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    IFS Prob1

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    happypotatoo6
    The document presents three accounting problems. The first asks how much depreciation and bonus expenses should be reported for the first six months of the year. The second asks how much bonus expense should be recognized for the first half of the year given profit information. The third asks what total expenses should be included in the quarterly income statement for the second quarter.

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    IFS Prob1

    Uploaded by

    happypotatoo6
    4 views3 pages
    The document presents three accounting problems. The first asks how much depreciation and bonus expenses should be reported for the first six months of the year. The second asks how much bonus expense should be recognized for the first half of the year given profit information. The third asks what total expenses should be included in the quarterly income statement for the second quarter.

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    BAIACC3X

    Original Title

    IFS-Prob1

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    The document presents three accounting problems. The first asks how much depreciation and bonus expenses should be reported for the first six months of the year. The second asks how much bonus expense should be recognized for the first half of the year given profit information. The third asks what total expenses should be included in the quarterly income statement for the second quarter.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4 views3 pages

    IFS Prob1

    Uploaded by

    happypotatoo6
    The document presents three accounting problems. The first asks how much depreciation and bonus expenses should be reported for the first six months of the year. The second asks how much bonus expense should be recognized for the first half of the year given profit information. The third asks what total expenses should be included in the quarterly income statement for the second quarter.

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    © All Rights Reserved
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    PROBLEMS

    A. Vim Company has estimated that total depreciation expense for the year ended December 31,
    2023 will amount to P500,000, and that 2023 year-end bonuses to employees will total P1,200,000.

    D 1. In the interim income statement for the six months ended June 30, 2023, what total
    amount of these expenses should be reported?
    a. 1,700,000 b. 1,100,000 c. 500,000 d. 850,000

    B. The terms and conditions of employment with Pauline Company include entitlement to share
    in the staff bonus system, under. which 5% of the profit for the year before charging the bonus is
    allocated to the bonus pool, proyided the annual profit exceeds P50, 000, 000.
    The profit before accrual of any bonus for the first half of the current year amounts to 40,000,000
    the profit before accrual of any bonus for the year as a whole is P60,000,000.

    C 2. What amount should be recognized as bonus expense for the first half of the current
    year?
    a. P1,500,000 b. P3,000,000 c. P2,000,000 d. P0

    C. On March 15. 2023, Rex Company paid property taxes of P600,000 on the"factory building for calendar
    year 2023. On April 1, 2023, the entity made P900,000 in unanticipated P600,000 on the"factory building
    for calendar year 2019. On ordinary repairs to eqUiprnent.

    3. What total amount of these expenses should be included in the quarterly income statement
    ending June 30, 2023?
    a. 1050000 b. 1500000 c. 450000 d. 900,000
    Solution:

    Depreciation (500,000 x 6/12) P250,00


    Bonuses (1,200,000 x 6/12) 600,000
    Total 850,000

    Solution:

    5% x P40,000,000 2,000,000

    Solution:
    Property Taxes (600,000 /4) 150,000
    Repairs 600,000
    Expenses for second quarter 750,000

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