FAR 02
MCQ Theories
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
C
A
C
D
D
A
B
D
D
B
C
B
E
B
D
D
C
E
FAR 03
FAR 04
FAR 05 – INVENTORIES
Exercies:
#8
Jan 1, 2021 – NJE
Dec. 31, 2021 – Dr. Loss on PC Cr. Est. Liab on PC P400K
April 1, 2022 – Dr. Inventories/Purchases P1120K; Est Liab. P400K Cr. Cash/AP P1200K; Gain on PC P320K
#9
FAR 27
Exercises:
#1
1.Contributed Capital
Premium
OSC
2.Legal Capital
1600K
1,600K
Additional Paid-in Cap. – OS
400K
400K
OS – Subscribed
600K
600K
2400K
2400K
PSC
3.Share
400K
SP – PS
800K
PS – Subscribed
600K
Subs. Rec. – LT
(440K)
OS share div. pay.
700K
OSWO
240K
240K
BCP
240K
240K
OSOO
170K
170K
Gain on sale – TS
360K
360K
Donated Cap
300K
Total
7970K
4. Unappropriated RE
1500K
Unrecorded Div. (P3 X 107,000 SHS)
(321K)
App. For T.S (3,000 SHS X P40)
(120K)
Unappropriated RE
1059K
5. Total SP
2510K
Appropriations (160K + 660K + 120K)
940K
OCI/OCL ( 280K-330K-560K-280K+380K) (510K)
800K
600K
700K
300K
6300K
2510K
Total Reserves
2940K
6. Contributed Capital
7970K
R.E. Unapp
1059K
R.E. App
940K
Acc. OCI/OCL
(510K)
Less: Discunt on S.C.
(100K)
T.S.
(120K)
Total SHE
9239K
FAR 29
EXERCISES
#1
#2
#3
#4
#6
#7 ITIM CORP.
2020 (500 employees X 100 SARs X P15 X 1/3) = P250,000 2020 Comp. Exp.
2021 (500 employees X 100 SARs X P18 X 2/3) = P600,000 – cumulative comp exp.; 600k-250k = 350K 2021 Comp. Exp.
2022 (400 employees X 100 SARs X P20 X 3/3) = P800,000 – cumulative comp. exp.; 800k-600k = 200k +
150k = 350k - 2022 Comp. Exp. (recognition of accrued salaries)
(100 employees X 100 SARs X P15) = P150,000 (payment of accrued salaries)
2023 (150 employees X 100 SARs X 3/3) = 315,000 – cumulative comp. exp.; 315k-800k = (485k) + 500k =
15k – 2023 Comp. Exp. (recognition of accrued salaries)
(250 employees X 100 SARs X P20) = P500,000 (payment of accrued salaries)
2024 (150 Employees X 100 SARs X P25 - P21) = P60,000 2024 Comp. Exp.
#8 AZUL CORP.
2014 ( 1 Employee X 10,000 SARs X (P118 – P100) X 1/3) = 60,000
2015 ( 1 Employee X 10,000 SARs X (P112 – P100) X 2/3) = 80,000; 80K – 60K = 20K; 2015 Comp. Exp.
2016 ( 1 Employee X 10,000 SARs X (P124 – P100) X 3/3) = 240,000; 240K – 80K; 2016 Comp. Exp.
#9 PUTI CORP.
Requirement 1
2018
ES (7,200 X 1/3) = 2,400
CS (1,000 SHs X P72 X 1/3) = 24,000
2019
ES (7,200 X 2/3) = 4,800
CS (1,000 SHs X P78 X 2/3) = 52,000
2020
ES (7,200 X 3/3) = 7,200
CS ( 1,000 SHs X P81 X 3/3) = 81,000
Requirement 2: Journal Entries
Equity
OSOO
7,200
Accrued Salaries
81,000
Share Capital ( 1,200 Shs X 10) 12,000
Share Premium
76,200
Cash Alternative
OSOO
7,200
Accrued Salaries
81,000
MCQ
Cash
81,000
Share Premium
7,200
1.