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  • AFAR Ans.-1st

    Transféré par

    Myles
    10 vues9 pages
    AFAR

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    AFAR ans.-1st

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    10 vues9 pages

    AFAR Ans.-1st

    Transféré par

    Myles
    AFAR

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    Télécharger au format pdf
    sur 9
    Kass Se. A ‘The Professional CPA Review School ‘a 9g ma cae Fe ama Mana Sat hae ‘coe a easel som ere magcuganice Bt MRaucas yagway, MF GCA op, Mantge Dayne cy ‘SOREN OSS SR Rtas an TN TS ADVANCED FINANCIAL ACCOUNTING & REPORTING OCTOBER 2019 BATCH SOLUTION FARST PREBOARD EXAMINATION. wae a ans db 2188 A Apia palance of A before the admission of 700,000 (pte Paltrare n asset impairment (P500,000 x 4054) eee Sass: T's thare in bonus given By R (P200,000 x 40%) esteal Balance of 7 after the admission of R Corie eed coptal by eto the new partnership 300,000 Contributed Pia) eo min the new parinership (P3,000,000 x 20%) Paes dus given by R to the existing partners 200.900 ‘rota! contnbuted capital of all partners (P3,000,000 + P500,000) 3,500,000 rete “etal agreed capitalization of new partnership SSet impairment to Be shared by ol partners only ‘so0.a00 22/59 A Capital Balance of 8 before liquidation 650,000) ‘ado: Payable to 8 1.900.000 Gopiea Balance of 8 after the right of offset 350,000 C222 Share of B n Total Loss on Liquidation (600,000 x 109%) ‘60.000 ‘Gopitar Batance of @ ater loss on liquidation ut before absorption of A's 280,000 insolvency ce tare of 8 in A's debit capital balance (P160,000 x 1/4) Gash received by B at the end of partnership liquidation HHoncash assets, Sale price oes on sale Liquidation expenses “Total loss on lauidation Capital of A FRecetvabla ror Net capital of ‘Shere in total loss (60% x 600,000) Debit balance in capital of A 23/60 8 Capital Balance of € before liqusation 350,000 ‘dg: Payable to C Gpieal Balance of C after the right of offset 450,000, cao eat of C in Total Loss on Liquidation (600,000 x 30%) teest ar Balance of € afte loss on liquidation but before absorpten of 270,000 Xs insolvency aa ere of Cin A's debt capital balance (P160,000 x 3/4) £420,000) EES received by C at the end of partnership liquidation "150,000 24/25 B Capital Balance of © before iquidation 400,000 Cae aaenes in Total Loss in Liquidation during January (P500,000" x 20%) (100,000) ‘Coptal Balance of © afte oss on liquidation but before absorpton of As 300,000 Insolvency (ese. Share of Cin A's debit balance (P160,000 x 25) 0,000 ‘Cash received by © at the end of partnership liquidation "240,000 cash balance betore start of liquidation +800,000 fh ras om a orem se na amy (203001 4,100,000 ‘Less: Cash paid for liquidation expenses during {Cees: Gash paid for lailties to third person: {50,000 000) oo Less: Cash withela for unpaid abilities to third persons (P2,000,000 x 90%) (100.090) Lees: Caan wine for estmated future hguetng exposes Cosh avolaba or daiocton'o panners no ee eso Lose Teta capt fal partners (100.000+00 000+400,000) “ Toll oss on igudation forthe frst month of talent ‘ae CCaptal of A before iquidation 100,000 ‘Stare in ons on hquaton (50% x $00,000) «250.000 Debt balance n capa ofA a, 25/26 > Estimated future iqudating expenses on January 31,2020 180,000 ‘Aad cartying amount of renaming noneash assets on January 91,2020, (1.400.000 ~ 1100000), 400,000 \Masimum possible oss on January 31,2020 550,000 B's share in maximum possible loss (PS50,000 x 30%) 165.000 arr ¢ Cash witneld for future inuidating expenses 150,000 ‘Add: Cash wed for remaining Unpad abies to Ud pesors 1.800.000 {2,000,000 80%) ‘Tota cash withheld on January 31,2020 4.780.000 ame ¢ ‘Amount received by holder of note payable (NRV of Inventory) 250.000 Note: Oni the ot ecvae ata fetal iveriry wil be eave since there Tero avalabe net Woe aset mao “Amount received by hoe of mortgage payable (Far value of Land) 100.000 Noto: The morgage payabie wil be fly cofeciod because hs huly secured crac 29/30 8 aan 100,000 ad" Free assets rom fly secured morgage payee (P120,000-Pto0.000) _ 20.009 ‘otal Free asses for unsecured cre wih pty 720.000 [Amount received by employees for elt salary oa) Note: Since only P'120,000 free assets are avaiable, mus all be giver to employees. who are preferred over the government 30/31 8 Allocated revenue to construction of stall (P400,000 x 20/80) 180,000 ‘Standalone saling price Fraction Construction of sa "200,000 "2080 ‘Purenase of raw materate 25150 ‘Teadename 5180 xy Revenue from delivery of raw materials (P400,000 x 25/80) x 3,000/10,000, 32/33 B Revenue from use of entity's trade name (P400,000 x 6/50)/10years 33/34 34/35 36/36 36/37 (cSits incurred to aate as of Deventer 21, 2020 (140,000-680.000) Seged by total cost as of 2020 (440,000°680, 000+ 260,000) > Cash downpayment 200,000 resent value of note receivable ni Less: Direct cost of initial franchise fee 352.346 ‘Gross profit under accrual basis, ‘98.037 A 240,383 ital franchise fee revenue 90,183, Gross profit under accrual basis 188,037 (Rae: “Toterest Income for year 2028 (240,183 x 1236) 28,822 ‘Add: Contingent franchise fee revenue (P50,000 x 8%) 4,000 ttess: Indirect cost ~ Expense as incurres 22,009) Net income under accrual b 8 Costs incurred to date as of December 31, 2019 o Percentage of completion for 2019 ‘Construction revenue for year 2019 (1,000,000 x 40%) c is ‘28.850 eided by total cost as of 2019 (440,000+P660,000) i‘s00,000 Percentage of completion for 2020, ‘ose contract price Total cost 2020 Gross profit Multiply by Cumulative realized gross profit 2020 hdd’: Realized loss 2019 Realized gross profit 2020 Contract price 2019 ‘otal cost 2039 Realized loss for 2019 37/38 38/39 A Contract price as of December 32, 2020 41,500,000 Silly by percentage of completion as of December 31, 2020 xf Construction in Progress on December 31, 2020 4,200,099 ¢ Contract price 2 of 2019 1,000,000 eon Yor costs aso 2019, (800,000%250 090) ‘oso.000) ‘Gamat gross tse fr 2019 (50.000) Resizes goss oss for 2018 (a0 Realized gros profit for 2019 ise,090 Contract pce ‘eta eos 2018 (260,000 + 840,000) Agee Resized toss 2018 Camo) 39140 A ee Progress Bilings as of December 31, 2020 (P 1,000,000) x (30%+20%r40%) Cosa" Conecion m progress se see: conee Progress as of Deceriver 31,2020 (Conta incurred to ‘Soo xcoas of Progress Blings over Construction n Progress on 1231/2020 20.0001 aut 8 Cursive bitings as of December 31, 2020 (P1000 000) x(s0%20%+40%) Mobizaton fee deductble rom tt bing (P1000 000 > 5%) > 35.890 ‘Total of receivables as of December 31. 2020 (120,000+450,000+180,000) (750,000) Balance of Accounts Receivable on Gecombor 31, 2020 “ion. ana ‘Sales revenue of the branch 500,000 ost of gods sald af the branch (3000+ 100,00+250,000-50,00) (330.000) Sperating expenses ofthe branch C2990, Netincome Feported bythe branch ints separate income statement _ 130,000 an oD nding ventory ofthe home office a cost 20,000 Enalng ventory of te branch fram ctsder a cos (50,000 x 26%) 13,000 Engrg Inventory ofthe branch om home oe ast yea” a cost (50.000 x 24%) 123) 9,600 1228 ventory of he branch rom name ofe this yer at cost (50,000 x 50%) ie) 20.000 122) inventory ofthe entity combined statement of financial position 1200 oa Overtatement of beginning veto rom home oles 4900 Srerstateent of pment tng te yea (250,000 ~ 200,000) soo00 hagusted ovrvalusson f vero tom home fice e4ano Svectatement of ending nverar tm nome fice 400 Ovestatsment of cost of goods sold a0 ‘Beginning inventory from home offce (80% x 30,000) e000 (Cost (24,000 125%) 0.200 ‘Overstatement of beginning inventory from home ofice 4600 Enaing inventory from home office (74% x 50,000) 37,000 Gost (37,000 125%) ‘Gverstatement of ending inventory from home office unc ‘Acquired from Home Ofice (80% x P30,000)120% ‘Required from outsiders (20% x P30,000) 5,00 Branch inventory at cost, 12/34 asus 8 ‘Sales (74,000+22,000) Gost of goods sol ‘Shipment from Home Offes at cost ($4,0001120%) Purchases Expenses (38,000 + 12,000) Branch net income insofar as Pre CRC-ACEUAFAR, SOLUTION TO FIRST(Oct 7 (Oct 2019 batch) } 4 A Current assets Noncurrent assets at fair value Current labities affair value Noneurrent iabities Net assets of acquires at fair value ‘Shares issued at fair value (10,000 x 20) Bonds payable issued a fair (500,000 x 110%) Total consideration Net assets of acquiree at fair value Goodall, amas 8 Direct cost of business combination Indirect cost of business combination Total amount to be expensed as incurred agus c Total assets of A at carrying amount: ‘Current assets Noncurrent assets Total assets of at fair value Current assets Noneurent assets Goodwit ‘Total consolidated assets Payment for. ‘Share issuance cost Bond issue cost ‘Acquisiton related cost Indirect cost of combination ‘Total assets afer business combination 497 D Total abies ofA at carrying amount ‘Current abies Nonourrent labios “Tolal lables of B a fair value: ‘Current abies Noncurrent kabities Fair valve of Bonds payable issued (500,000 x 110%) Bond issue cost ‘Total labilties after combination sous © Jntat measurement of noncontroling interest net assets nterestn net income (320,000 x 30%) Page 6 00,000 1,300,000 (800,000), (390.000) 200,000 750,000, 700.009 40.000 1,000,000 2,000,000, 00,000 1,300,000 90,000 4,850,000, (10,000) (20,000) (40,000) *2750,000 200,000 300,000 {600,000 500,000 550,000, Pe cRC-ACE/AFAR: SOLUTION TO FIRST(Oct 2019 batch) Page Netincome reported by Entity 8 in ts separate income statenent ‘ ‘Smonzaton of unervataon of mache {60 S00M yee) (38.800) ‘ AAmortzaton of overaluaion of ventory (10.000 60°) 2.00 ' ‘Aguated net ncome of Ey & Ne ae er a prcrtge of cvrantip 4 ee ete ae Nat snes ot Enty 8— 12018 — Sfueren at rece eg. at oy ce Rarcinan ony Soe lve ose suse A ‘atncome ep by Ent Ain seperate come saat 4000000 Coron oun chase Bred Se eae ty 8 (20,000 x 79%) ( ihe) See rere ence ty 8 (136000 x70%) $00 ‘Consolidated net income attributable to parent shareholders 1,102,200 00 yin cot 2104 EF enconrteg marat ‘ean a foe Totes of aut 8 at vain So.o09 , caeeueaer ed S Reported net incurs uf Entity B 150,000 Fe enna (80014 youn) (Saeee, Se aoe a a pgeeinmey ers ey ego cscs rarer ee 5 sath lace are wa ame _.strtstst—=“CR 20ong00 Se ca yanmar oars 3 Sree Secred Eros urna 018 Sean Si sed cemings 09 December 31,2048 ame , ae 2 Sete ovonue repr y Ent for year 2020 2000000 = Sos rence bares oer ozo tense S imran saben S083 Poe Se ve sn P 2

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