QUESTIONS: Based on the given information and the result of your audit, determine the adjusted amount of the following as of Dec. 31, 2022 (Input your answers in figures, do not put peso sign, comma, decimals or extra spaces): Cash and cash equivalents Trade and other receivables Inventories
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Problem No. 9
Presented below is the Assets section of AACA Corp.’s statement of financial position as of Dec. 31, 2022.
|
Cash and cash equivalents |
P2,100,000 |
|
Trade and other receivables |
4,200,000 |
|
Inventories |
5,300,000 |
|
Other current assets |
500,000 |
|
Property, plant and equipment |
7,710,000 |
|
Intangible assets |
2,271,000 |
|
Other non-current assets |
700,000 |
During the course of your audit, you noted the following.
Cash and cash equivalents
The following were included in Cash and cash equivalents:
- Credit card receipts representing sales on Dec. 31, 2022, P98,900.
- Cryptocurrencies, P360,000. These are not held for sale in the ordinary course of business nor for investment purposes.
- Cash set aside for payment of income tax, P140,000.
- Cash surrender value of life insurance policy, P33,000.
- Investment in
preference shares acquired on Dec. 28, 2022, P240,000. The shares are redeemable on Mar. 28, 2023. - 6-month time deposit, P100,000.
- Customer’s check for P65,000 dated Jan. 2, 2023, received on December 29, 2022.
- Customer’s NSF check, P20,000.
Inventories
The following were included in Inventories:
- Equipment held for sale in accordance with PFRS 5, at carrying amount, P52,000. Fair value less costs to sell, P48,000.
- Goods held on consignment, P36,000.
- Goods out on consignment, P75,000.
- Goods in transit to customers (shipped FOB seller), P78,800. The related sales on account at 20% above cost was recorded in 2023.
- Goods in transit to customers (shipped FOB buyer), P73,000. The related sales on account of P87,600 recorded in 2023.
- Office supplies, P12,000.
Property, plant and equipment
This line item includes the following:
|
Head office building |
P2,020,000 |
|
Factory building |
1,450,000 |
|
Store building |
920,000 |
|
Building occupied by employees |
870,000 |
|
Land held for a currently undetermined future use |
1,100,000 |
|
Delivery vehicles |
830,000 |
|
Equipment for rental to others under operating leases |
240,000 |
|
Bearer plants |
380,000 |
|
P7,610,000 |
- The entity uses the cost model for all items of property, plant and equipment.
- The employees pay rent at market rates.
- Fair value less costs to sell of bearer plants, P460,000.
Intangible assets
This line item includes the following:
|
Patents |
P350,000 |
|
Trademarks |
460,000 |
|
Costs of training employees |
280,000 |
|
Research and development costs |
880,000 |
|
Organization costs |
311,000 |
|
P2,281,000 |
- The costs of training employees resulted in a team of skilled staff.
- The entity cannot distinguish the research phase from the development phase of its project to create an intangible asset.
QUESTIONS:
Based on the given information and the result of your audit, determine the adjusted amount of the following as of Dec. 31, 2022 (Input your answers in figures, do not put peso sign, comma, decimals or extra spaces):
- Cash and cash equivalents
- Trade and other receivables
- Inventories
- Property, plant and equipment
- Intangible assets
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