1. ABC Co.
s adjusted trial balance at December 31, 2014, includes the following account balances:
What amount should ABC report as total stockholders’ equity in its December 31, 2014 balance sheet?
Solution: 600K + 800K + 350K -50K -20k = 1,680,000
The December 31, 2017, balance sheet of ABC Company, reported total assets of P1,050,000 and total
liabilities of P680,000. The following information relates to the year 2018: Compute the stockholder's
equity as of 12/31/2018.
Solution: 2017 Total Assets: 1,050,000 – Total Liabilities 680,000 = Total equity
370,000 + 125,000 -80,000 + 110,000 = 525,000
ABC Company reported the following items on its December 31, 2017, trial balance: Compute the
amount of total liabilities.
Solution: 108,900 + 28,800 + 25,800 + 555,000 – 22,500 = 696,000
The following trial balance of ABC Company on December 31, 2015 has been adjusted except for
income tax expense. The total current liabilities on December 31, 2015 should be
···/2
Solution: 7,000,000 + ( 4,800,000-1,500,000) = 10,300,000
ABC Company was incorporated on January 1, 2015, with proceeds from the issuance of P15,000,000
in ordinary share and borrowed funds of P5,000,000. During the first year of operations, revenue from
sales and consulting amounted to P20,000,000, and operating costs and expenses totaled P12,000,000.
On December 15, ABC declared a P2,000,000 cash dividend payable to stockholders on January 15,
2016. No additional activities affected owners’ equity in 2015. ABC’s liabilities increased to
P7,000,000 by December 31, 2015. On December 31, 2015 balance sheet, total assets should be
reported at?
Solution: 15,000,000 + Net Income of 8,000,000 -2,000,000 + 7,000,000 = 28,000,000
ABC Company’s December 31, 2015 balance sheet reported the following current assets: At December
31, 2015, the total current assets should be?
Solution: 3,000,000 + Adj. AR 4,900,000 + 2,000,000 + 700,000 = 10,600,000
Adj. Accounts Receivable = 4,000,000 – 300,000 + (1,500,000/1.25)
The following expenses were recognized by ABC Company, a retailer, during 2018: What should ABC
report as general and administrative expenses for 2018
Solution: 74,000 + 115,000 + 95,000 = 284,000
ABC Company prepared a draft of its 2017 balance sheet. The draft statement reported current
liabilities totaling P200,000. However, none of the following items were included in this preliminary
total at December 31, 2017: Compute the correct amount of current liabilities as of 12/31/2017.
Solution: 200,000 (draft) + 30,000 + 50,000 – 6,000 + 16,000 =290,000
The accounts and balances shown below were gathered from ABC Company's trial balance on
December 31, 2007. All adjusting entries have been made. The amount that should be reported as
current assets is?
Solution: 17,700 + 13,600 + 81,800 + 15,200 + 36,600 = 164,900
ABC Company as of December 31, 2006 provided the following balances (see pic below): Current
assets is?
Solution: Cash (50k+5k) 55,000 + Trading Sec. (Fair Value) 19,000 + Receivables
(30k+4k) 34,000 + Inventory (60k-5k) 55,000 + Prepayments (10k-2k) 8,000 +
Suppliers’ debit balance 6,000 = 177,000
The general ledger trial balance of ABC Company includes the following statement of financial
position accounts at December 31, 2010: Compute the current assets to be reported as of 12/31/2010.
Solution: 110,000 + 120,000 + 8,000 + 20,000 + 30,000 = 288,000
ABC Company had the following information in relation to its inventory accounts in 2006 (see pic
below ): Total manufacturing cost is
Solution: Raw Material 140,000 + Direct LC 60,000 + Factory OH 55,000 = 255,000
Raw Materials = Purchases 150,000 + Freight In 4,000 – Ending Raw Mat. 14,000
Factory Overhead = Indirect LC 30,000 + Taxes and Depreciation on factory 10,000 +
Utilities on factory (25,000 * 0.60)
ABC Company reported the following changes during the current year (see pic below). Net income for
the year is?
Solution: 400,000 + 300,000 -50,000 – 150,000 – 50,000 + 1,000,000-100,000-
80,000+100,000-10,000 = 1,360,000 Net Increase for Capital
1,360,000 + 30,000 (decrease in capital) + 50,000 (decrease in capital, dividend
declaration) – (120,000 + 60,000) = Net Income of 1,260,000
The accounts shown below appear in the December 31, 2018 trial balance of ABC Corporation. How
much is the total shareholder's equity of the Corporation? Assuming that all subscription receivables
are due in the year 2019.
Solution: 10,000,000 – 3,600,000 +4,000,000 -2,000,000 -380,000 – 360,000 +
600,000 + 440,000 – 1,360,000 + 2,000,000 + 1,700,000 = 11,040,000
ABC Company as of December 31, 2006 provided the following balances (see pic below): Current
liabilities is?
Solution: Overdraft 5,000 + Customer credit balance 4,000 + Accounts Payable
(45k+6k) 51,000 + Notes payable matured 50,000 + ITP 40,000 = 150,000
ABC Company had the following information in relation to its inventory accounts in 2006 (see pic
below ): Cost of goods sold for the year is
Solution: Total Manufacturing Cost 255,000 (solved at previous problem) – increase
in Work in process 24,000 = Cost of Goods Manufactured 231,000
COGM 231,000 + Decrease in Finished goods 33,500 = Cost of Goods Sold 264,500
