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Chin Figura - Unit IV Learning Activities
Chin Figura - Unit IV Learning Activities
Learning Activities
Directions: Read and analyze the following activity and answer what is required. Submit
your work in the pigeon boxes which are provided in your department/college, or to
google class on or before the date as reflected in your study schedule. See Rubrics in
appendix. You may also access the rubrics in the classwork section in the google
classroom.
Activity 1
Maguindanao Computer, Inc., reports the following statement of financial position
amounts as of June 30,2020
Cash P 422,500
Investment securities-trading 600,000
Trade accounts receivable 568,000
Inventories, including advertising 850,000
supplies of P20,000
2,440,500
f. Ordinary shares were originally issued for P3,910,000, but the losses of the
company for the past years were charged against share premium.
Required:
a. Based on the above information, determine the adjusted amount of the following:
Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Equity
ANSWERS:
A. 1. CURRENT ASSETS
Current asset = P2440500 includes:
Cash P 422500
Investment securities- trading 600000
Trade accounts receivable 568000
Inventories + advertising supplies of P20K 850000
Trade accounts payable includes net of P15000 which is a 6 month note received from a
supplier who purchased some used equipment on 29.06.2020.
Notes receivable P15000 shown in the current assets side of the balance sheet.
Deposit with supplier for merchandise ordered for August delivery P21500
The deposit with supplier is the advance payment made to the goods which will order in
August month and it is treated as the asset receivable and shown in current assets side of
balance sheet.
* The advertising supplies is shown separately in the current assets since the supplies which are
still not utilized is also a current asset to the company.
2. NONCURRENT ASSETS
Noncurrent asset = P6285500
Noncurrent asset includes
Property, plant and equipment = P6560000
Depreciated book value = P5490000
Deposit with supplier for merchandise ordered for August delivery = P21500
The deposit with supplier is the advance payment made to the goods which will order in
August month and it is treated as the asset receivable and shown in current assets side of
balance sheet and deducted from noncurrent asset.
Goodwill recorded in books to cancel losses incurred by the company in prior years =
P774000
The goodwill is only created for the recognition of business running in the profitable
position and not to set off the losses.
The losses incurred should be shown in equity section of balance sheet and deducted
from the retained earnings (if any) or shown in the books to set off with future profits.
3. CURRENT LIABILITIES
Current liabilities P1386000, also includes:
Payroll payable = P71500
Taxes payable = P41500
3. Rent payable = P114000
Trade accounts payable includes net of P15000 which is a 6 month note received from a
supplier who purchased some used equipment on 29.06.2020. = P999000
Notes receivable = P15000 shown in the current assets side of the balance sheet and
should not be set off against the accounts payable.
Corrected accounts payable
= P999000 + 15000
= P1014000
4. NONCURRENT LIABILITIES
5. EQUITY
B.
Assets
Cash P 422,500
Investment securities-trading 600,000
Note receivable 15,000
Accounts receivable 568,000
Inventory 830,000
Advertising supplies 20,000
Deposit with supplier 21,500
Total current assets P 2,477,000
Fixed asset
Property, plant and equipment 6,560,000
Accumulated depreciation -1,070,000 5,490,000
Total assets P 7,967,000
Liabilities
Current liability
Notes payable P 160,000
Accounts payable 1,014,000
Mortgage payable 180,000
Payroll payable 71,500
Taxes payable 41,500
Rent payable 114,000
Total current liability P 1,581,000
Long-term liabilities
Mortgage payable 720,000
Total long-term liabilities 720,000
Shareholders’ equity
Preferred stock 3,800,000
Common stock 1,600,000
Additional paid in capital 2,310,000
Deficit -2,044,000
Total Shareholders’ equity 5,666,000
Total Liabilities and Shareholders’ P 7,967,000
equity