Odyssey 5 - Average

Can you see this question?

• yes

• no

Merry Co. purchased a machine costing ₱125,000 for its manufacturing operations and paid shipping costs of ₱20,000. Merry spent an additional ₱10,000 in tearing and preparing the machine for use. What amount should Merry record as a cost of the machine?

• ₱ 155,000

• ₱ 145,000

• ₱ 135,000

• ₱ 125,000

On December 31, 2014, West Company had the following cash balances:

- Cash in bank 1,800,000

- Petty cash fund (all funds were reimbursed on 12/31/2014) 50,000

- Time deposit (due February 1,2015) 250,000

Cash in bank included P600,000 of compensating balance against short-term borrowing arrangement on December 31, 2014. The compensating balance is legally restricted as to withdrawal. On December 31,2014, what total amount should be reported as cash and cash equivalents?

• ₱ 1,250,000

• ₱ 1,500,000

• ₱ 2,100,000

• ₱ 1,800,000

On January 1, 2014, Case Company had 300,000 ordinary shares issued and outstanding. The entity issued a 10% stock dividend on July 1, 2014. On October 1, 2014, the entity purchased 24,000 ordinary shares for treasury and recorded the purchase by the cost method. What is the weighted average number of shares outstanding?

• 324,000

• 145,000

• 135,000

• 125,000

In preparing the bank reconciliation on December 31, 2014, Case Company provided the following data:

 Balance per bank statement 3,800,000

 Deposit in transit 520,000

 Amount erroneously credited by bank to Case's account 40,000

 Bank service charge for December 5,000

 Outstanding checks 675,000

Compute the total amount of gain to be included in gross income subject to progressive tax:

• ₱ 3,600,000

• ₱ 3,605,000

• ₱ 3,685,000

• ₱ 3,645,000

Which of the following statements is true concerning recognition of unrealized gains and losses on financial assets? (You may select more than one)

• Unrealized gains and losses on financial assets held for trading shall be included in profit or loss.

• Unrealized gains and losses on financial assets measured at amortized cost shall be included as component of other comprehensive income.