofi
tin
br
anchin
vent
o r
y (
50,
000
)
Ther
ear
enoshi
pment
sint
ransi
tbe
twee
nthehomeoffic
ea n
dthebr
anch
.Bot
hsh
ipme
n t
sacc oun
tsar
epr
ope
rl
y
re
cor
ded.
Thecl
osi
ngi
nven
torybi
l
le
dpri
cesi
ncl
ude
sme rch
andi
seacq
uir
edf
r
omthehomeoffic
einth
eamoun
tof
P21,
000andP9
,00
0acqui
redfr
omthevend
orsf
orato t
alofP3
0,0
00.
3
01. Be
ginn
ingi
nvent
orya
cqui
redf
romtheou
tsi
der
s.
3
02. Cor
re
ctcos
tofbegi
nni
ngin
vent
ory
3
03. Re
ali
zedpr
ofi
tfr
omin
vent
oryshi
pment
s.
3
04. Cor
re
ctnet
incomeofbr
anch
3
05. Cor
re
ctend
inginv
ent
ory
3
06. Al
l
owancebal
anceatt
heend.
Thei
ncomesta
teme
ntsubmi
tt
edbyt
heGe n
eral
San
tosCit
ybr
anc
htoth
eHomeoffic
efort
hemo
nthof
Dece
mb er
,201
4issh
ownb el
ow.
Aft
ere
ff
ect
ingt
henece
ssar
yadj
ust
ment
sth
etr
uen eti
nco
meofbr
anc
hwa
s
as
cert
ai
nedtobeP156
,00
0 .
Sa
les P6
00,
000
Cost
ofsal
es
I
nvent
or
y,December 8
0,0
00
Shi
pment
sfro
mh omeoffic
e 3
50,
000
Loc
alpur
chas
es 3
0,0
00
Tot
alAv
ail
abl
efor
sal
e 4
60,
000
I
nvent
or
y,December
31 1
00,
000 3
60,
000
Gr
ossmar
gi
n 2
40,
000
Op
erat
i
ngexp
ens
es (
180
,00
0)
Ne
tin
come 6
0,0
00
Theb
ranc
hin
ven
tor
i
eswer
e: De
c.01
,20
14 De
c.3
1,2
014
Mer
cha
ndi
sedf
r
omh o
meoffic
e 7 0,
000 84,
000

lOMoARcPSD|4644109
L
ocalp
urc
has
es 1
0,00
0 1
6,00
0
T
ota
l 80,
000 100
,000
3
07. Th
ebi
l
li
ngpri
cebase
doncost
impos
edbyt
hehomeoffic
etot
heb
ran
ch,a
n d
3
08. Th
eba
lanc
eo fa
ll
owanc
efo
rover
val
uat
i
onof
thebr
anchDe ce
mbe
r31,
2014aft
era
dju
stme
nt.
Th
efo
ll
owi
ngt
r
ans
act
i
onswe
ree
nte
redi
nth
ebr
anc
hcu
rr
ent
acc
oun
tof
Mar
i
kin
aHe
adOffic
efo
rth
eye
ar2
013
:
I
nve
stme
nti
nBr
anc
h-Ol
ang
gap
o
Beg
.bal
ance
1/1/
13 45
9,2
58 3
3,3
00Co
ll
ect
i
ono
fAR,
9/1
2/1
3
Shi
pmentst
obra
nch,4/
1/
13 21
2,4
00
Cas
hforwar
ded,6
/1/
13 1
5,0
00
Oper
at
ingExpen
seschar
gedt
o
Th
eb r
anch,1
2/31
/13 2,
880
 Sh ipmentst otheBranchdu ringthey ea rwerema deat20%a bovecost

.
 Th eb alan c eo ftheAllowa nceforOv erv
a l
uat
ionofBr anc
hI nvent
oryaccoun twasP2 1,
300a tth
e
beg i
n ni
ng, a ndtheall
owan cewa swrittend owntoP14,700atyear-
end.
 OnDe c
e mb er1 0
,2013,t
h eh omeo ffic
ep urchas
edap i
eceofe qui
pmentamoun ti
ngtoP3 6
,000f
o ri
ts
bra nchinOl anggapo.Thes a i
de qui
p me nthasau s
efull
if
eoffi
veyearsandwil
lbec a
rr
iedi
nthebooksof
t
h eb ranch , butt
heho meo ffic
er ec
ord e dthepurchas
eb ydebi
ti
ngEq ui
pment.
 Th eb ra
n chr ecor
dedthed e preci
ati
o no ft
hee qui
pmen tbydebit
in
gtheh o
meo fficecur
ren
taccoun
ta n
d
cre di
ti
ngAc c umul
atedDep re c
iati
on.
 De bitme mor egardi
ngthea l l
ocati
ono foperat
ingexpensest
oth eOlang
gapobran chwa sr
ecei
vedbyth
e
bra nchonJ a nuar
y2, 201
4 .
 Th eOl a
n gg a pobran
c hre
p or t
edn eti
n c omeo fP197,
730 .
 I
ta l
sore mi ttedcashtotheh o meo fficeo nDe ce
mb er31,2
013a mounti
ngtoP3 3 ,
000,whi
chthehome
offic
er e
c eiv edandrecordedo nJanua r y1,2014.
 Th einter
o fficeaccount
swe rei na g
ree me n
tatthebegi
nn i
ngoft
h eyear
.
3
09. Howmu chist hea dj
ust
edb al
anc
eo ft
hebra
n c
hCu r
re
ntaccou
ntonDece
mb er31,
2013bef
oret
he
ne
cess
arycl
osi
nge nt
ri
esweremade?
3
10. Wh a
tist
hea mountofa
djus
tmenti
ntheal
l
owanc
eforOver
val
uat
i
ono f
Bra
nchi
nven
tor
y?
3
11. Howmu chistheneti
ncomeofOlangg
apobr
anchtha
twi
llb
rre
port
edint
heco
mb i
nedin
comesta
tement
of
theMari
ki
naCo mpany
?
3
12. Wh a
tisth
ea mo u
ntoft
heOffic
eCu r
re
ntacc
ountt
hatwi
l
lberep
ort
edint
hebook
so fOl
angga
pobran
ch
af
t
ercl
osi
ngentr
iesar
ema de?
The preclosing general ledger trial balances at December 31,2013 for the CRC company and its Cagayan de Oro
Branch office are shown below:
Branch
Ho
meOffic
e Offic
e
Dr
(Cr
) Dr(
Cr )
Cas
h 36
0,000 8
0,0
00
Ac
count
srecei
vabl
e 35
0,000 12
0,0
00
I
nven
tor
y 70
0,000 15
0,0
00
Pr
opert
y,
Pl
antandequ
ipt
men
t(n
et) 90
0,000
i
nve
stmenti
nBranc
h 20
0,000

lOMoARcPSD|4644109
Acc
ountsPayabl
e -
360
,00
0 -
135
,00
0
Acc
ruedEx p
enses -
140
,00
0 -25
,00
0
HomeOffic
eEq u
it
y -90
,00
0
Commons t
ock(P10pa
r) -
500
,00
0
Ret
ai
nedEa rni
ngs -
450
,00
0
Sal
es -
4,
400
,00
0 -
950
,00
0
Pur
chases 2,
900
,00
0 240
,00
0
Expe
nses 440
,00
0 160
,00
0
Pur
chasesfr
omh omeoffic
e 450
,00
0
To
tal 0 0
Ana
udi
tdi
sc
los
edt
hef
ol
lo
win
gda
ta:
a
)OnDe cemb er 23t hebranchofficema nagerpurch
as e
dP4 0,
000o f
fur
nit
ur
ea ndfi
xturesb ut f
aile dt on o t
i
fy
t
h eh omeo ffice.Theb ookkeep e r
,knowingthatallplan tasse t
sa r
ec ar
ri
edo ntheh omeo fficeb o o k
s,
rec or
dedt hep r
opere nt
ryont heb ra
n c
hb ooks.I
tisth ec omp anyp ol
i
cyno tt
otakea n yd e
p re ciati
ono n
ass et
sa cquir
e dinth ela
sthalfo fay ear
.
b
)OnDe ce mbe r2 7 ab ranchcus tome rerr
oneousl
ys en taP2 0 ,000accountpaymen ttoth eh o meo ffic
e.
Th eb o
o kkeep erma dethecorr
e c tent
ryo nthehomeo fficebook sbutdi
dn otnot
i
fyth ebran ch.
c
)OnDe ce mbe r3 0theb ra
nchr e mitt
edc ashP50 ,
000wh ichwa sr ece
ive
db ytheh omeo ffic
ei nJ anua ry
,
201 4
d
)OnDe ce mb er3 1,theb ra
n c
he r r
oneouslyrec
o r
dedt heDe ce mberall
ocat
e dexpe ns
e sf romt h eho me
offic
ea sP5 ,
00 0inst
e adP15,000
e
)OnDe c emb er3 1theh omeo ffic
es hi
p pedme r
chand iseb i
ll
e da tP30,
00 0totheb r
a nc h,wh ichwa s
rec ei
vedinJ a nuary
,2014.
f
) Th ee n
tir
eb eg inni
ngi n
ventor
yo f t
heBranchh a
db eenp urc
has edfromtheh omeoffic
e.Ho meo ffic
e2 0 13
shipme ntstot heb ranchwe rep u
rchasedb ytheh o meo fficein2 0
13.T hep h ys
icali nve n tori
esa t
De cemb er31 ,2013,e x
cl
udingth es hi
pme nti
ntr
a ns
itare :
Ho meo ffic
e-P5 50,000(at
cost)
Bra nch-
P2 00,00 0
(consi
sti
ngo f1 80,000fr
o mhomeo fficeandP2 0,
000fro
mo ut
si
der s)
g
)Th eh omeo ffic
ec on s
ist
entl
yb i
llsshipmentstotheb rancha t20%a bovec o
st.Th es a lesa c coun tis
cre di
t
edf orthei nvo
icep r
i
ce.
3
13. Th
eadj
ust
edrec
ipr
oca
lacc
ountsb
efo
reb ranc
hne
tin
come,
3
14. Th
eco
rr
ectbra
nchneti
nco
me .
3
15. Th
eco
mb i
nedneti
nco
meo ft
hehomeoffic
eandb
ranc
h.
3
16. Ah omeo ffic
esh i
psi
nvent
orytoit
sbranc
hatama rk
-upof 1
25%a bovecos
t. Therequi
redbal
anceoft
he
al
l
owanceforo verv
a l
uat
i
ona c
counti
sP1,425,
000.Dur
ingtheyear
,t hehomeo ffic
es en
tmerchand
iset
othe
br
anchcost
ingP9 ,0
00,00
0.Atthes t
ar
to ft
hey ear
,theb r
anch’
ss t
at
e me
nto ffi
nanci
alPosi
ti
onshows
P1,
800,
000o fi
n vent
oryonhandth
a t
wasa c
qui
redfr
omtheh omeoffic
e.
Bywhata mo untwil
lt
heAll
owanceforUnr
eali
zedGrossMa r
gi
nBr a
nchinven to
ryaccountb
ed ebi
t
edat
t
heendo ftheye a
r?
a
.P1
2,2
50,
000 c
.P1
,18
5,0
00
b
.P1
0,8
25,
000 d
.P2
,61
0,00
0

lOMoARcPSD|4644109
3
17. Du r
in
gtheyea r2013g ood
sbil
l
edatP3,
250,
000wer
eshi
ppedtoth
eb r
anchat13
0%o fco
st.Theaccount
Lo
adingi
nb r
anchI nv
entor yhasabala
nceofP1,
225,
000bef
or
ea dj
ust
ment.Th
eb egi
nni
ngin
ve n
tor
yo fth
e
br
anchfr
omtheh omeo ffic
ea tc
osti
sP2,3
75,0
00;th
eb e
gin
nin
gi n
vent
oryoft
heb r
anchfr
omo utsi
dersi
s
P540
,00;p
urch
ase sfr
omo ut
si
der
sisP1,
450
,000
.Howmu c
histh
etotal
goodsava
il
abl
eforsa
leofthebr
a nch
f
romthehomeoffic
e?
a
.P5
,30
8,3
35 c
.P8
,09
0,0
00
b
.P6
,33
7,5
00 d
.P6
,10
0,00
0
3
18. Pr est
i
geFi
xCo .o p er
a tesab ra
nchi nCe bu.OnDe cemb e r3 1,
2013,th eCe bub ranchintheh ome
offic
eb ook
ss howedad e bi
tb a l
anceo fP3 ,132,
660 .Theinte ro ffic
ea ccoun tswe r
ei na gr
eementa tt he
beg i
nnin
go ft
heyear.F orthep urposesof rec
oncil
in
gt heint
erofficea ccount
s,t hef ol
l
owingfact
swe r
eg i v
en:
I
t i
st hepol
i
cyoftheh omeo ffic
et obi
lli
tsb r
anchesa t
2 0%a bovec o s t
.
 Sh i
pme ntsfromt heh omeo ffic
etoCe bub ran
chc os ti
n gP4 35,
00 0we r
eintr
a nsi
taso ft
hey ear
-
end.Ceb ub ranc hre c
ordedt hesaidtr
an sf
ertwi
cea tc ost
:oneo nDe cemb er31,
2013an dt he
ot
her o
nJ a n
u ary1 ,
20 1
4.
 Th eh omeo fficea ll
oc a
tedtot heCe bubranch¾o ft her entexpe nse sitpaidforth
ey ea
re n ded
2013.Th eren te xpen s
ewa sP1 44,
000.Th ehomeo ffices en
tad ebitme motoCe bubranc hfor
t
hea l
locateda mo unt,butt
heb r
anchreco r
dedthes a i
dd ebi
tme mob yd ebit
ingthehomeo ffic
e–
cur
rentaccou nt andc redi
t
ingr entpay
a bl
e .
 Th eb r
an chwr o t
e -offunc
o l
l
e ct
ibl
ea ccountsamou ntin gt oP6 0,72 0.Th ea l
lowancefordou btf
ul
acco
u nt
si sma i
nt ai
nedintheb oo
kso ft
heh omeo ffice. T heho meo ffic
erecordedthewri
t
e- offas
awri
te-offofit
so wna ccountsreceiv
able.
 Th eb ranchc oll
e ct
e da ccou nt
sr e
ce i
vablefr
o mt heh omeo ffic
e ’
sc u
s t
ome r
sa mount
in gt o
P317,520,n eto f2 %c ashd is
count.Th ebrancht re atedthes aidt ransact
ionasifitwa sa
col
l
ec t
i
o nfromi tso wnc ust
ome r
s.Theoffic
ewa snot y e t n
oti
fi
edo f t
h es ai
dco l
l
e c
ti
on.
What
ist
heu
nad
jus
tedb
ala
nceo
fth
eho
meo
ffic
e-c
urr
ent
acc
oun
tint
heb
ook
sof
Ceb
ubr
anc
honDe
cemb
er3
1,2
01
3?
a
.P2
,85
5,9
40 c
.P2
,78
1,9
00
b
.P2
,76
8,9
40 d
.P2
,75
4,4
20
Qu
est
i
on3
18t
hr
oug
h32
2ba
sedo
nth
efo
ll
owi
ng:
Comparative trial balances of the home office and the two branches of Norway Corporation at December
31,2014 were as follows:
Ho me Br
anch Br
anch
offic
e 1 2
Cas
h 5,0 00 15
,00
0 22
,00
0
Ac
count
srecei
vabl
e 80, 00
0 30
,00
0 40
,00
0
I
nve
ntor
ies 150 ,0
00 60
,00
0 48
,00
0
Br
anchno.
1 170 ,0
00
Br
anchno.
2 165 ,0
00
Pl
antas
set(
net) 730 ,0
00 2
50,
000 2
00,
000
Pu
rchas
es 900 ,0
00
Sh
ipment
sfro
mh omeo
ffic
e 3
00,
000 2
40,
000
Ex
penses 3
00,
000 7
5,0
00 50,0
00
T
ota
l 2
,50
0,0
007
30,
000 6
00,
000
Ac
cou
ntsp
aya
ble 1
00,
000 4
5,0
00 3
0,0
00

lOMoARcPSD|4644109
Ot
herl
iab i
l
it
ie
s 8
0,0
00 1
5,0
00 5
,00
0
Lo
adin
ginb ranc
hinve
nto
ri
es 1
08,
000
Capi
t
alSt o
ck,P10par 5
00,
000
Ret
ai
nede arni
ngs 2
62,
000
Homeoffic
e 1
70,
000 1
65,
000
Sal
es 1
,00
0,0
005
00,
000 4
00,
000
Shi
pmentstobranc
hes 4
50,
000 0 0
T
ota
l 2
,50
0,0
007
30,
000 6
00,
000
Ad
dit
i
ona
lin
for
mat
i
on:
Homeoffic
e(a
tcost
) P1
20,0
00
Br
anchno .
1(at
bil
l
edpr
i
ce) 72,
000
Br
anchno .
2(at
bil
l
edpr
i
ce) 96,
000
3
19. What
ist
hemark
-upr
at
eme r
cha
ndi
set
r
ans
fer
stobran
ch?
a.
20per
cen
tof
bil
l
edpri
ce c
.16-
2/
3per
cen
tofbi
l
le
dp r
i
ce
b.
25per
cen
tof
cost d
.25per
cen
tof
bil
l
edpri
ce
3
20. Howmuchi
sth
ebe
gin
nin
gin
ven
tor
yof
Nor
wayCor
por
ati
on?
a.
P15
0,0
00 c
.P24
0,000
b.
P25
8,0
0 d
.P90
,000
3
21. Howmuchi
sth
een
din
gin
ven
tor
yof
Bra
nchNo
.1atc
ost
?
a.
P72
,00
0 c
.P60,
000
b.
P57
,60
0 d
.P54,
000
?
3
22. Howmuchi
sth
eco
rr
ect
net
inc
omeo
fBr
anc
hNo
.2asfa
rasho
meo
ffic
eisc
onc
ern
ed?
a.
P19
0,0
00 c.P1
85,00
0
b.
P15
8,0
00 d.P94
,000
3
23. Howmuchn
eti
nco
mewi
l
lt
heo
ffic
ere
por
ti
nit
’
ssepa
rat
einc
omes
tat
eme
nt?
a.
P22
0,0
00 c
.494,
000
b.
P59
5,0
00 d
.P100,
000
Ques
ti
on323a nd32
4arebase
dont
hefol
l
owing:
Th
eDa gu
panCi t
ybr
anc
ho fAn
dyEnt
er
pri
ses,
Manil
awa
sb i
l
ledf
ormer
cha
ndi
seshi
pment
s
f
ro
mh omeoffic
eatc
ost
p l
us25%i
n2013andcos
tpl
us20%in201
4.Ot
herpe
rt
in
entda
taf
or
20
14:
Da
gup
anBr
anc
h Homeoffic
e
Sa
les P2
1 2
,000
I
nve
ntor
y
Be
ginn
ing 2
3,0
00(
atc
ost
)
Pu
rcha
ses 8
,90
0(a
tbi
l
le
dpr
i
ce) 1
64,
000
I
nve
ntor
ytr
ans
fer
s 5
0,4
00(
atb
il
l
edp
ri
ce) 4
2,0
00(
atc
ost
)

lOMoARcPSD|4644109
I
nve
nto
ry,e
nd 1
1,7
00(
atb
il
l
edp
ri
ce) 2
8,5
00(
atc
ost
)
Ex
pense
s 20,
300 7
6,4
00
3
24. What
wil
lbeth
eco
mbine
dcost
ofs
ale
sof
dag
upa
nb r
anc
handAn
dy’
sho
meo
ffic
eth
atmu
stb
esh
owni
n
t
hec
ombi
nedin
comes
tat
ement
?
a.
P22
,43
0 c.
P155,
870
b.
P15
5,8
15 d.
P22,
040
3
25. What
wil
lbet
hec
omb
ine
dne
tin
comeo
fDa
gup
anbra
nchandAn
dy’
sho
meo
ffic
e?
a.
P22
,43
0 c
.P2
2,13
3
b.
P22
,60
0 d
.P22
,040
Agdao corporation paid P5,000,000 to purchase NCR corporation on January 2, 2013, and NCR was dissolved.
The purchase price consisted of 100,000 shares of agdao’s common stock with a market value of P4,000,000
plus P1,000,000 cash. In addition, Agdao paid 100,000 for registering and issuing the 100,000 shares and
P200,000 for other costs in consummating the combination. The statement of Financial Position for the
companies immediately before combination is summarized as follows;
Agd
ao NCR
Book Fai
r Book Fai
r
Va
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ue Val
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ou n
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nvent
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pment,
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et) 20
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talAsse
ts 60
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ount
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le,10
% 1
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0
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t
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ck,P10par 2
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t
ion
a l
Paid-
i
nc ap
it
al 1
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ai
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nin
gs 1
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talL
iabi
l
it
ie
sa ndShar
eho
lde
r'
sEq
uit
y 6
0,0
00,
000 6
,00
0,0
00
3
26. Prepar
ethej
our
nalen
tr
ie
storecor
dAgdao’
sacqui
si
t
ionofNCRCor
por
at
ioni
fi
twasapu
rcha
seofa
sset
s
andl
i
abi
li
ti
es;
andifi
twa
sap ur
chas
eo fv
oti
ngsha
res
.
3
27. Prepar
eas t
at
emento
ffi
nanc
ial
posi
ti
onfor
AgdaoCorpo
rat
iono
nJan
uary2,
2013
,immed
iat
el
yaf
t
erth
e
co
mbina
ti
on.
Den
cioCo.
mer
gedin
toKit
Cor
p.onJ
uly1,
20 1
3.I
nexc
hangefor
theneta
sse
tat
fai
rmark
etva
lueofDen
cioCo.
amou
n t
i
ngt
oP696
,450,Ki
ti
ss
ued68
,000commonsh
aresa
t P9parv
alu
ewit
hamarke
tpri
ceofP1
2p e
rshare
.
Ou
tof
poc
ket
cos
tso
fth
eco
mbi
nat
i
onwe
rea
sfo
ll
ows
:
Le
galf
eesfort
hecont
ract
o fbusi
nes
scombi
nat
i
on P35,
600
Audi
tf
eeforSECregi
st
rat
i
o nofst
ocki
ss
u e 9
0,0
00
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int
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ngcost
so fs
toc
kcert
ifi
cat
es 1
4,5
00
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oker
’sf
ee 2
3,6
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ounta
nt’
sfeef
orpre
-acquis
it
i
onaudi
t 8
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00

lOMoARcPSD|4644109
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herdi
r
ectco
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qui
sit
i
on 7
5,0
00
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ral
andal
loc
ate
de x
pense
s 4
3,0
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st
i
ngfee
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ssui
ngnewshar
es 36
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iowil
lpa
yana d
dit
i
onalc
ashconsi
der
at
io
no f
P455
,000i
ntheeve
nttha
tki
t
,snet
inc
o mewi
l
lbeequ
alor
gr
eat
erth
anP9 5
0,00
0fort
heper
iodende
dDe c
ember3
1,2013.
Atacqui
si
t
iond
ate
,the
reisahi
ghpr
obab
il
i
tyof
r
eachi
ngthet
arge
tneti
nco
mea ndth
efai
rval
ueoft
headd
it
io
nalco
nsi
dera
ti
onwasdet
ermin
edt
obeP195,
000.
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ual
neti
nco
mefort
hepe
ri
ode
nde
dDe
cemb
er3
1,2
013a
mou
nte
dto
P1,
250
,00
0.Th
ead
dit
i
ona
lca
sh
co
nsi
dera
ti
onwasp
a i
d.
3
28. Whati
sth
ea mo
unt
ofg
oodwi
ll
tob
ereco
gniz
edint
hes
tat
eme
ntoffi
nanc
ial
posi
t
ionasof
December
31,
20
13?
3
29. Whati
sth
ea mo
unt
ofe
xpe
n s
etober
ecogn
ize
dint
hest
at
emene
toffi
nanc
ial
posi
t
ionasoft
heye
ar
en
dedDe
cember31
,20
13?
Summary information is given for DUBAI, Inc. and DAVAO Company at July 1, 2013. The quoted market price of
DUBAI and DAVAO shares are P36 and P40, respectively.
DUBAII
nc. DAVAOCompany
Book Boo
k
Val
ue Va
lue F
airv
alue
Cur
re
n t
Asset
s 8,
000,
0002 4
,000,
00024,000
,000
Pl
antAss
ets 22,
000,
0002 6
,000,
00025,000
,000
Good
wil
l 1,
500,
000
To
tal
s 31,
500,
0005 0
,000,
000
Li
abi
li
t
ies 5,0
00,
000 1
5,0
00,
0001
5,5
00,
000
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cks,
P10 1
0,0
00,
000 2
0,0
00,
000
API
C 2,0
00,
000 3,0
00,
000
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ain
edEar
nin
gs 1
4,5
00,
000 1
2,0
00,
000
Tot
al
s 3
1,5
00,
000 5
0,0
00,
000
Thebookval
uesofDUBAIrefl
ect
sthe
irf
ai
rva
lue
sexce
ptf
ori
nve
nto
ryit
emswho
serea
li
zab
leval
uei
s65
0000
moret
hanit
scarr
yi
n gamount,
u nr
epo
rt
edcas
ho nh
andof
350000andabui
l
di
ngco
sti
ng8000
000th
ati
s20
%
de
p r
eci
ate
dandisap p
rai
sedat 1
04000
00
DAVAOCompa
nyac
qui
re
sallt
henet
asset
sofDUBAIb
yis
sui
ng7
0000
0o f
it
sownsh
are
sandfi
f
thyP1
00,
000
10
%b ond
s.DA
VAOcompan
yincu
rr
edth
efol
lo
wingou
tofp
ock
etc
ost
srel
at
in
gtot
heacq
uis
it
i
on:
Le
ga l
feestoarr
angethebusi
nesscomb
inat
i
o n P25
,000
CostofSECregi
str
ati
on 1
2,00
0
Costofpr
int
in
ga ndi
ssuin
gn e
ws to
ckcer
ti
fi
cat
es 3
,000
I
ndi
rectcosto
fcomb i
nat
ion 20
,00
0
Fi
nder’
sfee 35
,00
0
Bondis
s u
ancetr
an s
act
ioncost 1
5,00
0
Ca
lcu
lat
eth
efo
ll
owi
nga
ssu
min
gth
een
ti
ti
esa
dop
tth
efu
llI
FRSa
ndI
FRSf
orSMEs
3
30. Ne
tas
set
sre
qui
r
ed

lOMoARcPSD|4644109
3
31. Cons
ide
rat
io
ntra
nsfer
red
3
32. Good
wil
l/g
ainar
is
ingfr
omb u
sin
esscombin
ati
on
3
33. To
tal
asset
simmedi
atel
yaft
erco
mb i
nat
io
n
3
34. To
tal
ret
ai
nedearni
ngsaf
terc
omb i
nat
i
on
Con
den
seds
tat
eme
ntso
ffi
nan
cia
lpo
sit
i
ono
fCu
reCo
rp.
andCl
assCo
rp.
aso
fDe
cemb
er3
1,2
012a
rea
s
f
ol
lo
ws:
CURE CLASS
Cur
ren
tAsse
t P43,
750 P16,2
50
Nonc
urr
ent
Asse
t 181
,250 10
,6250
To
tal
Asset P225
,000 P122,
500
Li
abi
l
it
ie
s P18
,750 P8,
750
CommonSto
cks
,P20Par 13
7,50
0 7
5,00
0
Addi
t
ion
alPa
idi
nCapi
ta
l 87
50 6
,250
Ret
ai
nedear
ni
ngs 62
500 3
2,50
0
OnJanuar
y1,201
3,Curecorp
.issued8750st
ockswit
ham,ar
ket
val
ueonP25/
sharefo
rtheass
etsandl
ia
bil
i
ti
es
ofCl
asscor
p.t
hebookval
uerefl
ect
sthefai
rva
lueofth
ea s
set
sandl
ia
bil
i
ti
ese
xceptth
attheno
ncurr
enta
sset
sof
cl
assh
asatempor
aryappr
ai
salof157500andth
en oncu
rr
enta
sset
sofCur
ear
eo ve
rst
atedbyP7500.
Conti
nge
nt
co
n s
ide
rat
io
n,whi
chisdet
er
minab l
e,i
sequal
toP3 7
50.Cur
eal
sopai
dfort
hest
ocki
s s
uancecos
tswort
hP8500
andt
heo t
hera
cqui
si
ti
onc
ostsamo unt
i
ngtoP4750.
Onmarc
h1 ,
2013thec
onti
nge
ntc
onsi
der
ati
onhasadet
er
minab
leamou
nto
fP5
000
.Onj
une1
,20
13,
the
pr
ovi
si
ona
lfai
rva
lueof
thenon
cur
re
ntass
etsof
clas
sin
crea
sedbyP22
50.
3
35. Ho
wmu
chi
sth
eco
mbi
nedt
ot
ala
sse
tsa
tth
een
dof
201
3?
OnSept
ember1,
2 013,SLUacqui
re
s75%(7 5
0,0
00ordi
nar
yshar
es)ofUBcompanyfo
rP7,5
0 0
,00
0.Wh enUB,
s
sh
aresar
etr
adi
nga t
P8p ersh
a r
eatt
hestockmark
et.
Aninde
penden
ta pp
rai
ser
esti
mate
dthatt
hefai
ro fUBi
s
P9,
7000
,000
.Ass
u mingtha
tth
en et
ide
nti
fi
abl
easset
swit
hacarr
yi
ngva l
ueofP6,
000,
000hasafai
rva
lueof
P8,
000,
000,
det
erminethef
oll
owi
ng:
3
36. Non-Cont
r
oll
i
ngI
nte
res
tandGoodwi
ll
/g
aini
ft
hen
on-
con
tr
ol
li
ngi
nt
er
est
ist
obev
alu
eda
tth
e
pr
opo
rt
io
n a
teal
lo
cat
i
onofacq
uir
esn
et a
sset
s.
3
37. Non-
cont
r
oll
i
ngi
nte
res
tan
dGo
odwi
l
/Ga
ini
ft
hen
on-
con
tr
ol
li
ngi
nt
er
est
ist
obev
alu
eda
tth
efa
irv
alu
eof
sh
are
shel
dbyNCI.
Th
est
at
eme
tof
fi
nan
cia
lPo
sit
i
ono
fLa
nce
rCo
rpo
rat
i
ono
nJu
ne3
0,2
013i
spr
ese
nte
dbe
low:
Cur
re
mtAs
set
s 3
2,5
00
La
nd 22
0,0
00

lOMoARcPSD|4644109
Bui
l
ding 1
10,
000
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pment 87,
500
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talAs
set
s 450
,00
0
Li
abi
l
iti
es 87,
500
Capi
t
a l
s t
ock
,P5par 150
,000
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t
ionalpa
idi
ncapi
t
al 1
37,
500
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ai
n edear
nin
gs 75,
000
To
talEqui
ti
es P450
,000
Al
lt
heas
set
sandli
abi
l
it
i
esofL
an c
erassu
me dt
oap p
roxi
matethe
irf
ai
rval
uese
xcep
tforl
andan
dbui
l
din
g.It
is
es
ti
mat
edth
atth
elan
dhaveaf
airval
ueofP350
,000andthefa
irval
ueoft
hebu
il
di
ngin
creas
edbyP8
0,00
0.
Kr
is
taCo
rpor
at
iona
cqui
re
d80%o fLan
cer’
scapi
t
alsto
ckforP500,
000.
3
38. Assumin
gthecons
ide
rat
i
onpa i
din
clu
desc o
ntr
olpr
emi
umo
fP142
,00,h
owmuchi
sth
eg oo
dwi
ll
/
(ga
ino
n
ac
qui
si
ti
on)onth
econsol
i
dat
edfi
nanci
alst
at
e ment
?
3
39. Assumin
gthecons
ide
rat
i
onpa i
dexcl
udescont
ro
lpr
emi
umgoo
dwi
ll
/(
gai
nona
cqui
si
t
ion)o
nthe
co
nso
li
date
dfin
anci
als
tat
ement
?
3
40. Assumin
gthecons
ide
rat
i
onpa i
din
clu
desc o
ntr
olpr
emi
umo
fP37,
000,h
owmuchi
sth
eg oo
dwi
ll
/
(ga
ino
n
ac
qui
si
ti
on)onth
econsol
i
dat
edfi
nanci
alst
at
e ment
?
Bag
uioCompanya cq
uir
es15%o fSanFer
nandocomp a
ny’sor
din
arys h
aresforP5,
000,00
0c as
ha ndcar
ri
esthe
i
nves
tmentusi
ngthecostt
hecostmet
hod.Afewmo nt
hslat
er,
Baguiopurc
ha s
esa not
her60%o fSanF e
rnan
do’s
or
di
naryshar
esforP2,
160,000
.Atth
atdat
e,SanF e
rnandocompanyrepor
tside
n t
i
fi
abl
ea ss
etswit
hab ookval
ue
of
P3,900,
000afai
rvalu
eo fP5,
100,
00a n
dithasli
abi
li
t
ieswit
hab ookval
ueo fandfa
irval
ueofP1,90
0 ,
000
.The
f
ai
rvalu
eofthe25%n on-
contr
ol
li
ngin
ter
esti
nSanF er
nandocompan yi
sP0 900,
000.
Det
ermi
nethe:
34
1. No n
-Contr
oll
i
ngInte
resta
ndGo o
dwil
l/
Ga i
na r
i
sin
gf r
omtheb us
ine
s scombin
ati
onifNCIi
stob eval
ued
u
s i
ngt
hep r
oport
i
onatebasi
s.
34
2. No n
-Contr
oll
i
ngInte
resta
ndGo o
dwil
l/
Gainari
si
ngfro
mt h
eb usi
nesscomb i
nat
ioni
fNCI i
stobevalu
edat
t
heNCIsharesFai
rValue.
FMMCorpo
rat
i
onpurch
ased30%int
eresti
nSTOCo r
por
at
io
nforP90
,00 0onJanua
ry1,20
13wh e
nST Ohad
or
di
nar
yshar
esofP240,
000andr
etai
nedearn
ingso
fP40,
000.
Anydiff
eren
ceb e
tweent
hecostof
inv
est
mentan
d
boo
kval
ueacqu
ir
edisduet
ounderv
alu
e dequ
ipment
wit
hremai
ni
ngu s
e f
ull
if
eof3year
s.For
theyea
rs201
3to
201
5STOCo r
por
ati
onre
port
edth
efol
lowin
g:
NetI
ncome Di
vi
den
dDe c
lai
r
ed
2
013 30
,000 20
,000
2
014 50
,000 40
,000
2
015 10
,000 40
,000
FMMCorp
ora
ti
onp ur
cha
sedaddi
ti
ona
l40%of
STOCorp
orat
i
ononJanu
ary1,2
013fo
rP14
0,0
00Ass
umingt
hat
t
he30%in
vest
me nta
cqui
r
edin2013i
snowwi
thaf
ai
rva
lueofP9
0,0
00(r
epr
esent
i
ng30%ofn
eta
sset
sfa
irv
alu
e
ont
hat
dat
e-d
iff
ere
nceat
tr
ibu
tab
let
oland
.
3
43. Th
eco
sto
fac
qui
si
t
iono
nJa
nua
ry1
,20
13.

lOMoARcPSD|4644109
3
44. Th
ere
sul
t
inggoo
dwi
l
l/
gai
nfr
omacq
uis
it
io
n.
3
45. Then
on-
cont
r
oll
i
ngi
nt
ere
stonJ
anuar
y1,20
13.
En
ti
tyAiss
uedequi
t
yin
str
ume
ntt
oEnti
t
yBon30Se p
tembe
r20X1.T
hei
rpri
cec
omb
ina
ti
onb
ala
nces
hee
tsa
re:
A B
_
_____
____
_____ _
______
_____
____
Cur
ren
tAsset
s P 500 P 7
00
Non
-cur
re
ntAsse
ts 1,
300 3,0
00
_
_____
____
_____ ____
_____
______
_
P 1,8
00 P 3,70
0
Cu
rr
entLi
abi
l
it
i
es P 300 P 600
No
n-Cu
rr
entLi
abi
l
it
i
es 40
0 1,
100
_
___
___
___
_____ _
___
___
___
_____
P 700 P 1,
700
Owner
’sEqui
ty 8
00 1
,40
0
Ret
ai
nedEarni
ngs
I
ssue
dEq u
it
y
100ord
ina
ryshar
es 3
00
60ord
ina
ryshar
es 60
0
_
___
___
____
___
_ _
___
___
_____
___
__
P 1,
800 P 3,
700
Ad
dit
i
ona
lin
for
ma ti
on:
a.On3 0Sept
embe r20X1,Aiss
ues2½s ha
resi
ne x
changefo
reachordi
nar
yshar
eofB.Al
lofB’
s
sh
a r
ehol
dersexchangeth
eirsh
a r
einB.Aissue
s1 5
0o r
din
aryshar
esinexc
hangef
oral
l60ord
ina
ry
sh
a r
esofB.
b
.Th efai
rval
ueof eac
ho r
di
naryshareofBat30Septe
mb er20
X1isP40.Thequot
edmark
etpri
ceof
A’
so r
di
narysharesatt
hatdat
eisP1 2.
c
.Th efai
rval
ueof A’
sident
i
fi
abl
ea ss
e t
sandli
abi
l
it
ie
sa t
30Se pt
ember20X1ar
ethesa
mea sthe
ir
ca
rryi
ngamo u
nts,wit
htheexcempti
onofnon-
cur
rentas
sets
.Thefai
rval
ueofA
’snon
-cur
ren
tasset
s
at
3 0Sept
emb er20X1isP1,5
00.
3
46. Ho
wmu c
hisgood
wil
l
?______
________
__
3
47. As
sumet
hato
nly56ofB’
sord
inar
yshar
esaret
end
eredf
orexc
hanger
ath
ert
hanal
l60
.
a
.Ho wmu c
histhemin
ori
tyi
nte
res
ts?
___
_______
_____
b
.Ho wmu c
histhecos
tofbus
ines
scombi
nat
io
n?___
______
_____
____
_
c
.Ho wmu c
hisgoodwi
ll
?___
_______
___
___
TBBiss
u ed120,0
0 0sha
resofi
t’
sP25paror
din
arysha resfora
llt
henetas
setsofHAFComp a
nyonJ u
ly1,2
013.
TBB’
so rd
ina
rys h
a r
esweresel
l
ingatP30persha
rea t t
hea c
qui
sit
i
ondate.
Inaddit
i
onacashpaymentof
P200,
000wa sma depl
usanagreementde
fer
redcashp a y
me n
tofP99
0 ,
000payabl
eonJuly1,2
013.Themark
et
ra
teofi
nte
restatt
heti
meis1 0
%.
TBBalsoagreedtopayaddi
ti
ona
lcashconsi
der
ati
ono fP250,
000i
ntheeventTBB’
sneti
ncomefal
lsbel
owthe
cur
re
ntlevel
withi
nthenext2yea
rs.TBB’
sfi
nanci
aloffic
e r
swere99%surethecur
rent
lev
elofi
ncomeatl
eastbe
sus
tai
nedd u
rin
gth epr
esci
bedperi
od.
Th
efo
ll
owi
ngo
ut-
of
-p
ock
etc
ost
swe
rep
aidi
nca
shb
yTBB.

lOMoARcPSD|4644109
Legalandac cou
nti
ngfeesp ai
dtoa d
vis
ers P8 ,
000
Brok
e r
’sfees 4,000
I
n d
ir
e c
t a
c q
u i
si
ti
oncosts 3,
000
Cost
st oiss
u eandregi
stert
hes har
es 1
0,400
Tot
al P2 5,
400
34. De
8 ter
mineth
ec ostofthei
nvestmentsf
o rTBB
A.4 ,
700,000
B.3 ,
800,000
C.5 ,
040,000
D.4 ,
950,000
OnOct
ober1,2013,
Wa terCo r
por
ati
ona cqui
redallt
heass
etsanda
ssumedal
lthel
iab
il
i
ti
esof
Gul
aman
Compa
nybyissu
ing2 0
,000s har
eswithafairv
a l
ueofP67.
5p e
rsha
reandanobl
igat
i
ontopa
yacont
i
nge
nt
co
nsi
der
at
ionwit
hafa i
rvalueofP750,000.
I
naddi
t
ion
, Wat
erpaidthefol
lowi
ngac qui
sit
i
onre l
at
edcost
s:
Legalf
e e
s P1 05
,600
Audi
t f
eeforSECr egi
str
ati
ono fst
ockis
sue 320,
400
Cost
so fstockcer
ti
fi
cates 35,
000
Brok
e r
’sfee 49,
000
Otherdir
ectcostofa
c qui
sit
i
on 50,
000
GeneralandAlloc
ate
de xpenses 14,000
Th
eStat
emen
tofFi
nanc
ial
Posi
t
ionasof
Sept
ember30
,2013of
Wat
era
ndGu
lama
n,t
oge
the
rwi
t
hth
efa
ir
mar
ket
val
ueoft
heass
etsandl
i
abil
i
ti
esa
rep
rese
nte
db el
ow:
Wat
er Gu
lama
n
Bo
okValue Fa
irVal
ue Bo
okValue Fai
rVal
ue
Cash P6 40
,000 P 640,0
00 P 4 5,
000 P 45,
000
Acc
oun t
sRecei
vab
le 360,
000 335,
000 70,
000 54,
000
I
nvent
ori
es 475,
000 390,
000 87,
000 78,0
00
Pr
epaidExpe
nses 25,
000 - 13,
500 5,
000
La
nd 2,
000,
000 2
,900,
000 900,
000 1,
550,
000
Bui
l
ding 80
0,00
0 90 0
,000 723,
000 768,
000
Equi
pment 70
0,00
0 585,
000 361,
500 36
0,000
Goodwil
l - - 3
00,00
0 -
To
talasse
ts P5,
000,
000 P5,750,
000 P2,
500,
000 P2
,860
,000
Acc
ou n
tsPayabl
e 312,
500 3
12,50
0 200,
000 20
0,00
0
Not
esPa ya
ble 937,
500 980
,000 700,
000 76
5,0
00
Capi
t
a l
s t
ock
,50par 2,0
00,000 850,
000
Addi
t
ionalpai
dincap
.1,000
,000 4
0 0
,000
Ret
ai
n edEarn
ings 750,
0 0
0 350,
000
To
talEqui
ti
es P5 ,
000,
000 P2,500
,000
Computefort
hebal
ance
sthatwi
llb
esh
owno
nOc
tobe
r1,20
13s
tat
eme
nto
ffi
nanci
alpo
sit
i
ono
fth
es u
rvi
vi
ng
co
mp any:
3
49. Rea
tai
nedear
ni
ngs
a.P480,0
00 c
.P5
26,
000
b.P540,0
00 d
.P4
75,
000

lOMoARcPSD|4644109
3
50. T
ota
las
set
s
a
.P7 ,
015
,00
0
b
.P6 ,
980
,00
0
c
.P7 ,
118
,00
0
d
.P7 ,
491
,00
0
Bes
tCompanyhasg
ain
e dc
ontr
olo
vert
heopera
ti
onsof
CureCor
por
at
io
nsbyacq
uir
i
ng85%o f
it
sout
st
andi
ng
ca
pit
als
toc
kforP2,
580,
000.
Thisamou
ntsi
ncl
udesacon
tr
olpr
emi
umofP3
0 ,
000
.Acqu
isi
t
ione
xpen
ses,
dir
ect
an
dindi
re
ct,a
mount
edtoP83,
000andP42,
000res
pec
ti
vel
y.
Thef
oll
owingwasa s
cert
ai
nedonthedat
eofacq
uis
it
i
onforCureCor
porat
ion
:
 Th evalu
eofrec
eiv
abl
esandequi
pmenthasdecr
easedbyP25,0
00a ndP14,00
0resp
ect
iv
ely
.
 Th efai
rval
ueofi
nvent
or
ie
sisnowP436,
000wh er
easth
ev al
ueofl
a n
da nf
ai
rval
ueofan
d
bui
ldi
nghasi
ncr
easedbyP471,
000andP107,
0 0
0respect
i
vel
y.
Ther
ewa sanu n
recor
dedacc
ount
sp a
yabl
eamount
ingt
oP2 7,
000andthefai
rva
lueof n
ote
sisP738,
000
.
Comput
ef ort
hefol
l
owingbal
anc
estobepres
ent
edinth
ec on
soli
dat
edst
a t
ementoffi
nanci
alp
osi
ti
onatt
hedat
e
of
b u
sin
e sscombi
nati
on:
35
1 . T ota
lasset
s
A.P9 ,875
,000
B.P1 0,09
3,000
C.P1 0,11
2,000
D.P9 ,215
,000
3
52. Sh
are
hold
er’
seq
uit
y
A.P7,0
00,0
00 C.
P8,
200
,00
0
B.P7,5
00,0
00 D.
P8,
000
,00
0
3
53. AIGCo mpan
ya cqui
reda7 0%i nte
res
tinEASTWESTCompan
yforP1,9
60,
000whenthefa
irv
alu
eo f
EASTWEST’si
dent
ifi
abl
eas s
etsan dli
abi
l
it
ieswasP7
00,
000ande
lec
tedtomeasu
reth
en o
n -
cont
r
oll
i
ng
i
nter
est
sati
tss
hareof t
heident
ifi
ablenet
assets
.Ann
uali
mpai
r
mentr
evie
wso f
goodwi
ll
havenotr
esul
te
din
anyi
mpair
mentl
ossesbeingrecognize
d.

lOMoARcPSD|4644109
EASTWEST’sc
urr
ents
tat
emento f
fi
nanci
alpos
it
i
onshowssh
arecap
it
alof
P10
0,0
00,
areva
lua
ti
on
r
ever
seofP300,
000an
dretai
nedearni
ngsofP1,
400,
000.
Under
IFRS3Busi
nes
scomb i
nat
ions,t
hefi
gur
einre
spect
ofgood
wil
lsh
oul
dnowbec
arr
i
edinAIG’
s
con
sol
ida
tedst
at
ementof
fi
nanci
a l
posi
ti
on?
A.P1 ,
470,
000 C.P1,
260,
0 0
0
B.P1 60,
000 D.P700,
000
3
54. Pat
ri
ckComp a
nyacqui
r
edtheasse
ts(e
xcept
forcas
h)andassumedthel
iabi
l
it
i
esofSt
eveCompan
yon
Ja
nua
ry2,
2 0
13a n
dStev
eCo mpanyi
sdis
sove
d.Ascomp e
nsat
io
n,Patr
ic
kCo mpanygav
e24,0
00shar
esi
ts
co
mmonstock
,12,0
00shar
esofi
ts8%p r
ef
err
edst
o c
k,andcas
ho fP240
,000tot
hesto
ckho
lde
rsof
Stev
e
Comp
any
. Onthedat
eofac
quis
it
i
on,Pat
ri
ckCompanyhadthef
oll
owin
gc h
a r
act
eri
st
i
cs:
Common,
par
val
ueP5
;fai
rval
ue,
P25
Pr
efe
rr
ed,
parv
alu
eP10
0;fa
irva
lue
,P10
0
I
mme
dia
tel
ypr
i
ort
oac
qui
si
t
ion
,St
eveCo
mpa
ny’
sba
lan
ces
hee
twa
sasf
ol
lo
ws:
Anapp
rai
sal
ofSteveCompanys
howedtha
tthef
airv
alu
esof
it
sass
etsandl
iab
il
it
i
eswer
eequa
ltot
hei
r
boo
kval
uesexc
e p
tfort
hefo
ll
owi
ng,whi
chhadfai
rva
lue
sasi
ndi
cat
ed:
Acco
untsRe c
eiv
abl
e P158,
000 Lan
d P540
,00
0
In
vent
ory 41
2,000 BondsPay
abl
e 4 48
,000
Howmu
chmust
bet
heg
ood
wil
lr
eco
gni
zeda
sar
esu
lto
fth
isb
usi
nes
sco
mbi
nat
i
on?
A.P32
2,0
00
B.P45
4,0
00
C.P94,
000
D.P0
3
55. OnOc tober2013BDOCo mp anyacquir
e d100%o fPCICompa nywhenth
efai
rval
ueofPCI’
snetasse
ts
wasP116mill
io
na ndthe
irca
rryi
nga mountwa sP120 ,
000mil
li
on.
T hecons
ider
at
ri
ontr
ansf
er
redcompri
sed
P200mil
l
ionincashtr
ansf
err
eda tth
ea cqui
s i
t
iondate,pl
usanot
herP60mill
i
onincas
hbetran
sfer
red11
month
saft
ertheacquis
it
i
ond a
teifas p
ecifi
edp r
ofi
ttar
getwasmet b
yPCI.Atth
ea c
qui
si
ti
ondatet
herewas
onl
yalowprobabi
li
tyoft
heprofi
ttar
getbeingme t
,sothefai
rval
ueof t
headdi
ti
ona
lcons
ide
rat
ionl
i
ab i
l
it
ywas
P10mil
li
on.I
nthee ve
nt,t
heprofi
tta
rgetwasme t
an dth
eP6 0mil
l
ioncashwastr
ansf
er
red.
Wh ata
mo unt
sh
ou l
dBDOp rese
nt f
orgoo
dwill
init
sstat
e me n
tofco n
sol
ida
tedfi
nanci
alpos
it
io
nat31December2014,
ac
cordi
ngtoIFRS3Bu si
nes
sc omb i
nat
i
on s?
A.P9 4Mill
i
on
B.P8 0Mill
i
on
C.P8 4Mil
l
ion
D.P1 44Mil
li
on
Gi
ord
anoComp
anyp
urc
has
edt
hen
eta
sse
tso
fHa
nesCo
mpa
nyo
nJa
nua
ry1
,20
13,
andma
det
hef
ol
lo
win
g
en
tr
ytor
eco
rdt
hepu
rch
ase
:

lOMoARcPSD|4644109
Cur
rent
asse
ts 1
00,
000
Equ
ipment 1
50,
000
La
nd 50,
000
Bui
l
ding
s 3
00,
000
Goodwi
l
l 1
00,
000
Li
abi
l
it
ie
s 8
0,0
00
Commonst
ock,
P1pa
r 1
00,
000
Pai
d-
inCap
it
ali
nex
cesso
fpa
r 5
20,
000
3
56. Ac on
ti
ngentc
onsi
dera
ti
onagreementwasmadeonJan.1
,2013,wh
erei
nanaddi
ti
ona
lcas
hpa y
ment
woul
dbeonJan.1,2
015,equal
totwi
cetheamountb
ywh i
chave
rageann
ualea
rni
ngsoft
heHanesDiv
is
ion
ex
ceedP25,
000peryea
r,pr
iort
oJanuar
y1 ,
2 0
15.Net
inc
omewa sP50,
000i
n2013andP60,
000,
in2014.
Howmuchgoodwi
ll
wil
lst
il
lberec
ordedontheboo
ksonJanuar
y1,2015
?
A.P60,
000
B.P120,
000
C.P85,
000
D.None
3
57. Ac onti
gentc
onsi
der
ati
onagr
eementwasma d
eo nJan
uary1,
2013,
where
inad
dit
ion
alshar
eswoul
dbe
i
ssuedonJanuar
y1,201
5,toc
omp en
satef
oranyfa
lli
nth
ev a
lueof
Gior
dan
ocommons t
ockbel
owP6per
sh
are.Theset
tl
ementwoul
dbetocur
ethedefi
ci
encybyi
ssui
ngadde
dshar
esbas
edo nt
heir
fai
rval
ueon
Ja
n. 1
,20
1 5
.Thema r
ketpr
i
ceofth
es ha
resonJan.1,
2015
,wasP4.Howmanysh
areswil
lGi
orda
nosti
l
l
i
ssueonJanuar
y1 ,
2015
?
A. 50,00
0
B.1 00,
000
C.2 0,
000
D.5 1,
667
Naf
ool
i
shCompan
yappl
i
esf
act
or
yover
heado
nth
eba
siso
fdi
r
ect
lab
orh
our
s.Bu
dge
tan
dac
tua
lda
taf
ord
ir
ect
l
abo
randov
erh
eadfo
rth
eye
ararea
sfol
l
ows:
Budg
et Ac
tua
l
Di
rec
tla
borho
urs P60
0,0
00 P5
50,
000
Fa
ctor
yove
rheadc
ost
s 72
0,000 68
0,0
00
3
58. Co
mpu
tefo
r Pr
ede
ter
mine
dFact
or
yOverh
eadRa
te
3
59. Ho
wmuchisth
eappl
i
edover
hea
d?
3
60. Ho
wmuchisth
eovero
runde
rappl
i
ed?
Mi
r
iam,
Inc
.ha
dth
efo
ll
owi
ngi
nf
or
mat
i
onr
el
at
in
gto2
011
Bu
dget
edfact
oryov
erh
ead P74
,80
0
Ac
tua
lfa
cto
ryover
head P78
,300
Ap
pli
edf
act
oryover
head P76
,50
0
Es
ti
mate
dlaborho
urs 4
4,00
0
3
61. Benh
urcompan
yconsume
dP450,00
0wort
hofdi
r
ect
mater
i
alsd
uri
ngMay201
1.Att
hee
ndo
fthemon
th
t
hedi
r
ectmat
eri
al
si
nvent
or
yofBenh
urwasP25,
000l
owe
rth
antheMay1i
nven
tor
yle
vel
.Ho
wmuchwer
e
t
hedi
r
ectmat
eri
al
spro
cur
eddur
in
gMa y201
1?
A.P475
,00
0 C.P40
0,0
00

lOMoARcPSD|4644109
B.
P37
5,0
00 D.
P42
5,0
00
3
62. Pinc o
mpanyi
ncur
re
dthef
ol
lo
wingc
ost
sduri
ngth
emo nt
h:d
ir
ect
lab
or,P122
,000;
fac
tor
yove
rhe
ad,
10
8,000anddi
rec
tmat
eri
al
spu
rchas
es,
P160,
000.I
nven
tor
i
esshowt
hefol
l
o wi
ngcost
s:
Begi
nnin
g Endi
ng
Fi
ni
shedgoods P27,
000 P30
,000
Worki
nproc
ess 61,
500 57,
500
Di
rectma
ter
ia
ls 37,
500 4
3,50
0
Ho
wmuchist
hec
ost
ofg
ood
sman
u f
act
ur
ed?
A.
P44
3,5
00 C.P386
,00
0
B.
P38
2,0
00 D.P388
,00
0
3
63. L a
stmont
h,Parecompanypl
acedP55,
000ofmate
ri
alsi
nt
oprod
uct
ion.
ThePri
nti
ngDep
art
mentus
ed
8,
000la
borho
ursat5.
60p er
h o
urandth
eBindi
ngDepart
mentus
ed4,6
00h ou
rsatP6.
00pe
rhour
.Fac
tor
y
ov
erhea
disappl
i
eda t
ar a
teofP6.
00perl
aborhou
rinth
ePri
nti
ngDepar
tmentan
dP8.00p
erla
borho
urin
t
heBindi
ngDepar
tment
.Paresi
nve
ntor
yaccoun
tsshowthef
ol
lo
wingbal
ances
:
Be
gin
nin
g En
din
g
Fi
ni
she
dg o
ods P2
2,0
00 P1
7,0
00
Wor
kinpr
oces
s 15
,00
0 17
,60
0
Mat
er
ial
s 20
,00
0 18
,00
0
What
ist
het
ota
lco
sto
fgo
odss
old
?
A.
P219,
600 C.P1
08,
000
B.
P214,
600 D.P2
17,
200
3
64. Thef
act
or
yle
dge
rof
Dia
mon
dCo
rpo
rat
i
onc
ont
ai
nst
hef
ol
lo
win
gco
std
ataf
ort
hey
eare
nde
d
De
cembe
r31
,201
1:
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or
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vento
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hantheworki
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ryon
December31.
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ing2011wa sP900,
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sa nd
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ufact
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dersCompanyman
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ng’
Fac
tor
yover
headi
sappl
i
edtopr
odu
cti
ona
tadet
er
min
edrat
eof15
0%
of
dir
ect
-l
abOrc
ost.
Anyoverorunder
appl
i
edf
act
oryov
erhea
discl
ose
dtot
hecos
tofg
ood
ssol
dacc
ounta
tthe
en
do f
eachmont
h.Addi
ti
onal
inf
ormat
ioni
sav
ail
abl
easfo
ll
ows:
 J
ob1
01wasth
eo n
lyj
obin
proc
eSsat
Janu
ary31,
2011,
Wit
hac
cumu
lat
edc
ost
sasf
ol
lo
ws:
Di
r
e c
tmater
ia
ls P4,
000
Di
r
e c
tla
bor 2,
000
Ap
pli
edfac
tor
yover
head 3,0
00
9,
000
 Jo
b s10
2,103and1 0
4we r
est
art
eddur
ingFebr
uary
 Di
rect
ma t
eri
al
srequi
si
ti
onsf
orFe
brua
rytot
ale
dP2 6,
000
 Di
rect
-
labo
rcostofP20,
000wasi
ncur
redfo
rFebrua
ry
 Act
ualf
act
oryove
rheadwasP32,
000f
or F
ebruar
y
 Theonl
yjobst
il
li
np r
oces
satFeb
ruar
y2 8
,2011wasJob10
4,wi
t
hco
stso
fP2
,80
0fo
rdi
r
ect
mat
er
ia
ls
andP1,
800fordi
r
ectlab
or
3
83. Thec o
stofgood
sma nu
fact
uredf
orFebr
uar
y2 0
11was
A.
P7 7
,700 C.P79,
700
B.
P7 8
,000 D.P85,
000
3
84. Usingth
es a
meinfor
mati
oninNo.23,
anyoveroru
nder
-a
ppl
iedf
act
or
yov
erh
eads
hou
ldb
ecl
ose
dtot
he
co
stofgoo
dssoldacc
ountatF
eb r
uar
y28,2011
,int
heamounto
f
A.
P7 0
0o v
erapp
li
ed C.P1,
700under
appl
i
ed
B.
P1 ,
000over
appl
i
ed D.P2,
000under
appl
i
ed
Unde
rPic
kComp
any
’sj
obor
derc
ost
ingsy
ste
m,manu
fac
tUri
ngov
erhe
adi
sapp
li
edtowor
kinpr
oces
sus
inga
pr
edet
er
mine
dan
nua
lov
erh
eadrat
e.Dur
i
ngJanu
ary2
011,Pi
ck’
str
ans
act
i
onsi
ncl
udedt
hef
oll
owi
ng:
Di
re
ctmater
i
a l
si
ssuedtopr
oduct
io
n P90
,000
I
ndi
rec
tmater
ial
si
ssuedtopro
duct
ion 8,00
0
Manuf
act
ur
ingover
headinc
urr
ed 12
5,00
0
Manuf
act
ur
ingover
headappl
ied 11
3,00
0
Di
re
ctl
aborcost
s 10
7,00
0
3
85. Pickh
adnei
the
rbe
gin
nin
gno
ren
din
gworki
npr
oce
ssi
nve
nto
ry.
Wha
twa
sth
eco
sto
fjo
bsc
omp
let
edi
n
Ja
nuar
y2011?
A.
P302,
000 C.P32
2,00
0
B.
P310,
000 D.P33
0,00
0
3
86. Ac o
mpanymanuf
act
ur
espi
pesanduse
saj
obo r
der
costi
ngs
yst
em.Dur
in
gMa
y,t
hef
ol
lo
win
gjo
bswe
re
st
ar
te
d(noo
therj
obswer
einp
roc
e s
s)an
dthef
ol
lo
wingcos
tswer
ein
cur
red
:
J
obX J
obY J
obZ T
ota
l
Mat
er
ia
lsr
equ
isi
t
ion
ed1
0,0
00 2
0,0
00 1
5,0
00 4
5,0
00
Di
r
ectl
abo
r 5
,00
0 4
,00
0 2
,50
0 1
1,5
00
1
5,0
00 2
4,0
00 1
7,5
00 5
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00

lOMoARcPSD|4644109
I
naddi
ti
on,e
sti
mat
edoverhe
ado f
P300,
000anddi
rec
tlab
orcos
tsofP150
,000wereest
i
ma t
edtobei
ncur
re
d
du
ri
ngtheye
ar.Ac
tua
lover
headofP2
4,000wasi
nçur
redi
nMa y
;over
headisappl
i
edonthebasi
sofdi
re
ctl
abo
r
pe
sos.
Ifonl
yJobXandJobZwe r
ecomplet
eddur
i
ngthemont
h,th
ea p
propri
at
eentr
ytore
cordth
ein
it
ia
ti
onofa
ll
j
obswoul
dbe
A.Wor
kinpr
ocess P79,
500
Di
rec
tma t
er
ial
s P45,
000
Di
rec
tlab
or 11,5
00
Appl
i
edfact
ory 23
,000
ov
erhea
d
B.
Wor
kinp
roc
ess P8
0,5
00
Di
rec
tmate
ri
als P4
5,0
00
Di
rec
tla
bor 1
1,5
00
Fac
tor
yover
head 2
4,0
00
C.
Wor
kinp
roc
ess P8
0,5
00
Di
rec
tma t
er
ial
s P45
,000
Di
rec
tlab
or 11,
500
Appl
i
edfact
or
y 24
,000
ov
erhea
d
D.
Dir
ect
lab
or P1
1,5
00
Di
r
ectmat
er
ia
l 4
5,0
00
Wor
kinp
roc
ess P5
6,5
00
ThePap
ayaCompa
nyuse
sajobo
rderc
ost
syst
em.Th
efol
l
owin
gdatawer
eobt
ain
edfr
omtheco
mp an
y’scos
t
re
cor
dsasofJ
une30.
Nojob
swer
einpr
oces
satth
ebegi
nni
ngofJ
une,a
llc
ost
sli
st
edbei
ngi
ncu
rre
dd ur
in
gthe
mont
h.
J
obOrd
erNo
. Di
r
ect
Mat
eri
al
s Di
r
ect
Lab
orHour
s Di
r
ect
Lab
or Co
st
1
001 P4,
320 1,
300 P1,
600
1
002 9,
150 3,
700 7,
250
1
003 11,
275 8,
200 14,
325
1
004 3,
225 1,
500 2,
800
1
005 6,
500 3,
200 6,
100
1
006 2,
750 980 1,
650
Manuf
act
ur
ingove
rhea
dcost
sarecha
rgedt
ojobso
nthebas
isof
p1.
50per
dir
ectl
aborhou
r.T
he
ac
tua
lrna
nufac
tur
i
ngover
headcos
tfo
rthemont
htot
al
edP30,
350
.Dur
in
gJune,J
obOr d
erNos.
10
01,1002
,1004and105wer
ecomplet
ed.
Jobs10
01lan
d1002wer
eshi
ppedouta
ndthecust
ome
rswe
reb
il
l
ed
P9,
000f
orJob1001andP20
,00
0forJob1002
.
3
87. Th
ecostof
goo
dsma
nuf
act
ur
edwo
u l
dbe:
A.P5
5,5
00 C.P56,
495
B.P5
5,4
95 D.P57,
500
Jo
bNo .
210ha
s,a
tth
eendoft
hesec
ondwe
ekinF
ebru
ary
,anac
cumul
at
edt
ot
alc
o s
tof
P4,20
0.I
nth
eth
ir
d
week
,p1,
000o
fdi
r
ectma
ter
i
alswe
reuse
donth
eJob,
toge
the
rwi
thP1
0ofi
ndi
r
ectmat
er
ial
s.
T
wen
ty(
20)
hou
rso
fdi
r
ect
lab
ors
erv
ic
eswe
rea
ppl
i
edt
oth
ejo
bat
aco
sto
fP5p
erh
our
.
Manu
fact
ur
in
gover
hea
dwasa
ppl
i
edatt
hebas
isof
P2.50p
erdi
re
ctl
abo
rho
urf
orfi
xedo
ver
hea
dan
dP2p
erh
our
f
orva
ri
abl
eover
hea
d.
Jo
bNo .
210wast
heonl
yj
obc
ompl
et
eddur
i
ngthet
hir
dweek.
3
88. Th
eto
tal
cos
tof
JobOr
der
No.
210i
s:

lOMoARcPSD|4644109
A.
P5,
390 C.
P5,
350
B.
P5,
360 D.
P5,
400
Th
ewo
rki
nPr
0ssa
cco
unt
oft
heMa
tami
SCo
mpa
nywh
ichu
sesaj
obo
rde
rco
sts
yst
emf
ol
lo
ws:
Worki
nPr
oce
ss
Apr
i
l1Ba l
anc
e P25
,000 F
ini
she
dgo
odsP1
25,
450
Di
rec
tMater
ia
ls 50
,000
Di
rec
tla
bor 40
,000
Fa
ctor
yOverhe
adAp
pli
ed3 0,
000
Ove
rhe
adisappl
i
edtopr
oduct
i
onatapr
edet
er
minedrat
e,ba
sedo
ndi
re
ctl
aborc
ost
.Th
ewo r
kinpr
oce
ssa
tApri
l
30r
epr
esent
sth
ec o
stof
JobNo.456
,whi
chhasbeenchar
gedwi
t
hdi
r
ectl
abo
rcost
ofp3,
000andJ
obNo789
,
whi
chhasbe
encharg
edwit
happl
i
edove
rhea
do f
P2 ,
400.
3
89. Th
ecostof
dir
ect
mat
er
ia
lsc
har
gedtoJ
obNo.
456a
ndJ
obNo
.78
9amo
unt
edt
o:
A.P8
,70
0 C.P4,
500
B.P7
,60
0 D.P4,
200
TheNar
raCompan
yusesaj
obor
derc
o s
tacco
unt
i
ngs
yst
em.
Ove
rhe
adi
sap
pli
edt
opr
odu
cti
ona
ta
p
rede
ter
min
edra
tebas
edondi
re
ctl
aborcos
t.
Th
efoll
owi
ngpos
ti
ngsa
ppe
ari
nth
ele
dge
rac
cou
ntso
fth
eco
mpa
nyf
ort
hemo
ntho
f
Sep
tember
,20
11:
De
bit
Worki
nproce
ss,Se
pt.
1 P30
,000
Di
rect
ma t
er
ial
s 6
0,0
00
Fa
ctor
yoverh
ead 40
,000
Di
rect
lab
or 5
0,0
00
OnSe
pte
mbe
r30
,20
11,
fi
nis
hedg
ood
sco
mpl
et
ed,
fr
omwo
rki
npr
oce
ssc
ost
P16
0,0
00.
J
obNo
.32
7wa
sth
eon
lyj
obn
otc
omp
let
edi
nSe
pte
mbe
r,a
ndi
tha
sbe
enc
har
gedP4
,60
0fo
rfa
cto
ryo
ver
hea
d.
3
90. Di
r
ect
ma t
er
ia
lsc
har
gedt
oJo
bNo.
327was
:
A.
P10,
350 C.
P9,
650
B.
P14,6
50 D.
P25,
000
Newpor
tCompany,ama nuf
act
urerof
fi
be ropti
ccommu ni
ca t
io
nse qui
pmen t
,us
esaj o
b-orde
rcost
ingsys
tem.
Si
nceth
ep r
oduc
tio
nprocessisheavi
l
yau tomated,manuf
ac t
uri
ngoverheadi
sa p
pli
edo nth
eb a
sisofmachi
ne
ho
u r
susi
ngapredet
erminedover
headrate.Thecurre
n ta
n nual
rat
eo fP15perma c
hinehouri
sb as
edon
bu
d g
ete
dma nuf
act
uri
ngo v
e r
headcost
so fP1,200,
000a ndab udget
eda c
ti
vit
yle
velof80,0
00ma chi
nehours
.
Oper
ati
onsf
oryear20
1 3havebeencomp let
ed,andalloft
h eacco
u n
tin
ge nt
ri
eshavebe e
nma defort
heyear
ex
ceptt
heappl
ic
a t
i
ono fmanufa
ctur
i
ngo verheadtothejo
b sworkedond u
rin
gDe ce
mb er,t
hetr
ansf
erofcost
s
f
romWo r
kinPro
c e
sstoF i
ni
shedGoodsfo rth
ejobsco mpl
e t
edinDec e
mb er
,andthetr
ansfe
rofcost
sfr
om
Fi
ni
shedGoodstoCostofGoodsSoldforthejobstha
t ha
veb eensoldduri
ngDecemb er
.
Summar
i
ze ddat
aaso fNo
vembe
r30,2
013andfor
December2
013ar
epre
sent
edi
nth
efol
l
owi
ngta
ble
.Jo
bsTu-
00
7 ,
Nu-
013 ,a
ndNu -
015wer
ecompl
et
eddur
ingDece
mber.
Allc
ompl
et
edjo
bsexc
ept
JobNu-
013hav
ebeen
t
ur
n e
dovertocus
tomer
sbythec
los
eofbu
sin
essonDecember31
,20
13.
Worki
nProc
ess Dece
mber2
013Act
ivi
ty
Bal
anc
e Di
rec
t Di
rect Mac
hine
J
obNo
. 11
/30
/20
13 Mat
eri
al La
bor Ho
urs

lOMoARcPSD|4644109
Tu
-007 P87,
000 P1,
500 P4,
500 3
00
Ni
l013 55
,000 4
,00
0 1
2,0
00 1,
000
N11-
015 -
0- 25,
600 26
,700 1
,40
0
D12-
002 -
0- 37,
900 20
,000 2,
500
D12-
003 -
0- 26,
000 16
,800 80
0
To
tal P14
2,000 P9
5,0
00 P80
,00
0 P6
,00
0
Ac
ti
vit
ythrough De
cember2
013
Ope r
ati
ngAc t
iv
it
y 11/30/
2013 Act
iv
it
y
Actualmanufac
tur
ingover
hea
d:
I
ndire
ctma t
er
ial P125,
000 P9
,00
0
I
ndire
ctlabo
r 34
5,000 30,
000
Ut
ili
ti
es 24
5,000 22,
000
Depreci
ati
on 38
5,000 35,
000
To
ta l
Ov e
rhead P1
,100,
000 P9
6,0
00
OtherIt
ems :
Rawma t
er
ial
purc
hases* P965,
000 P9
8,0
00
Di
rect-
labo
rcost
s P845,
000 P8
0,0
00
Machinehour
s 73,
000 6
,00
0
AccountBal
ancesatBegi
nni
ngofYe
ar:1/
1/
2013
Rawma t
eri
ali
nve
ntor
y* P105
,000
Workinpr
oces
sinve
ntor
y 60
,00
0
Fi
ni
shedgoodsi
nvent
ory 125,
000
*Ra
wmate
ri
alp
u r
chas
esandrawmat
er
ia
l i
nve
n t
or
ycons
is
tofbo
thdi
re
ctandi
ndi
r
ect
mat
er
ia
ls.
Theb
ala
nceo
f
t
heRawMat
er
ia
lsIn
vent
or
ya c
coun
tasofDecember3
1,201
3isP85
,000.
3
91. De
ter
min
eth
ea mount
bywh
icht
heov
erhea
disover
appl
i
edorun
der
app
li
eda
sof
Dec
.31
,20
13.
A.
P11,
000un
derap
pli
ed C.P6,00
0u n
dera
ppl
i
ed
B.
P11,
000ov
erap
pli
ed D.P6,
000ove
rappl
i
ed
3
92. De
ter
min
etheb
ala
ncei
nNe
wpo
rtCompany
’sF
ini
she
dGo
odsI
nve
nto
rya
cco
unt
onDe
c.3
1,2
013
.
A.
P86,
000 C.P39
,00
0
B.
P31,
000 D.P21
1,0
00
3
93. Youfi
ndt
hat
thec
ostr
eco
rdsatSaba
thToo
landDi
eCompan
yhavebeenp
oor
lymai
nt
ai
ned.
Some
i
nf
or
mati
onhasb
eenent
er
ed,but
othe
rinf
or
mati
oni
smis
si
ng.
Fort
una
tel
y,
thei
nf
or
ma t
i
ongi
veni
sco
rr
ect
.
Thec
ost
sfor
Jobs686
,687,
and68 8aret
obed e
ter
mine
d.Thedi
rec
tma t
er
ial
scosti
sP5,
280f
or
Jo
b686andP7,
150fo
rJob687.
Th ecost
ofdi
rect
mater
ia
lsr
equi
si
ti
oneddur
ingthemon
thf
oral
lot
her
job
s,
ex
cept
Job688,
isP48
,20
0.Nojobswerei
np r
oces
satth
eb e
gin
nin
go f
themon t
h.
Thet
ot
alc
ostofdi
r
ect
mater
i
alsr
equ i
si
t
ione
dduri
ngthemont
hwasP69,130.
L
abori
spa i
datauni
f
ormrat
eofP100anhou
r.J
ob686requ
ir
ed8
2dir
ectl
abo
rhour
s,a
ndJob68
8requ
ir
ed43
d
ir
ectl
aborhou
rs.At
ota
lof76
0d i
r
ectl
abo
rhour
swe r
ework
eddu
ri
ngth
emo nt
h.Th
edi
rec
tla
borc
ost
ofal
lot
her
j
obs
,wit
htheexce
pti
onoft
heth
reej
obsbei
ngcons
ide
red
,wasP5
8,5
00.
Twomachi
nehou
rsar
eu s
edfore
achdi
rec
tla
borho
ur.Ov
erh
eadi
sapp
li
edat
arat
eofP4
0permach
ineho
ur.
Theac
tua
love
rheadco
stf
orth
emo nt
hwasP63,
200.J
obs686
,68
7,a
nd688wer
ecompl
et
edd
u r
i
ngthemont
h.
Howmuchist
hecost
ofgood
sma nu
fac
tur
ed?
A.
P44
,82
0 C.
P63
,190
B.
P48
,71
0 D.
P64
,86
0

lOMoARcPSD|4644109
K
yot
oCo
rpo
rat
i
on,
aJa
pan
esema
nuf
act
ur
ero
fte
lev
is
ions
ets
,pr
ovi
dest
hef
ol
lo
win
gda
taf
or2
013
:
Bu
dget
edover
headcost Y20,
000
,00
0
Bu
dget
edacti
vi
ty 20,
000mach
ineh
our
s
Ac
tua
lover
headcos
t Y2
1 ,
500
,00
0
Ov
erapp
li
edover
head Y500
,00
0
3
94. De
ter
min
eth
eamo
unt
ofma
chi
neh
our
swork
edatK
yot
oCo
rpo
rat
i
ond
uri
ng2
013
.
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22,
000 D.
20,
500
B.
20,
000 E.
non
eofthe
se
C.
21,
000
3
95. TheCh i
l
dersCompanyman
ufac
tur
eswi
dget
s.Du
ri
ngth
efi
scaly
earj
ust
ende
d,t
hecompan
yincu
rr
ed
pr
i
mec os
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000andco
nver
si
oncos
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00.Over
headi
sapp
li
edat
thera
teof2
00%of
di
r
ectl
aborc
ost.Howmuchoft
heabov
ecost
sre
pres
entmat
er
ial
cost
?
A.
P1,50
0,000 C.P9
00,
000
B.
P300,
000 D.P6
00,
000
PuffCor
porat
i
onacqui
r
eda6 0%int
er
esti
nScotCor
por
a t
io
nforP200,
000cashonJan
uary1,201
2whenthe
st
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ders’
equi
tyo
fScotco
nsi
ste
do f
P200,0
00capi
tals
tockan
dP2 5,
000ret
ai
nedear
ning
s.Theb
ooksand
f
ai
r val
uesofSco
t’
sasset
sli
abi
l
it
i
esareequal
excep
tofPPEwh i
chisu
nderva
luedb
yP5 0,0
00.Theu
nderv
alu
ed
mach i
ner
yisbei
ngdepr
eci
at
edoverf
ourye
arsandgoo
d wi
ll
isnota
mort
ize
d.
F
ina
nci
als
tat
eme
ntsf
orPu
ffa
ndSc
otCo
rpo
rat
i
onsf
or2
013a
res
umma
ri
zeda
sfo
ll
ows
:
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mbi
nedI
nco
mea
ndRe
tai
nedEa
rni
ngsSt
at
eme
ntf
ort
heY
earEn
dedDe
cemb
er3
1,2
013
Pu
ff Sc
ot
Co
mbi
nedSCI
andSc
hed
uleo
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Efo
rth
eye
are
nde
dDe
cemb
er3
1,2
013
Nets
ales 900
,000
.00 3
00,
000
.00
Di
vi
dendsfromScot 6
,000
.00
Cost
ofgoodssold (
600,
000.
00) (
150,
000
.00
)
Oper
ati
ngexpenses (
190,
000.
00) (
90,0
00.
00)
Neti
ncome 116
,000
.00 6
0,0
00.
00
Add:
Retain
ede ar
ni
ngsJanua
ry1,201
3 112
,000
.00 5
0,0
00.
00
Deduc
t:Div
idend
s (
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00) (
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000.
00)
Ret
ai
nede ar
nin
gsDe c
ember31,2
013 128
,000
.00 9
0,0
00.
00
Fi
nanci
alPosi
ti
onatDece
mb e
r31,2013
Cash 26,
000
.00 1
5,000
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ountsrec
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nvent
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03. Shar
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l
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04. Non-
contr
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li
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ter
esti
nth
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05. To
talSt
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it
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OnJanu
ary2,2
012
,DCorp
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onpur
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ed80%o ft
heout
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CCo mpa
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Att
hat
dat
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000
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ord
ina
rysha
resout
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and
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eta
ine
dearn
ing
sof
P1,
600
,00
0.
a.C’
se qui
pme nt
wit
haremaini
ngli
feof5y earshadabo o
kvalueofP2,
250,00
0andafai
r
va
lueo fP2,
630,0
00.C’
sremaini
ngassetshadb ookval
uesequalt
othei
rfai
rval
ues
.
b.Al
lint
angib
lesexc
eptgood
wil
lareexpectedtohaveremai
ningli
vesof8year
s.
c.
T heinco
mea nddiv
iden
dfi
guresforbothDa ndCa r
ea sfo
ll
ows:Neti
n c
omeo f
Din2012i
s
P900,
0 0
0 ;
2 0
13sP1 ,
100,
000.Neti
nc o
meo fCin2012isP340,0
00;2013isP510,
000
.
d.Di
videndsofDin2012i
sP2 20
,000; 2
0 13isP390,0
00.Divi
dendsofCin2012i
sP70,0
00;
2013isP130,000
.
e.D’
sr e
tai
nede a
rni
ngsbal
anceatthedateofa c
quis
it
i
onwa sP3,450,
000.
4
06. Ho
wmu
chi
sth
eco
nso
li
dat
edr
et
ai
nede
arn
ing
sat
t
ri
but
abl
etoc
ont
r
oll
i
ngi
nt
er
est
in2
013
?
A.
P5 ,
272,
400 C.P5
,23
8,4
00
B.
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333,
200 D.P5
,23
2,40
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4
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por
at
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ute
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n20
12
A.
P2 11
,200
B.
P1 55
,200
C.
P2 16
,000
D.P182,
400
4
08. Ho
wmu
chi
sthecons
oli
dat
edp
rofi
tin2
013
?
A.P1
,343,
200
B.P1
,438,
000
C.P1
,430,
000
D.P1,
4 6
4,0
00
4
09. Ho
wmu
chi
sthenon
-con
tr
ol
li
ngi
nt
er
est
inn
eta
sse
ts¡
n20
13?
A.P1
,295
,600
B.P1
,250
,000
C.P1
,302
,400
D.P1,
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lOMoARcPSD|4644109
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or2
012.
A.P776,
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11. No
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tinn
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or2
012.
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000 B. P14,
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3,8
00 D.
P14
,40
0
4
12. Co
nso
li
dat
edn
eti
nco
mef
or2
012att
ri
but
abl
etot
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lde
rsofpar
ent
.
A.
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00 B.P356
,00
0 C. P327
,80
0 D. P324,
200
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rtB:As
sumet
hat
all
int
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comp
anys
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sar
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det
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min
e:
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13. Co
nso
li
dat
edc
ostof
sal
esf
or2
013.
A.
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6,4
00 B. P960
,00
0 C.
P95
8,0
00 D.
P95
6,0
00
4
14. No
n-c
ontr
ol
li
ngi
nte
res
tinn
e t
inc
omef
or2
013.
A.P15,
000 B. P14,
000 C. P1
4,4
00 D.
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0
4
15. Co
nso
li
dat
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eti
nco
mef
or2
013att
ri
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abl
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heequ
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yho
lde
rsofpar
ent
.
A.
P32
8,6
00 B.P357
,00
0 C. P356
,00
0 D. P359,
000
OnJanua
ry2,2012,Pl
ai
nCo mpan
yacqui
re
d9 0%o f t
heouts
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ngshar
esof
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nc.
atbo
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i
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20
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000andP4,0
0 0
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r
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ti
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y.Pl
ainCompan
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sis
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upbasedonc
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l
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Inc
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gr
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s.Thei
nvent
or
iesoft
hebuy
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,whichal
lcamefr
omint
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compan
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cti
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how:
De
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012 De
cemb
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201
3
Pl
ai
n P240,
000 P1
60,
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0,000 40,
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OnOcto
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r1,2012
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etI
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,pur
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ro
mPlainCompanyf
or
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,sol
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t
hacar
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ol
lo
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ai
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nso
li
dat
edGr
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fi
t
A.
P19,
632
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000
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000
4
17. Co
nso
li
dat
edNetI
ncomea
tt
ri
but
abl
etoPa
ren
t
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P6,1
83,30
0
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P6,
369,
000
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P6,
169,
800
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300
4
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li
ngi
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tinNe
tIn
come
A.P189
,70
0
B.P185
,70
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C.P128
,20
0
D.P1.
84,
200
4
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nso
li
dat
edOpe
rat
in
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pen
se
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000
B.
P9,
788,
000
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P9,
803,
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D.
P9,
789,
500
OnJanuar
y2,2013
,Ph i
l
ipp
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orat
i
onpur
chase80%o f
Sin
g a
po r
eCompany’
souts
tan
ding
sh
aresfo
rP648,
000.P30,
000o f
theexc
essi
satt
ri
but
abl
etogoodwi
ll
a n
dth
eb al
anc
et oan
equ
ipmentwi
t
hane c
o no
micli
f
eo ft
enyear
s.Non-
cont
r
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in
gint
er
e s
tismea
suredati
tsfa
irv
alu
eo nd
ateo
f
ac
quisi
t
ion
.Onthedateofac
quisi
t
ion
,st
ockh
old
ers’
equi
tyoft
hetwocompani
eswereasfol
l
ows:
Ph
il
i
ppi
neCor
porat
i
on Si
nga
por
eCompany
Or
di
narys
hares P1,
050,
000 P240,
000
Re
tai
nedear
ni
ngs 1
,560
,000 42
0,000
OnDecember
31,2013,
Sin
gapor
eCompanyrepor
te
dnetin
comeofP105,
000andp
aiddi
vid
endsofP3
6,0
00t
o
Phi
l
ip
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es.Phi
l
ipp
inesr
epor
te
dearn
ing
sfro
mitssepar
at
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ti
onsofP2
85,0
00andpaiddi
vi
dend
sof
P13
8,00
0.Goodwi
ll
hadbeeni
mpai
redandsho
uldberep
ort
edatP6,
000onDecemb
er 3
1,2013.
4
20. Wh
ati
sth
enon-
cont
ro
ll
i
ngi
nt
er
est
inp
rofi
tof
Sin
gap
oreCo
mpa
nyo
nDe
cemb
er3
1,2
013
?
A.P2
1,00
0
B.P1
3,80
0
C.P1
8,75
0
D.P18
,600
4
21. Wh
ati
sth
econs
oli
dat
edp
rofi
tat
t
ri
but
abl
etop
are
nts
har
eho
lde
rso
nDe
cemb
er3
1,2
013
?
A.P3
40,2
00

lOMoARcPSD|4644109
B.
P36
0,00
0
C.
P33
6,00
0
D.
P356
,400
4
22. Whati
sth
econso
li
dat
edr
et
ai
nede
arn
ing
sat
t
ri
but
abl
etop
are
nt’
ssh
are
hol
der
seq
uit
yon
De
cember3
1,2013?
A.P1,
757,
400
B.P2,
079,
750
C.P1,
762,
200
D.P1,
758,
000
4
23. Wh at
amountof
non-c
ont
ro
ll
in
gin
ter
est
ist
obep
res
ent
edi
nth
eco
nso
li
dat
eds
tat
eme
nto
f
fi
nanc
ial
pos
it
io
no nDec
ember31,
2013?
A.P1
64,25
0
B.P1
45,50
0
C.P1
66,80
0
D.P15
4,500
Pe
aceCor
por
at
io
nac
qui
r
ed8
0%o
fth
eOu
tst
and
ingc
ommo
nst
ocko
fSi
gnCo
mpa
nyo
nJu
ne1
,20
13f
or
P5
86,
250
.
a.Si
g nComp any’
sstockhold
e r
’
se qui
tycomponentsatth
ee ndoft
hisyearar
ea sfol
l
ows:
Ordi
na r
yshares
, P100p ar
,P2 5
0,000,APICP112,500,Retai
nedEarni
ngsP22 2
,500.
b.Non-cont
rol
l
ingint
eresti
sme asuredatfai
rval
ue.
c.
Alltheasset
so fSignwerefair
lyval
ued,exce
pt f
orinve
n t
or
ies
,whichareover
stat
edbyP11,0
00,
and
equi
pme nt
,whichwa sunde r
sta
tedbyP1 5,
000.Rema i
ningusef
ull
if
eo f
equipmenti
s4y e
ars.
d.Bothcompaniesuset h
es t
rai
gh t
-
li
neme th
odford e
preci
ati
onanda mort
iz
ati
on.
St
o c
kh o
lder’
sequit
yo fPeaceonJ anuar
y1 ,2
013isc omposedofOrdi
narysharesP750
,000
,
SharepremiumP1 75,000,Retai
nedEa r
ni
ngsP5 25,
000.
e.Fai
rvalueofnon-contr
ol
li
nginter
estonthedateofacquis
it
io
nisP1 17
,500.
f
.Go odwi
ll
,ifan
y, s
houldbewr i
tt
end ownbyP1 4,
225a tyear
-e
nd.
g.NetIncomeforthefi
rstyearofpar
entandsubsidi
aryareP75,0
00a ndP42,500(f
romdat
eo f
ac
q ui
sit
i
on) r
espect
ivel
y.
h.Di
v i
dendsdecl
a r
eda tt
hee ndo f
theyearamou n
tedtoP2 0,
000andP1 5,
000.Duri
ngth
e
ye
a r
,ther
ewa snoissua n
ceo fnewo r
dina
ryshares.
4
24. What
¡st
hebal
anc
eofth
eno
n-c
ont
r
oll
i
ngi
nt
er
est
inn
eta
sse
tso
fsu
bsi
di
ar
yonDe
cemb
er3
1,
20
13?
A.
P145,
167.
50
B.
P127,
242.
50
C.
P124,
242.
50
D.P1
21,
917.
50
4
25. Wh
ati
sth
eamountof
conso
li
dat
eds
har
eho
lde
r’
seq
uit
y?
A.P1
,520
,345
B.P1
,642
,262
.50.
C.P1
,462
,262
.50
D.P1,
644,
587.
50
Pai
rCo
rpo
rat
iona
cqui
re
dan80%int
er
est
inSi
zeCo
mp an
yonJanu
ary2
,20
12f
orP2
,52
0,0
00.
Ont
hi
sda
te,
the
sh
arec
api
tal
andret
ai
nede
arn
ing
soft
hetwoc
ompani
esf
oll
ow:
Pa
irCo
rp. Si
zeCo
.
Sh
areCa
pit
al P6,
000,
000 P2,
250
,00
0

lOMoARcPSD|4644109
Re
tai
nedEa
rni
ngs 3
,00
0,0
00 4
50,
000
OnJ anuar
y2,2012,t
heasset
sa ndli
abi
li
t
iesofSi
z eCo.werest
at
eda tt
hei
rfa
irva
luese
xcept
formachi
ner
y
wh ichisunde
rval
uedbyP225,000(re
ma i
ni
ngli
f
ei s3y e
a r
s)
.OnSe pt
ember30,20
12,Si
zesol
dme rc
handi
set
o
Pa iratani
nter
-c
ompanyprofi
tofP150,
000;25%wa ss t
i
llun
sol
da t
year
-end.
Likewise,onOct
ober1,2
013 ,Si
zep u
rcha
sedme rchandi
sefr
omPa i
rf
orP3,600
,000.
Thesel
li
ng
affil
i
ateinc
lud
eda2 0%ma r
k-uponc os
tonthi
ssale.Only75%ofthes
ep ur
chas
esh a
dbeensol
dtou n
rel
at
ed
par t
iesasofDecember3
1,2 0
1 3
. AsofDecember3 1
,2013,goo
dwil
lwasdet
ermin
edtobeimpai
r
e dbyP60,
000
.
Th
efo
ll
owi
ngi
sth
esu
mma
ryo
fth
e20
13t
r
ans
act
i
onso
fth
eaffil
i
ate
dco
mpa
nie
s:
Pa
irCo
rp. Si
zeCo
.
Ne
tInc
ome P1,
500,
000 P6
00,
000
Di
vi
dendsd
ecl
ar
eda
ndp
aid 600,
000 180,
000
Ont
he2
013c
ons
oli
dat
edfi
nan
cia
lst
at
eme
nts
,ho
wmu
chwo
uldb
eth
e:
4
26. Ne
tin
comeat
tr
ibu
tabl
etoPa
ren
t
A.
P1,63
8,00
0
B.
P1,70
8,50
0
C.Pl
,60
8,00
0
D.P1
,686
,000
4
27. No
n-c
ontr
ol
li
ngi
nte
res
tinn
eti
nco
me
A.P70,
500
B.P100
,50
0
C.P82,
500
D.P85,
500
OnJanuar
y1,
2 0
12,PCo rpo
rat
i
onpur
chas
e d80%ofSCo mpany’
so u
tst
andi
ngst
ockf
or
P62
0 ,
000
.Att
hatda
te,
allofSCompany
’sasset
sandl
iabi
l
it
ie
sh a
dma r
ketv
alu
esappr
oxi
mate
lyequa
ltothe
ir
bo
okvalu
esandnogoodwil
lwasi
ncl
ude
dinthepur
chasepri
ce.
Th efo
ll
owin
ginf
or
ma t
i
onwasavai
la
blefo
r 2
012:
I
ncomefr
omowno p
era
ti
o nsofPCor
por
ati
on,P150
,00
0;Op e
rat
inglos
so f
SCo mpany
,P20,
000.
Divi
dendspai
d
i
n2012byPCorpor
at
io
n, P75,
000;
bySCo mpanyt
oPCo rpo
rat
ion,P12,
000.
OnJul
y1,201
2 ,
ther
ewasad owns
tr
eams al
eofequi
pmentat
ag ai
nofP25,00
0 .
Thee q
u i
pment
i
sexp
ecte
dtohavearemai
ningusef
ull
i
feof10yea
rsfr
omthedateofs
ale
.Also,onJanuar
y1 ,
20
12,t
her
ewa sanupst
re
ams aleo
ffur
ni
tur
ea t
alossofP7
,500.
Thefur
nit
ureisexpe
ctedto
ha
veausef
ull
if
eo f
fi
veyear
sfromt
hed at
eofsal
e.Non-
cont
ro
ll
i
ngint
eres
tisme as
uredatf
air
mar
ketv
alu
e.
4
28. Ho
wmu
chi
sthecons
oli
dat
edn
eti
nco
mea
tt
ri
but
abl
etop
are
nts
har
eho
lde
rs’
equ
it
y?
A.P9
7,250
B.P1
15,050
C.P1
12 ,
250
D.P10
3 ,
050
4
29. Carl
osBaker
yo wns60perc
entofthestoc
ko fZeusProdu
ctsacqui
r
edsever
alye a
rsagoatb
ookva
lue
.
OnJan
uary1,20
09 ,i
nve
n t
or
yrepor
tedbyCa r
losBakeryin
clu
ded20,000bagsoffl
ourpur
cha
sedfr
omZeus
Pr
oduc
tsatP90perbag.ByDecember31 ,
2009,all
thesebegi
nni
ng
i
nve
nto
rypurc
hasedfr
omZ eusProd
uctsh a
db e
e nbakedint
oprodu
ctsandsol
dtocu s
tomer
sby
Car
l
osBakery
.Therewerenotr
ansac
ti
on sbet
we enCarl
osBakeryandZeusPro
du c
tsduri
ng2009
.
Bo
thCarl
osBaker
yandZeusPr
oduc
tspri
cethe
irsa
tesat
cost
plu
s50
%ma rk
-upf
orpr
ofi
t
. Ca
rlo
sBake
ry
r
epor
te
dincomefr
omit
sbaki
ngoper
at
ionsofP3,
000,
000andZeu
sPr
odu
ctsr
epor
te
dnetincomeof
P2,50
0,0
00
f
or20
09.Computet
hecon
soli
dat
ednet
incomefor
2009.
A.P3,4
20,0
00

lOMoARcPSD|4644109
B.
P4,86
0,00
0
C.
P4,50
0,00
0
D.P5
,580
,000
Arvi
nMa nuf
act
uri
ngpur
c ha
sed80p er
centoft
hest
o c
kofRonni
eMines
,Inc
.,i
n2007.I
n
pr
epar
in
gt hecon
soli
dat
edfi
nanci
alsta
tement
sattheendof20
09,thec
ontr
ol
le
rofArvi
n
di
sc
over
e dtha
tArvi
nMa nuf
act
uri
ngh a
dp ur
chas
edP7 50
,000ofr
awma t
er
ial
sfr
omRo nn
ie
Mi
nesduri
ngtheyearandthat
theparent
companyhadnotpai
dfort
hel
astpur
chas
eo f
P12
0,000.Al
lt
heinven
torypur
chasedwassti
l
lonhandatyear
-e
nd .
Ronni
eMineshadspen
t
P50
0,000inpr
oduci
ngtheit
emss o
ldtoArvi
nMa n
ufact
ur
ing
.
4
30. Whate
ff
ect
,ifa
ny,wi
llf
ai
lu
ret
oel
imi
nat
eoradj
ustf
ort
hesei
te
mshav
eo nt
ota
lcur
re
nta
sse
ts
r
epor
te
dinthecon
s o
li
dat
edst
at
emento
ffi
nan
cia
lposi
t
iononDec
ember31
,2009
?
A.o
ver
stat
edbyP250,
000
B.o
ver
stat
edbyP370,
000
C.o
ver
stat
edbyP870,0
00
D.o
ver
stat
edbyP750,0
0
TheGl
obal
Cor
por
ati
oni
sun
der
goi
ngl
i
qui
dat
i
ona
ndh
ast
hef
ol
lo
win
gco
nde
nse
dst
at
eme
nto
ffi
nan
cia
lpo
sit
i
on
asofJ
anu
ary1
,20
13:
Asse
ts Li
abi
l
it
ie
sa ndSHE
Cas
h P11
4,2
00 Sa
larie
sPayab
le P50,
000
Rec
eiv
abl
es(ne
t) 3 4
0,80
0 Acc
ount
sPa ya
ble 1
08,
500
I
nven
tor
y 80,
000 Mor
tgagePayabl
e 40
0,0
00
Pr
epai
dExpens
es 2,50
0 Lo
anPa ya
ble 2
20,
000
Bui
l
di
ng(ne
t) 3 45,
000 Not
ePayabl
e 80
,000
Good
wil
l 5
5,00
0 Or
dinar
yshares 1
20,
000
Defi
ci
t (41,
000)
T
ota
lAs
set
s P9
37.
500 To
tall
i
ab.andSHE P937
,50
0
Themortga
g epay
a bl
eissecur
e dbythebuil
di
nghavi
ngareal
i
zabl
ev a
lueofP360
,000.
Acco
untspayabl
ea mount
ingtoP6 0
,000issecur
edbyth
erecei
vabl
esamounti
ngtoP85,
200
whi
chiscol
lect
ib
leintheamoun tof
P6 8,
160.Thebal
anc
einthebookval
ueoft
her e
cei
vabl
es
whi
chhasar eal
i
zableval
ueo fP235,
000isu s
edtosec
uret
heloanpayabl
e.Th
einvent
or
yhasa
re
ali
zabl
evalueofP53,00
0 .
Ina dd
it
iontothere
cor
dedli
abi
l
it
i
esa r
eaccrue
dint
eresto
nmo r
tg
agep
aya
ble
amount
ingtoP4,000,l
i
quidat
i
one xpensesamount
in
gtoP9,5
00a ndta
xes
amount
ingto4,0
00. (
usetwode ci
malplace
sfort
herec
over
ype r
cent
age)
4
31. Whic
ho f
thefo
ll
owi
ngs t
at
ementsiswrong?
A.
Th eest
i
ma t
eddefi
ci
encyt
ou nsec
uredcr
edit
or
sisP4
5,6
40.
B.
Pa yment
topar
ti
all
ysecur
edcredi
tor
sisP392,
358
C.
Pa ymentt
ounse
curedcre
dit
orswit
houtpr
io
ri
tyi
sP94,
499
D.Est
imat
edlos
sona ss
etrea
li
zati
onisP107,
140
Thefo
ll
owingd a
taarepr
ovi
dedb yWo r
ld
wideCorpora
ti
onwh i
chisunder
goi
ngli
qui
dat
io
n
pr
ocess:
 T o
talli
abi
li
ti
esamount
stoP6 92,
0 0
0.35%isful
lysec
uredbyasset
samo u
nti
ngtoP270,
000wi
thf
ai
r
marketval
ueofP250,
000;40%i spar
ti
al
lysecur
edbyasset
sa mount
in
gtoP300,0
00wit
hreal
i
zab
leva
lue
ofP225,00
0;andtheremain
ingbalan
ceisunsecur
ed.
 T o
talasset
sa mount
stoP890,000andhasatotal
fai
rmarketv
alueP695,
000
.
 Un paidin
cometaxesamo unt
stoP35,00
0 .
Addit
io
nalsal
ari
espayabl
eandadmini
st
ra
ti
veexpe
nse
s
t
otal
edP2 8,
000.
 De fi
ci
t a
mo unt
stoP79,
0 00
.
4
32. Whi
choft
hef
oll
owi
ngst
at
ement
sisc
orr
ect
?
A.
Asse
tsava
il
abl
etoa
llu
nse
cur
edcred
it
or
swi
t
han
dwi
t
hou
tpr
i
ori
t
yisP2
27,
800

lOMoARcPSD|4644109
B.
T h
eamountp
aidt
opar
ti
al
l
ysecu
redcr
edi
to
rsi
sP225
,00
0
C.
Theesta
tede
fi
ci
tamo
untt
oP60,
000
D.Thea
mo u
ntpa
idt
oal
lsec
ure
dcred
it
or
sisP69
5,0
00
Arevi
ewofth
ea ssetsandli
abi
li
ti
esofAtl
ant
isCor
porat
i
oninb a
nkru
ptc
yo nNov.30
,2013,
di
sc
losest
hefol
lowing:
 Amo rtg
a gep a
yableofP77,0
00,i
ss ec
ure
db ybui
l
di
n gval
uedatP14,
000mo r
eth
anitsbo
okvalu
eo f
P68,
000
 No t
espayab l
eofP3 9,
000issecur
edbyfur
ni
tur
eande qui
pmentwi
thbookval
ueofP46,
000t
hati
s
es
ti
ma t
edtob e4/5real
i
zable
 As s
etsothertha
nth o
seref
e r
redt
oh av
eesti
mat
edv al
ueofP25,
000,anamountt
hati
sP6,00
0a bo
veit
s
bo
okv a
lue
 L i
abi
l
it
iesothert
hanthoserefe
rre
dtotot
alP31,
000,whi
chexcl
udedcl
aimswit
hpri
ori
t
yofP8,0
00
4
33. Whic
ho f
thefo
ll
owingsta
tementsi
str
ue?
A.
Ac t
ualr
ecov
eryp er
cent
ageisP66.
27%
B.
T o
talf
re
ea s
setsisP22,
000
C.
Es t
i
ma t
eddefi
ci
en c
ytounsecur
edcre
dit
or
sisP1
1,2
00
D.Paymentt
oparti
al
lyse
curedcre
dit
or
sa mou
ntt
o36,
800
Twi
stedCorpor
atio
nisunder
goi
ngliq
uidat
i
on.Thetr
ust
eeofTwist
edCorp.pr
esen
tedthefol
l
owingi
nfor
mati
on:
Asset
sa mount
ingtoP125,
000areavai
la
bletouns
ecur
edli
abi
li
ti
eswit
houtpr
io
ri
ty
.As s
etsamounti
ngtoP110,
000
r
e p
resent
sa s
setsori
gi
nal
l
yn ot
pledgedt
oa nyl
ia
bil
i
ti
es.
Unpaidli
abi
li
t
iesar
easfol
lows:admi
nis
tra
ti
veexpens
es:
P21,0
00; t
axes
: P18,
000andwages:P32,
000.Acco
unt
sp a
yableandnote
spayabl
etot
aledP180,0
00.Noasset
s
wereple
d g
edo nthesai
dli
abi
l
it
ies.
Payme nt
tofu
ll
ysecu
redcredi
tor
sandpart
i
all
ysecur
edc r
edi
tor
samo u
ntst
o
P139,
000a ndP1 4
4,00
0respec
ti
vel
y.Theexpect
edrec
over
yp erc
enta
geis40perc
en t
.
4
34. Amo
unt
ofas
set
sp l
edg
edt
ofu
ll
yse
cur
edc
red
it
or
s
A.P139
,000
B.P225
,000
C.P235
,000
D.P249,
000
4
35. T
ota
lli
abi
l
it
i
es
A.P52
2,50
0
B.P53
4,00
0
C.P61
3,50
0
D.P580
,000
4
36. Th
eamo
untt
obepaidt
oal
lc
red
it
or
s
A.P4
26,0
00
B.P1
87,5
00
C.P4
79,0
00
D.P21
0,00
0
Th
efo
ll
owi
ngda
tawer
eta
kenfr
omt
hes
tat
eme
nto
fre
ali
zat
i
ona
ndl
i
qui
dat
i
ono
fIn
ter
con
ti
nen
tal
Cor
por
at
io
nfo
r
t
hequ
art
ere
ndedJ
une30,2
013
Ass
etst
ob ereal
i
zed P51
5,625
Supp
lement
arycred
it
s 79
6,87
5
Li
abi
l
it
iest
ob eli
qui
dat
ed 843,
750
Supp
lement
arychar
ges 73
1,25
0
Li
abi
l
it
iesl
iqu
idat
ed 562,
500
Ass
etsacqui
r
e d 56
2,50
0
Ass
etsrea
li
zed 65
6,25
0
Li
abi
l
it
iesass
u med 281,
250
Ass
etsnotr
eali
zed 234,
375

lOMoARcPSD|4644109
Theen
din
gc ap
it
alba
lan
ceso
fcapi
t
alst
ocka
ndret
ai
nede
arn
ing
sar
eP6
48,
750a
ndP1
78,
500
,
re
spe
cti
vel
y.Anetl
ossof
P22
6,5
00fort
heper
io
d.
4
37. Ho
wmu
chi
stheendi
ngb
ala
nceo
fca
sh?
A.P1
,125,
000
B.P1
,260,
000
C.P9
78 ,
750
D.P80
7 ,
000
Pa
ren
tComp
anypu
rch
ase
dan80%int
er
esti
nSu
bsi
di
ar
yCo
mpa
nyf
orP2
30,
000o
nJa
nua
ry1
,20
04,
whe
n
Su
bsi
di
ar
yCompa
nyhadt
hef
ol
lo
win
gb al
anc
esh
eet
:
As
set
s
Cur
re
ntass
ets.
..
..
.
..
..
.
..
..
.
..
.. P1
00,
000
Pr
oper
ty
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lOMoARcPSD|4644109
An
yexce
ssoft
hepr
ic
epai
dove
rbookval
ueisat
tr
i
b u
tabl
eonl
ytot
hepla
ntasse
ts,
whi
chhav
ea
1
0-y
ear
remai
ni
ngli
f
e.Pa
ren
tuse
sth
ecost
me t
hodtore
cordth
einve
stmen
tinSubs
idi
ar
yCompan
y.
Th
efo
ll
owi
ngt
r
ial
bal
anc
eso
fth
etwoc
omp
ani
eswe
rep
rep
are
donDe
cemb
er3
1,2
004
:
Pa
ren
t Su
bsi
di
ar
y
Cu
rr
ent
Ass
ets.
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edDe
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. (
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nve
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ar
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rr
ent
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4
38. Th
eco
nso
li
dat
edn
eti
nco
mef
or2
004
:
OnJanuar
y1,2003
, PCo.acqui
r
ed7 0perc
entofSCo.f
o r
P3 0
0 ,
000.
Onthatd
ay,SCo.'
scommonst
ock
an
dret
a i
nedear
ni
ngsaccount
shadcredi
tbal
ancesofP100,
000andP300,0
00,r
espec
ti
vel
y.I
twasa
gre
ed
t
hatg
oo d
wil
l,
ifa
ny,woul
dhaveana n
n ua
limpai
rmentl
ossofP2,0
00.PCo.dec
ide
dtousetheco
st
met
hodtoaccou
ntf
or t
hein
vest
me n
to ni
tsbook
s.OnDe ce
mb er31,
2005,t
her
etai
nedear
ni
ngsacc
ount
s
of
Pa ndSwe r
eP800,00
0a ndP400,
000,res
pect
iv
ely
.Consol
id
a t
edReta
ine
dEarni
ngsonth
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re:

lOMoARcPSD|4644109
4
39. Co
nso
li
dat
edRe
tai
nedEa
rni
ngso
nth
atd
aya
re:
Mado
nnaCor
p.h
asa75%in
ter
est
inJe
moCo.wh
ichi
sre
cor
dedo
nacos
tba
sis
.Fo
rth
efi
sca
lye
are
nde
d
Ju
ne30,2
005
,th
efo
ll
owi
ngdat
aweret
ake
nfr
omt
heir
res
pec
ti
veb
ook
s:
Net
inc
omeofMado
nnaCo
rp.wa
sP125,
000
, wh
il
eth
eneti
nco
meo fJ
emoCo.wa
sP4
5,0
00.
The
rewa
s
i
nt
erc
ompan
yint
er
esto
nbond
sofP5
,70
0.JemoCo.pai
ddi
vi
dendo
fP9,0
00.
4
40. Ho
wmu
chwa
sth
eco
nso
li
dat
edn
eti
nco
mef
ort
hefi
sca
lye
ar?
ComCo r
pora
tio
na ndBoCo r
por
at
ionaresi
st
erco
mp a
nie
s.ComCorpor
at
ionowns140,
000shar
esof
st
ockout
o f
the20 0,000shar
esofs
toc
ko ut
st
andi
ngofBoCor
por
ati
on.Ontheot
herhand
,BoCorpo
rat
io
n
owns120
,000sha resoutoft
he600
,000shar
esout
st
andi
ngofComCorpor
ati
on.ComCorpor
at
io
n
ann
o u
ncedan eti
n comeofP84,
080fo
r t
heyear2
005whil
eBoCorp
orat
io
ns us
tai
nedalos
sofP12,
000f
or
t
hesamey e
ar.Then etinc
omeandlos
so fbo
thcor
por
ati
onwer
earr
iv
edatwith
outcon
sid
erat
i
onoft
he
ear
nin
gsoftheaffil
i
ate.
4
41. Onac
ons
oli
dat
edb
asi
sfo
rye
ar2
005
,an
dth
ene
tin
comeo
r(l
oss
)fo
r:
AACompanyowns80
%o ft
heout
st
andi
ngcommonst
ocko
fBBCompanyan
d9 0
%o ft
heout
st
and
ing
co
mmo ns
tockof
CCCo mpany
.Ea
chcompany'
snet
inc
omefr
omi
tso
wns e
parat
eoper
at
io
ns,e
xcl
usi
veo
f
di
vi
den
dinc
o meandamor
ti
zat
i
onofc
ostov
erbookv
alu
eofne
tas
set
s,i
sasfo
ll
ows:
AACo
mpa
ny.
.
..
..
.
..
..
.
..
..
.
..
..
.
..
..
.
..
..
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..
..
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..
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..
..
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..
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..
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..
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..
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,00
0,0
00
BBCo
mpa
ny.
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..
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000
CCCo
mpa
ny.
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i
zat
io
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costo
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kva
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set
s(a
t10
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naf
ul
l-
yea
rba
sisi
sP4
,00
0an
d
P2
,00
0forAAandBBr
esp
ecti
ve.
4
42. Ca
lcul
at
eth
econsol
ida
tedne
tinc
omefor20
05,a
ssumi
ngth
atBBwasa
cqui
re
do nAp
ri
l1,
20
05a
ndCCwasacqu
ir
edonJul
y1,20
05.
Assumeea
rni
ngswer
emadeev
enl
yth
roug
houtt
heye
ar.

lOMoARcPSD|4644109
Pr
iCor
por
ati
onownsan80%i n
ter
est
inSedCorpora
ti
on;an
da tDece
mber31,200
5,Pri
din
vest
menti
n
Se
donac os
tbasi
swasequalt
o80%o fSed
'ssto
ckhol
der
seq u
it
y.Dur
in
g2 0
06,Sedmerch
andi
setoPri
d
t
oP100,
000atagr
osspr
ofi
ttoSedofP20,
000.AtDece
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, 2
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hi
sme r
chand
isei
sin
clu
ded
i
nPri
d'
sin
vent
ory
,Separ
at
eincomesfor
Pri
da n
dSe d2006aresummari
zedasf
oll
ows:
Pr
i
d Se
d
Sa
les.
.
..
..
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..
..
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..
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..
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..
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..
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..
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..
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0,0
00 P3
00,
000
Co
sto
fsa
les.
.
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,00
0) (
200
,00
0)
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t..
.
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00,
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era
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nge
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nse
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Se
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at
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000 P6
0,0
00
4
43. Th
ein
comefro
mSe dfor
2006is
:
4
44. Th
econs
o l
i
dat
edcost
ofsal
esfo
r200
6is
:
4
45. Th
eNCIinneti
nco
mefor2006i
s:
Thesep
ara
tein
comes(whi
chdonot
inc
lud
einve
stme
nti
nco
me)of
Pel
lCo
rpo
rat
i
ona
ndSe
llCo
rpo
rat
i
on,
i
ts80
%o wnedSubs
idi
ary
,fo
r200
6we r
edete
rmi
nedasf
ol
lo
ws:
Pe
ll Se
ll
Sa
les.
.
..
..
.
..
..
.
..
..
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..
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.
..
..
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..
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..
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..
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..
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..
..
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..
..
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..
. P4
00,
000 P1
00,
000
L
essCo
sto
fsa
les.
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00,
000 6
0,0
00
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rofi
t..
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00
Ot
here
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nse
s..
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0,0
00
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00,
000 P1
0,0
00

lOMoARcPSD|4644109
Dur
i
ng200
6Pell
sol
dmerc
handi
set
hat
cost
P20,
000t
oSe
llf
orP4
0,0
00,
anda
tDe
cemb
er3
1,2
006h
alf
of
t
hes
ein
vent
or
yit
emsre
maine
dunso
ldbySel
l
.
4
46. Th
eNCIi
nnet
inc
omefor2006
:
4
47. Th
eco
nsol
i
dat
edsal
esf
or2006:
4
48. Th
eco
nsol
i
dat
edcos
tofsal
esfo
r200
6:
4
49. Th
eco
nsol
i
dat
ednet
inc
o mef
or200
6:
Soni
sa75
%-ownedsub
sid
iar
yofPa
paCor
por
at
io
nacqu
ir
edbyPap
aatbo
okva
lue(
al
sof
airv
alu
e)o
n
Ja
nuar
y2,
200
4 .
Co mp
arat
i
veinc
omest
at
emen
tsf
orPa
paandSonf
or2
006ar
easfo
ll
ows
:
Pa
pa So
n
Ne
tsa
les.
.
..
..
.
..
..
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..
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.
..
..
.
..
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..
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..
..
.
..
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..
..
.
..
. P5
00,
000 P2
00,
000
Co
sto
fsa
les.
.
..
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..
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..
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00,
000 1
20,
000
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rofi
t..
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00,
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0,0
00
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era
ti
nge
xpe
nse
s..
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ti
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me.
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00
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vi
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me.
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00
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tin
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77,
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0,0
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Ad
dit
i
ona
lIn
for
mat
i
on
1
.Sonma desal
estoPapao fP6
0,000i
n2 005andP100,
00 0in2006.
2
.Papa'si
nve
ntor
iesatDec
e mber31,200
5a ndDecember 31
, 2
006inc
lud
edme r
chandi
seon
whi
chSonrep
ort
e dpr
ofi
tofP15,0
00andP2 4,
000duri
ng2 005and2006,
resp
ecti
vel
y.
3
.Papah a
snotel
imina
tedt
h eeff
ectof
int
erc
o mp
a n
yp r
ofi
t
sina cco
unti
ngf
orit
sin
vest
me n
tin
So
n.
4
50. Th
eco
nso
li
dat
edc
ost
ofs
ale
sfo
r20
06:

lOMoARcPSD|4644109
4
51. Th
eco
nso
li
dat
edn
eti
nco
mef
or2
006
:
4
52. J i
nkyi
str
yingtodec
idewheth
ertoacceptabonu
so f2
5%o fnet
inc
omea f
te
rs a
lar
iesandbonus
orasalar
yofP97,50
0p l
usab onusof10%o fneti
ncomea f
t
ersal
ari
esandbonusasame anso f
al
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l30,2009,thecap i
ta
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ll
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, f
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. P7
4,6
87.
50;
P2,8
75;P(
6,2
50) d
.P7
1,8
75;P1
5,62
5;P(
6,
250)
4
66. OnJ a n
ua r
y2 ,2 009
,SD Co mp a
nys ig
n e
da na gr
eementtoopera
tea saf ra
n c
hise
eo fTQ
Pr
oduct
s,in
c.forani n
it
ia
lfra
nchi
sefeeo fP937,
500for7year
s.Ofthi
samo unt
,P175,000waspai
d
whentheagreemen twass i
gne
da n
dt heba l
anc
ep ayab
leinfourannu
a lpayment
sb egi
nni
ngon
Dec
emb er31,200
9 .SDs i
gnedan on-
int
erestbea
ri
ngn o
tefo
rthebal
ance.SD’srat
i
ngindic
ate
stha
t
hecanborr
owmo ne yat16%forth
el oanofthi
stype
.Assumethatsu
bsta
n t
ials
ervi
cesamount
ingt
o
P28
3,500hada l
readyb eenren
deredb yTQPr oduc
tsandthataddi
ti
onalin
dir
ectf
ranchi
secosto
f
P25
,500wasa l
soi
n cur
red.PVfa
ctori
s2 .
80.
If
thec
oll
ect
i
ono
fth
eno
tei
sno
tre
aso
nab
lya
ssu
red
,th
ene
tin
comef
ort
hey
eare
nde
dDe
cemb
er3
1,
2
009is
a
.P3
13,
435 c
.P1
68,
135
b
.P2
28,
035 d
.P2
53,
535
OmegaInc.s
tar
te
da4 -ye
arcontr
actt
obui
ldadam.Ac
ti
vi
ti
escommenc
edo nFeb
ruar
y1,2007
.The
t
ot
alcont
ract
pri
ceamounte
dtoP1 2mil
l
io
n,andi
twasest
i
mate
dthat
theworkwoul
dbecompl
ete
dat
at
otal
costofP9.
5mill
io
n.Inthecons
tr
uct
io
na g
ree
mentt
hecust
omeragr
eedtoacc
epti
ncr
easesi
n
wag
etari
ff
saddi
t
iona
ltoth
ec o
ntra
ctpr
ic
e.
Th
efo
ll
owi
ngi
nf
or
mat
i
onr
ef
er
sco
ntr
act
act
i
vi
ti
esf
ort
hefi
nan
cia
lye
are
ndi
ngDe
cemb
er3
1,2
007
:
a
.Co
stsf
ort
hey
ear
:

lOMoARcPSD|4644109
P’
000
Ma
ter
i
als
……………………………………….
. P1
,40
0
L
abo
r…………………………………………….
. 8
00
Op
era
ti
ngo
ver
hea
ds………………………. 1
50
Su
bco
ntr
act
or
s……………………………….
. 1
80
b
.Cu
rr
ent
e s
ti
ma t
eoftot
alc
o nt
rac
tcost
sind
icat
esthef
ol
lo
wing :
 Ma te r
ial
sar
etobeP1 80,0
00hig
herthanexp
ect
ed .
 T o
tal l
aborcost
sa r
etobeP3 0
0,000hi
ghert
hane xpect
ed.
Ofthi
samo
unt
,on
lyP2
40,
000
wouldb ebroughtaboutbyin
crease
dwa getar
iff
s.Theothe
ramoun
twoul
dbedueto
i
neffic
ien
cie
s.
 As a vin
gsofP300,000i
se x
pect
edono pe
rat
i
ngov erh
eads.
c
.Du r
in
gthecu
rren
tfi
nanc
ial
yea
rthec
ust
ome
rre
quest
edava
ri
at
io
ntoth
eori
gi
nal
cont
r
acta
ndit
wasagr
eedt
hatt
hecont
rac
tpr
ic
ewoul
dbet
oin
cre
asedb
yP900,
000
.Thet
ot
ales
ti
mat
edcos
tof
t
hi
sextr
awor
kisP750,
000.
d
.Byt
hee
ndo
f20
07,
cer
ti
fi
cat
esi
ss
uedb
yqu
ant
i
tys
urv
eyo
rsi
ndi
cat
eda2
5%s
tag
eof
comp
let
i
on.
4
67. Co mpu
tetheamou
ntofgr
osspr
ofi
torlosstoberecog
niz
edin200
7us
ingc
ont
r
actc
ost
sin
pr
opor
ti
ont
oest
imat
edcon
tr
act
cos
ts(
per
c e
nta
g eofc
omple
ti
onmeth
od)
:
a
.P5 68,
000 c.
P6 1
0,000
b
.P5 77,
000 d.P75
5,000
4
68. Co mput
eth
ea mo
untofgr
ossp
rofi
torl
osst
obere
c o
g n
ize
din200
7u s
ingper
cen
tag
eof
thewo
rk
ce
rt
ifi
ed(
per
cent
ageofc
omple
ti
onmethod–out
put
met
h odusi
ngac
tual
costap
pro
ach)
:
a. P568,
000 c.P610,
000
b. P577,
000 d.P755,
000
4
69. Tam’sPi
z z
a,In
c.char
gesanini
ti
alf
ranc
his
efe eofP50,
000fo
rth
erightt
oopera
teasafran
chis
ee
of
Tam’
sPizza.Ofth
isamount
,P10,0
00ispayabl
ewh enth
ea gr
eementwassi
gnedandthebal
ancei
s
pa
yabl
einfi
veannualp
ayme n
tsofP8,
000each.Inret
urnf
orth
eini
ti
alf
ran
chis
efee,t
hefr
a n
chi
serwi
ll
he
lpl
ocat
ethes i
t
e,negot
i
atewit
hthelea
seorpu r
chaseoft
hesit
e,s
upervi
sethecon
str
ucti
onact
i
vit
y,
an
dprovi
dethebookke
epin
gs er
vi
ces.Thecre
ditrat
i
ngo f
thefr
anch
ise
eindic
atest
hatmoneycanbe

lOMoARcPSD|4644109
b
orr
owe
dat8%.Thep
res
ent
val
ueo
fano
rdi
nar
yan
nui
t
yof
fi
ver
ece
ipt
sof
P8,
000e
achd
isc
oun
teda
t
8
%isP31,
941
.68
.
I
ft
heini
ti
aldown
paymen
tisnotr
efu
ndab
leandnofu
tur
ese
rvi
cesa
rer
equi
redb
yth
efran
c h
ise
r,but
c
oll
ect
i
ono ft
henot
eiss
ou n
cert
ai
ntha
trec
ogni
t
ionoft
hen
oteasana
sse
tisun
war
ran
ted,t
hee n
tr
y
s
houl
db e
:
a
.Cash…………………………………………………………………1 0,0
00.
00
No
tesRe
cei
vab
le………………………………………………. 4
0,0
00.
00
Di
sc
oun
tso
nNo
tesRe
cei
vab
le…………. 8
,05
8.3
2
Un
ear
nedF
ran
chi
seF
ees
…………………. 4
1,9
41.
68
.Ca
b sh………………………………………………………………. .1
0,0
00.
00
No
tesRe
cei
vab
le……………………………………………… 4
0,0
00.
00
Di
sc
oun
tso
nNo
tesRe
cei
vab
le…………. 8
,05
8.3
2
Re
ven
uef
r
omF
ran
chi
seF
ees
………….
. 4
1,9
41.
68
c
.Ca
sh……………………………………………………………… 1
0,0
00.
00
Re
ven
uef
r
omF
ran
chi
seF
ees
……………………. 10,
000
.00
d
.Ca
sh……………………………………………………………… 1
0,0
00.
00
Une
arn
edF
ran
chi
seF
ees
………………………. 10,
000
.00
4
70. OnAp r
i
l 1
,2004,Moto
rol
a,I
nc.e
nter
edin
toafran
chiseagr
eeme n
twithaloca
lbusi
ness
man. The
f
ran
chis
eep ai
dP4 5
,000andgav
eaP3 0,
000,8%,3yearsnot
espayabl
ewi t
hin
ter
estdueannu
all
yo n
Mar
ch3 1.Mo t
orol
arecor
dedtheP75,000i
nit
ia
lfran
ch i
sefeea srev
e nueonAp r
il1,2004.On
Dece
mb er30,2004,t
hefran
chi
seedeci
dednott
oo pentheout
letunderMotor
ol
a’sname.Mot
o ro
la
ca
ncel
ledthefr
anchi
see’
snot
eandref
unde
dP2 4,
000l
essa c
cru
edinter
estonthenot
e,oft
heP45,000
pa
idonAp r
il1
.Wh ate
ntr
yshoul
dMotor
ol
ama k
eo nDecember30,2004?
a.L os
so nReposse
ssedFr
anchi
se……………………. . 24,
000
Cash…………………………………………………… 24,000

lOMoARcPSD|4644109
b
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ssonRep
oss
ess
edF
ran
chi
se…………………….
. 2
2,2
00
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sh…………………………………………………… 2
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00
c
.L o
ssonRe
pos
ses
sedF
ran
chi
se…………………….
. 5
2,0
00
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h…………………………………………………. . 22
,20
0
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tesRe
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vab
le……………………………………. 3
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00
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.Re v
enuefr
omFr
anc
his
eFe
es………………………. 7
5,0
00
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nt
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tIn
come
…………………………………… 1
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sh…………………………………………………… 2
2,2
00
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tesRe
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vab
le………………………………….
. 3
0,0
00
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ven
uef
r
omRe
pos
ses
sedF
ran
chi
se…….
. 2
1,0
00
4
71. Ma r
ana
nMo
tor
sSa
lesc
arso
nth
ein
sta
ll
men
tba
sis
.Pr
ese
nte
dbe
lowa
red
ataf
ort
hep
astt
hr
ee
ye
ars
:
2
007 2
006 2
005
I
nst
al
lme
nts
ale
s P2
,88
0,0
00 P2
,30
4,0
00 P1
,54
3,0
00
Co
sto
fsa
les 1
,72
8,0
00 1
,44
0,0
00 1
,00
2,9
50
Co
ll
ect
i
ono
n:
2
007i
nst
al
lme
nts
ale
s 1
,00
8,0
00
2
006i
nst
al
lme
nts
ale
s 3
91,
000 9
21,
000
2
005i
nst
al
lme
nts
ale
s 4
78,
000 4
62,
000 5
78,
000
Rep
ossess
ion
sondefau
lt
edacc
ount
sin
clu
dedonemad
eona2005s
alef
orwhi
cht
heu
npa
idb
ala
nce
amoun
tedt
oP2 0
,00
0.Thede
prec
iat
edval
ueof
thec
arr
epo
sse
sse
dwasP10,0
00.

lOMoARcPSD|4644109
Th
eun
rec
ove
redc
ost
oft
hec
ari
n20
05a
ndr
epo
sse
sse
din2
007i
s:
a
. P6
,50
0 c
.P1
0,0
00
b.7
,00
0 d
.13
,00
0
Ondo
yCo mpa
nybega
noper
at
ionsonJ
anuar
y1,20
11an
dappr
opr
i
ate
lyu
sest
hei
nst
al
lme
ntme
tho
d
of
accou
nti
ng.Th
efo
ll
owi
ngdat
aa r
eav
ail
abl
efo
r201
1and2
012
2
011 2
012
I
nst
al
lments a
les 1
,20
0,0
00 1
,50
0,0
00
Cas
hc o
ll
ectio
nsfr
om:
20
07sales 4
00,
000 5
00,
000
20
08sales 6
00,
000
Gr
ossprofi
tonsal
es 3
0% 40
%
4
72. Th
ere
ali
zedg
ros
spr
ofi
tfo
r20
12i
s
a
. 6
00,
000
b
. 2
40,
000
c
. 3
90,
000
d
. 4
40,
000
OnJanua
ry1,AwAwandBeBepool
edthe
iras
setst
ofor
map ar
tn
ersh
ip,
wit
hth
efi
rmt
otak
eover
thei
r
bu
sin
essasse
tsandas
sumetheli
abi
l
it
i
es.Par
tn
erscap
it
al
saret
ob ebas
edonnet
ass
etst
r
ans
fer
redaf
t
er
t
hefol
l
owin
gad j
ust
men
ts.
(Pr
ofi
tandl
ossareal
l
ocat
edequa
ll
y.
)
BeBe'
sin
vent
oryi
stobei
ncre
asedbyP4,00
0;anal
lo
wancefor
doubt
f
ulo
f P1,0
00andPl
.
500ar
etob
e
setu
pinbook
so f
AwAwa ndBeBe,r
esp
ecti
vel
y;a
ndaccou
ntspay
abl
eofP4,
000ist
ober
ecog
niz
edi
n
AwAw'sbo
oks.
Theind
ivi
dual
tr
ial
bal
ancesonAugus
t,b
efo
readj
ust
ment
s,fo
ll
ow:
AwAwBeBe
Ass
etsP75
.000P113
,000
Li
abi
l
it
ie
s5,00
03 4
,500
4
73. Wh
ati
sth
eca
pit
alo
fAwAwa
ndBe
Bea
ft
ert
hea
bov
ead
jus
tme
nts
?

lOMoARcPSD|4644109
a
. AwAw,
P65
,00
0;Be
Be,
P76
.00
0
b
. AwAw,
P65
,00
0;Be
Be,
P81
.00
0
c
. AwAw,
P68
,75
0:Be
Be,
P77
,25
0
d
. AwAw,
P75
.00
0;Be
Be,
P81
.00
0
Th
ePa
rt
ner
shi
pha
sth
efo
ll
owi
ngb
ala
nce
sint
hei
rt
ri
alb
ala
nce
:
(
1)Sa
les=P7 0,
000
(
2)Cos
tofGo od
sSo l
d=P4 0,
000
(
3)Oper
ati
ngExpenses=P10,0
00
(
4)Sa
lar
ya l
l
o c
ati
onst
op ar
tn
ers=P1
3,0
00
(
5)I
nt
erest
pa i
dtobanks=P2,
000
(
6)Pa
rt
n e
rs'wi
thdr
awals=P8,
000
4
74. Th
epa
rt
ner
shi
pne
tin
come(
l
oss
)is
:
a
. (
3,
000) c
.20
.00
0
b
. 1
8,0
00 d
.5,
000
Th
efo
ll
owi
ngd
ataa
rep
rov
ide
dbyt
heT
rou
ble
dCo
mpa
ny:
Ass
etsatbookval
ue150.00
0
Ass
etsatnetr
eali
zabl
eval
ue1 0
5,0
00
Li
abi
l
it
ie
sa tbookval
ue:
Fu
ll
ysecure
dmo r
tg
age60,000
Unse
curedaccount
sandnotespay
abl
e70,
000
Unr
ecor
dedli
a bi
l
it
ie
s:
I
nt
erest
onb anknote
s5 0
0
Es
ti
ma t
edcostofadmin
ist
er
ingest
at
e6,
000
Th
eco
urt
hasa
ppo
int
edaT
rus
teet
oli
qui
dat
eth
eco
mpa
ny.
4
75. Whenth
eTr
ust
eer
eco
rdst
hea
sse
tsa
ndl
i
abi
l
it
i
es,
its
hou
ldi
ncl
udea
nes
tat
ede
fi
ci
tof
:
a.31
,500
b.25
,000
c.31
,000
d.25
,500
Mi
mi,Joj
o,andKakaar
eforminganewp a
rt
ners
hip
.Mimii
stoin
vestcashofP100,
000andst
a mpi
ng
equ
ipmentor
i
g i
nal
l
ycost
ingP1 2
0.0
00b u
thasasecon
d-h
andv a
lueinth
ema rket
atP50,
000.Joj
oist
o
i
nves
tcashofP160,
000,whi
leKaka,whos
efamil
yi
sengage
dins el
l
ingsta
mp i
ngequi
pment,
isto
co
ntr
ibu
tecashofP50,
000andab r
an dn
ews t
ampi
ngequi
pme n
ttobeu se
db yth
epart
ner
shipwi
tha
r
egul
arpri
ceofP120.
000b utwhi
chcostt
hei
rf
amil
y'
sbusi
nessP100,00
0 .
Partn
ersagr
eetoshar
ep r
ofi
t
s

lOMoARcPSD|4644109
e
qua
ll
y.
4
76. Th
ecapi
t
albal
anc
esupo
nfo
rmat
io
nare
:
a.Mi
mi,
P220,
000;
Joj
o,P1
60,
000
;andKa
ka,
P15
0,0
00
b.Mi
mi,
P176,
666;
Joj
o,P1
76,
666
;andKa
ka,
P17
6,6
68
c.Mi
mi,
P160,
000;
Joj
o,P1
60,
000
;andKa
ka,
P16
0,0
00
d.Mi
mi,
P150,
000;
Joj
o,P1
60,
000
;andKa
ka,
P17
0,0
00
OnJun
e3 0
,201
2,Ai
da,
Lor
naa
ndF
efo
rme
dap
art
ner
shi
pbyc
omb
ini
ngt
hei
rse
par
at
ebu
sin
ess
p
rop
ri
et
ors
hip
.
Ai
dacont
ri
but
edcashofP75
.000.Lo
rnacon
tr
ibut
edpr
ope
rtywithaP54,0
00c a
rry
ingamou
nt,aP60.
000
or
i
ginal
cost
,an
dP1 20
.000f
a i
rva
lue
.Thepart
ner
shi
pacc
ep t
edr e
spons
ibi
l
it
yfort
heP52.
500mo r
tg
age
at
ta
chedtot
heprop
ert
y.Fecont
ri
but
edequi
pmentwi
thaP45,000carr
yi
nga moun
t,aP11
2,500or
igi
nal
co
st,a
ndP82.5
00fai
rval
ue.Thepar
tner
shi
pagr
eements
pecifi
estha
tpro
fi
tsandl
ossesa
retobeshar
ed
equ
all
ybuti
ssi
le
ntreg
ardi
ngcapi
tal
cont
ri
but
io
ns.
4
77. Wh
oamo
ngt
hep
art
ner
sha
sth
ela
rge
stc
api
t
alb
ala
nce
?
a
. Lo
rna
b Fe
c
. Al
lca
pit
ala
cco
unt
bal
anc
esa
ree
qua
l
d
. Ai
da
Di
ma g
ibaComp
anybeg
a noper
at
io
na tt
hebegi
nni
ngof201
2.Dur
i
ngtheyea
r,i
thadc
ashsal
eso
f
6,
875,
000ands
ale
soninst
al
lmentb
asi
so f
16,50
0,000
.Di
magi
baaddsamarkupo
ncosto
f25%onc
ash
sa
lesand50
%o ni
nst
al
lmentsa
les
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tal
l
me n
tsrec
eiv
abl
eatt
heendof2
008is6,
600
,00
0.
4
78. Th
ere
sul
t
ingr
eal
i
zedg
ros
spr
ofi
tfo
r20
12i
s:
a
.3,
300
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0
b
.1,
375
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0
c
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675
,00
0
d
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575
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0
OnOctob
er1,20
1 1
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oCo r
por
at
io
n,are
ales
tat
edeve
lop
er,so
ldlan
dtoDiegoCompanyfor
5,000,
000
.
Di
egopai
dcashof600,
000andsi
gne
daten-
yea
r4,40
0,0
00notebear
ingi
nter
esta
t12%.Thecarry
ing
amount
ofth
elandwasP4,0
00,0
00onth
edateof
sal
e.Thenot
ewa spaya
blei
nfor
tyqua
rt
e r
l
yp r
i
n c
ipa
l
i
nst
al
lment
sof110,
000begi
nni
ngJan
uar
y2,201
2.Mari
oappr
opri
at
e l
yaccoun
tsf
orth
esaleundert
hecost

lOMoARcPSD|4644109
r
eco
ver
ymet
hod
.OnJ
anu
ary2
,20
12,
Die
gop
aidt
hefi
r
s t
pri
nci
pal
ins
tal
l
men
tof
110
,00
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din
ter
est
of
1
32,
000.
4
79. Fort
heyea
rende
dDe c
ember3
1,2
012
,wh
att
ot
ala
mou
nto
fin
comes
hou
ldMa
ri
ore
cog
niz
efr
om
t
hel
andsal
eandt
hefi
nan
cin
g?
a.309,
640
b.508.
200
c.208,
000
d.0
Po
poyha
sad i
l
emna.
Heistr
yi
ngtodec
idewheth
ertoacce
ptasal
aryof4
0,00
0oras a
lar
yof2
5,0
00plu
s
abon
usof1
0%o f
neti
nco
mea f
t
ersal
aryandbonusasame a
nsofal
lo
cat
ingpr
ofi
tamongt
hepar
tn
ers
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Sa
lar
i
est
rac
eabl
etot
heot
herpar
tne
rsaree
s t
i
ma t
edtobe100,
000
.
4
80. What
amo
unt
ofi
nco
mewo
uldb
ene
ces
sar
ysot
hat
Pop
oywo
uldc
ons
ide
rth
ech
oic
est
obe
eq
ual
?
a
. 1
65,
000
b
. 3
05,
000
c
. 2
65,
000
d
. 2
90,
000
NonoyandMarar
econsid
eri
ngf
o r
mingapar
tner
shi
pwh er
ebyp
rofi
t
swi l
lbeal
loc
ate
dthr
ought
heuseof
sa
lar
iesandbon
uses.
Bo nu
seswil
lbe10%ofneti
ncomeaft
ert
ot
als a
lar
iesandbonu
ses
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l
l
r
ecei
veas al
ar
yofP30.
000andab onus
.Marhasth
eo p
ti
onofr
ecei
v i
ngas a
lar
yofP40,
000an
da1 0%
bon
uso rs
impl
yrec
eiv
ingasal
aryofP52,
000.
Bo t
hpart
ner
swil
lr
eceivet
hes a
mea moun
tofbo
nus.
4
81. De t
ermi
net
hel
eve
lofneti
nco
met
hat
wou
ldb
ene
ces
sar
ysot
hat
Jowo
uldb
ein
diff
ere
ntt
oth
e
pr
ofi
tsh
ari
ngop
ti
ons
elec
ted
.
a
.300,
000
b
.240,
000
c
.334,
000
d 9
4,0
00
Pe
rez
,Rey
esandSuar
ezwerepart
ner
swit
hcapit
a lba
lan
cesaso fJ
anu
ary1
,20
09o
fP1
00,
000
,
P1
50,
000a
ndP2
00,
000re
spe
cti
vel
y.
Theysh
arep
rofi
t
so na5:3:
2ra
ti
o.

lOMoARcPSD|4644109
OnJul
y1,200
9,Pere
zwith
dra
wf r
omthepart
ners
hip
. F
o rt
hesi
xmo nt
hperi
odend
ingJune30,
2009,t
he
pa
rt
ners
hipgene
rat
edan eti
ncomeP1 4
0,00
0.Pa r
tne
rsa g
ree
dt h
atattheti
meo fwi
thdr
awal
,cer
ta
in
i
nven
tor
yhadtobereva
luedatP70,
000fr
omitscostofP50,
000.Fur
th
er,pa
rt
ner
sa gr
eedtopayPer
ez
P19
5,00
0for
hisi
nte
rest
.
4
82. Wh
ata
ret
hec
apit
alba
lan
ceso
fReyesandSu
are
zaf
t
erPe
rez
’sr
et
ir
eme
nt?
Reye
s Su
arez
A. P2
17,
000 P2
38,
000
B. P1
89,
000 P2
26,
000
C. P1
77,
000 P2
18,
000
D. P1
87,
500 P2
26,
000
4
83. Ass
umingg
ood
wil
ltoPer
ezi
sreco
rde
d,wh
atist
hecapi
ta
lba
lan
ceofRe
yesaft
erPe
rez
’s
r
et
ir
emen
t?
a.P232
,00
0 b
.P18
6,0
00 c
.P189
,00
0 d
.P190,
000
4
84. Ass
umingto
talg
oodwi
l
loft
hepar
tn
ersh
ipi
stob
erec
ord
ed,wha
tist
hec
api
t
alba
lan
ceo
fSu
are
z
af
t
erPe
rez’
sre
ti
rement
?
a.P238,
000 b.P22
6,000 c
.P234,
000 d.P23
2,00
0
4
85. Per
ez,QueandRamosarepart
ner
sshar
i
ngear
ni
ngsint
herat
i
oo f5
:3:
2,r
espe
cti
vel
y.Asof
De
cember3
1,20
08,t
hei
rca
pit
alb
ala
ncesho
wedP9
5,0
00for
Per
ez,
P80,0
00for
Que,a
ndP60,000f
or
Ra
mos.
OnJanua
ry1,2
009t
hepar
tne
rshi
padmit
t
edSant
osasan ewpar
tn
erandaccor
din
gtotheagr
eement
,
San
toswi
lli
nves
tP8
0,0
00incasht
othepar
tner
shi
pandwil
lal
sopurc
hase15%o fQue’
sin
ter
estf
or
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,000
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l
lshar
e20%i ntheear
ni
ngswh i
l
etherat
ioofth
eo r
ig
inalpar
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erswil
lre
main
pr
opor
ti
onat
el
ytheasbef
oreSanto
s’admi
ssi
on.Aft
erSant
os’admi
ssi
on,thetot
alcapi
t
alofthe
pa
rt
ners
hipwi
llb
eP330
,00
0wh i
l
eSantos
’ca
pit
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count
wil
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000.
Wh
ati
sth
eba
lan
ceo
fQu
e’sc
api
t
ala
cco
unt
aft
ert
hea
dmi
ss
iono
fSa
nto
s?
a
.P8
1,1
00 b
.P7
9,1
00 c
.P7
4,6
00 d
.P7
2,6
00
4
86. OnMarc
h1,2008
,Al
maa
ndBe
tt
yfo
rme
dap
art
ner
shi
pwi
t
hca
shi
nve
stme
ntso
fAl
ma,
P48
0,0
00
an
dBet
t
y,P240
,00
0.

lOMoARcPSD|4644109
Th
epa
rt
ner
sag
reet
oal
l
oca
tep
rofi
t
san
dlo
sse
sasf
ol
lo
ws:
1
.Almaa n
dBe t
tywi
ll
b eal
lo
wedamo nt
hlysal
aryofP48,
000andP24,0
00 ,r
espe
cti
vel
y.
2
.Th epa r
tne
rswil
lbea l
l
owedwit
hint
er
estof10%o fth
eircapi
t
alba
lanc
e satt
hebegi
nni
ngofeac
h
ye
ar.
3
.Th erema i
nderwi
l
lb edi
vi
dedonthebasi
so fth
eirbeg
inni
ngcapi
t
alforth
ey e
arofoper
at
io
na n
d
equal
lyf
orthesubs
e qu
entye
ars.
4
.Ea chp ar
tn
erisal
lowedtowit
hdr
awu ptoP2 4
,000aye a
r.Anywi
thdr
awalinexc
essoft
hefi
gure
wi
llbetr
eate
da sadir
ectr
educt
i
onfr
omt he
ircapi
tal
bal
a n
ces.
I
n2 0
08thepa r
tn
e r
shi
psu ff
eredan etlo
sso fP36,
000.Buti
n2 00
9theyear
nedap r
ofi
tofP132,
000.
Thepar
tn
e r
swith
d r
awthema xi
mu ma moun
t eachyear
.OnJ an
uary2,20
10an ewpart
ner
,Co r
awa s
ad
mitt
edinthepart
ners
hipfo raninv
estmentofP400,
000fora40%int
e r
est
.Norev
aluat
io
no fass
ets
i
stobere
c o
rded.Af
tert
hea dmi s
sio
no fCor
a, t
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depro
fi
tsan
dlosses,
4 :
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Al
ma,Bet
tyandCo r
a,respectiv
ely
.
OnJ
anu
ary2
,20
10,
wha
tist
hee
ntr
ytor
eco
rdt
hea
dmi
ss
iono
fCo
ra?
a
.Ca
sh P4
00,
000
Al
ma,
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it
al 3
3,0
00
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tt
y,Ca
pit
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3,0
00
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ra,
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it
al P4
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000
b
.Ca
sh P4
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000
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ra,
Cap
it
al P4
00,
000
c
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sh P4
00,
000
Al
ma,
Cap
it
al 3
2,0
00
Be
tt
y,Ca
pit
al 1
6,0
00
Co
ra,
Cap
it
al P4
48,
000

lOMoARcPSD|4644109
d
.Ca
sh P4
48,
000
Co
ra,
Cap
it
al P4
48,
000
4
87. OnJ an
uary1
,2009Mr.
XandMs.
Yfor
medapar
tn
ers
hipen
gage
dinsel
li
ngco
mpa
ctd
isc
s.Th
eir
ca
pit
ala
ccoun
tsdu
ri
ngth
eyear
sho
wthef
ol
lo
win
gin
ves
tment
sandwi
thd
rawa
ls:
Mr
.X Mr
.Y
I
nve
stme
nts Wi
t
hdr
awa
ls I
nve
stme
nts
Wit
hdr
awa
ls
Be
gin
nin
gba
lan
ce P3
6,0
00 P2
4,0
00
J
une1 P1
4,4
00 P1
4,4
00
Au
gus
t1 2
4,0
00 2
,40
0
De
cemb
er1 6
,00
0
Th
ep ar
tn
ers
hip
’sp
rofi
tandl
ossag
reementpr
ovi
desf
oranannu
als
ala
ryofP36,
000f
oreac
hp a
rt
ner
.
I
nt
ere
stof10%onaverag
ecapi
t
albal
anc
es.Mr.Xisa
lsot
ore
cei
veabonu
so f5
%o nneti
nco
mea f
t
er
bo
nus.
As
sumi
ngan
eti
nco
meo
fP1
05,
000b
efo
rea
nya
ll
oca
ti
ons
,ho
wmu
chn
eti
nco
mei
sal
l
oca
tedt
oMr
.X?
a
.P5
6,1
25 b
.P5
8,4
08 c
.P4
4,7
10 d
.P3
6,9
00
4
88. Mr.PPandMs.KKar
epar
tne
rsi
naconst
r
uct
i
onb
usi
nes
slo
cat
edi
nCe
buCi
t
y.Th
epr
ofi
tan
dlo
ss
ag
ree
me n
tco
n t
ai
nsth
efo
ll
owi
ngpr
ovi
si
ons
:
1
.Salar
iesofP35,
000andP40,
000fo
rPPa ndKK, r
espect
i
vel
y.
2
.Ab onustoPPequalt
o10%ofneti
ncomea f
t
e rt
heb on
us.
3
.Int
erestonwe i
ght
edaver
agecapi
tala
tther at
eo f8%.Annua
ldrawi
ngsi
nex
ces
sofP2
0,0
00a
re
c
onsi
d er
edtobeared
uct
ionofc
api
talf
orpur
po s
eso ft
hi
scal
cul
at
io
n.
4
.Profi
tandlos
sperc
ent
ageof40%a n
d6 0%forPPa ndKK,r
espe
cti
vel
y.
Ca
pit
ala
ndd
rawi
nga
cti
vi
tyo
fth
epa
rt
ner
sfo
rth
eye
ar2
009a
rea
sfo
ll
ows
:

lOMoARcPSD|4644109
PPCa
pit
al PPDr
awi
ng KKCa
pit
al KKDr
awi
ng
Be
gin
nin
gba
lan
ce P1
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une1 1
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sumi
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or2
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rea
nya
ll
oca
ti
ons
,ho
wmu
chp
rofi
tsh
oul
dbea
ll
oca
tedt
o
Mr
.PP?
a
.P6
9,6
60 b
.P6
9,7
47 c
.P7
2,7
74 d
.P6
9,7
74
4
89. OnJ anuar
y2 ,2
009,Bel
oandRe y
e sf
ormedap art
ner
shi
p.Bel
oc o
ntr
ib
ute
dc ap
it
alofP350
,00
0
an
dRe yes
,P5 0
,000
.Theyagr
eedtos har
ep r
ofi
t
sa ndlos
ses80%a nd20%,res
pect
iv
ely
.Reyesis
gi
venasala
ryofP10,
000amo n
th;andint
er
estof5%o fth
eb e
gin
ningcap
it
alofb
othpar
tner
sanda
bo
nuso f15%o fneti
ncomebefor
ethes al
ary
,inte
restandbonus
.Theincomestat
ementofth
e
pa
rt
n e
rshi
pfor
theyear
endedDecember31,20
09a sf
oll
ows:
Re
ven
ues P1
,75
0,0
00
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sto
fgo
odss
old 1
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0,0
00
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ossp
rofi
t 3
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pen
ses(
i
ncl
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ner
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lar
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est
andb
onu
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000
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tpr
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t P 6
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Wh
ati
sth
eamo
unt
ofb
onu
stoRe
yesi
n20
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a
.P4
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00 b
.P3
2,9
12 c
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00 d
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6,8
00
Ar
manCo
mpa
nyh
ast
hef
ol
lo
win
gde
bit
bal
anc
esa
sof
they
ear
end
edDe
cemb
er3
1,2
009
:

lOMoARcPSD|4644109
Di
r
ect
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90. What
ist
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r
ect
Mat
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ia
lsIn
vent
or
yonJ
anu
ary1,
200
9?
a.P1
80,
000 b.P162
,00
0 c
.P126,
000 d
.P1
08,
000
4
91. What
theWo
rki
nPr
oce
ssIn
vent
or
yonJ
anu
ary1
,20
09?
a.P9
5,0
00 b.P90
,000 c.P9,
000 d
.P8
,00
0
4
92. What
ist
heF
ini
she
dGo
odsIn
vent
or
yonJ
anu
ary1,2
009?
a.P1
50,
000 b.P144
,00
0 c
.P1 3
2,0
00 d
.P1
45,
000
4
93. What
ist
hea
ctu
alf
act
or
yove
rhe
adin
cur
re
ddu
ri
ng200
9?
a.P2
64,
000 b
.P280,
000 c.P3
12,
000 d
.P3
21,
000
Dur
in
gAu gust
,Ma r
l
onMachi
neComp a
nys t
ar
tedprod
ucti
onj
oborder
s16,
17,and18.J
o bor
der15wasi
n
pr
ocessatt
heb egi
nni
ngofth
emo nt
hwithdir
ectmate
ri
alco
stsofP35,
000,d
ir
ectl
aborco
stofP21,
000
,
an
da ppl
i
edfact
oryover
headofP25,
300.
Du r
ingth
emo nt
h,di
rec
tma t
er
ia
lswer
erequi
si
ti
oned
, a
nddi
rec
t
l
aborwasid
enti
fi
edwit
hthej
obord
ersasfol
l
ows:

lOMoARcPSD|4644109
J
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bor
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00buttheinst
al
lme nt
sell
i
ngp r
i
c ewassetatP85,
000.Ter
mso f
paymenti
n c
luded
t
heaccept
a n
ceofausedequi
p mentgi
venat r
ade-i
nv a
lueofP3
0,000.Th
ec ashofP5,00
0wa spaidin
add
it
io
ntot het
rade-
i
ne qu
ipme n
twiththebala
ncetob ep a
idi
nte n(
10)mo nt
hlyins
tal
l
me nt
sd u
ea t
t
heendo feachmonthcomme nci
nga tth
emo nthofs a
le.I
twouldre
quireP1,
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condi
tio
nt h
e
us
ede q
uipmentsoth
ati
tcouldberesoldfo
rP25,000.A1 5%gr
os spr
ofi
trat
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fro
mt hesal
e
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pment
.

lOMoARcPSD|4644109
5
11. There
ali
zedg
ros
spr
ofi
tdu
ri
ng200
9asi
ndi
cat
edf
r
omt
hefo
reg
oin
ginf
or
mat
i
oni
s
a.
P4,0
00 b.
P34,
000 c
.P10,
000 d
.
P8,
000
5
12. Sh e
rat
onTrad
ingCompanyopen
edab r
anchinBinon
doonJ an uar
y1,2009t oexpan
dthema r
ket
f
orit
sprodu
cts
.Me r
chandi
seshi
ppedtoth
eb r
anchd ur
i
ng2 002,a t125%o fc os
t,wer
eP1 04
,000.
Ot
hertr
ansac
ti
onsrel
at
in
gtothebranc
hwe r
easf ol
l
ows:Sal
eso na ccount
,P11 7,
000;Exp
enses,of
whi
chP1,5
00a r
esti
l
lunpai
dayear
-end,P2
0,00
0; c
ashrecei
vedfromthec u
stome r
s’acc
ount
s,netof
di
sc
ountsof2%,P7 2
,52
0;and,cas
hr emi
t
tanc
et othehomeo ffic
e,P65,0
00.Aso fDece
mb er31,
20
09,thebr
anchinve
nto
rywasP1 2
,500atbi
l
ledpri
ce.Asfarast heh o
meo ffic
eisconcer
ned,th
e
br
anchneti
nco
mefor2002was:
a.
P8,300 b.
P22,
320 c.P24,
300 d.P2 4,
320
5
13. No ve llBook
s t
or
eh a
sb ra
nchesink eyc i
t
iesnat
ion
wide.Merc
handis
es hi
ppedtothebran
chesis
bi
ll
eda t2 5%ab o
vec o
sta n
da r
ei nv e nt
or
iedbytheb r
anchesatb i
l
ledpri
ce.Fix
eda ss
etsofth
e
br
anchesa recar
ri
edinthehomeoffic
eb ooks.Al
lcol
le
cti
onsofth
eb ra
nchesaredeposi
te
dinab ank
accou
nt a gai
nstwhi
chonl
ythehomeo ffic
ecand r
aw.Eachbra
nch,however
,maint
ai
nsanimprest
fun
d
ofP4,0
0 0wh i
chisrei
mbursedper
iodic all
yforexp
enses.Cert
ai
ne x
p en
ses,t
ho ug
h,arepai
db yth
e
homeo fficeandsubsequ
e n
tl
ychargeda g
ain
stthebranc
hes.Pres
entedbel
owi saT -
accou
ntofth
e
2009Tag u mbra
n c
hcurr
entacco
unt:
T
agu
mBr
anc
h
J
an.
bal
anc
e P6
2,8
20 : Re
mit
t
anc
e P1
80,
640
Sh
ipme
ntst
obr
anc
h 1
28,
000
:
Ad
ver
ti
si
nga
ndPr
omo
ti
on 6
,40
0:
De
pre
cia
ti
on 2
,40
0:
Re
imb
urs
eme
nto
fex
pen
ses 3
6,6
00:
Ne
tIn
come 9
,26
0:
Thebe
g i
nni
ngin
vent
oryo fthi
sbr
anchwasP31,
500
,an
ditr
epo
rt
edsal
eso
fP192,
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fwhic
hP1
,28
0
pr
ove
dt obeunc
oll
ect
i
b l
e .Theendi
ngi
nven
tor
ywasP22
,75
0.What
ist
henet
inc
omeofTa
gumbr
anc
h
i
nsofarasth
ehomeo ffic
eiscon
cerne
d?

lOMoARcPSD|4644109
a
.P9
,26
0 b
.P3
6,6
10 c
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5,8
60 d
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7,3
50
Bl
oti
kCompan
yh a
stwome r
chan
dis
eo u
tl
ets
,it
smainst
oreandi
tsGai
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bra
nch.Al
lpurc
hase
s
ar
ema debyt
hema i
nsto
reandshi
ppedtot
heGa i
sanoMall
b r
anc
ha t
costpl
us10%.OnJ a
n u
ary1,
20
0 8
,themai
ns t
oreandGaisa
noMa l
linv
ento
ri
eswe r
eP1 7,
000andP4 ,
950
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ecti
vel
y.Dur
in
g
20
0 8
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nst
orepurc
hasedmerc
handi
secost
in
gP5 0,
000andshi
pped40%o f
itt
oGa i
sanoMal
l.
AtDece
mber31,
2008,Gai
sanoMal
lmadethefo
ll
owin
gclos
ingent
ry
:
Sa
les P4
0,0
00
I
nve
nto
ry,
end 6
,05
0
I
nve
nto
ry,
beg
. P4
,95
0
Sh
ipme
ntsf
r
omma
ins
tor
e 2
2,0
00
Ex
pen
ses 1
3,1
00
Ma
ins
tor
e 6
,00
0
5
14. Ift
hemains
tor
ein
ven
tor
ya t
Decembe
r31,200
8isP14
,000,
thecombi
nedmai
nsto
reandbr
anc
h
i
nven
tor
yth
atsh
oul
dappe
ari
nBloti
kCompan
y’sDe
cembe
r31,2008bal
anc
eshee
tis
:
a.
P18,9
50 b.P18,
500 c
.P20,0
50 d.P2
1,5
00
Abranc
ho pe
rat
ionbuysmo stofit
si nv
ent
o ryfr
omo ut
si
depart
ies.Howeve
r,t
hisye
arthehomeo ffic
e
t
ra
nsfe
rr
edme r
chand
isecos t
i
ngP5 0,0 00t
ot hebran
chforP80,
000.Attheendoft
heyear
,20per
cen to f
t
hi
sme r
chandi
sewassti
l
lhe l
db yt
heb ranc
h .Alt
hou
ghtheinv
ento
rywa scor
rec
tl
ycoun
tedandre
porte d,
t
hebranchdi
dn ott
el
ltheh omeo ffic
ethatt h
isport
i
ono ft
herema i
ninggood
scamef r
omtrans
fe rs.
Cons
equent
l
y,theho
meo ffic
ea ss
ume dthata l
loft
hetr
ansf
err
edme rc
handi
sehasbeensol
dtooutside
pa
rt
ies
.
5
15. Wha
tist
heres
ult
i
ngimp
actont
henetin
comerepor
tedf
ort
hec
omp
anya
sawh
ole
?
a.t
heneti
nco
mefi
gurewo
ulds
ti
ll
becorr
ect
lycal
cul
at
ed
b.t
heneti
nco
mefi
gurewo
uldb
eP6 ,
000over
st
ated
c.t
heneti
nco
mefi
gurewo
uldb
eP3 0
,000over
st
ated
d.t
heneti
nco
mefi
gurewo
uldb
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st
ated

lOMoARcPSD|4644109
Ko
nstr
ukConst
ruc
ti
onCo mpan
yusest
hepe
rcen
tag
eof
compl
eti
onmet
hodofa
ccou
nti
ng.
In2
006,
Ko
nstr
ukbeganwor
k i
ngund
ercon
tr
act#
1105
A,whi
chp
rov
ide
dforac
ont
rac
tpri
ceof
P12,
000
,00
0.
Ot
herdet
ai
lswer
ea sfo
ll
ows:
2
006 2
007
Co
sti
ncu
rr
edd
uri
ngt
hey
ear P1
,80
0,0
00 P9
,45
0,0
00
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ti
mat
edc
ost
toc
omp
let
e 7
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00 -
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l
li
ngd
uri
ngt
hey
ear 2
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0,0
00 9
,24
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00
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ll
ect
i
onsd
uri
ngt
hey
ear 1
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00 9
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00
5
16. Thepor
ti
ono
fth
eto
tal
con
tra
ctpr
i
cetob
ere
cog
niz
edasrev
enuei
s20
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s:
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P1,
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160
,00
0 c.P2
,40
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.P1
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0,0
00
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aki
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ostpe
rce
ntageofco
mple
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i
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ni
ng;Jak
ir
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ead
ers
hip
o
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efir
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t
ert
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ti
remento
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sfat
herandi
nrev
iewi
ngthefi
r
m’sre
cor
d,fi
ndst
hefo
ll
owin
gin
for
mat
ion
o
nar e
cent
l
ycompl
et
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ect
wit
hacontr
actp
ri
ceofP2,5
00,000.
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sti
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rr
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oda
te P4
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000 P1
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00 ?
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ossPr
ofi
t(l
oss
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00 P1
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owant
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ect
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ecompanyop
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hepas
tye
a r
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oj
ect
and
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nceh
efou
ndth
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hei
nf
or
mat
io
nisin
compl
et
e,h
eh a
sa s
kedy
outoh
elpb
yanswer
in
g:
5
17. Howmuchwa
sth
ees
ti
mat
edcos
ttoc
omp
let
eat
Decemb
er2
009
?
a.
1,1
00,
000 b.
1,7
25,
000 c
.0 d
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075
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0

lOMoARcPSD|4644109
I
n2004
,Buil
t
ri
teCo.a
gre
edtoc
onst
r
uct
a napa
rt
mentb
uil
di
ngatapr
i
ceofP9,
000
,000
.Bui
lt
ri
t
euses
t
heper
cent
ageofc
omple
ti
onmet
hod
.Thein
for
mat
io
nrel
at
ingt
othec
ost
sandbi
ll
i
ngsfo
rth
econt
r
act
wer
easfo
ll
ows:
2
004 2
005 2
006
Co
sti
ncu
rr
edt
oda
te P2
,52
0,0
00 P5
,40
0,0
00 P7
,06
5,0
00
Es
ti
mat
edc
ost
yet
tob
ein
cur
re
d 4
,68
0,0
00 1
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00 -
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sto
mer
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l
in
gtod
ate 1
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0,0
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00
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ll
ect
i
ono
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l
li
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te 1
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0,0
00 2
,88
0,0
00 8
,46
0,0
00
5
18. Wh ati
sth
ebala
nceoft
hecon
str
uct
i
oni
npr
ogr
ess
,ne
tofc
ont
rac
tbi
l
li
nga
ccou
ntat
Buil
t
ri
te
’s
Dece
mber31,20
04Bala
nceShee
t?
a.
P3,15
0,000 b.
P3,60
0,0
00 c
.P1,
800
,00
0 d.P2,
250
,00
0
Dape
colmanu
fact
ur
ingCo mpa
nyusesarawa ndinpro
c e
ss(RIP)inve
nto
ryaccountandexpens
ea l
l
co
nver
si
oncostt
ocostofgoo
dssol
daccount
.At
theendofeachmo n
th,al
li
nven
tor
ie
sa recou
nted
,the
ir
co
nver
si
oncos
t c
ompon e
ntsar
eest
i
ma t
ed,a
ndinv
ent
oryacco
untbala
ncesareadj
ust
eda cc
ord
ing
ly
.Raw
mat
eri
al
sco
sti
sb ac
kfl
ushedf
romRI
Ptofi
nis
hedgood
s.Thefol
l
owi
n gi
nfor
mati
onisf
ort
h emont
ho f
Apri
l
:
RI
P,b
eg.
(I
ncl
usi
veo
fP1
,40
0co
nve
rsi
onc
ost
) P3
1,0
00
Ra
wma
ter
i
alsr
ece
ive
donc
red
it 3
67,
000
RI
P,e
ndi
ng,
inc
lud
ingP1
,80
0co
nve
rsi
onc
ost 3
3,0
00
5
19. Comput
eth
eamou
ntt
obeba
ckfl
ush
edf
r
omRIPt
ocost
ofg
ood
ssol
d:
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5,0
00 b
.P36
8,6
00 c.P3
67,
000 d
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5,4
00
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act
ur
ingCompa n
yp r
oduce
sonl
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rcus t
omerord
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.SAMSCompa nyuse
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oce
ss(RI
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ent
oryacc
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nt
ande x
pense
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lconv
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to fsale
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unt.Workisshi
ppedi
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iat
el
yu pon
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eti
on,s
other
earen ofi
nis
hedgoodsonhan
d .Atth
ee ndofeac
hmo nt
h,i
nvent
or
yiscount
ed,i
ts

lOMoARcPSD|4644109
c
onv
ersi
oncosti
se s
ti
mat
ed,an
dRI Pacc
ountb
ala
nceisadj
ust
edacc
ord
ingl
y.Ra
wmat
er
ia
lsc
osti
s
b
ack
fl
ushedf
r
omRI PtoCo
stof
Sale
s.Th
eF ol
l
owi
ngi
nfo
rmat
i
onisf
ort
hemonthofMa
y:
Be
gin
nin
gba
lan
ceo
fRI
P P1
2,3
00
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wma
ter
i
alsp
urc
has
ed 2
46,
000
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din
gba
lan
ceo
fRI
P 1
2,1
00
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eb eg
inni
ngbal
anc
eofRIPin
clu
desP1
,30
0co
nve
rsi
onc
osta
nde
ndi
ngb
ala
ncea
lsoi
ncl
ude
s
P2,
100co
nver
si
oncos
tes
ti
mat
es.
5
20. Comput
eth
eamou
nto
fcost
ofg
ood
sso
ldaf
te
ral
lt
rans
act
i
onsa
ndadj
ust
ment
swe
rema
de:
a.
P24
6,0
00 b
.P24
6,2
00 c.
P247,
000 d.
P245,
000
Xer
oxCompanyispr
epar
ingi
t
sa n
nualpr
ofi
tpla
n.Aspar
tof
it
sana
lys
iso
fth
ep r
oba
bil
i
tyofi
ndi
vi
dua
l
pr
oduc
ts,t
hecontr
ol
le
rest
imat
estheamountofover
hea
dstha
tsh
ouldb
ea s
si
gnedtoth
eindi
vi
dua
l
pr
oduc
tli
nesf
r
o mthei
nfo
rmat
iongi
venasf
ollo
ws:
Or
di
nar
yco
pie
r Sp
eci
al
i
zedc
opi
er
Un
it
spr
odu
ced 2
5 2
5
Ma
ter
i
alsmo
vesp
er
Pr
odu
ctl
i
ne 5 1
5
Di
r
ect
lab
orh
our
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run
it 2
00 2
00
Bu
dge
tedma
ter
i
alsh
and
li
ngc
ost
s P5
0,0
00
5
21. Un de
ra c
ti
vi
tyb
asedc
ost
in
g(ABC)
,th
ema t
er
ia
lsha
ndl
i
ngc
osta
ssi
gne
dtoo
neu
nito
for
di
nar
y
co
p i
erwo
uldbe
a.P1,
000 b.
P500 c
.P1,
500 d
.P5,
000

lOMoARcPSD|4644109
2GOCorp
orat
io
nus
esact
iv
it
yba
sedcost
i
ngtodet
er
min
eprod
uctco
stsf
ore
xte
rna
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nanc
ial
rep
ort
s.
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mp an
yhasp
rov
ide
dthef
ol
lo
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gd a
taco
ncer
ni
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sact
i
vi
tybase
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i
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tem:
Es
ti
mat
ed
Ac
ti
vi
tyc
ost
poo
ls(
anda
cti
vi
tyme
asu
res
) Ov
erh
eadCo
st
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ner
el
at
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hin
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urs
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act
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our
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pec
tedAc
ti
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ty
Ac
ti
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tyc
ost
poo
ls T
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l Pr
odu
ctA Pr
odu
ctC
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chi
ner
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at
ed 8
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tchs
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p 1
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ner
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y 1
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,00
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5
22. Assumin
gtheact
ualact
i
vi
tyar
ethesa
mea sexp
ect
ed,t
het
ot
a la
mo u
ntofo
ver
hea
dco
sts
al
l
oca
tedtopr
odu
ctAwoul
dbecl
ose
stt
o:
a.
P371,
700 b.
P387,
700 c.
P26
8,3
00 d.P149
,000
5
23. Gr af
tCo.whi
chprod
ucesj
oin
tprodu
cts
.AandBindepar
tmentf
romaproce
s swhi
chals
oyie
ldby
–produ
ctW.produ
ctAandBy–Pr od
uctWa r
esol
daf
terse
parat
i
on,but
produc
t Bmustbefu
rt
her
pr
ocesse
dinDe p
art
mentTwobef
oreit
canbesol
d.Th
ecostassi
gne
dtotheby–p r
oduc
tisi
tsmark
et
va
luele
ssP.
40p erpo
undford
eli
ver
yexpens
e(NRVme t
hod)
.In
for
mati
onrel
at
ingtoabat
chprod
uced
i
nJulyi
spres
e n
ted.
Pr
odu
ctPr
odu
cti
on(
i
npo
und
) Sa
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t
ert
hepu
rch
ase
?
a
.$1
20,
000
b
.$1
34,
400
c
.$1
40,
000
d
.$2
10,
000
5
39. Co
zzi
Comp
anyi
sbe
ingp
urc
has
eda
ndh
ast
hef
ol
lo
win
gba
lan
ces
hee
taso
fth
epu
rch
ased
ate
:
Cu
rr
ent
ass
ets $
200
,00
0 L
iab
il
i
ti
es $9
0,0
00
F
ixe
das
set
s 1
80,
000 Eq
uit
y 2
90,
000
T
ota
l $
380
,00
0 T
ota
l $
380
,00
0
Thepr
ic
epai
dfo
rCozzi
'sn
etass
etsi
s$5
00,
000
.Thefi
xedas
setsh
aveaf
airv
alu
eof$2
20,0
00,an
dthe
l
ia
bil
i
ti
esha
veafai
rva
lueof$
110,
000
.Thea
mount
o f
go o
dwi
ll
tobere
cor
dedi
nthep
urch
aseis_
___.
a
.$0
b
.$1
50,
000
c
.$1
70,
000
d
.$1
90,
000
Bal
t
erI
nc.
acqu
ir
edJe
rse
yCompanyo
nJanu
ary1
,20
X5.
Whe
nth
epu
rch
aseo
ccu
rr
edJ
ers
eyCo
mpa
nyh
adt
he
f
ol
lo
win
ginf
or
mati
onr
el
at
edt
ofi
xedas
set
s:

lOMoARcPSD|4644109
L
and $8
0,0
00
Bu
il
di
ng 2
00,
000
Ac
cumu
lat
edDe
pre
cia
ti
on (
100
,00
0)
Eq
uip
men
t 1
00,
000
Ac
cumu
lat
edDe
pre
cia
ti
on (
50,
000
)
Th
ebui
ldi
nghasa10-y
ear
remai
ni
nguse
ful
li
f
ean
dth
eeq
uip
men
tha
sa5
-ye
arr
ema
ini
ngu
sef
ull
i
fe.
The
f
ai
rva
lueoft
heass
etsont
hatd
atewe
re:
L
and $
100
,00
0
Bu
il
di
ng 1
30,
000
Eq
uip
men
t 7
5,0
00
5
40. Wh
ati
sth
e20
X5d
epr
eci
at
io
nex
pen
seBa
lt
erwi
l
lre
cor
dre
lat
edt
opu
rch
asi
ngJ
ers
eyCo
mpa
ny?
a
.$8
,00
0
b
.$1
5,0
00
c
.$2
8,0
00
d
.$3
0,0
00
5
41. Inp
erf
or
mingimpai
r
men
tte
stf
org
ood
wil
l
,th
eco
mpa
nyh
adt
hef
ol
lo
win
g20
X6a
nd2
0X7
i
nf
or
mati
onav
ail
abl
e.

lOMoARcPSD|4644109
2
0X6 2
0X7
F
air
val
ueo
fth
ere
por
ti
ngu
nit $
350
,00
0 $
400
,00
0
Ne
tbo
okv
alu
e(i
ncl
udi
ng$
50,
000g
ood
wil
l
) $
360
,00
0 $
380
,00
0
As
sumet
hat
thec
arr
yva
lueof
thei
den
ti
fi
abl
eas
set
sarear
eason
abl
eappr
oxi
mat
io
nofth
eir
fai
rva
lue
s.
Ba
sedup
onth
isi
nf
or
mat
ionwhat
aret
he20X6a
nd20X7ad
jus
tment
tog
oodwi
ll
,i
fany
?
2
0X6 20X7
a
.noa
dju
stme
nt $
20,
000d
ecr
eas
e
b
.$1
0,0
00i
ncr
eas
e $
20,
000d
ecr
eas
e
c
.$1
0,0
00d
ecr
eas
e $
20,
000d
ecr
eas
e
d
.$1
0,0
00d
ecr
eas
e n
oad
jus
tme
nt
Ac
cou
nt I
nve
sto
r I
nve
ste
e
Sa
les $
500
,00
0 $
300
,00
0
Co
sto
fGo
odsSo
ld 2
30,
000 1
70,
000
Gr
ossPr
ofi
t $
270
,00
0 $
130
,00
0
Se
ll
i
ng&Ad
min
.Ex
pen
ses 1
20,
000 1
00,
000
Ne
tIn
come $
150
,00
0 $3
0,0
00
Di
vi
den
dsp
aid 5
0,0
00 1
0,0
00
5
42. Assu
mingInv
est
orowns7
0%o
fIn
ves
tee
.Wh
ati
sth
eamo
unt
tha
twi
l
lber
eco
rde
dasNe
tIn
come
f
ort
heCont
r
o l
l
in
gInt
ere
st?
a
.$1
64,
000

lOMoARcPSD|4644109
b
.$1
71,
000
c
.$1
78,
000
d
.$1
80,
000
Whenitp
urch
a s
edSutt
on,I
nc.onJa
n u
ary1,2
0 X1
, Pavi
nCorp
orat
i
oniss
ued5 0
0,00
0sharesofi
ts$5pa
r
vo
ti
ngcommo nst
ock.
Onth a
tdat
ethefa
irv
alu
eo ft
h o
seshar
estot
al
ed$4,2
0 0
,000
.Rela
tedtoth
e
ac
quis
it
i
on,Pavi
nhadpaymentst
otheat
tor
neysandaccoun
tant
sof$2
0 0
,000,a
ndstoc
kissuan
cefeeso
f
$10
0,00
0.Immedia
tel
ypr
iort
othepur
chase
,theequit
ysect
i
onsoft
hetwofi
rmsappear
edasfol
lows
:
Pa
vin Su
tt
on
Co
mmo
nst
ock $4
,00
0,0
00 $7
00,
000
Pa
id-
i
nca
pit
ali
nex
ces
sof
par 7
,50
0,0
00 9
00,
000
Re
tai
nede
arn
ing
s 5
,50
0,0
00 5
00,
000
T
ota
l $
17,
000
,00
0 $
2,1
00,
000
5
43. Immedi
ate
lyaf
t
ert
hep
urc
has
e,t
hec
ons
oli
dat
edb
ala
nces
hee
tsh
oul
dre
por
tpa
id-
i
nca
pit
ali
n
ex
cesso
fparof
a
.$8
,90
0,0
00
b
.$9
,10
0,0
00
c
.$9
,20
0,0
00
d
.$9
,30
0,0
00
5
44.J u
ddCo mpan
yis
sue
dn on
voti
ngpre
fer
re
dsto
ckwit
hafai
rva
lueof$
1,5
00,00
0inexc
h a
ngef
oral
l
t
heout
sta
ndin
gcommonst
ockoftheBat
hCorp
orat
i
on.Ont
hedateoft
heexc
hange,
Bathhadt
ang
ibl
e
ne
tasse
tswit
habookv
alu
eo f$
900,00
0andafai
rval
ueof
$1,
400,0
00.I
naddi
ti
on,J
uddiss
ued

lOMoARcPSD|4644109
p
ref
er
redst
ockv
alu
edat$100
,000t
oanin
div
idu
a l
asafi
nde
r'
sfe
efora
rra
ngi
ngt
het
r
ans
act
i
on.
Asa
r
esu
lto
fth
esetr
ansa
cti
ons
,Juddsh
oul
drepo
rtani
ncr
eas
einnetas
set
sof__
__.
a
.$9
00,
000
b
.$1
,40
0,0
00
c
.$1
,50
0,0
00
d
.$1
,60
0,0
00
OnJune30,2
0X1,Na
ederCor
por
ati
onpurc
has
edforca
shat$10pers
hareal
l100,
000s
har
esoft
he
ou
tst
andi
ngcommonst
ockof
theTed
dCo mpan
y.Thet
otal
fai
rva
lueof
all
ide
nti
fi
abl
enet
ass
etso
fTedd
was$1,
400,
000.
Theonl
ynonc
urr
entas
seti
sprop
ert
ywit
hafai
rval
ueof$35
0,00
0 .
5
45. Th
econs
oli
dat
edb
ala
nces
hee
tof
Nae
der
andi
t
swh
oll
yown
eds
ubs
idi
ar
yonJ
une3
0,2
0X1
,
sh
oul
dre
por
t
a
.ar
et
ai
nede
arn
ing
sba
lan
cet
hat
isi
ncl
usi
veo
fag
aino
f$4
00,
000
.
b
.go
odwi
l
lof
$40
0,0
00.
c
.ar
et
ai
nede
arn
ing
sba
lan
cet
hat
isi
ncl
usi
veo
fag
aino
f$3
50,
000
.
d
.ag
aino
f$4
00,
000
Pinehollow acquired all of the outstanding stock of Stonebriar by issuing 100,000 shares of its $1 par
value stock. The shares have a fair value of $15 per share. Pinehollow also paid $25,000 in direct
acquisition costs. Prior to the transaction, the companies have the following balance sheets:
As
set
s Pi
neh
oll
ow St
one
bri
ar
Ca
sh $1
50,
000 $ 5
0,0
00
Ac
cou
ntsr
ece
iva
ble 5
00,
000 3
50,
000
I
nve
nto
ry 9
00,
000 6
00,
000
Pr
ope
rt
y,p
lan
t,a
nde
qui
pme
nt(
net
) 1
,85
0,0
00 9
00,
000
T
ota
las
set
s $
3,4
00,
000 $
1,9
00,
000
L
iab
il
it
i
esa
ndSt
ock
hol
der
s'Eq
uit
y
Cu
rr
ent
li
abi
l
it
i
es $3
00,
000 $1
00,
000
Bo
ndsp
aya
ble 1
,00
0,0
00 6
00,
000

lOMoARcPSD|4644109
Co
mmo
nst
ock(
$1p
ar) 3
00,
000 1
00,
000
Pa
id-
i
nca
pit
ali
nex
ces
sof
par 8
00,
000 9
00,
000
Re
tai
nede
arn
ing
s 1
,00
0,0
00 2
00,
000
T
ota
lli
abi
l
it
i
esa
nde
qui
t
y $
3,4
00,
000 $
1,9
00,
000
Thef
ai
rval
ueso
fSt
one
bri
ar
'si
nve
nto
rya
ndp
lan
t,p
rop
ert
yan
deq
uip
men
tar
e$7
00,
000a
nd$
1,0
00,
000
,
re
spe
cti
vel
y.
5
46Th
. ej
our
nal
ent
ryt
ore
cor
dth
epu
rch
aseo
fSt
one
bri
arwo
uldi
ncl
udea
a
.cr
edi
tt
oco
mmo
nst
ockf
or$
1,5
00,
000
.
b
.cr
edi
tt
oad
dit
i
ona
lpa
id-
i
nca
pit
alf
or$
1,1
00,
000
.
c
.de
bit
toi
nve
stme
ntf
or$
1,5
00,
000
.
d
.de
bit
toi
nve
stme
ntf
or$
1,5
25,
000
.
5
47. Go
odwi
l
las
soc
iat
edwi
t
hth
epu
rch
aseo
fSt
one
bri
ari
s__
__.
a
.$1
00,
000
b
.$1
25,
000
c
.$3
00,
000
d
.$3
25,
000
OnApr
il
1,20X1
,Paap
eCompanyp
a i
d$950,
000f
ora
llt
heis
sue
dandout
st
and
ingst
ockof
Simo
n
Cor
por
at
ion
.There
cor
deda
sse
tsandli
abi
l
it
i
esoft
heSi
mo nCor
por
at
io
nonApr
il1,
20X1,
fol
l
ow:
Ca
sh $8
0,0
00

lOMoARcPSD|4644109
I
nve
nto
ry 2
40,
000
Pr
ope
rt
yan
deq
uip
men
t(n
eto
fac
cumu
lat
edd
epr
eci
at
io
nof
$32
0,0
00) 4
80,
000
L
iab
il
i
ti
es (
180
,00
0)
OnApr
il
1,20
X1,i
twasdet
er
mine
dth
att
heinv
ent
or
yofSi
monh
adaf
ai
rva
lueo
f$1
90,
000
,an
dth
e
pr
ope
rt
yandequ
ipme
n t
(ne
t)h
adafa
irv
alu
eof$5
60,
000.
5
48. Wh
ati
sth
eamo
unt
ofg
ood
wil
lr
esu
lt
in
gfr
omt
heb
usi
nes
sco
mbi
nat
i
on?
a
.$0
b
.$1
20,
000
c
.$3
00,
000
d
.$2
30,
000
Pedr
opurchased100
%o fth
ec ommonst
ockoft
heSan
burnComp a
nyonJanuar
y1,20X1,f
or$50
0,000
.
Onthatda
te,t
hestoc
khol
ders'
equi
tyof
Sanbur
nCompanywas$380,00
0.Onthepur
chas
ed a
te,i
nve
ntor
y
ofSanb
urnCo mpan
y,whi
chwa ssol
ddur
in
g2 0
X1,wa
su nd
erst
at
edb y$20
,00
0.Anyre
ma i
ni
ngexces
so f
co
s t
overbookval
ueisat
t
rib
utabl
etopa
tent
wit
ha20-
yearl
if
e.Therepo
rt
edin
comeanddivi
dend
sp a
idby
Sanbur
nCo mpanywereasf
oll
ows:
2
0X1 2
0X2
Ne
tin
come $
80,
000 $
90,
000
Di
vi
den
dsp
aid 1
0,0
00 1
0,0
00
5
49. Us
ingt
hes
imp
lee
qui
t
yme
tho
d,wh
icho
fth
efo
ll
owi
nga
mou
ntsa
rec
orr
ect
?
I
nve
stme
ntI
nco
me I
nve
stme
ntAc
cou
ntBa
lan
ce
2
0X1 December 31, 20X1

lOMoARcPSD|4644109
a
.$8
0,0
00 $
570
,00
0
b
.$7
0,0
00 $
570
,00
0
c
.$7
0,0
00 $
550
,00
0
d
.$8
0,0
00 $
550
,00
0
5
50. Us
ingt
hec
ost
met
hod
,wh
icho
fth
efo
ll
owi
nga
mou
ntsa
rec
orr
ect
?
I
nve
stme
ntI
nco
me I
nve
stme
ntAc
cou
ntBa
lan
ce
2
0X1 December 31, 20X1
a
.$1
0,0
00 $
500
,00
0
b
.$1
0,0
00 $
570
,00
0
c
. $
0 $
570
,00
0
d
.$8
0,0
00 $
500
,00
0
OnJa
nuary1,2
0X1,RabbCorp.p
urc
hased80%o fSunn
yCo r
p.
's$10parc
ommonsto
ckf
or$975,
000.On
t
hi
sdat
e,t
h ec
arr
yi
ngamo u
n t
ofSunn
y'sneta
sset
swa s$1,
000,
000.
T h
efai
rval
ueso
fSunny
'si
dent
i
fi
able
as
set
sandli
abi
l
it
i
eswerethesameasthei
rca
rry
ingamount
sexcep
tforpl
ant
asse
ts(
net
),
whichwer
e
$1
00,
000i
ne x
cesso
f t
hecarr
yi
ngamou n
t.
5
51. I
nth
eJa
nua
ry1
,20
X1,
con
sol
i
dat
edb
ala
nces
hee
t,g
ood
wil
ls
hou
ldb
ere
por
te
dat
___
_.
a
.$0
b
.$7
5,7
50
c
.$9
5,0
00
d
.$1
18,
750
Pat
ti
Corp.
hassev
eral
subs
idi
ar
ie
s(Ae
ta,Bet
a,a
ndGaet
a)th
ata
rei
n c
lud
edinit
sco
nsol
i
dat
edfi
nan
cia
l
st
at
ement
s.Ini
t
s12/3
1/X1se
para
teba
lan
c es
heet
,Pa
tt
ihadt
hef
oll
owi
ngint
erc
ompanyb
ala
nce
sb e
for
e
el
i
minat
i
ons:

lOMoARcPSD|4644109
De
bit Cr
edi
t
Cu
rr
ent
Rec
eiv
abl
edu
efr
omAe
ta $4
0,0
00
No
ncu
rr
ent
Rec
eiv
abl
edu
efr
omBe
ta 1
00,
000
Ca
shAd
van
cet
oBe
ta 2
6,0
00
Ca
shAd
van
cef
r
omGa
eta $
75,
000
I
nt
er
comp
anyPa
yab
let
oGa
eta 4
0,0
00
5
52. Ini
ts12/
31/
X1c
ons
oli
dat
edb
ala
nces
hee
t,wh
ata
mou
nts
hou
ldPa
tt
ir
epo
rta
sin
ter
comp
any
r
ece
iva
ble
s?
a
.$1
66,
000
b
.$5
1,0
00
c
.$2
6,0
00
d
.$0
Ba
lanc
eshe
eti
nf
or
mati
onfo
rPawn
eeCompan
yan
dit
s90
%-o
wne
dsu
bsi
di
ar
y,Si
ouxCo
rpo
rat
i
on,
at
Dec
ember3
1,2
0X1,i
ssummar
i
zedasf
ol
lo
ws:
Pa
wne
e Si
oux
Cu
rr
ent
ass
ets
-ne
t $2
00,
000 $5
0,0
00
Pr
ope
rt
y,p
lan
t,a
nde
qui
pme
nt-
net 1
,00
0,0
00 6
00,
000
I
nve
stme
nti
nSi
oux 5
58,
000
$
1,7
58,
000 $
650
,00
0
Cu
rr
ent
li
abi
l
it
i
es $1
00,
000 $3
0,0
00
Ca
pit
als
toc
k 8
00,
000 4
00,
000
Re
tai
nede
arn
ing
s 8
58,
000 2
20,
000
$
1,7
58,
000 $
650
,00
0

lOMoARcPSD|4644109
Pawneeac
quir
edi
tsi
nt
er
esti
nSio
uxforc
asha
tbo
okv
alu
ese
ver
aly
ear
sag
owh
enSi
oux
'sa
sse
tsa
nd
l
ia
b i
l
it
i
eswereequ
alt
oth
eir
fai
rva
lue
s.
5
53. Co
nso
li
dat
edt
ot
ala
sse
tso
fPa
wne
ean
dSi
oux
,at
Dec
emb
er3
1,2
0X1
,wi
l
lbe_
___
.
a
.$1
,78
5,0
00
b
.$1
,85
0,0
00
c
.$2
,34
3,0
00
d
.$2
,40
8,0
00
5
54. Th
eco
nso
li
dat
edb
ala
nces
hee
tof
Pawn
eea
ndSi
ouxa
tDe
cemb
er3
1,2
0X1wi
l
lsh
ow
a
.In
ves
tme
nti
nSi
oux
,$5
58,
000
.
b
.Ca
pit
als
toc
k,$
800
,00
0.
c
.Re
tai
nede
arn
ing
s,$
1,0
78,
000
.
d
.No
nco
ntr
ol
li
ngi
nt
er
est
,$6
5,0
00.
OnJanuary1,20
X1,PayneCo r
p.pur
cha
sed70%o fShayneCor
p .
'
s$1 0parc
ommo nst
ockfo
r $
900,
000.
Onthi
sdate,t
hecar
ryi
ngamo unto
fShayn
e'sne
tassetswas$1,
000,0
0 0.
Thefai
rval
uesofShayn
e's
i
dent
i
fi
ableasset
sandli
abi
li
t
iesweret
hesameastheirca
rryi
ngamountsex
ceptf
orpl
antass
ets(n
et)
,
whi
chwere$ 2
00,0
00inexces
so ft
hecar
ryi
ngamount.Fort
heyearendedDecember3
1 ,
20X1,Shayn
e
hadne
t i
ncomeof$150,
000andp ai
dcas
hd i
vi
dend
sto t
al
ing$90
,000.Exce
ssatt
ri
but
abl
etoplan
tasset
sis
amor
ti
zedo v
er10year
s.
5
55. Int
heDe
cemb
er3
1,2
0X1
,co
nso
li
dat
edb
ala
nces
hee
t,n
onc
ont
r
oll
i
ngi
nt
er
est
sho
uldb
ere
por
te
d
at
____
.
a
.$2
82,
714
b
.$3
00,
500
c
.$3
97,
714
d
.$3
45,
500

lOMoARcPSD|4644109
Al
phap
urch
aseda
n80
%in
ter
est
inBe
tao
nJu
ne3
0,2
0X1
.Bo
thAl
pha
'sa
ndBe
ta'
sre
por
ti
ngp
eri
odse
nd
Dec
ember31.
5
56. Wh
icho
fth
efo
ll
owi
ngr
epr
ese
ntst
hec
ont
r
oll
i
ngi
nt
er
est
inc
ons
oli
dat
edn
eti
nco
mef
or2
0X1
?
a
.100%ofAl
pha
'sJ
uly1
-De
cemb
er3
1in
comep
lus8
0%o
fBe
ta'
sJu
ly1
-De
cemb
er3
1
i
nco
me
b
.100%ofAl
pha
'sJ
uly1
-De
cemb
er3
1in
comep
lus1
00%o
fBe
ta'
sJu
ly1
-De
cemb
er3
1
i
nco
me
c
.100%ofAl
pha
'sJ
anu
ary1
-De
cemb
er3
1in
comep
lus8
0%o
fBe
ta'
sJu
ly1
-De
cemb
er3
1
i
nco
me
d
.100%ofAl
pha
'sJ
anu
ary1
-De
cemb
er3
1in
comep
lus8
0%o
fBe
ta'
sJa
nua
ry1
-De
cemb
er
3
1in
come
Cat
tl
eCompan
ysol
din
ven
tor
ywit
hacost
of$40
,00
0toit
s90%-
owneds
ubsi
di
ar
y,Ra
ngeCo
rp.
,f
or
$1
00,00
0in2
0X1.
Ranger
esol
d$75,
000oft
hi
si
nvent
or
yfor
$100
,00
0in20
X1.
5
57. Bas
edonth
isi
nf
or
mati
on,
thea
mou
nto
fin
ven
tor
yre
por
te
dont
hec
ons
oli
dat
edfi
nan
cia
lst
at
eme
nts
at
theendo
f20X1i
s___
_.
a
.$1
0,0
00
b
.$1
8,0
00
c
.$2
1,0
00
d
.$3
0,0
00
Di
l
lerowns80%o fL
akeCompanycommonsto
ck.Dur
in
gOc t
ober20X7
,Lakesol
dmerc
handi
set
oDi
ll
er
f
or$300,
000.
OnDe cember31
,20X7,o
ne-ha
lfof
thi
smerch
andi
seremain
edinDi
ll
er
'si
nve
nto
ry.
For
20
X7 ,
grossp
rofi
tper
cen
tag
eswe r
e30%forDi
ll
eran
d4 0%for
La k
e.
5
58. The amount of unrealized profit in the ending inventory on December 31, 20X7 that should be
eliminated in consolidation is ____.
a
.$8
0,0
00
b
.$6
0,0
00
c
.$3
2,0
00
d
.$3
0,0
00

lOMoARcPSD|4644109
5
59. Phel
psCo.u
sest
heso
phi
st
i
cate
dequi
t
ymeth
odt
oacco
untf
ort
he8
0%i n
ves
tmenti
nit
ssub
sid
iar
y
Sh
o r
eCorp.
Basedu
pont
hef
oll
owi
ngi
nf
orma
ti
onwh
ata
mo un
tdoe
sPhel
psCo.
rec
ordassub
sid
iar
y
i
ncome?
Ph
elp
sin
ter
nal
l
yge
ner
at
edi
nco
me: $
250
,00
0
Sh
orei
nt
er
nal
l
yge
ner
at
edi
nco
me: $5
0,0
00
I
nt
er
comp
anyp
rofi
tonSh
oreb
egi
nni
ngi
nve
nto
ry: $1
0,0
00
I
nt
er
comp
anyp
rofi
tonSh
oree
ndi
ngi
nve
nto
ry: $1
5,0
00
a
.$5
0,0
00
b
.$4
4,0
00
c
.$4
0,0
00
d
.$3
6,0
00
OnAp
ri
l1,
2003
,Da
rtCo
.pa
id$
620
,00
0fo
ral
lt
hei
ss
ueda
ndo
uts
tan
din
gco
mmo
nst
ocko
fWa
llCo
rp.
Th
ere
cor
ded
a
sse
tsa
ndl
i
abi
l
it
i
eso
fWa
llCo
rp.
onAp
ri
l1,
200
3,f
ol
lo
w:
Ca
sh $ 6
0,0
00
I
nve
nto
ry 1
80,
000
Pr
ope
rt
yan
deq
uip
men
t(n
eto
fac
cumu
lat
edd
epr
eci
at
io
nof
$22
0,0
00) 3
20,
000
Go
odwi
l
l 1
00,
000
L
iab
il
i
ti
es (
120
,00
0)
Ne
tas
set
s $5
40,
000
5
60. OnAp r
i
l1,2003,
Wall
’
sin
vent
or
yhadaf
ai
rva
lueof$
150,
000
,andthep
rop
ert
yandequ
ipme
nt
(
net
)hadafai
rva
lueof$
380,
000
.What
ist
heamount
ofgoo
dwi
ll
res
ult
i
ngfr
omthebu
sin
ess
co
mbin
ati
on?
a
.$1
50,
000

lOMoARcPSD|4644109
b
.$1
20,
000
c
.$5
0,0
00
d
.$2
0,0
00
OnAugus
t31,2003,WoodCo r
p.i
ssue
d1 00,
000shar
esofit
s$20parval
uecommo nsto
ckforth
en et
as
set
sofPin
e,In
c.,i
nabusi
nesscombi
nat
io
na cc
ount
edfo
rbythepu
rchas
eme t
hod.Thema r
ket
val
ueof
Wood
’scommons t
ockonAugust3
1wa s$36pershar
e.Woodpai
daf e
eo f$16
0,0
0 0t
othec o
nsul
tan
t
whoar
ran
gedthi
sacqui
si
ti
on.Cost
sofre
gis
ter
in
ga n
dissu
ingt
heequi
tysecur
i
ti
esamo u
ntedto$80,
000
.
Nogoo
dwil
lwasi
nvol
vedi
nthepurc
hase.
5
61. Wh
ata
mou
nts
hou
ldWo
odc
api
t
ali
zea
sth
eco
sto
fac
qui
r
ingPi
ne’
sne
tas
set
s?
a
.$3
,60
0,0
00
b
.$3
,68
0,0
00
c
.$3
,76
0,0
00
d
.$3
,84
0,0
00
OnDecember3
1,2003,
SaxeCor
por
ati
onwasmer
gedi
ntoPoeCo
rpor
at
io
n.Int
hebusi
nes
scombi
nat
i
on,
Poeis
sued200
,000shar
esofi
t
s$ 1
0p arc
ommonsto
ck,wi
thamark
etpri
ceof$18ashar
e,f
oral
lof
Saxe
’scommonstoc
k.Thest
ock
hol
der
s’equi
t
ysect
i
ono fe
achcompan
y’sba
lan
cesheeti
mmedi
at
ely
be
for
ethecombi
nat
i
onwas
Po
e Sa
xe
Co
mmo
nst
ock 3
,00
0,0
00 $
1,5
00,
000
Ad
dit
i
ona
lpa
id-
i
nca
pit
al 1
,30
0,0
00 1
50,
000
Re
tai
nede
arn
ing
s 2
,50
0,0
00 8
50,
000
$
6,8
00,
000 $
2,5
00,
000
5
62. Int
heDe
cemb
er3
1,2
003c
ons
oli
dat
edb
ala
nces
hee
t,a
ddi
t
ion
alp
aid
-i
nca
pit
als
hou
ldb
ere
por
te
d
at
a
.$9
50,
000
b
.$1
,30
0,0
00
c
.$1
,45
0,0
00

lOMoARcPSD|4644109
d
.$2
,90
0,0
00
5
63. I
nth
eDe
cemb
er3
1,2
003c
ons
oli
dat
edb
ala
nces
hee
t,c
ommo
nst
ocks
hou
ldb
ere
por
te
dat
a
.$3
,00
0,0
00
b
.$3
,50
0,0
00
c
.$4
,00
0,0
00
d
.$5
,00
0,0
00
5
64. Ina
ccou
nti
ngf
orabus
ine
ssco
mbina
ti
on,
whi
cho
fth
efo
ll
owi
ngi
nt
ang
ibl
ess
hou
ldn
otb
e
r
eco
gni
zeda
sanasset
apar
tfr
omgoo
dwil
l
?
a
.Tr
ade
mar
ks.
b
.Le
asea
gre
eme
nts
.
c
.Emp
loy
eeq
ual
i
ty
.
d
.Pa
ten
ts.
Thehomeo ffic
eofMangDoCo .s
hip
sgoodstoI l
oi
lobr
anchbi
l
li
ngthebr
anchfort
hegoo
dsatP4 5,00
0,
ex
cludi
ngfr
e i
g hto
fP6,0
00.Uponre
cei
ptoft
heg ood
sIl
oi
lobr
anchwasin
str
u c
tedbyt
hehomeoffic
eto
t
ransf
ert
heseg oo
dstoCagay
andeOrob r
anch .I
lo
il
obr
anchshi
psthegoodspai
dP4,
500for
thet r
ansf
er
.
I
ft
h egoodsh adbeenshi
ppedbyth
eh o
meo ffic
edir
ect
l
ytoCagaya
nd eOrobranc
h,t
hefr
ei
ghtwo ul
d
ha
veb eenP6 ,
500
.
5
65. Wh
ati
sth
ejo
urn
ale
ntr
ytor
eco
rdr
ece
ipt
ofs
hip
men
tint
heb
ook
sof
Cag
aya
ndeOr
obr
anc
h?
a
.Sh
ipme
ntf
r
omh
omeoffic
e 4
5,0
00
Homeo ffic
ecu
rr
ent 4
5,0
00
b
.Sh
ipme
ntf
r
omh
omeoffic
e 4
5,0
00
F
reighti
n 6
,00
0
Ho
meo
ffic
ecu
rr
ent 5
1,0
00
c
.Ship
mentf
ro
mho
meo
ffic
e 4
5,0
00
F
rei
ght
in 6
,50
0
Ho
meo
ffic
ecu
rr
ent 5
1,5
00

lOMoARcPSD|4644109
d
.Sh
ipme
ntf
r
omh
omeoffic
e 4
5,0
00
F
reighti
n 4
,50
0
Ho
meo
ffic
ecu
rr
ent 4
9,5
00
5
66. Wh
ati
sth
ead
jus
ti
ngj
our
nal
ent
ryt
ober
eco
rde
dbyI
l
oil
o9b
ran
ch?
a
.Ho
meo
ffic
ecu
rr
ent 5
1,5
00
Sh
ipme
ntf
r
omh
omeo
ffic
e 4
5,0
00
F
rei
ght
in 6
,00
0
b
.Ho
meo
ffic
ecu
rr
ent 4
7,0
00
Sh
ipme
ntf
r
omh
omeo
ffic
e 4
5,0
00
F
rei
ght
in 2
,00
0
c
.Ho
meo
ffic
ecu
rr
ent 5
5,5
00
Sh
ipme
ntf
r
omh
omeo
ffic
e 4
5,0
00
F
rei
ght
in 6
,00
0
Ca
sh 4
,50
0
d
.Sh
ipme
ntf
r
omh
omeoffic
e 4
5,0
00
F
reighti
n 6
,50
0
Ho
meo
ffic
ecu
rr
ent 5
1,0
00
5
67. Wh
ati
sth
ead
jus
ti
nge
ntr
ytob
ere
cor
dedb
yho
meo
ffic
e?
a
.Sh i
pment
toIl
oi
l
o 4
5,0
00
Ex
cessf
r
eigh
tonin
ter
br
anc
htr
ans
fer
ofme
rch
and
ise 2
,00
0
Ca
gay
and
eOr
obr
anc
hcu
rr
ent 4
5,0
00
F
rei
ght
in 4
,00
0
Sh
ipme
ntt
oCa
gay
and
eOr
o 4
5,0
00
I
l
oil
obr
anc
hcu
rr
ent 5
1,0
00
b
.Sh ip
mentt
oIl
oi
lo 45,
000
Ex
cessf
r
eig
htoni
nte
rbr
anc
htr
ans
fer
ofme
rch
and
ise 6
,00
0
I
l
oil
obr
anc
hcu
rr
ent 5
1,0
00

lOMoARcPSD|4644109
c
.Shipmen
ttoI
lo
il
o 45
,00
0
Ex
cessf
rei
ght
onin
ter
bra
ncht
r
ans
fer
ofme
rch
and
ise 6
,00
0
Ca
gay
and
eOr
obr
anc
hcu
rr
ent 4
5,0
00
I
l
oil
oBr
anc
hcu
rr
ent 5
1,0
00
Sh
ipme
ntt
oCa
gay
and
eOr
o 4
5,0
00
d
.Ca
gay
and
eOr
obr
anc
hcur
re
nt 5
1,0
00
Shi
pmen
ttoI
l
oil
o 45
,00
0
Ex
ces
sfr
ei
ght
oni
nt
er
br
anc
htr
ans
fer
ofme
rch
and
ise 4
,00
0
I
l
oil
obr
anc
hcu
rr
ent 5
5,5
00
Sh
ipme
ntt
oCa
gay
and
eOr
o 4
5,0
00
Viv al
di&Co.hassever
albran
cheslocat
edinkeyci
ti
esinth
es o
uthnamely,Cebu
.Mact an
,Il
oi
lo
, Ba col
od,
Da vao,andCagayandeOro.Ita
uthori
zestr
ans
fer
so f
cashandinvent
or
ie
sa mongbranches.Thehe ad
offic
es hi
psgoo
d s(P10,
000cost
)toCe b
ub r
anchpayi
ngfre
ightf
orP600.Thehomeoffic
ea u
thor
izesthe
t
ran sf
ero f
goodsfr
o mCebubranchtoDavaobran
chwh er
ethelat
te
rischarge
dfort
hec ostoft
heg oods
(P1 0,
000)andf
rieghtc
harge(
P200 )f
ort
h et
ran
fer
.Ift
heship
me ntha
db e
e nmadebyth eh o
meo ffic
e
dir
e ct
lytot
heDa va
ob r
anch,t
hefreig
htchar
gewouldhavebeenP900.
5
68. Th
etr
ans
fer
res
ult
edt
odi
ff
ere
ncei
nfr
ei
ght
cha
rgewh
ichs
hou
ldb
edi
pos
edo
fasf
ol
lo
ws:
a
.P1
00s
avi
ngs
.
b
.P1
00c
har
getoDava
obran
chbyCebub
ra nch.
c
.P1
00c
har
getoDava
obran
chbyhe
adOffice.
d
.P1
00t
obeequa
ll
ychar
geamo
ngheadoffic
e,Ceb
ubr
anc
han
dDa
vaob
ran
ch.
Thenat
i
onalHomeCompanyshi
psandb
il
l
lsmerc
hand
iset
oit
sprovi
nci
alb
ran
chatc
ost
.Thebr
anc
h
ca
rri
esi
tsownacc
oun
tsre
ce i
vab
lean
dma k
esit
sowncol
le
cti
ons
.Thebran
chals
opay
sit
sexp
ense
s.Th
e
t
rans
act
ion
sfor20
09arer
efl
ect
edint
hebr
anchtr
i
alba
lanc
ethatf
ol
lo
ws:
De
bit Cr
edi
t
Ca
sh P1
1,9
00
Na
ti
ona
lHo
meCo
.Cu
rr
ent P9
0,0
00

lOMoARcPSD|4644109
Sh
ipme
ntsf
r
omNa
ti
ona
lHo
meCo
. 1
20,
000
Ac
cou
ntsr
ece
iva
ble 6
2,5
00
Ex
pen
ses 8
,10
0
Sa
le 1
12,
500
T
ota
l P2
02,
500 P2
02,
500
De
cemb
er3
1in
ven
tor
y P3
0,0
00
5
69. Thenet
pro
fi
tof
theb
ran
chwa
s:
a.
22,
500
b
.14
400
c
.21
,90
0
d
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nsto
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ember31
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lOMoARcPSD|4644109
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ate
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cco
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ti
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and
ard
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6,3
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6,4
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or
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mb er3
1,2
009is
:
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16,
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l
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sit
smainoffic
einCebuCi
tyandest
abl
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laat
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albi
l
li
ng
pri
ceofP303
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chwas10%a bov
ecost
.AtDecember31
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eb r
anc
hrepor
te
dan et
los
sfrom
i
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i
onsofP5,
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n da nendi
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nven
tor
yofP61,
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73. Ho
wmu
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sth
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anc
hne
tin
come(
l
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)ons
ofa
rast
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ffic
eisc
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ern
ed?
A.
(5,
500
) C.
22,
000
B.
16,
500 D.
27,
500

lOMoARcPSD|4644109
TheNene ngCor
p.es
tab
li
shedi
tsSa
nPe d
robra
nchinMar
ch200
9 .
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ngthefi
r
s t
yearo
fop
erat
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ons
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ppedt
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ldbyth ebr
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tedtoP27,0
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rch
and
isei
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ffic
etot
he
br
anc
hat
25%ab
ovecos
t?
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800
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1,2
00
C.
1,5
00
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8,0
00
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v asRe g
alownstheRoya l Cr
owninQuezonCit
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nc hinDava
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vecost
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i
nvent
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hou
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por
te
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000
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270
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300
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ember 3
1, 2
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entCompanypur
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ed80%o ft
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yfor
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ni
nge
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ss,
ifa
ny,
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uet
ogo
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l
l.Co
mpu
tet
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wil
lor
gai
nona
cqu
isi
t
ion
?
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(32
,00
0) C.
40,
000
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32,
000 D.
(40
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OnJanuar
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ntCompanypu
rcha
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it
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theexc
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ipmenti
s$180,
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5
77. Co
mpu
tet
heg
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wil
lor
gai
nona
cqu
isi
t
ion
?
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(20
,00
0) C.
18,
000
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000 D.
(
18,
000
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epar
tne
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ngpr
o fi
t
sa ndl
osse
sintherat
ioof1
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ti
vel
y.OnAug.1,2
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y
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r
omthePa r
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Cor
por
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oll
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fer
enceandord
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l
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pect
ive
ly?
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592and1,44
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lOMoARcPSD|4644109
5
79. Wh
icho
fth
efoll
owi
ngproc
edure
sisnotne
cessa
rys
tep
saff
ect
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ss
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onofp
art
ner
shi
p?
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uingpar
tn
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ts
b.Recogni
zin
gundi
str
ib
utedpr
ofi
tor
los
sshar
eoft
hep a
rt
nera
tdi
ssol
ut
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ndat
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c.Closi
ngofPar
tner
shi
pbooks
d.Revi
singpar
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ersequi
ty
Th
efo
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ret
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of
torL
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at
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rt
ner
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mpa
ny
Capi
t
al P&Lr
ati
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000 1
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000 4
25,
000
c. 1
38,
366 1
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18,
336
d. 1
45,
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000
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cesduri
ng2017ofP47
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dP162,
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;
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espe
cti
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epart
ner
srec
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ter
est
onthei
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it
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of
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tal
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i
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c.29,
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d17,
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lOMoARcPSD|4644109
Abal
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heetf
ort
hepar
tne
rshi
pofNe
t,El
enaa
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nwh
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at
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ceiv
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sth
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rt
ner
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l
men
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l
owi
n gd a
taareprov
idedbyWo r
l
dwideCorp
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chisunder
goi
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onproc
ess:
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redbyass
etsamount
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th
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ti
all
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000wit
h
r
eali
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eo f
P2 25,
000
;andthere
ma i
ningbal
ancei
sunsec
ured.
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. T o
talAssetsamounttoP890,
000andhasat o
talf
ai
rma r
ket
val
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000
I
II
. Un paidinc
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esa mount
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V. De fi
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fth
efol
lo
wingstat
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re
ct?
a.Asset
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l
abletoal
lun
secur
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it
or
swithandwi
tho
utpr
i
ori
t
yis2
27,
800
b.Theamountpai
dtopart
i
all
ysec
uredcr
edi
tor
sisP225
,000
c.Theest
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ci
tamoun
ttoP60,
000
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lsecur
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edit
or
sisP695,
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l
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ti
onfo
rin
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ven
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i
qui
dat
i
ono
fth
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rpo
rat
i
oni
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tr
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an,
rec
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The
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or
mati
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ue Re
ali
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eVal
ue
Asse
ts 6,
000,
000 5,
000,
000
To
tal 6,
000,
000 5,
000,
000

lOMoARcPSD|4644109
Li
abi
li
tie
s
Unse
curedLi
abi
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t
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ior
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ty 400,
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nth
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nal
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anu
ary30,
202
1
Spo
tBuyi
ng P4
0 P4
3 P4
1
Spo
tSel
li
ng P4
2 P4
4 P4
4
Fo
rwar
d-b
uyi
ng120da
ys P4
1 P4
0 P4
2
Fo
rwar
d-s
ell
i
ng1
2 0d
ays P4
3 P4
5 P4
2
Fo
rwar
d-b
uyi
ng90day
s P4
2 P4
4 P4
5
Fo
rwar
d-s
ell
i
ng9
0d a
ys P4
5 P4
1 P4
4
Fo
rwar
d-b
uyi
ng60day
s P4
6 P4
0 P4
2
Fo
rwar
d-s
ell
i
ng6
0d a
ys P4
3 P4
2 P4
1
Fo
rwar
d-b
uyi
ng30day
s P4
2 P4
1 P4
5
Fo
rwar
d-s
ell
i
ng3
0d a
ys P4
1 P4
0 P4
2
6
14. Whati
sthenetf
ore
igncu
rre
ncygai
norl
osst
oberec
ogni
zedb
yNo
ypi
Inc
.fo
rth
eye
arse
nde
d
De
cemb
er31,2020andDecember3
1,2021
,res
pec
ti
vel
y?
a.P2 0
0a n
d(P100)
b.( P300)an
dP4 0
0
c.P3 0
0a n
d(P200)
d.( P200)an
dP3 0
0
BPIUSIn
c.i
sope
rat
i
ngwit
hi
nUSterr
i
torywhe
rei
nth
efunct
i
onalc
urr
encyUS$.Howe
ver
,th
epr
ese
nta
ti
on
cur
ren
cyoft
hes
aidb
ankPhi
li
ppi
nePesoThef
oll
owi
ngfi
nan
cia
lposi
t
iondat
afo
rth
eyear
2020a
re
pr
ovi
ded:
To
talAsset
so n12/3
1 /
2020 $1,
000 Neti
nco
mefort
heyear
2020 $
300
To
talLi
abil
i
ti
eso n12/3
1/2020 200 Di
vi
dendsde
cla
redo
n1 2/
1/
2020 1 00
Ord
inar
ys har
eso n12/3
1/2020 300
Shar
esPremiumo n1 2/
31/2
020 1 00
Ret
ai
n edEarni
ngso n1/
1/2020 200
Th
efol
lo
wingaddi
t
ion
a l
d a
taarep r
ovi
ded:
 All
ord
inar
ysharesareissue
do nJanuary1,201
5
 Thetr
ansl
at
eda mountofret
aine
de ar
n i
ngsatPhi
l
ip
pin
ePes
oo nDec
ember31
,2019isP8
,00
0
 Thefo
ll
owi
ngd i
recte
x ch
a n
geratesaredete
rmin
ed:
o 1 /
1/
20 1
5 P45
o 1 2/
31/2
0 1
9 42
o 1 2/
1/
2 0
2 0 41
o 1 2/
31/2
0 2
0 43

lOMoARcPSD|4644109
o Av
era
ger
at
efo
rth
eye
ar2
020 4
4
6
15. Wha
tist
hetr
ans
lat
i
onga
inor
(l
oss)t
oberec
ogn
ize
dbyBPI
USi
nit
sSt
at
eme
nto
fCo
mpr
ehe
nsi
ve
I
nco
mef
orth
eyearen
dedDec
ember
31 ,
2020
a.P1 0
0
b.(P700)
c.(P600)
d.P8 0
0
Thefo
ll
owi
ngd a
tawer
ee x
tr
acte
dinthefi
rstdepa
rtment
ofathr
e est
epproces
stocompl
et
ethecompany
’s
pr
oductan
do pt
edtous
etheFIFOme th
odinaccount
i
ngp r
ocess;Begi
nni
ngInv
ent
oryuni
t
swe r
e8,0
00
(2
5%toc o
mp l
et
e).No
rmall
ostuni
tswere2,0
00a ndabno
rmall
os tu
nit
swere1,
000.Mat
eri
al
swereadd
ed
whenthecon
vers
ionpr
oces
swa s80%c ompl
ete.Beg
inni
ngin
ventor
ycost
:Co n
ver
si
onP38,00
0.Cost
s
dur
in
gtheyearweret
hefo
ll
owin
g :Di
rect
Ma t
eri
al
sP375,000andCo n
vers
ionP569
,800
.Unit
swere
i
nspect
edwhentheco
nver
sionpro
c e
sswa s70%.
6
16. Wh
ati
sth
ecosto
ftr
ans
fer
re
d-o
utg
ood
stot
hen
ext
dep
art
men
t?
a.730,
000
b.769,
200
c.780,
124
d.758,
948
6
17. Wh
ati
sth
eendi
ngi
nve
nto
ryc
ost
?
a.194,
000 c.2
13,
076
b.204,
252 d.2
33,
200
6
18. Wh
ati
sth
eperi
odc
ost
?
a.19,
600
b.34,
600
c.43,
000
d.30,
100
Th
efo
ll
owi
ngd
atawe
rea
sce
rt
ai
nedd
uri
ngt
hey
ear
:
J
anuar
y1 De
cember3
1
Wor
k-i
n-
pr
oce
ss 13
0,0
00 35
2,000
Fi
ni
she
dGoods 8
9,0
00 23
1,250
Rawmater
ia
lsusedwa sP504
,950andthedi
rectl
abo
rrat
ewasP15.
Ac t
ual
o v
erh
eadwasP156,
500of
whi
chP76,
550wa si
n d
ire
ctl
aborandth
er e
stwerei
ndi
re
ctmate
ri
al
s.Budge
tedover
hea
dc o
standdi
rec
t
l
aborh
ourswasP2 5
0 ,
000and31,2
50respect
i
vel
y.Att
heendoft
heyeart
heover
headcont
r
olacco
unthas
adebi
tba
lanceofP1 8
,500.
Itwasthecompany
’spol
i
cytoco
nsi
deranydi
ff
ere
ncefr
omtheact
ualan
d
ap
pli
edover
headlesst
h a
nP5 0,
000immater
i
al.
6
19. Wh
ati
sth
epr
i
mec
ost
dur
i
ngt
hey
ear
?

lOMoARcPSD|4644109
a.833,
075
b.973,
700
c.753,
125
d.683,
750
6
20. Wh
ati
sth
ecosto
fgo
odsma
nuf
act
ur
eda
tth
een
dof
they
ear
?
a.786,
075
b.599,
750
c.871,
700
d.706,
125
TheCompanyhastwomai
nproduct
s,Al
phaandBeta
.Charl
i
eontheot
herhandwasaby-
product
ofBeta
.
Al
phaandBetacamefr
omthesamerawma t
er
ial
s.Char
li
ewasmanuf
actu
redfr
omthere
sid
ueo ft
hej
o i
nt
pr
ocess
.Thecostbef
or
esepar
at
ionwasP375,
000.Thecompan
yopte
dtou s
etheNRV(appro
ximat
ed)i
n
ac
count
ingi
t̀
sjo
intcos
tsa
ndtheNRVo fpr
oduct
Ch a
rl
iewasared
uct
ionf
romthecos
twhereit
came
f
ro
m. Thefo
ll
owi
ngd a
tawer
eascert
ai
neddur
ingt
hey e
ar:
Al
pha Be
ta Ch
arl
i
e
Uni
t
spr
oduce
d 25,
000 1
4,42
5 1
,200
Uni
t
ssol
d 23,
000 1
2,00
0 1
,200
Cos
taf
t
ersepa
rat
ion P1
6,20
0 P49
,300 P3,
500
Se
ll
i
ngpri
ceperu
nit P1
5 P20 P5
62
1. Wh at
sisth
eg r
ossprofi
tofp
rod
uctAl
pha?
a.1 05,3
0 0
b.1 24,4
7 6
c. 6 1,3
6 5
d. 4 9,5
6 0
Par
migi
aniF
leur
ier
Co mpanyhastwo(2
)prod
uct
sTond
aa n
dKalp
a.Fort
hefi
r
s tmont
hof
bus
ine
ss,1
50
t
ondasand550kai
paswereproduce
d.Tot
alo
ver
headco
sti
sP105,
000
.Thefoll
owi
ngwer
egi
venbyt
hei
r
ac
count
anti
np r
epar
ati
onift
heywil
ladap
tAct
iv
it
y-
Base
dCo s
ti
ngi
nthe
irco
mpa ny:
Ac
ti
vi
ty Co
stDr
iv
er Bu
dgetVol
ume Bu
dge
tedOver
hea
dCo
st
Ma
ter
ia
lHand
li
ng No.
ofRequ
isi
t
ion
s 2
,000 P6
0,0
00
Ma
chi
neset
ups No,
ofse
tup
s 550 P2
4,7
50
Qu
ali
t
yCont
rol No.
ofI
nspec
ti
ons 750 P2
0,2
50
Th
eac
tua
lco
std
ri
verv
olu
mesu
sedt
opr
odu
cedt
he2p
rod
uct
sfo
rth
emo
ntha
rea
sfo
ll
ows
:
Act
i
vi
ty T
ond
a Kal
pa
No
.of
Re q
uis
it
i
ons 900 1,
100
No
.of
setu
ps 215 335
No
,of
Inspe
cti
ons 325 425
6
22. Wh
ati
sth
eov
erh
eadc
ost
ofT
ond
a?

lOMoARcPSD|4644109
a
.45
,45
0
b
.47
,25
0
c
.41
,04
5
d
.45
,50
0
ABCCo .e
xtr
act
edthefol
lowi
ngdatainthei
racco
unti
ngsyst
em.Thi
sma n
agerwant
edthe
irr
esid
entcos
t
acc
ounta
nttocomput
es omevari
ances.It
showstha
tthecompanypur
chas
ed4,8
50p i
ece
so fmat
eri
ala
ta
cos
tofP169,
750.Then u
mb erof
unit
sthati
sp r
oduc
edd u
ri
ngtheyeari
s2,
250andonl
y4 ,
750pie
cesof
mate
ri
alar
eu s
ed.Thec ompanyre
quir
e s3pi
ecesofmater
i
alfo
rasing
lepro
duct
.Budget
edover
headfor
t
heyeari
sP5 7
0,000.Overhe
adisappli
edbasedonma ch
inehour
s.Exp
ecte
dma c
hin
eh our
sare120,
000.
Thecompany’
srequ
ir
e dcostf
orapla
c eofmater
i
ali
sP3 8
6
23. Wh
ati
sth
ema t
er
ia
lpr
i
cev
ari
anc
e?
a.14,
250F
b.14,
550F
c.14,
250U
d.14,
550U
6
24. Wh
atamo
untsh
oul
dbed
ebi
t
edi
nth
ewo
rk-
i
n-p
roc
essa
cco
unt
?
a.184,
300
b.166,
250
c.256,
500
d.236,
250
OnJanu
ary1
,20
16,
Reg
ina
,Je
ssi
caa
ndNa
tal
yfo
rme
dap
art
ner
shi
pwi
t
hpr
ofi
tor
los
ssh
ari
nga
gre
eme
nt
of
2:3
:5.
Regi
nacont
ri
but
edalandwit
ha s
sess
edval
u efr
omc i
t
yassess
o rintheamountofP1,
000,
000.Thel
andis
su
bjec
ttore
alest
at
emo rt
gagewhi
channot
atedtot
heti
tl
eofthelandintheamountofP800
,000
.The
app
rai
sedval
ueofth
elandisP2,
400,
000.J
es s
icacon
tr
ibu
tedab uil
di
ngwithacostofP2,
000,
000and
ac
cumu l
at
eddepr
eci
ati
onofP1,5
00,0
00.Thefai
rval
ueoft
heb ui
ldin
gisP8 00
,00
0. Nat
al
ycont
ri
bute
d
i
nves
tmenti
ntr
adi
ngs e
curi
t
ieswit
hhi
sto
ri
calcosto
fP6,0
00,00
0 .Thetra
dingsec
urit
ie
shavequot
edp r
i
ce
i
nacti
vemarke
tofP3,
000,
00 0
.
Thep
art
ner
sdec
ide
dtobr
ingt
hei
rcapi
t
alb
alan
cesi
nacco
rdancewit
hth
eir
profi
tor
los
ssh
ari
ng
ag
ree
ment.
Thet
ota
lagr
eedca
pit
al
iz
ati
onoft
henewpa
rt
ners
hipisP10,
000
,00
0 .
6
25. Wh
icho
fth
efoll
owi
ngstat
ementi
scor
rec
t?
a.Theagreedcapi
t
alofNat
al
yi
sP5 00
,000
b.Regin
as hou
ldcont
ri
but
eaddi
t
ion
alcapi
ta
lint
heamo unt
ofP1,
800
,000
c.Jessi
cashoul
dcont
ri
but
edaddi
ti
ona
l c
api
tali
nth
ea mounto
fP2,
200,
000
d.Natal
yisent
it
l
edtowit
hdr
awinth
ea mountof
P1,00
0 ,
000

lOMoARcPSD|4644109
OnJanua
ry1,2021
,Ange
l,Beaan
dColl
eenfo
rmedapar
tner
shi
pwit
hori
gi
nalc
api
ta
lcont
ri
but
i
onrati
oof
4:
5:
1fort
ota
lagr
eedca
pit
al
iza
ti
onofP5
,000,
000.
Thepr
ofi
torl
ossr
ati
oagr
eement
prov
ide
sthatp
rofi
t
s
sh
all
bedis
tr
ibu
tedi
nth
erati
oof3:
2:
5whil
elos
sessh
all
bed i
st
ri
but
edi
nther
ati
oof6:
1:
3.
Dur
in
g2021,t
hepar
tn
ershi
prepo
rt
ednet
inco
meo fP2,
000,
000wi
t
hAn g
ela
ndBeawit
hdr
awi
ngP5
00,0
00
an
dP3 0
0,0
00,r
esp
ecti
vel
y.Dur
i
ng202
2,thepar
tne
rshi
prep
ort
ednet
los
sofP1
,00
0,0
00wit
hBeaan
d
Col
l
eenwit
hdr
awi
ngP200,
00 0a
ndP400
,000res
pect
iv
ely
.
6
26. Wh
ati
sth
ec a
pit
alb
ala
nceo
fBe
aonDe
cemb
er3
1,2
022
a.2,6
00,00
0
b.2,3
00,00
0
c.2,5
00,00
0
d.2,4
00,00
0
OnJanua
ry1,2031,Kob e,Lebr
ona ndMichae
lfo
rmedap ar
tn
e r
shi
pwithr
espect
iv
ecapit
a l
cont
ri
but
io
no f
P2,
000,
000,
P5,000,000a n
dP3 ,
0 0
0 ,
000.Thear
ti
cl
esofco-
part
ners
hippro
vid
esthatp
rofi
torl
ossshal
lbe
di
st
ri
but
edaccor
din
g l
y:
 20%inte
restono ri
gi
nalcapit
alcont
r
ibu
ti
on.
 P30,
000mo n
thlysal
aryforKobeandP50,0
00mo nt
hl
ys al
ar
yforMich
ael.
 Theremaindershall
bed i
str
ibu
tedonthebasi
sofor
ig
inalca
pit
alcont
r
ibut
i
onrat
io.
OnDecember31,2031,Kobea ndLebronmadewit
hdr
awalsofP500,
000andP1,000,
000,res
pect
iv
ely
.
Thest
at
ementoffi
nancialpo
sit
io
no fth
ep ar
tne
rshi
pshowsth
at L
ebron’
scapi
ta
lonDecemb er31
,2031is
P6,
500,
000.
6
27. Wh
ati
sth
ec a
pit
alb
ala
nceo
fKo
beo
nDe
cemb
er3
1,2
031
?
a.3,2
60,00
0
b.2,1
00,00
0
c.2,3
60,00
0
d.2,8
60,00
0
OnDecember3
1,2
020.Th
estat
eme
nto
ffi
nan
cia
lpo
sit
i
ono
fDELPa
rt
ner
shi
psh
owst
hef
ol
lo
win
gda
ta
wi
thp
rofi
tor
los
ssha
ri
ngof1:
3:
6
Ca
sh P5
,00
0,00
0 Tot
alLi
abi
li
t
ies P10,
000,
000
No
nca
shAs
set 15,
000,
000 Dian
e 5,
000,
000
Ell
en 3,
000,
000
Li
z 2,
000,
000
OnJa
nuary1
,202
1,Anawi
l
lbeadmi
tt
edtot
hene
wpar
tn
ersh
ipnamedADELbyInv
est
ingP4,
000
,00
0fo
r
30
%c ap
it
ali
nt
er
esti
nth
enewpa
rt
n e
rsh
ipwhi
chh
ast
ot
alag
reedcap
it
al
iza
ti
onof
P20,000,
000
.
6
28. Wh
ati
sth
en e
wc a
pit
alb
ala
nceo
fLi
zup
ona
dmi
ss
iono
fAn
ainADELPa
rt
ner
shi
p?
a.4,4
00,0
00

lOMoARcPSD|4644109
b
.8,
400
,00
0
c
.5,
600
,00
0
d
.3,
200
,00
0
OnJanuar
y1 ,2016,Mars,
LensandBr i
efor
me dMLBPa rt
ners
hipwithori
g i
nalcont
ri
but
ionofP4,000
,000,
P1,
000,
000a ndP5,000,
000,
resp
e c
ti
vel
y.Thea r
ti
cl
eso f
co-par
tn
e r
shipprovi
desthatpro
fi
torlossshal
lbe
di
st
ri
but
edu ndert
hefoll
owi
ngter
ms :
 Ma rs,LenandBr i
eshal
lbee n
ti
tl
edtomo nt
hl
ys al
ar
yo fP10,000,P20,000andP30,000,
res
p ec
ti
vel
y
 1 0%i nt
ere
stontheori
gi
nalcapi
talc
on t
ri
but
ion.
 Asma nagi
ngp ar
tner
,Lenshal
lrec
eivebonusequalt
o1 0%o fnetinc
o mea f
t
erSa l
ar
iesand
Int
eres
t b
utbefor
eb o
nus.
 Th erema i
ndershal
lbedi
str
ibut
edontheb as
isofori
gi
nalcapit
alcont
ribut
io
nrati
o.
Duri
ng2016,t
hep ar
tner
sregul
arl
ywithd
raw¼o ft
hei
rmo nt
hl
ysa l
ary.TheDe cember31,2016Stat
ement
ofFi
nanci
alPosi
ti
onofML BPart
ners
h i
pshowsthatt
hec api
t
albala
n ceofMa r
sisP5 ,
310,
8 0
0.OnJ anuar
y
1,20
17,Bri
ed eci
dedtoret
ir
efr
omt hepart
ner
sh i
panditwasagreedthatBri
es hal
lre
cei
veP6 ,0
0 0
,000.
Theret
i
ri
nga gr
eemen t
provi
dest
h a
ta n
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b.75,
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re
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orJo
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48. AssumethatJ
obs#1and#3arenot
comple
tedaso
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ati
sth
eba
lan
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heendofNovember
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lOMoARcPSD|4644109
a
.27
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.34
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Costs 1
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49. Assumin
gDa vaoCor
p.us
esthepr
edet
ermin
efact
oryove
rhe
adbas
edonmachi
neh
ours.
Whatis
t
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eoff
act
or
yoverh
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a.9 .0
0
b.6 .5
0
c.6 .0
0
d.8 .9
0
6
50. Assumin
gDa vaoCor
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esprede
ter
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acto
ryover
headbas
edonmac
hin
ehour
s.Whati
sth
e
f
act
or
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ada ppl
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edt
ojob#1?
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00
b.6 05,2
00
c.4 42,0
00
d.5 0,
4 0
0
6
51. Assumin
gDa vaoCor
p.us
esthet
woo v
erheadr
ate
ss u
ggest
edbyt
heman
agert
odet
ermi
ne
f
act
or
yo v
erhe
adrates
.Whati
sth
etotal
costof
job#3?
a.6 62,4
80 c.1,
190,
800
b.9 01,2
00 d.700
,400

lOMoARcPSD|4644109
Dean
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ust
ome
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ort
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ndth
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52. Wh ati
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.1 3,
095
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.1 3,
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.1 2,
960
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.1 2,
879
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53. Wh ati
stheuni
tcosto
fthegoo
du n
it
spro
duce
do nJob234
?
a
.3 20
b
.3 26
.29
c
.3 25
.62
d
.3 22
.67
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54. Ift
heco s
tasso
ciat
edwit
hrewor
kandspoi
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sid
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sno
rma
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Wha
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816
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528
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.1 2,
987
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tasso
ciat
edwit
hrewor
kandspoi
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edarecon
sid
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sno
rma
ltop
rod
uct
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on.
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uni
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stofgooduni
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ob2 3
4?
a
.3 20
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.3 26
.29
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.3 25
.62
d
.3 22
.67
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nve
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ryCo
sts
:
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eri
al
s 76,
500
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vers
ion 1
58,
175

lOMoARcPSD|4644109
Cur
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nver
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6
56. Howma nyuni
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swer
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rr
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300
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57. Assumet
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99
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18
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64
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73
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58. Assumet
h a
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Ome t
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in
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e d
.Whati
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val
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unit
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co
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on?
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05
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87
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25
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40
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tar
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ncesofWI
PInve
ntor
yandFin
ish
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nve
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cco
unt
sat
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000and67
,500
,re
spect
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vel
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b.825,
000and1,
417,
500
,re
spect
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ely
c.37,
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pect
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vel
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500and1,
417,
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Al
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Howeve
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201
6thef
ol
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61. Wh
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fIn
ves
tme
nti
nBa
gui
oac
cou
nt?
a.72,
550

lOMoARcPSD|4644109
b.66,
800
c.86,
850
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950
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62. Wh
ati
sth
eadju
ste
dbal
anc
eofI
nve
stme
nti
nDa v
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ount
?
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450
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550
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700
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400
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ala
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fHomeOffic
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c.107,
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64. Wh
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edb
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men
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omeoffic
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10,00
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56,25
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75,00
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66. Wh
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etot
alend
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nve
nto
rytobeshownont
hec
omb i
nedfi
nan
cia
lst
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eme
nts
?
a.715,
400
b.781,
375
c.689,
500

lOMoARcPSD|4644109
d.638,
750
6
67. Wh
ati
sth
ecombi
nedn
eti
nco
mef
ort
hey
ear
?
a.957,
950
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850
c.891,
975
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725
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tedt
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ncomeo f
theLeyt
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69. L owryIn
ch asbranchopera
ti
onlocat
edinCebu. Ont heh omeo ffic
efin
a nc
ial
record. L
owryrep ort
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me nti
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nchAccountwi
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br
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ngaHo meOffic
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nce.Wh i
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f
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atementsistr
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hma yh avebeencol
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ctedbythehomeo ffic
efortheb ranchbutnotye tr
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branch
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ff
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atthecashma yb eint r
ansi
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ro mtheb r
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lOMoARcPSD|4644109
OnJul
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ncl
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l
st
at
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ntsfor
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rendedDecember31,
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lOMoARcPSD|4644109
Jer
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000
d
.P1 ,
100,
000
Th
eBa gu
ioFou
ndati
on,
anot
-f
or
-p
rofi
tor
gani
zat
i
onhadt
hefol
l
owi
ngc
ont
ri
but
i
o n
sandexpend
it
ur
esf
or
20
14 :
 Unre
str
ic
tedcas
hdi
st
ri
but
i
onso f
P500,
000
 Cashcont
ri
but
io
nso
fP200,
000rest
r
ict
edbyt
hedono
rtot
hea
cqu
isi
t
ionofp
roper
ty
 Cashexpend
it
ur
eso
fP200,
000toacqu
ir
epro
per
tywi
thth
edo
nat
i
onintheabo
veit
em
7
12. Bagui
oFoundat
i
on’
ss t
a t
ementofca
shfl
owssh
ouldi
ncl
udewh
icho
fth
efo
ll
owi
nga
mou
ntsf
or
op
era
ti
ng,
inv
est
ingandfi
nancin
ga ct
i
vi
ti
es,r
esp
ect
iv
ely?
a.P5 0
0,000;
(P200,000
);P200,
000
b.P5 0
0,000;
0;0
c.P7 0
0,000;
(P200,000
);0
d.P0 ;
P5 0
0,000
; P200,
000
Th
efo
ll
owi
ngf
und
swe
rea
mon
gth
oseh
eldb
ySt
at
eCo
ll
egea
tDe
cemb
er3
1,2
014
:
Pr
i
nci
pal
spe
cifi
edbythedo
norasnon
expe
nda
ble P5
00,0
00
Pr
i
nci
pal
exp
en d
a bl
eaf
ter
theyea
r2018 300
,000
Pr
i
nci
pal
des
ignate
dfro
mc ur
re
ntfu
nds 100
,000
7
13. Wh
atamo
untsh
oul
dSt
at
eCo
ll
egec
las
si
fya
sre
gul
are
ndo
wme
ntf
und
s?
a.P100
,000
b.P300
,000
c.P500
,000
d.P900
,000
Theage
ncypr
ovi
dedain
cur
satrave
li
ngex
pens
esofo
neofi
tsoffic
er,Mr
.Pi
ngforanamounto
fP5,
000
.
Thet
rav
eli
ngexp
ense
swasgra
n t
edtoMr
.Pi
ngonFeb
rua
ry1,201 0.OnMarc
h1 ,
20 1
0,Mr.
Ping
l
iq
uid
ate
ditsc
ashadv
ancei
ntheamount
ofP4,
000
.Theex
cesswe reret
ur
ntoth
ea genc
y.
7
14. Th
ee nt
ryt
or e
cordthegran ti
ngofca
shadv
anc
etoMr
.Pi
ngwas:
a
.Du efr
omOfficer
sa ndemplo
yee
s P5,00
0
Cash–NT , MDS P5,
000
b
.T r
avel
l
ingexpenses -l
ocal 5,0
00
Cash–NT , MDS 5,
000
c
.Ca shDisb
ursi
ngo ffic
er 5,0
00
Cash–NT , MDS 5,
000
d
.Ca shColl
ect
ingofficer 5,0
00
Cash–NT , MDS 5,
000

lOMoARcPSD|4644109
Thea
genc
yrecei
vedana
ll
ot
mentf
romDBMofP10,
000,
000wh
ichi
sa c
compan
iedb
ywit
han
oti
ceof
cas
h
al
l
oca
ti
onof90%ofth
eal
lot
men
t.Dur
in
gthey
ear
,th
ea g
encyi
ncur
re
da nob
li
gat
i
onof9
0%oft
heNCAbut
on
ly40
%o ft
heseobl
i
gat
i
onwer
ep a
idbyt
heage
ncy.
7
15. Th
ee nt
ryt
ore
cordtheu
nus
edNCAi
s:
a
.SI NG 4,8
60,
000
Cash–NT,
MDS 4,
860
,00
0
b
.SI NG 5,7
60,
000
Cash–NT,
MDS 5,
760
,00
0
c
.Ca sh–NT ,
MDS 4,8
60,
000
SI
NG 4,
860
,00
0
d
.Ca sh–NT ,
MDS 5,7
60,
000
SI
NG 5,
760
,00
0
Zamor
aa ndCo.I
nc.
purcha
sedaCa di
l
lacaut
omobi
lewi
thl
it
tl
ecashdownandsi
gnedano t
e,sec
uredby
t
heCad i
l
lac
,fo
r48easymonthl
ypayment
s.Whentheco
mp an
yfi
l
e sf
orbank
rup
tcy
,thebalan
cedueo nt
he
Cadi
l
lacamountt
oP6,00
0,000
.Thecarhasab o
okval
ueofP8,
000,0
00andanetre
a l
i
zableval
ueof
P4,
000,0
00.Theuns
ecure
dc r
edi
to
rsofZamoraandCo.ca
nexpectt
orec
eiv
e50%o fth
eircl
ai
ms ,
inthe
l
iq
uid
ati
on.
7
16. Th
eb an
kthath
oldst
hen
oteo
nth
eCa
dil
l
acs
hou
ldr
ece
ive
:
a
.P6 ,00
0,000
b
.5 ,0
00,00
0
c
.4 ,0
00,00
0
d
.3 ,0
00,00
0
Z
eroNaCorp
.hasbeenund
erg
oingl
i
quid
ati
ons
inc
eJa
nua
ry1
.Aso
fMa
rch3
1,i
t
sco
nde
nse
dst
at
eme
nt
o
fli
qui
dat
i
onandre
ali
zat
i
onispr
esen
tedbel
ow:
Ass
ets
:
Asset
stobereal
i
zed P1,3
75,00
0
Asset
sacqui
red 750
,000
Asset
srea
li
zed 1
,200
,000
Asset
snotr
eali
zed 1
,375
,000
Li
abi
l
it
i
es:
Lia
bil
i
ti
esl
iqu
idat
ed P1,8
75,00
0
Lia
bil
i
ti
esnotl
iqu
idat
ed 1
,700
,000
Lia
bil
i
ti
est
ob eli
qui
dat
ed 2
,250
,000
Lia
bil
i
ti
esAssumed 1
,625
,000
Rev
enuesandExpe
nse:
Suppl
ement
arycharge
s P3,1
25,00
0
Suppl
ement
arycredi
t
s 2
,800
,000
71
7. Th enetgai
n(
loss)f
ort
het
hr
eemo
nth
spe
ri
odendi
ngMar
ch3
1is
a.P2 50,
000

lOMoARcPSD|4644109
b
.(P3
25,
000)
c
.P425,
000
d
.P750,
000
F
ort
hemont
hofMa
y,t
heCut
ti
ngDep
art
ment
of Dami
tCo.h
a d8
0%compl
et
east
oth
ebe
gin
nin
gwo
rki
n
p
roc
essa
nd50%comp
let
east
othee
ndi
ngworkinpr
oce
ss.Rel
at
edd
ataf
ol
lo
w:
Uni
t
s Co
nver
si
onco
st
Wor
kinProc
ess,May1 5
0,0
00 P8 8
,00
0
Uni
t
sstar
te
da ndco
sti
ncur
re
dinMay 27
0,0
00 572,
000
Uni
t
scomplet
edandtr
ans
fer
re
dto
t
henext
depart
menti
nMay 20
0,0
00
7
18. If
theco
mp an
yusest
heFI
FOmet
hod
,th
econ
ver
si
onc
ost
oft
hewo
rki
npr
oce
ssi
nth
eCu
tt
in
g
De
part
mentat
theendof
Maywou
lda
mount
to
a.P1 5
6,00
0
b.P2 5
4,00
0
c.P1 3
2,00
0
d.P1 7
6,00
0
Bo
wma
nCo
mpa
nyh
ast
hef
ol
lo
win
gin
for
mat
i
onf
orJ
uly
:
Uni
tsSt
a r
te
d 1
00,
000u
nit
s
Begi
nni
ngWI P(35
%c ompl
et
e) 20,
000u
nit
s
Nor
ma l
spoil
age(di
sc
ret
e) 3,
500u
nit
s
Abnor
ma l
spoi
lage 5,
000u
nit
s
Endi
ngWIP(7 0
%c ompl
et
e) 14,
500u
nit
s
Tr
ansf
err
edou t 97,
000u
nit
s
Begi
nni
ngWI Pcost
s:
Mate
ria
ls P1
5,00
0
Conver
si
on 10,
000
Al
lmat
eri
al
saread
dedat t
hest
ar
toft
hepr
oduc
ti
onpr
ocess
.BowmanCo.
ins
pec
tsgoo
dsat75%p
erc
ent
co
mp l
et
io
nastoConve
rsi
on.
Ass
umethat
theco
stsperEUPfor
mate
ri
ala
ndconv
ers
ionar
eP1.0
0andP1.
50,
res
pect
iv
ely
.
7
19. Wh
ati
sth
ea moun
tof
thep
eri
odc
ost
for
Jul
yus
ingFI
FO?
a.P0
b.P9,3
7 5
c.P10,
6 2
5
d.P12,
5 0
0
ACompanypr
oces
sesrawma ter
i
alin
toPro
ductsF1,F2a ndF3.Ea
chto
nofra
wma teri
al
sprod
ucefi
ve
un
it
sofF1,t
wouni
tsofF
2 ,
an dthr
eeuni
tsofF3Join
tp r
o c
essi
ngcos
tst
oth
espli
t
-offp
oint
areP15per
t
on.F
urt
herpr
oce
ssin
gresul
tsinthef
oll
owi
ngpe r
unitfi
gure
s:

lOMoARcPSD|4644109
F1 F2 F3
Ad
dit
i
ona
lpro
ce s
si
ngco
stsp
eru
nit P23 P30 P25
Se
ll
in
gpr
iceperuni
t 30 35 35
7
20. Ifj
oi
ntc
ost
sar
eal
loca
tedb
yth
enetr
eal
i
zab
lev
alu
eof
fi
nis
hedp
rod
uct
.Wh
atp
rop
ort
i
ono
fjo
int
co
stss
houl
dbeal
l
oca
tedt
oF1
a.2 0
% c.
331/
3%
b.3 0
% d.
50%
Mi
gCo.
,whi
chbe
ganope
rat
i
onsin2
014,p
roduc
esga
sol
i
neandag
aso
li
neb
y-p
rod
uct
.Th
efo
ll
owi
ng
i
nf
or
mat
ioni
sav
ail
abl
epe
rt
ai
nin
gto201
4sale
sa n
dpr
odu
cti
on:
To
talp
roduc
ti
oncostst
ospl
it
-
offp
oin
t 1
20,
000
Gasol
i
neSales 2
70,
000
By-
pr
oductsa
les 30,
000
Gasol
i
neinv
ento
ry,End 15,
000
Addi
t
ion
alby-
prod
uct c
ost
s:
Mar
keti
ng 1
0,0
00
Pr
oduct
io
n 1
5,0
00
7
21. Migac
cou
ntsf
ort
heby-
pro
ductat
thet
i
meo
fpr
odu
cti
on.
Wha
tar
eMi
g’
s20
14c
ost
ofs
ale
sfo
r
ga
sol
i
neandt
heby-
pro
duc
t?
Gasol
i
ne By-
pr
oduct
a
.1 05,
000 25
,000
b
.1 15,
000 0
c
.1 08,
000 37
,000
d
.1 00,
000 0
Th
eAc ti
onCorp.manufactur
eselec
tr
icalmet
ers.ForMay,th
erewe r
enobegi
nnin
ginve
ntor
ie
sof r
aw
mater
i
alsandnob e
ginningandendingWIP.Acti
onusesaJ I
Tma nufa
ctu
ri
ngsyst
ema n
db ac
kfl
ushcos
ti
ng
wi
ththr
eetr
igg
erp oi
nt
sf ormakin
ge nt
ri
esintheaccount
in
gs yst
em:
 Pu r
chaseofrawma t
eri
al
s–d ebi
tedtoRawMa ter
ial
sandinProces
sa c
count
 Co mpl
eti
ono ffi
nishgoods–d e
bit
edtoF i
ni
shGo odsaccount
 Sa l
eoffi
nish
edg oods
Ac
tion
’sMaystandar
dc ostpermeteranddi
rectmat
eria
ls,P25,andconv
ers
ioncost
,P20.
Thefoll
owi
ng
da
taapplyt
oMa yma nufact
uri
ng:
Rawma t
eria
lsandcomp on
en t
spur
ch a
ses P5 50,
000
Conversi
onc ost
sin
cu r
red 440,
000
Numbe roffi
nis
hedun i
t
sma nufa
ctur
ed 21,
000
Numbe roffi
nis
hedun i
t
ss ol
d 20,
000
7
22. Th
eb al
anc
esofRa
wi nPr
ocessandFi
nis
hedg
ood
sin
ven
tor
yac
cou
ntsa
tth
een
dof
Maya
re:
a
.P2 5,0
00andP945,
000resp
ect
ive
ly
b
.P5 50,
000andP45,
000resp
ect
ive
ly
c
.P2 5,0
00andP4 5
,00
0r e
spect
i
vel
y

lOMoARcPSD|4644109
d
.P5 5
0,0
00andP945,
000res
pect
iv
ely
Thedi
rect
lab
o r
stan
dar
dsfor
pro
duci
ngau ni
tof
ap r
odu
ctar
etwohou
rsatP1
0p e
rhou
r.Budg
ete
d
pr
oduct
io
nwa s1,
000uni
ts
.Act
ualp
roduc
ti
onwas900uni
tsa
nddir
ect
lab
orcos
twasP19,
200f
or2,0
00
di
r
e c
tla
borhours
.
7
23. Th
ed i
re
ctl
abo
reffic
ien
cyv
ari
anc
ewas
a
.P1 ,
000fa
v orab
leb.P1,
000u
nfa
vor
abl
ec.
2,0
00f
avo
rab
le d
.2,
000f
avo
rab
le
Mact
anEnt
er
pri
sei
saPhi
l
ipp
ineex
por
te
rofso
uve
nir
it
emsma
nuf
act
ur
edi
nth
eca
pit
alc
it
yof
Ceb
u.Th
e
f
ol
lo
wingo
verh
eadco
std
atahaveb
eenacc
umul
at
ed:
Act
i
veCe n
ter Cos
tDri
ver Amounto
fActi
vi
ty Cen
terCos
ts
Mat
eri
alHand
li
ng Ki
l
osHandl
ed 100,
000gr
ams P50,
000
Pai
nt
in
g Uni
t
spai
nted 50,
000uni
ts 200,
000
Ass
embly La
borHour
s 4,
000hou
rs 120,
000
J
obRSTc
ont
ains3,
000un
it
sit
wei
ght
s10,
000ki
l
osa
ndu
ses300hour
sofl
abo
r
7
24. Wh
ati
sth
etot
alo
ver
hea
dcost
assi
gne
dtoJo
bRST?
a.P31,
955 b.P2
7,75
0 c
.P26,
000 d
.P3
2,0
00
OnAu
gus
t1,
201
4,t
heb
usi
nes
sac
cou
ntso
fCh
ri
sGa
ndPa
ulDJa
ppe
arb
elo
w:
As
sets Ch
ri
sG Paul
DJ
Cas
h P11,
000 P22,354
Acc
ount
sRecei
vab
le 84
,536 21
7,890
I
nvent
or
ie
s 100,
035 24
0,102
La
nd 603,
000 42
8,267
Bui
l
din
gs 200,
345 38
4,789
Ot
herass
ets 22
,000 2
3,600
Li
abi
li
ti
esandCapi
ta
l
Acc
ou n
tsPayabl
e P1
78,9
40 P2
43,65
0
Not
esPa ya
ble 200
,000 345
,000
Chr
isG,Ca pi
t
al 641
,976
Pau
l DJ,Capi
t
al 7
28,
352
Chr
i
sGa ndPaulDJagr
eedtof
ormpar
tner
shi
pcont
ri
but
in
gth
eirr
espe
cti
veasse
tsandli
abi
l
it
i
essub
jec
tto
t
hefo
ll
owi
ngadj
u s
tment
s:
 Ac co
untsRecei
vab
leof
P2 0
,00
0a n
dP35,00
0a r
eunc
oll
ect
abl
einChri
sGandPa ul
DJ’s
re
spect
i
veb o
oks
 I n
vent
or
iesofP5,
500andP6,
700arewor
thl
essi
nChr
isGandPa ul
DJ’
sres
pe c
ti
vebook
s.
 Ot he
rasset
sofP2,
200andP3,6
00inChr
isGa n
dPaulDJ’
sbooksar
ewri
tt
enoff
.

lOMoARcPSD|4644109
Afte
rfi
veda
ysBri
anLwa soff
ere
dtojoi
nCh r
i
sGa ndPau
lDJandwil
lc
ont
ri
but
efora2
0 %int
er
est
int
he
fi
r
m. Theya
lsoa
gree
dtod i
vi
dep r
ofi
torl
ossi
nthera
ti
oof40
:40:
20,
samer
ati
obasedonth
eirc
api
t
alc
red
it
asa g
reedu
ponfo
rmati
on.Asaresul
t o
fth
esaidag
reeme
nt,a
sap e
rso
nal
tr
ansac
ti
on
7
25. Ho
wmuchs
houl
dth
eca
shse
tt
le
ment
bebet
weenChr
i
sGandPaul
DJ?
a.P33,
602 b.P3
4,3
88 c
.P32,
390 d
.P32
,27
2
OnMay1 ,
2014,
thecapi
tal
account
sofS,Ta ndCa reP1 ,
260,
000;P7 8
7,5
00andP4 72,
5 00
,
r
espec
ti
vel
y,a
tth
isti
me,Ii
sAd mi
tt
edtothefi
rm,hep ur
chaseda1/6i
nter
esti
nth
efir
mf orP288,
750.
The
ol
dpart
ner
sequal
i
zedthei
rcapi
tal
inv
est
me nt
.Aft
erwa r
ds,al
lt
hepart
nersagr
eetodi
vi
d epro
fi
tandlo
sses
eq
uall
y.T
henewp a
rt
n e
rshi
pcl
o s
esit
sbookso nJ
un e30,2014rep
o r
ti
ngpro
fi
tofP44
,100fort
womo nt
hs.
Eac
hp ar
tn
ermadethefo
ll
owin
gwithdr
awals
:Sa ndCP2 ,
625permonthwhi
leTandI,P3,
5 0
0p er
mo nt
h.
OnJune30,2
014,Ii
nvest
enoughcashtoin
creas
eh iscapi
ta
ltoa1/3i
n t
er
esti
nthepart
ners
hip.
7
26. Ho
wmuchc
ashist
obei
nve
stb
yI?
a.P211,
165.
50 b.
P70,
000 c
.P6
32,
642
.50 d
.P6
33,
762
.50
Ab u
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lywhentheagree
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owmuchsho
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TMOSSITI nc.op
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ransact
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h
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lOMoARcPSD|4644109
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lowi
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rect
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lOMoARcPSD|4644109
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pec
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ood
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rce
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et
io
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ion
7
40. Wh
atareeq
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ale
ntuni
t
sofpr
oduct
ionf
orcon
ver
s i
onco
sts
,us
ingt
hemet
hodt
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mmi
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ethebe
gin
ninga
ndcurr
entpe
ri
odpro
duct
ionact
i
vi
ty?
a.P1 06,
525 b.
P9 6,
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000 d .P120,
000
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efo
ll
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ngi
nf
or
mat
i
oni
sav
ail
abl
efo
rJa
mesT
ayl
orCo
rp.
for
thec
urr
ent
yea
r:
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nni
ngWIP(1/
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ginn
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art
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lma
ter
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duc
ti
on
7
41. Wh
ati
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ecostas
si
gne
dtono
rmal
spo
il
ageu
sin
gwei
ght
edav
era
ge?
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,00
0 b.
P15,
500 c .P30,
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her
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ons
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ect
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ala
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ust
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omMIPacc
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ni
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l
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aisf
orth
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nt,
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bit
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h 4
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7
42. Theamoun
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ri
al
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lOMoARcPSD|4644109
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ther
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ly d.Al
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Par
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ti
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ty2 P37
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nt
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oll
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:
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meOffic
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nven
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ntor
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chwereacq
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omeoffic
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ngso
fSPIDERMANCo
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efor
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ear
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50 c .P743,
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lOMoARcPSD|4644109
Th
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ll
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ngwer
efo
undi
nyo
ure
xami
nat
i
ono
fth
ein
ter
pl
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etwe
ent
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meOffic
ean
d
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ro
nmanBr
anch
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ea mounti
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ronman
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ma n
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ronmanr
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tnot
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orytrans
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omHo meOffic
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ntheAgencybo okst
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ter
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lOMoARcPSD|4644109
7
54. Inanot
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or
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tuni
ver
si
ty
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ntgr
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ict
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