Reference no: EM132845453
Questions -
Q1. Mayi Corporation incurs costs unevenly throughout the financial year. Advertising costs of P2,000,000 were incurred on February 28, 2020 and staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be around P30,000,000 for the year, based on sales of P300,000,000. Total sales for the quarter ending March 31, 2020 were P70,000,000.
What costs should be included for the quarter ended March 31, 2020 for advertising costs and staff bonuses, respectively?
Q2. Jupiter Company renewed its one-year insurance policy by paying P72,000 on March 1, 2021, the effective date of the policy. On March 31, 2021, the unadjusted trial balance showed a balance of P5,000 for prepaid insurance and P72,000 for insurance expense. How much is the insurance expense for the three months ended March 31, 2021?
Q3. Light is a travel agency in Makati. The agency collects cash when customers make a booking. During December, Light collected PhP1,800,000 of cash and recorded the receipt by recognizing unearned revenue. The travel agency earned 1/3 of this amount and the other 2/3 will be earned in the following year. What is the adjusting entry at December 31?
Q4. During the year 2020, Max Company's total equity increased by P320,000. New shareholder investment during the year totaled P650,000. Total revenues during the year were P5,000,000 and total expenses were P4,600,000. Cash increased by P75,000 during the year.
What amount of dividends was declared by max during the year 2020?
Q5. M Corp. reported the following liability balances on December 31, 2020:
10% note payable issued on October 1, 2019, maturing October 1, 2021 - P2,000,000
12% note payable issued on March 1, 2019, maturing on March 1, 2021 - P4,000,000
The 2020 financial statements were issued on March 31, 2021. Under the loan agreement for the 10% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2020. On March 1, 2021, the entire P4,000,000 balance of the 12% note payable was refinanced through issuance of a long-term obligations payable lump sum. How much of the notes payable should be classified as current on December 31, 2020?