Reference no: EM133187259
Questions -
Q1. On January 1, 2021, Apollo Company acquired P4,000,000 of 12% face amount bonds for P3,767,000 to be held as financial assets at amortized cost with a 14% effective yield. Interest on bonds is payable annually on December 31 and the bonds mature on January 1, 2025. The effective interest method of amortization is used. What is the carrying amount of the bond investment on December 31, 2021?
A. P4,000,000
B. P3,814,380
C. P3,719,620
D. P3,767,000
Q2. Apollo Corp. has the following investment which were held throughout 2021-2022:
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Fair Value
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Cost
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12/31/21
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12/31/22
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Trading
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P300,000
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P400,000
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P380,000
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What amount of unrealized gain or loss would Apollo Corp. report in its income statement for the year ended December 31, 2022 related to its investments?
A. P140,000 unrealized gain.
B. P20,000 unrealized loss.
C. P80,000 unrealized gain.
D. P20,000 unrealized gain.
Q3. If Apollo Company acquired a 30% interest in Twin Company on December 31, 2021 for P202,500 and during 2022 Twin Company had net income of P75,000 and paid a cash dividend of P30,000, applying the equity method would give a debit balance in the Equity Investments account at the end of 2022 of
A. P216,000.
B. P225,000.
C. P217,500.
D. P202,500.
Q4. On its December 31, 2021, statement of financial position, Apollo Co. reported its investment in equity securities at fair value through other comprehensive income, which had cost P600,000, at fair value of P550,000. At December 31, 2022, the fair value of the securities was P585,000. What should Apollo report on its 2022 income statement as a result of the increase in fair value of the investments in 2022?
A. Unrealized gain of P35,000.
B. Realized gain of P35,000.
C. Unrealized loss of P15,000.
D. P0.
Q5. Apollo Company provided the following inventory at year-end:
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Cost
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NRV
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Skis
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P2,200,000
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P2,500,000
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Boots
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1,700,000
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1,500,000
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Ski equipment
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700,000
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800,000
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Ski apparel
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400,000
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500,000
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What amount should be reported as inventory at year-end?
A. P4,800,000
B. P5,300,000
C. P5,200,000
D. P5,000,000
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What amount should be reported as basic earnings per share
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How did the change agent deal
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What is the total asset of the partnership after formation
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What is the carrying amount of the bond investment
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What amount should denmark report as retained earnings
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