Professional Documents
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P400,000
P600,000
P610,000
P630,000
Net Income
Dividends paid
Cost Method
P20,000
P110,000
P20,000
P50,000
Equity Method
P110,000
P110,000
P120,000
p160,000
3. Red Corporation will issue common shares with a par value P10 for the net
assets of Blue Company. Reds common stock has a current market value of
P40 per share. Blues balance sheet on the date of acquisition follow:
Current assets
P80,000
Property and Equipment
Liabilities
P320,000
880,000
400,000
Blues current assets are appraised at P400,000 and the property and
equipment was also appraised at P1,600,000. Its liabilities are fairly valued.
Accordingly, Red Corporation issued shares of its common stock with a total
market value equal to that of Blues net assets including goodwill.
To recognize goodwill of P200,000, how many shares we to be issued by Red?
a.
b.
c.
d.
45,000
40,000
50,000
55,000
4. On December 31, 2008, the pre-closing trial balance of Agency YY show the
following totals (In Millions):
Current Assets
Fixed Assets
Current Liabilities
Subsidy Income from NG
Expenses
P270
780
205
50
40
P845,000,000
P835,000,000
P855,000,000
P895,000,000
5. PX Co. had the following transactions with two subsidiaries, S1 and S2 during
2008:
Sales of P60,000 to S1, Inc., with P20,000 gross profit, S1 had P15,000 of this
inventory on hand at year end.
Purchases of raw materials totaling P240,000 from S2 Corp., a wholly-owned
subsidiary. S2s gross profit on the sale was P48,000. PX had P60,000 of this
inventory remaining on December 31, 2008.
Before eliminating entries, PX had combined current assets of P320,000.what
amount should PX report in its December 31, 2008, consolidated balance
sheet for current assets?
a.
b.
c.
d.
P320,000
P317,000
P308,000
P303,000
P350,000
420,000
520,000
In the combined income statement of the Home Office and the Branch for the
year ended December 31, 2008, what amount of the above transactions
should be included as sales?
a.
b.
c.
d.
P570,000
P520,000
P470,000
P350,000
c. P317,950
d. P326,500
8. Santa Fe Hospital, a private nonprofit hospital, had the following cash receipts
for the year ended December 31, 2008:
Patient service revenue
Gift shop revenue
Interest income restricted by donor for the
Acquisition of computer equipment
P300,000
25,000
50,000
As a result of these cash receipts, the hospitals statement of cash flows for
the year ended December 31, 2008 would report an increase in operating
activities of
a.
b.
c.
d.
P325,000
P375,000
P350,000
P400,000
P112,500
P300,000
P250,000
P187,500
10.The following data were taken from the Statement of Income and Expenses
and Comparative Balance Sheet of Department DD for the year ended
December 31, 2007 and 2008 (In Millions):
Net income over expenses
Depreciation Office Equipment
Increase in accounts payable
Increase in Withholding tax payable
Increase in Due from NGA
Increase in Supplies Inventory
What is the Net Cash Provided by Operating Activities on December 31,
2008?
a.
b.
c.
d.
P460,000,000
P480,000,000
P490,000,000
P465,000,000