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    Interim Financial Reporting-Assignment

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    Lourdrandal Abella
    The document presents a problem involving the calculation of expenses that should be reported in an interim income statement for the six months ended June 30, 2017. Specifically, it states that estimated depreciation expense for the full year is P500,000 and estimated year-end employee bonuses total P1,200,000. The correct answer is that P750,000 (half of the annual amounts) should be reported in the interim income statement.

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    Interim Financial Reporting-Assignment

    Uploaded by

    Lourdrandal Abella
    56 views5 pages
    The document presents a problem involving the calculation of expenses that should be reported in an interim income statement for the six months ended June 30, 2017. Specifically, it states that estimated depreciation expense for the full year is P500,000 and estimated year-end employee bonuses total P1,200,000. The correct answer is that P750,000 (half of the annual amounts) should be reported in the interim income statement.

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    The document presents a problem involving the calculation of expenses that should be reported in an interim income statement for the six months ended June 30, 2017. Specifically, it states that estimated depreciation expense for the full year is P500,000 and estimated year-end employee bonuses total P1,200,000. The correct answer is that P750,000 (half of the annual amounts) should be reported in the interim income statement.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    56 views5 pages

    Interim Financial Reporting-Assignment

    Uploaded by

    Lourdrandal Abella
    The document presents a problem involving the calculation of expenses that should be reported in an interim income statement for the six months ended June 30, 2017. Specifically, it states that estimated depreciation expense for the full year is P500,000 and estimated year-end employee bonuses total P1,200,000. The correct answer is that P750,000 (half of the annual amounts) should be reported in the interim income statement.

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    © All Rights Reserved
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    Problem 12-1 (AICPA Adapted)

    Vim Company has estimated that total depreciation


    expense
    for the year ended December 31, 2017 will amount to
    P500,000, and that 2017 year-end bonuses to employees wil
    otal P1,200,000.
    In the interim income statement for the six months ended
    June 30, 2017, what total amount of these expenses should
    be reported?
    a 1,700,000
    b. 1,100,0000
    1,450,000
    d 850,000
    he terms and
    conditions of employment with Pauline Company
    lde entitlement to share in the staff bonus system, under
    include
    which 5% of the proit for the year before charging the bonus is
    allocated to the bonus pool, provided the annual profit exceeds
    P50,000,000.
    The profit before accrual of any bonus for the first half of the
    estimate of
    current year amounts to P40,000,000 and the latest
    whole is
    the profit beforc accrual of any bonus for the year as a

    P60,000,000
    bonus expense for the
    What anmount should be recognized as

    first half of the current year?


    a. 1,500,000
    b. 3,000,000
    C. 2,000,000
    d
    Problem 12-6 (AICPA Adapted)
    On June 30, 2017, Mill Company incurred a P1,000,000 net
    loss from disposal of a business segment. Also, on June 30
    2017, the entity paid P400,000 for property taxes assessed
    for the calendar year 2017.

    What total amount should be included in the determination


    of the net income for the six-month period ended June 30
    2017?

    a. 1,400,000
    b. 1,200,000
    C. 900,000
    d. 700,000
    Bailan
    Company, a
    calendar-year entity, had the following
    ime be
    income before tax provision and effective annual tax
    rate for
    the first three quarters of the current year:

    Income before tax Tax rate

    First quarter 6,000,0000 30%


    Second quarter 7,000,000 30%
    8,000,000o 25%
    Third quarter

    in the interim income


    What is the income tax provision
    statement for the third quarter?

    a 5,250,000
    b. 1,350,000
    C. 2,400,000
    d 2,000,000
    ma
    Sigma Company has a financial reporting year that
    2017 and ends on June 30, 2018. The tax begins
    July 1, year ends
    every December 31.

    The entity reports quarterly for interim purposes and the


    quarterly income is P1,000,000 for the first quarter, P1,500,000
    for the second quarter, P2,500,000 for the third quarter and
    P4.000,000 for the fourth quarter.
    40% for 2018.
    The income tax rate is 30% for 2017 and

    for the year ended June


    What is the total income tax expense
    30, 2018?

    a. 3,350,000
    b. 2,700,000
    C. 3,600,000
    d. 3,150,000

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