1.ois, an employee, has two (2) health insurances provided under his employment contract:(1) Ehiltealth: (2) Care Bear Co. Each of the insurance states clearly the types of insured sicknesses, theaccredited hospitals, where the insurances are applicable, the amounts of indemnification in cases ofsickness, and all other relevantinformation.A year later, Junie had an ilness covered under both of uois's health insurance. The accredited hospitalbilled Junie a total of P100,000, P40,000 of which is covered by Philtealth, and Care Bear Co. covered theremaining. How much is the total insurance accounted in this case?2.Hermes Co., a private company, enters into a service concession arrangement whereby Hermesundertakes to build an airport for the government with a completion period of two (2) years, operateand maintain the airport for eight (8) years after completion, and transfer the airport to thegovernment at the end of Year 10. In exchange, the government pays Hermes Co. P300 million per yearin years 3 to 10. Hermes Co. makes the following estimates atthe contract inception:YearContract costsStand-alone Selling PriceConstruction service 1P400 millionForecast cost + 30%2P400 millionForecast cost + 30%Operation services3-10P10 millionForecast cost + 10%Compute for:a. Total transaction priceb. Carrying amount of the asset recognized on the contract atthe end of year 3c. interest income over the term of the contract3.The home office of Mang Do Co. ships goods to iloilo branch biling the branch for the goods atPa5,000, excluding freight of P6,000. Upon receipt of the goods, lolo branch was instructed by thehome office to transfer these goods to cagayan de Oro branch. Iloilo branchships the goods and paidP4,500 for the transfer. If the goods had been shipped by the home office directly to cagayan de Orobranch, the freight would have been P5,500-What is the journal entry to record receipt of shipment in the books of Cagayan de Oro branch? 4.The National Home Company ships and bills merchandise to its provincial branch at cost. Thebranch carries its own accounts receivable and make its own collections. The branch also pays itsexpenses. The transactions for 2009 are reflected in the branch trial balance that follows:DebitCreditCash11,900Nation Home Co current90,000Shipments from Nation Home Co,120,000Accounts Receivable62, 500Expenses8,100Sales112.500December 31 InventoryP30,000The net profit of the branch was?In the home office books, the Branch Current account should be?5.Makati co. bills its valenzuela branch for merchandise at 140% of cost. At the end ofianuary2020, the branch reported the following information:Merchandise from Home office(at billed price)Inventory, January 17,560Shipments received28,280Inventory, January 318,400What should be the balance of the allowance account for overvaluation of the branch inventoryatJanuary 31?

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der both of aunisca health insurance. The acoredited hospital which is covered by Bbilsealth, and Care bear Co. covered the accounted in this case? ters into a service concession arrangement whereby Hermes nment with a completion period of two (2) years, operate after completion, and transfer the airport to the nge, the government pays Hermes Co. P300 million per year wing estimates atthe contract inception: ntract costs Stand-alone Seling Price

der both of aunisca health insurance. The acoredited hospital which is covered by Bbilsealth, and Care bear Co. covered the accounted in this case? ters into a service concession arrangement whereby Hermes nment with a completion period of two (2) years, operate after completion, and transfer the airport to the nge, the government pays Hermes Co. P300 million per year wing estimates atthe contract inception: ntract costs Stand-alone Seling Price

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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