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Practical Application 2 Answer Key

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Practical Application 2 Answer Key

Uploaded by

anonymous.me0201
Copyright
© © All Rights Reserved
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Solution P-1

Core Company
Statement of Financial Position
As of December 31, 2023

ASSETS NOTES AMOUNT


Current Assets
Cash & Cash Equivalents 1 1,600,000.00
Financial Assets at FVTPL 2,150,000.00
Trade & Other Receivables 2 5,000,000.00
Inventories 3,700,000.00
Advertising Supplies 200,000.00
Total Current Assets 12,650,000.00

Non-Current Assets
Property, Plant and Equipment 3 15,000,000.00
Long-term Investment 1,350,000.00
Intangible Assets 1,500,000.00
Total Non-Current Assets 17,850,000.00
Total Assets 30,500,000.00

LIABILITIES
Current Liabilities
Trade & Other Payables 4 13,745,000.00
Accrued Income Taxes 955,000.00
Mortgage Payable (current) 500,000.00
Total Current Liabilities 15,200,000.00

Non-Current Liabilities
Mortgage Payable (non-current) 3,500,000.00
Total Non-Current Liabilities 3,500,000.00
Total Liabilities 18,700,000.00

SHAREHOLDERS EQUITY
Share Capital 12,000,000.00
Retained Earnings - 150,000.00
Less: Treasury Shares - 50,000.00
Total Shareholders Equity 11,800,000.00
Total Liabilities and Shareholder's Equity 30,500,000.00

Variance -
SATURNALIA Company
Notes
As of December 31, 2023

ASSETS NOTES AMOUNT


Current Assets
Cash on Hand and In Bank 1 1,600,000.00
Financial Assets at FVTPL 2,150,000.00
Accounts Receivable, gross 2 3,000,000.00
Advances to Suppliers 2 500,000.00
Deposits to Suppliers 2 1,500,000.00
Inventories 3,700,000.00
Advertising Supplies 200,000.00
Total Current Assets 12,650,000.00

Non-Current Assets
Property, Plant, and Equipment 15500000
Less: Accumulated Depreciation -500000 3 15,000,000.00
Long term investment (fund for expansion of plant) 1,350,000.00
Goodwill 1,500,000.00
Total Non-Current Assets 17,850,000.00
Total Assets 30,500,000.00

LIABILITIES
Current Liabilities
Accrued Salaries Payable 4 400,000.00
Accrued Income Taxes 955,000.00
Advances from Customers 4 200,000.00
Unearned Rent Revenues 4 445,000.00
Trade Accounts Payable 4 12,700,000.00
Mortgage Payable (current portion) 500,000.00
Total Current Liabilities 15,200,000.00

Non-Current Liabilities
Mortgage Payable (non-current) 13 3,500,000.00
Total Non-Current Liabilities 3,500,000.00
Total Liabilities 18,700,000.00

SHAREHOLDERS EQUITY
Share Capital 12,000,000.00
Retained Earnings - 150,000.00
Less: Treasury Shares - 50,000.00
Total Shareholders Equity 11,800,000.00
Total Liabilities and Shareholder's Equity 30,500,000.00

Variance -
Solution P-3

Miguel Company
Statement of Comprehensive Income
For the Year 2023

Service Revenues 16,500,000.00


Less: Cost of Services -6,500,000.00
Gross Income 10,000,000.00
Less: Operating Expenses
Depreciation Expense 2,800,000.00
Salaries Expense 3,000,000.00
Utilities Expense 950,000.00
Interest Expense 210,000.00 -6,960,000.00
Net Operating Income 3,040,000.00

Add: Other Income


Gain on Sale of Equipment 400,000.00
Interest Income 380,000.00 780,000.00
Less: Other Losses
Impairment Loss on Land 550,000.00
Loss on Sale of Machinery 750,000.00
Retirement costs arising from net actuarial losses 1,000,000.00
Share in associate's loss 450,000.00 -2,750,000.00
Net Profit 1,070,000.00

Other Comprehensive Income


Translation gain during the year 250,000.00
Share in associate's revaluation increase of PPE 200,000.00
Unrealized gain from debt securities at FVTOCI 300,000.00
Revaluation decrease on the impaired land - 1,250,000.00
Retirement costs arising from service costs - 900,000.00
Unrealized loss from equity securities at FVTOCI - 600,000.00 -2,000,000.00

Total Comprehensive Loss -930,000.00

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