1. Rudolf Company had the following items in its “Cash and cash equivalents” account as of December 31, 2022: Cash on ha
Posted: Thu May 19, 2022 3:59 pm
1. Rudolf Company had the following items in its “Cash and cash equivalents” account as of December 31, 2022:
Cash on hand
P125,000
Bank time deposit (acquired 12/30/2022; due in 2/28/2023)
150,000
Petty cash fund – including P2,550 unreplenished vouchers dated December 27-30, 2022; and P1,200 dated January 4, 2023.
10,000
Cash in foreign bank – unrestricted ($5,000; average rate – P50; closing rate – P52)
250,000
Cash restricted for additions to plant (to be disbursed in 2025)
1,200,000
Cash in bank – to be used for payment of 2023 dividends and taxes
1,380,000
How much should be reported as cash and cash equivalents as of December 31, 2022?
2. On January 1, 2022, Collide Company purchased a machine from a supplier which trade discount of 10%. An additional 4% cash discount if the account is within 30 days form the date of invoice. The machinery will be used for 6 years. Information related to this acquisition were as follows:
List price of the machine acquired
P4,000,000
Freight, unloading, and delivery charges for machinery acquired
110,000
Custom duties and other charges for machinery acquired
480,000
Allowances and hotel accommodation paid to foreign technicians during installation and test run of machine
600,000
Cost of training for personnel who will use the machine
230,000
How much is the cost of the machine?
3. The following data were taken from the accounting records of Wrecking Balls, Inc
Balance at January 1, 2022; 5,000 balls @ P20
Purchases:
January 10, 2022; 3,200 balls @ P25
January 15, 2022; 5,000 balls @ P28
Sales:
January 5, 2022; 4,500 balls
January 20, 2022; 5,200 balls
If Wrecking Ball uses a periodoc inventory system, the cost of the inventory using the periodic average cost flow assumption at January 31, 2022 is?
4. Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows:
Year
Gross Payroll
Contributions made
2021
P10,000,000
P670,000
2022
12,200,000
430,000
How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31, 2022?
Cash on hand
P125,000
Bank time deposit (acquired 12/30/2022; due in 2/28/2023)
150,000
Petty cash fund – including P2,550 unreplenished vouchers dated December 27-30, 2022; and P1,200 dated January 4, 2023.
10,000
Cash in foreign bank – unrestricted ($5,000; average rate – P50; closing rate – P52)
250,000
Cash restricted for additions to plant (to be disbursed in 2025)
1,200,000
Cash in bank – to be used for payment of 2023 dividends and taxes
1,380,000
How much should be reported as cash and cash equivalents as of December 31, 2022?
2. On January 1, 2022, Collide Company purchased a machine from a supplier which trade discount of 10%. An additional 4% cash discount if the account is within 30 days form the date of invoice. The machinery will be used for 6 years. Information related to this acquisition were as follows:
List price of the machine acquired
P4,000,000
Freight, unloading, and delivery charges for machinery acquired
110,000
Custom duties and other charges for machinery acquired
480,000
Allowances and hotel accommodation paid to foreign technicians during installation and test run of machine
600,000
Cost of training for personnel who will use the machine
230,000
How much is the cost of the machine?
3. The following data were taken from the accounting records of Wrecking Balls, Inc
Balance at January 1, 2022; 5,000 balls @ P20
Purchases:
January 10, 2022; 3,200 balls @ P25
January 15, 2022; 5,000 balls @ P28
Sales:
January 5, 2022; 4,500 balls
January 20, 2022; 5,200 balls
If Wrecking Ball uses a periodoc inventory system, the cost of the inventory using the periodic average cost flow assumption at January 31, 2022 is?
4. Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows:
Year
Gross Payroll
Contributions made
2021
P10,000,000
P670,000
2022
12,200,000
430,000
How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31, 2022?