Reference no: EM133182679

Question 1 - Clark Corp had the following foreign currency transactions during 20x2:

An equipment was purchased from a Korean Company on January 30, 20x2 with Philippine peso equivalent of P100,000. The invoiced was paid on April 1, 20x2 at the Philippine peso equivalent of P110,000.

On October 1, 20x2, Clark borrowed the Philippine peso equivalent of P800,000 evidence by a 10% interest bearing promissory note that was payable in a foreign currency on October 1, 20x3. On December 31, 20x2, the Philippine peso equivalents of the principal amount and accrued interest were P810,000 and P30,000.

What is the amount of foreign exchange loss on December 31, 20x2?

a. 50,000

b. 30,000

c. 10,000

d. 40,000

Question 2 - ABC Corp reported the following liabilities in the statement of financial position:

Accounts payable 1,000,000

Accrued expenses 500,000

Bonds payable 3,000,000

Finance lease liability 4,000,000

Unearned revenue 300,000

Advances from customers 1,200,000

Estimated warranty liability 200,000

What is the total amount of monetary liability?

a. 8,500,000

b. 4,500,000

c. 8,900,000

d. 9,700,000