CPA REVIEW SCHOOL OF THE PHILIPPINES Manila PRACTICAL ACCOUNTING I- PREWEEK LECTURE VALIX SIY VALIX FERRER 1. Joanna Company provided the following trial balance on December 31, 2014 which has been adjusted except for income tax expens?: Cash : aise 600,000 Accoumts receivable, wet | : 2,500,000 Cost inJexcess of billings on long-term contracts 1,600,000 Billings in excess of dost oa long-term contracts . Prepaid taxes 450,000 ; Property, plant ard equipment, net 1,510,000 Note pl —aoneurreni 1,520,000 + Share capitel : : "750,000 Share fremium 2,030,000 Retaindd earnings ungppropriated ‘900,009 Retaindd earnings restricted for note payable . 160,000 6,689,000 Eamings from long-term contracts ' Costs ahd expenses i2gsiu0 = T8000 ‘Thq entity used’ the percentage of completion method to aczount' for long-term construction contracts for finanefal statement and income tax purposes. All receivables on ‘the}e contracts ure considered to be coliectible within 12 months. rau #«~ a Duting 2014, estimated tax payments of ?450,000 were charged to prepaid taxes. The ity has not recorded income tax expense. There were no temporary or permanent differences, The tax rate is 30%, . , ote a8 ie . “ ae On December 31, 2014, what amount should be reported as 1. Tot retained earnings a 1,950,000 b. 2,110,000 ec. 2,400,000 d. 7,560,000 ++ ‘Total noncurrent liabilities? a. 1,620,000 b. 3,780,000 e. ,320,000 * . 4. 2,560,000 , Total current asseis? a. 5,000,000 b. 4,100,009 2, 6,700,000 4. 6,225,000 fears 5858} ‘ Y i | i Page 2 { | pany had the following iabl tes 02 December 31,2014 Jelling Com ' : Accourss payabie $5.009 Unsecured notes, Fe due 712015 400.00 Accrued expenses 38.000 Contingent liar iit 459.000 Deferved tax liaiility 35,000 1,000,000 Seniot bonds, 7°, due 331 20'S 1,000,000 lawsuit filed against 6 and has estimated that the 15,000 ‘ b. 40,000 ©. 1,490,000 4 ee . Troy Company reports operating expenses as selling all general and administeative, The adjusted nal balance at year-end incladed she following: . Accolinting ard legal foes 25,000 Advehising 150,000 Freight out 80,000 Intergst expense 70,000 Lown sale of long-term investment * 30,000 Ottickrs* sataries ' 225,000 Rent for offire space 220,000 * 140,000 Sales salaries and commissions by the salzs department, What amount should be ‘One-half of the rented premises reported as total seliing expense’? a 480,000 ». 400,000 c. 370,000 4. 360,000 , Merit Company reported the followirg information for the current year: Saleq Cost of sales ‘Administrative expenses Loss on sale of equipment Sale{ commissions Intertst revenve Freight out . Loss on enily rrtirertent of Fang-term debt Uncollectible ccvouints expense ‘The finished yoods inventory was P4U0,000 en Ianaary T and PX60,000 on December 31 ie reported as income from continuing operations? “The fax rate is 30%, What amount sheuld 2. (26,000 . 5 b. 29.500, e 410,000 d@. 147.000Page 3 ss : Pa 5. Maria Company reported that the “Revenue” section of the single step income stateinent for the current year consisted of the following: Net sales revenue 2,000,000 Loss fibm discontinued component, iuctuding loss on disposal of P12,000, of tax: benefit of P40,000 125,000 Inte Teverue 100,000 Gain op sale of equipment 50,000, Unrealized gain on available for sale financial asset. =~ 15s What fotal aaount should be reperted under the (Revenue” section of the income statement? i a. 2,275,000 . 2,400,000 ©. 2,165,000 ar zierg d. 2,150,000 6. Shanille Com:pany reported income before tax of P125,060 for 2014. The auditor questioned the following amounts that had been included in income before tax: * Unrehlized guin on available for sale investment 40,000 Equily in earnings of Cinn Company - "ve, eo a Diviflends received from Cinn Company ‘Adjustment to profit of ptior years for arithmetical erro Cy Shaylille Company owns: ao of Cinn's ‘ordinary shares, What ainount should be reported as incofne before tax for 2014? 85,000 17,000 12,000 - . 152,000 . " in depreciation -«€ (35,000) Bese 7. Carnjela Company provided the following information for the current year: Net alos . 1,800,000 Fret in 45,000 Purghase discounts + 25,000 Ending inventory 120,000 Groks margin on sales : . 40% Wont is the oF e6itof goods availabe for sala? a. | 840,000 b. | 960,000 f ec. 1,200,000 ~ - 4, [1,220,000 ‘ ‘8. Palmyra Company-has net income cf P1,100,000, a positive P100,000 net cumulative effect of alchange in accounting policy, a P300,C00 unrealized loss on available for sale securities, 4 positive P200,000 foreign. currency translation adjustment, and a P600,000 increase in share capital Whar is the coinprehensive income? 1,700,000 1,000,000 ' 1,100,000 ‘400,000 pose 5858z Page 4 A. 5. Nicole Company provided the foilowing net of tax figures for she currert year. Net remeasurement foss on defined benefit plan“ "777 300,000 Unreafed gain on available for saie ceaurties (sot c-7 WE9,590,000 Reclassification adjustment for gain on selv of available for sale securities ae included In net income” esreet ef os 250,000 Share juarrants outstanding rr?s 4 vice” bo yewctet em _ 400,000 Sic” Netingeme c vecagcek 7,700,000 What fo yretiensive income for the current year? a. 8,450,000 Bb. 8,900,000 ¢. 8,950,000 4 ee CL 10. Alyssd Company bad comprehensive inrurance policy which allows its assets to be replaced fat cugrent value. Tk policy Las P250,000 deductible clause. One of the waterfront + warehbuses was destroyed in a hailsiorra. Hailstorms occur approximately every four years. htity incurred P100,000 for dismectiing the warehouse and plans to replace it. The carrying amount of che warehouse is P1,500,000 and the replacement cost is 9.000. Woat amount of gain should be reported us a separute compenent of income xinuing operations? 5,]50,000 3,400,000 3,650,000 co) During the current year, Sunstine Corapany reported in the statement of comprehensive income P5,000 in interest revenue, P1S,000 equity in associate's earnings, and 25,000 gain on sale of available for sale securities. Assuming the sale of the securities increased the currert portion of income tax expeuse by P10,000, what is the amount of reclassification adjustfnent of otier comprehensive income? a 3,000 b. 3500 ©. 35,000 ts 4. 15,000 : John Fompany tuys ten shares uf securities at P2,009 action December 31, 2014. The securilies ore classiffed as available for sale. The entity does nol elect the fair value option for reporting available for sale seciirties. The fair value of the securities increases to 2,500 on December 31, 2015, and to P2,759 on December 31, 2016. Cn December 31, 2016, the ity /seils the securities. Assume ho dividends are paid and that the tex rate is 30%" What is the argount of the revinasification adjustment for other comprehensive income on December’ 31, 2q167 a. 7,500 » 7}s00) ; s. 5250 d. ($\250) x 5858“oD aa) fo O yop ‘ Page 5 % ee mpeny vyiea ne of securities at P1,000 eact. on January 15, 2014, The b. c fre classified as aveilable Jor sale. The fair value of the securities increases to share on December 31, 2614: The entity does not elect the fair value option for wvailable-for;sale securities. Assume no dividends are paid and that the entity hes a Tate. What" is the amount of the holding gain that is classified in other sive income? 0 1,730 : 2,500 * a. 7,5 | ie : | a y 14, Abigaill Cotnpany reported P2,450(net)of tax Gobir’ reclassification adjustment of other compr ive income*in the year the securities are sdld. The tax rate is 30%. ‘What is the gain orfioss that is included in income ftom ectinulng eperatiny before incom tax? a 2,490 loss b. 3,500 toss “ce. 2,480 gain a. it 15.0n 5 ina Company incurred a P100,0C0 net loss from disposal of a bvsiness segmerft. Also, on June 30, 2C14, the entity paid P40,000 for property taxes assessed for the * 2014, What amount should be included in the determination of net income or loss for the six- month Interim period ended June 30, 20147 pegP if 140,000 120,000 000 000 16. Correy/ Company and its divisions are engaged solely in manufacturing operations. How jnany reportable segments Hoes Correy Have? Thee ‘ eege 17. Ina Cmpany, a publicly owned entity, assesses performance and makes opera using for the reportable segments total revenue of P7,680,000 anc fit and loss of 406,000, The total profit and loss included intersegment profit othe ae ion, the entity has P5,000 of common costs for ar not reportk reviewed. by the chief operati maker. For purposes of séprfient ‘what ¢mount should bé reported as roomek cr ara 4] Pe Re ewer HS gah eement Revenue Operating profit 510 Assets 0 A 006,000, 1,750,000 « 20,000,000 B . 8,090,000" * ' 1,400,000 17,500,000 ic 6,090,000 * 1,200,000 « 12,500,000 D 3,000,000 550,000 7,300,000- E 4,250,000 - 675,000 7,000,000 F 1,500,009 225,000 3,000,000 ur ive bs fing decisions the reportable segments oss it pro .000 on fitof the reportable segments? aa 7 Narnciciy amteategie tet Hees hem ». 345,000 Re see (eer © 4lli,000 * 4. 406,000A A 18.00 comphnent’s assets. The disposal meets the Page 6 committed to a plan to dispose of a business requirements to be elassified as discontinued ions. On ft date, the entity estimated that the loss from the disposition of the assets ‘be P700,000 and the component's operating loss was P200,000. Disreganding income dd for discortinued operation for 2014? ber 1, 2014, Andrew Company ie ‘améunt of loss should be reporte 900,000 is) b& 000 ©. 10,000 a o, . c. Cy 19. Annibelte Company provided the foilewsing account balaness on December 31, 2014: Cashlinbank = * * 2,250,000 Cashlon hand —~_ . 325,000 Cashlrestricted for addition to plant expected to be disbursed in 2015 1,600,000 ‘Cashin money market account” + 750,000 biil purchased November 1, 2014 maturing January 31, 2015 3,500,000 .,000, bill purchased December 1, 2614 maturing March 31., 2015 legal ricted. as to withdrawal. What equivalents on December 31, 2014? in bank included P600,000-of, eat balance against short-term borrowing a. $225,000 b. 025,000 : c. 4,625,000 | 4. 4,625,090 ' A, 20, Popd Company had the following bank recoreiliation at March 31, 2014: Balahce per bank statement, 3/31/2014 46,500 Add! deposit in transit 10,300 T af 56,800 Less outstanding checks 12,600 Balance per book, 3/31/2014 44,200 Datd per bank for the month of Apri 2014 follow: Deppsits 58,400 Distlursements 49,700 Ail Apri the Bese feconcising items on March 31, 2014 cleared the bank in April. Outstanding checks on 30, 2014 totaled P7,000, There were uo deposits in transit on April 30, 2014. What is Jash balance per book at April 30, 20147 8,200 52,900 3,200 . * 8,500 5858E : Page 7 9,800,000 400,600 (2,490,000) 8.800.000 0,000 and charges for disbursement of P9,000,000 for July statement. All reconciliation items on June 30 cleared the bank on July 21. Checks \ding amounted to P1,000,090 on July 31% What is the amount of cash disbursements per } et ans 650,000 : 2,700,000 75,000 2,150,000 50,000 110,000 7 1 0 —]60 days outstanding 6,000,000 5% —— uncollectibie 61-120 days outstanding 4,500,000 10% —— uncollectible 4 < Over 120 days outstanding 5,000,000 1,250,000 uncollectible been written off in prior yeas. On January 1, 2014, te allowance for uncolleeible accounts was PS00,000. Under the aging method, what amount of uncollectible accounts should be reported for 2014? | 5858Page & accounts receivable , ; 930,000 ywance for uncoflectible eceounts 20,000 jim against shipper for goods lost in transit in November 2014 30,000 ing price of unsbld goods sert by Veronicg on consignment ut 130% of ‘and not included in the ending inventu.y 260,000 rity deposit on lease of warehouse used for storing inventories 300,000 as, at is the correct total of arent net receivables on December 31, 20147 1,500,006 - 3,200,000 A 25. Deka Company sells to wholesaiers on tems of 2/15, net 38, The entity has no cash sale but 50% of the customers take advantege of the discount: The entity uses the gress method of recording sales and accounts receivable. An anuiysis on December 31, 2014 zevealed the follwing: ge Amount Collectibte ols” days . 190,000 100% 16-30 davs 60,000 95% 31-60 Jays 5,000 90% Oversodays * 2,500 500 . On December 31, 2024, what amount should be reported as wllowance for discounts? a 3.000 b. 1,620 e675 €. 2,000 A 26. On Jenuary 1. 2034, Jamin Company had a credit balunce of 260,000 in the allowance for uncpllectible accounts. Based on past experience, 2% of credit sales would be uncollectible. - During the year the entity wrote off P325,000 of uncollectible accounts. Credit sales for the yeas were F9,000,090. On December 31, 2014, what amour¢ should be reported as allowance for uncollectible accounts? - a. 115,000 b. 180,000 c. 245,900 4. 440,000 B 27, Inge, Company determined that net value of “accounts receivable on December 31, 2014 based on au aging of accounts receivable was 525,000.) ‘Allowance for uncollectible accounts ~ W/ii2014 20,000 ‘Uncpilectible accounts written off during 2014 18,000 Uncpllectible accounts recovered during 2014 . ae ‘Accounts receivable on 12/31/2014. What is the uncollectible accounts expense for the current year? | a [5,000 b. 11,006 rd ce. 15,000 d. 31,006 5858be sa 3 Poge 9 cath wemange - ' f jugh Companyéfactored P600,000 of accounts receivaisle on October 1, 2014. Control by Scarbrough. The factor uccepted the accounts receivable subject to for nonpayment. The factor assessed a fer of 3% afid retains a holdback equal to 5% receivable, In wédition, thé factor cherged 15% interest computed on & average Um to sy atl ‘deys. ‘The fair value of the recourse ‘cst n'is P9,000, What frount ‘hWvas initially received? | a. $29,685 Cay eee i b. 539,685 eecaen pale i oer SAT RS eee. age . i a. 554.685 Fe ey OB aoe: oe ! B29, Diane Company purchased a P2,000,000, 3%, five-yenr note that required fiye equal annual Jd payments of P50P,90G. The note was discounted to yield 9%, \At the date of 2, the entity recorded the note ct the present value of P1,948,500. The entity did not fair value option, What is the total interest revenue eared over the life of this note? a. 504,500 towirnartene acs eed SES b, 556,000 nr .@. 809,000- ~~ i BP ee ye 4, 900,006 i (30.00 Di entity simil and amo! In addition, the bunk charged the borrower a ber 1, 2014, Czarina Company gave home Company a P200,000,|112% lvan.. The Ipaid proceeds of P194,000 after the deduction of a F600 hongfindable loan tion fee. Principal and interest nre due in sixty monthly installménts of P4,310, ing January 1, 2015. The repayments yield an effective interest rate of 13% at a value of P200,000: and 12.4% at a present valuc of P194,000. What vmount of from this loan should Money report in 20147 33, 133, 105 vs 0 ber 31, 2014, Maricsine Company received two P2,000,000 notes receivable from Cn both notes, interest is catculated on the outstanding principal balance at the rate of 3% and payable at maturity. The first note, made under customary‘trady terms; in nine months und the sefond note is due in five years. The market interest rate for notes on Degember 31, 2014 was 8%, The PV of | at 8% due in nine months is 944, [a PV.of 1. at'8% due in 5 years is .68 On Deceraber 31, 2014, what total carrying shoul’ be reported for the two notes receivable? (++: +" } 248,009 494,406 . 360,000 564,000 Jeon Bank granted a 10-yeor Joan to a borrower in the amount of P1,500,000.with stated. st rate of 6%. Payments aco due monthly and are computed te be P16,650, The bank 'P40,000 of direct loan origination cost and-P20,000 of indirect loan origination th -poinb nonrefundable loan origination “hat is the carrying amount of the loan receivabl ee ‘be zeported initially by the bank? 440,000, : Hie St the pene 480,00 $00,000 soe ‘ 520,000 * oeember 39,2014, Chang Company sold a mact 0,009. The first payment was made 6” prec 1 Page 10 i note roquiring on anual payments of P 1 date of issuance was 8%. Present value of ordinary annuity of 1 at 8% 625 67 hine ee for a noninterest= 4 or 39, 2014. The market interest rate for similar netes at Period Present valuc of | at 8% ° 0.50 w - 0.46 . ember 31, 2014, what amou, should be reported as note receivable? on a. 430,900 + b. 440,000 ' ce. 635,000 | d. 671,000 ' ” D 34.00 preset 28, 2014, Paolo Company purchased goods cesting PSC0,000. The te:ms were oo peer reatie, Some ofthe costs incured in connection wit) he sale end delivery of ‘shipping P15,000, and special handling the goods were packaging for shipment P10,000, charges P25,000, These goods were received on ‘December 31, 2014. On December 31, 2014, what] te et for these goods should be included in inventory? a. 545,000 b. 535,000 r «520,000 . 6. 500,006 © seombamay 1, 2084, Damiate Comary send steer Peet emaly cris up to $0,000 units of computer part A5n00y yurchase of 10,000 units. Daring 2014, ‘contmet, which allows the entity to SPP ipo per unit and ynarantees a wnimumn ean fA the part unerpectedly becarhe obsolete, The ently Fhad 25,000 units of this inventory on oe ae ey 2014, and believed these parts can be sold 36 Set for P20 per unit. What pectint of lose from the purchase coramitment should be reported in 2014? | ' a. 2,400,000 . 2,000,000 ~ ‘* cc, 1,600,000 4. 3,600.000 A 36. Elelia Co:opany recorded purchases at gross amount Bit decided to change to recording eS set of puschese discouts, Dienunts waioie purchases recorded. from October 1, 2014 to September 30, 2015 totaled P20,000. Of this amount, 2,000 is still available in the accounts payable. ‘The balances in the accounts as ‘of and for the year ended ‘Septésnber 30, 2015 b defore conversion ate: Purchases 1,000,000 Purchase discounts taken | 8,000 . ‘Acedunis payable 300,000 | amount sould be reported as accounts payable an September 30, 2015? a. 398,000 : . b. 12,000 «268,000 4. 482,000 5858Page 11 Farms produced $0,000 kilos of tovacco for another entity whi agreed "par a 200 en fn fr me aly whic wed le mastket prive will not fall below P79 per kilo dusing the nest two years, The conc of selling) and distributing the tobseco wre immaterial and can be reasonably estimated, The ayer 40,000 kilos atthe tuarker price of P70. The eaty sold Ue remuining 10/000 a. 2,800,000 b. 2,480,000 +c. 3,300,000 7 . 4. 3,600,000 D 28.Zoe Company, a distributor of machinery, bought a machine from the manufacturer in November 2014 for P10,000. On December 30, 2014, the entity sold this machine for P15,0p0 under the following tenns: 2% discount if paid within thirty days, 1% discount if mi Bf nun periods. However, the customer had the right to return le to resell the machine befare expiration of the ninety-day payment period, in % B39. Faith Company produces milk for sale tc loca! and national ice cream producers, The entity bbegah operation on January 1, 2014 by purchasing 650 milk cows for 6,000,000. The entity 8,000,000 ige in fair value due to growth and price changes 2,500,000 3 in fair value due to harvest 250,000 1g 2014 but not yet sold . 400,000 it amount of gain on change in fair value should be recognized for biological asset in delle Company reported during ths current year beginning inventory 500,000, net purthases P2,500,000 and net sales P3,200,(:\ A physical inventory at vear-end resulted in an fnventery of PS75,000, The gross profit on sales has remained constant at 2526. The entity ted thut some inventory may have been taken by a new employee. What is the estimated cost of missing inventory et year-end? 100,009 173,040 225,000 25,000 5858» OD ar) Page 12 C C41. Mariel Compauy used the retail. inventory method to estiraate inventory, Data relating to the , inventofy computation at the year-end are ns follows: Cost Retail Inventory, January 1 wt 700,000 3,000,000 Purch: . ‘ 4,100,000 ' + 6,300,000 ‘Net makups "700,000 ‘Net makidowns 500,000 Sales 6,600,000 Estimated normal shoplifting losses 200,000 ‘Under fhe conventionat retail niethod, what is the estimated inventory at yees-end? x 574000 avaee sorens 1P% . 540,000 Ms . 424,000 ' 4. 449,000 42. On Detember 15, 2014, Flanagan Company purchased goods costing P100,000. The term were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows: . Normal freight charge 3,009 Handlihg cost 2,000 Insuradce on shipment 500 ‘Abnorinal freight charge for express shipping 1,200 * ‘The gqods were received on December 17, 2014, Wiat is the smount that should be charged to inventory and expense respectively? & 3,000 and 3,700 b. 5,000 and 1,700 © 5,500 ana 1,200 4. 6,700 and 0 (ac Chee 43. Drew Company used the average cost inventory method for intemal reporting purposes and LIFO for financiei statement and income tax reporting. On Degember 31, 2014, the inventory ‘was P375,000 using average cost ant P320,000 using LIFO. The unadjusted credit balance in the LIFO Reserve account on December 31, 2014 was P35,000. What adjusting entry should be recorded to adjust from average cost 9 LIPO on December 31, 20147 1: a of guods sof 55,000 Inventory 55,000 , b. Cast of gods seid ~ 55,000 ° (LIFO reserve 55,000 . €. C4st of goous sold 20,000 Inventory 20,000 4. Chst of good sold 20,000 LIFO reserve 20,000 44, Here Company reported inventory on December 31, 2014 at P1,500,000 based on a physical count[priced at cost and before any necessary adjustment for the following: \dise costing P90,000, shiop=d FOB shipping point from a vendor on December 34, 2014 was received and recorded on January 5, 2015. + Gbods in the shipping area were excluded from inventory although shipment was not mde until January 4, 2015. The goods, bilied to the customer FOB shipping point on December 30, 2014, had a cost of P120,000. a | : : 5858; \ + Page 13 A A. 45. On Ocfober 20, 2014, Grimm Co. consigned forty freezers to a consignes forsale at P:0,000 ‘paid P8,000 in trnsportation cost. On December 30, 2014, the corfsignee reported } of ten freezers and remitted P85,000. The remittance was net of the agreed 15% jion, What amount should be recognized as consignment sales zevenue for 2014? gee fee = a ),000 b C00 . ee, = 89,000 on be ee d. 98,000 2 Gun ¥ 4) D. 46. Opal Gompany repoited the following items tat werent) Merchandise ont on consignment, at sales price, including 44% markup on selling price 40,000 ‘Goods purchased in transit shipped FOB shipping point 36,000 Iield on consignment by Opal Company , ¢ 27,000 By whnt amount should the inventory be reduced? 103,000 ,000 ,000 4B,000 pe sP c C) 47.0n December 31, 2014, Ait Company rrocived 505 sweuters on consignment from a Consignor, The cost fSz the sweaters was P6800 each and were priced to-sell at P1,000. The Commission on consigned goods is 19%, On December 31, 2014, five sweatets remained. On ber 31, 2074, what amount should be reported as payable foreonsigned goods? tak ome f,000 tt a 8 ee eno 400 ; ; . Ne baer 0,000 ne ° ooo ; a. b ©, 4. heae c © 48, Aloha Compuny determined the following information for the inventory at ‘year-end: * Histofical cos. 100,000 ‘Curreht replacement cost 70,000 Net rgalizable value 90,000 Net ralizable value less a normal profit margin 85,000 Fair value 95,000 “Whatlamount should be reported as inventory at yearend? 11¥V 79,000 ft 8$,000 . esP * a 8 ! a ' * 5858Page 14 49, Ashwodd Company reported accounts payable on December 31, 2014 at #900,000 before any neckssary year-end adjustments relating to the following: + Godds were in transit from a vendor to Ashwood on December 31, 2014, The invoice cost waa PS0,000, and the goods were shipped FOB shinning point on December 29, 201h, The goods were received on-Tunuary 42015. 7272" 7" go ‘© Gogds shipped FOB shipping point gn Liecember 20, 2014 fur a vendor to Ashwood ‘wer lost in transit, The invoice cos: was P25,000. On January 5, 2015, Ashwood filed a 25,000 claim agfinst the common cartier. “7t-* vrs verte We nie + Gogds shipped FOB destination on December 21, 2014,from a vendor to Ashwood vere reedived on January 6, 2015. The Invoice cost wus P15,000, ‘What amount should be reported as accounts payable on December 31, 20147 a. 925,000 a oP anes b. 949,000 ©. 954,000 d. 975,000 A S0.tyte corapany is préparing financial sintements for the year onded Desember 31, 2014. eto payable amounted to P360,000 before any necessary year-end adjustment related to Ge following: ‘+ On[December 31, 2014, Lyle has @ P50,000 debit balance in accounts payable to Ross, a, suplier, resulting froma a P50,000 advance payment for goods to be mamfactured. “i, = Checks im the amount of P100,000 were written to vendors and recorded on December . 20]2014. The checks were mailed on January 5, 20157 What amount should be reported as accounts payable on December 31, 20147 . 2. 510,000 Bavaro + Pe b. 410,000 fhe a . ©. 310,000 ase ene > 210,000 Ayr soe0u | \ 5858