Reference no: EM132619203
Questions -
Q1. On January 1, 2020, MJE Company acquired 300,000 ordinary shares (equivalent to 20% of the total ordinary shares ) of La Salle Company for P9,000,000. MJE holds a significant influence over the investee. The following events took place:
La Salle Company reported net income of P3,800,000 for the calendar year 2020.
MJE received from La Salle Company a dividend of P.50 per ordinary share.
The market value of La Salle Company shared had increased to P32 per share.
What is the Investment in Associate Balance on December 31, 2020?
A. 9,600,000
B. 9,000,000
C. 9,610,000
D. 9,760,000
Q2. CLOY company conducted a physical count on December 31, 2020 which revealed with an inventory cost of P4,510,000. The following transactions revealed to be excluded from the count:
Merchandise costing P480,000 was shipped by CLOY , FOB Destination to a customer on December 31, 2020. Expected to receive the goods by customer on January 5, 2021.
Merchandise of P710,000 was shipped to KDrama Co. for consignment on December 28, 2020. The items are still unsold as of December 31, 2020.
Merchandise costing P560,000 was shipped by CLOY , FOB Shipping point to a customer on December 29, 2020. The customer expected to receive the goods on January 5, 2021.
Merchandise costing P830,000 shipped by a vendor , FOB Destination on December 31,2020. It was received by CLOY on January 5, 2021.
Merchandise costing P610,000 purchased FOB Shipping point was shipped by the supplier on December 31,2020 and received by CLOY on January 5, 20201.
What is the correct amount of inventory on December 31, 2020?
A. 6,310,000
B. 6,160,000
C. 5,600,000
D. 6,430,000
Q3. MJE Company asks you to review its December 31, 2020, inventory values and prepare the necessary adjustments to the books. MJE uses the periodic method of recording inventory. A physical count reveals P234,890 of inventory on hand at December 31, 2020. The following information is given to you:
Not included in the physical count of inventory is P13,420 of merchandise purchased on December 15 from Broskie. This merchandise was shipped F.O.B shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31.
Included in inventory is merchandise sold to JBE on December 30, F.O.B destination. This merchandise was shipped after it was counted. The merchandise cost P7,350, and JBE received it on January 3.
Included in inventory was merchandise received from Dudley on December 31 with an invoice price of P15,630. The merchandise was shipped F.O.B. destination.
Not included in inventory is P8,540 of merchandise purchased from Glower Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.
Included in inventory was P10,438 of inventory held by MJE on consignment from JCruz Industries.
Included in inventory is merchandise sold to Kemp F.O.B shipping point. This merchandise was shipped after it was counted. The cost of this merchandise was P10,520, and Kemp received the merchandise on January 5.
What is the correct amount of inventory?
A. 235,892
B. 246,330
C. 223.350
D. 212,912
Q4. The Moss Company presents the following data for 2020.
Net Sales, 2020 P3,007,124
Net Sales, 2019 930,247
Cost of Goods Sold, 2020 2,000,326
Cost of Goods Sold, 2019 1,000,120
Inventory, beginning of 2020 341,169
Inventory, end of 2020 376,526
The merchandise inventory turnover for 2020 is:
A. 7.5
B. 5.6
C. 7.7
D. 15.6