AUDITING PROBLEMS

PROBLEM NO. 1 You are engaged in the regular annual examination of the accounts and
records of PRTC Manufacturing Co. for the year ended December 31, 2012. To reduce
the workload at year end, the company, upon your recommendation, took its annual
physical inventory on November 30, 2012. You observed the taking of the inventory
and made tests of the inventory count and the inventory records. The company’s
inventory account, which includes raw materials and work -in-process is on
perpetual basis. Inventories are valued at cost, first-in, first-out method. There
is no finished goods inventory. The company’s physical inventory revealed that the
book inventory of P1,695,960 was understated by P84,000. To avoid delay in
completing its monthly financial statements, the company decided not to adjust the
book inventory until year-end except for obsolete inventory items. Your examination
disclosed the following information regarding the November 30 inventory: a. Pricing
tests showed that the physical inventory was overstated by P61,600. b. c. An
understatement of the physical inventory by P4,200 due to errors in footings and
extensions. Direct labor included in the inventory amounted to P280,000. Overhead
was included at the rate of 200% of direct labor. You have ascertained that the
amount of direct labor was correct and that the overhead rate was proper. The
physical inventory included obsolete materials with a total cost of P7,000. During
December, the obsolete materials were written off by a charge to cost of sales.

d.

Your audit also disclosed the following information about the December 31
inventory: a. Total debits to the following accounts during December were: Cost of
sales P1,920,800 Direct labor 338,800 Purchases 691,600 The cost of sales of
P1,920,800 included direct labor of P386,400.

b.

QUESTIONS: Based on the above and the result of your audit, determine the
following: 1. Adjusted amount of physical inventory at November 30, 2012 a.
P1,715,560 c. P1,845,760 b. P1,631,560 d. P1,722,560 Adjusted amount of inventory
at December 31, 2012 a. P1,509,760 c. P1,502,760 b. P1,516,760 d. P1,425,760 Cost
of materials on hand, and materials included in work in process as of December 31,
2012 a. P819,560 c. P728,560 b. P812,560 d. P942,760 The amount of direct labor
included in work in process as of December 31, 2012 a. P618,800 c. P338,800 b.
P232,400 d. P386,400 The amount of factory overhead included in work in process as
of December 31, 2012 a. P 772,800 c. P464,800 b. P1,237,600 d. P777,600

2.

3.

4.

5.
PROBLEM NO. 2 PRTC Company's property, plant, and equipment, accumulated
depreciation, and amortization balances at December 31, 2011 are: Accumulated
depreciation P 672,900 367,500 114,326 108,000 P1,262,726

Land Buildings Machinery and equipment Automobile and trucks Leasehold improvements
Totals

Cost P 275,000 2,800,000 1,380,000 210,000 432,000 P5,097,000

Additional information on depreciation, amortization methods, and useful lives

follows: Depreciation method 150%-decliningbalance straight-line 150%-
decliningbalance straight-line

Asset Buildings Machinery and equipment Automobile and trucks (all acquired after
2009) Leasehold improvements

Useful life 25 years. 10 years 5 years

Depreciation is computed to the nearest month. Salvage values of depreciable assets

are immaterial except for automobiles and trucks which have estimated salvage
values equal to 15% of cost. Other additional information:  PRTC entered into a
twelve-year operating lease starting January 1, 2009. The leasehold improvements
were completed on December 31, 2008 and the facility was occupied on January 1,
2009.  On January 6, 2012, PRTC completed its self-construction of a building on
its own land. Direct costs of construction were P1,095,000. Construction of the
building required 15,000 direct labor hours. PRTC's construction department has an
overhead allocation system for outside jobs based on an activity denominator of
100,000 direct labor hours, budgeted fixed costs of P2,500,000, and budgeted
variable costs of P27 per direct labor hour. On July 1, 2012, machinery and
equipment were purchased at a total invoice cost of P325,000. Additional costs of
P23,000 to rectify damage on delivery and P18,000 for concrete embedding of
machinery were incurred. A wall had to be demolished to enable a large machine to
be moved into the plant. The wall demolition cost P7,000, and rebuilding of the
wall cost P19,000. On August 30, 2012, PRTC purchased a new automobile costing
P25,000. On September 30, 2012, a truck with a cost of P48,000 and a carrying
amount of P30,000 on December 31, 2011 was sold for P23,500. On November 4, 2012,
PRTC purchased a tract of land for investment purposes for P700,000. PRTC thinks it
might use the land as a potential future building site. On December 20, 2012, a
machine with a cost of P17,000, a carrying amount of P2,975 on date of disposition,
and a market value of P4,000 was sold to a corporate officer.

   
QUESTIONS: Based on the above and the result of your audit, compute for the
following as of and for the year ended December 31, 2012: 6. Total depreciation a.
P460,228 b. P462,678 Carrying amount of buildings a. P3,409,474 b. P3,761,974

c. P470,528 d. P461,528

7.

c. P3,028,774 d. P3,381,274

8.

Carrying amount of machinery and equipment a. P1,197,375 c. P1,243,925 b.

P1,180,275 d. P1,222,075 Carrying amount of automobiles and trucks a. P68,472 b.
P59,472

9.

c. P61,722 d. P52,722

10. Carrying amount of property, plant and equipment a. P5,637,371 c. P5,615,521 b.

P5,608,771 d. P5,590,821 PROBLEM NO. 3 You noted the following items relative to
the company’s Intangible assets in connection with your audit of the PRTC
Corporation’s financial statements for the year 2012. Franchise On January 1, 2012,
PRTC signed an agreement to operate as franchisee of Clear Copy Service, Inc. for
an initial franchise of P680,000. Of this amount, P200,000 was paid when the
agreement was signed and the balance was payable in four annual payments of
P120,000 each, beginning January 1, 2013. The agreement provides that the down
payment is not refundable and no future services are required of the franchisor.
The implicit rate for loan of this type is 14%. The agreement also provides the 5%
of the revenue from the franchise must be paid to the franchisor annually. PRTC’s
revenue from the franchise for 2012 was P8,000,000. PRTC estimates the useful life
of the franchise to be ten years. Patent On July 1, 2012, PRTC purchased a patent
from the inventor, who asked P1,100,000 for it. PRTC paid for the patent as
follows: cash, P400,000; issuance of 10,000 shares of its own ordinary shares, par
P10 (market value, P20 per share); and a note payable due at the end of three
years, face amount, P500,000, noninterest-bearing. The current interest rate for
this type of financing is 12 percent. PRTC estimates the useful life of the patent
to be ten years. Trademark PRTC purchased for P1,200,000 a trademark for a very
successful soft drink it markets under the name POWER!. The trademark was
determined to have an indefinite life. A competitor recently introduced a product
that is in direct competition with the POWER! product, thus suggesting the need for
an impairment test. Data gathered by the entity suggests that the useful life of
the trademark is still indefinite, but the cash flows expected to be generated by
the trademark have been reduced either to P40,000 per year (with a probability of
70%) or to P80,000 per year (with 30% probability). The appropriate risk-free
interest rate is 5%. The appropriate riskadjusted interest rate is 10%.
QUESTIONS: Based on the above and the result of your audit, determine the
following: (Round off present value factors to 4 decimal places) 11. Total expenses
related to franchise in 2012 a. P503,914 b. P535,200

c. P448,950 d. P454,964

12. Carrying amount of franchise as of December 31, 2012 a. P549,644 c. P538,733 b.

P494,680 d. P612,000 13. Carrying amount of patent as of December 31, 2012 a.
P1,045,000 c. P860,310 b. P 955,900 d. P908,105 14. Total expenses related to the
intangible assets in 2012 a. P662,759 c. P733,063 b. P711,709 d. P802,212 15. In
auditing intangible assets, an auditor most likely would review or recompute
amortization and determine whether the amortization period is reasonable in support
of management’s financial statement assertion of a. Valuation. c. Completeness. b.
Existence or occurrence. d. Rights. PROBLEM NO. 4 You are conducting an audit of
the PRTC Company for the year ended December 31, 2012. The internal control
procedures surrounding cash transactions were not adequate. The bookkeeper-cashier
handles cash receipts, maintains accounting records, and prepares the monthly bank
reconciliations. The bookkeeper-cashier prepared the following reconciliation at
the end of the year:

Balance per bank statement Add: Deposit in transit Note collected by bank Total
Less outstanding checks Balance per general ledger

P350,000 P175,250 15,000 190,250 540,250 246,750 P293,500

In the process of your audit, you gathered the following:    At December 31,
2012, the bank statement and general ledger showed balances of P350,000 and
P293,500, respectively. The cut-off bank statement showed a bank charge on January
2, 2013 for P30,000 representing correction of an erroneous bank credit. Included
in the list of outstanding checks were the following: a. A check payable to a
supplier, dated December 29, 2012, in the amount of P14,750, released on January 5,
2013. b. A check representing advance payment to a supplier in the amount of
P37,210, the date of which is January 4, 2013, and released in December, 2012. On
December 31, 2012, the company received and recorded customer’s postdated check
amounting to P50,000.


QUESTIONS: Based on the above and the result of your audit, answer the following:
16. The adjusted deposit in transit as at December 31, 2012 is a. P175,250 c.
P225,250 b. P125,250 d. P125,000 17. The adjusted outstanding checks as at December
31, 2012 is a. P298,710 c. P209,540 b. P232,000 d. P194,790 18. The adjusted cash
to be presented in the statement of financial position at December 31, 2012 is a.
P235,460 c. P265,460 b. P250,460 d. P310,460 19. The cash shortage as of December
31, 2012 is a. P45,000 c. P60,000 b. P58,040 d. P 8,040 20. The net adjustment to
the cash account as of December 31, 2012 is a. P43,040 c. P58,040 b. P60,000 d.
P45,000 PROBLEM NO. 5 On January 1, 2012, PRTC Company sold land that originally
cost P400,000 to Buyer Company. As payment, Buyer gave PRTC Company a P600,000
note. The note bears an interest rate of 4% and is to be repaid in three annual
installments of P200,000 (plus interest on the outstanding balance). The first
payment is due on December 31, 2012. The market price of the land is not reliably
determinable. The prevailing rate of interest for notes of this type is 14% on
January 1, 2012 and 15% on December 31, 2012. PRTC made the following journal
entries in relation to the sale of land and the related note receivable: January 1,
2012 Notes receivable Land Gain on sale of land December 31, 2012 Cash Notes
receivable Interest income P224,000 P200,000 24,000 P600,000 P400,000 200,000

PRTC reported the notes receivable in its statement of financial position at

December 31, 2012 as part of trade and other receivables. QUESTIONS: Based on the
above and the result of your audit, answer the following: 21. The correct gain on
sale of land is a. P103,105 b. P 94,868 22. Profit for 2012 is overstated by a.
P50,460 b. P31,130

c. P120,061 d. P200,000

c. P54,902 d. P 0
23. The entity’s working capital at December 31, 2012 is overstated by a. P235,765
c. P182,476 b. P232,936 d. P 0 24. All of the following are examples of substantive
tests to verify valuation of net accounts receivable except the a. Re-computation
of the allowance for bad debts. b. Inspection of accounts for current versus non-
current status in the statement of financial position. c. Inspection of the aging
schedule and credit records of past due accounts. d. Comparison of the allowance
for bad debts with past records. 25. Confirmation, which is a specific type of
inquiry, is the process of obtaining a representation of information or of an
existing condition directly from a third party. Two assertions for which
confirmation of accounts receivable balances provides primary evidence are a.
Completeness and valuation b. Rights and obligations and existence c. Valuation and
rights and obligations d. Existence and completeness PROBLEM NO. 6 You were engaged
by PRTC Corporation, a small and medium-sized entity, to audit its financial
statements for the year 2012. During the course of your audit, you noted the
following regarding its recent acquisitions of investments in equity securities: a)
On 1 January 2012 the entity acquired 25 per cent of the equity of each of entities
B, C and D for P10 million, P15 million and P28 million respectively. Transaction
costs of 1 per cent of the purchase price of the shares were incurred by the
entity.

b) On 2 January 2012 entity B declared and paid dividends of P1 million for the
year ended 2011. c) On 31 December 2012 entity C declared a dividend of P8 million
for the year ended 2012. The dividend declared by entity C was paid in 2013.

d) For the year ended 31 December 2012, entities B and C recognized profit of
respectively P5 million and P18 million. However, entity D recognized a loss of P20
million for that year. e) Published price quotations do not exist for the shares of
entities B, C and D. Using appropriate valuation techniques the entity determined
the fair value of its investments in entities B, C and D at 31 December 2012 as P13
million, P29 million and P15 million respectively. Costs to sell are estimated at 5
per cent of the fair value of the investments. f) The entity has no subsidiaries
and therefore does not produce consolidated financial statements.

In accordance with section 14.4 of the PFRS for SMEs, an investor shall account for
all of its investments in associates using one of the following: (a) the cost model
in paragraph 14.5, (b) the equity method in paragraph 14.8, or (c) the fair value
model in paragraph 14.9. The entity is seeking your advice on the effect of each
method on the carrying amount of the investment and its effect on profit or loss.
QUESTIONS: Based on the above and the result of your audit, answer the following as
of and for the year ended December 31, 2012: 26. If the entity measures its
investments in associates using the cost model, the total carrying amount of the
investments should be a. P40.25 million c. P39.25 million b. P53.28 million d.
P39.50 million 27. If the entity measures its investments in associates using the
cost model, the net amount to be recognized in profit or loss should be a. P(11.78)
million c. P(11.03) million b. P(12.03) million d. P 2.25 million
28. If the entity measures its investments in associates using the equity method,
the total carrying amount of the investments should be a. P52.03 million c. P42.75
million b. P43.00 million d. P43.75 million 29. If the entity measures its
investments in associates using the equity method, the net amount to be recognized
in profit or loss should be a. P(8.28) million c. P(7.53) million b. P(8.53)
million d. P0.75 million 30. If the entity measures its investments in associates
using the fair value model, the net amount to be recognized in profit or loss
should be a. P5.72 million c. P2.87 million b. P5.47 million d. P4.00 million
PROBLEM NO. 7 PRTC Corporation is selling audio and video appliances. The company’s
fiscal year ends on March 31. The following information relates to the obligations
of the company as of March 31, 2012: Notes payable PRTC has signed several notes
with financial institutions. The maturities of these notes are given below. The
total unpaid interest for all of these notes amounts to P340,000 on March 31, 2012.
Due date April 31, 2012 July 31, 2012 February 1, 2013 April 30, 2013 June 30, 2013
Amount P 700,000 900,000 800,000 1,200,000 1,500,000 P 5,100,000

Estimated warranties PRTC has a one-year product warranty on some selected items.
The estimated warranty liability on sales made during the 2010 – 2011 fiscal year
and still outstanding as of March 31, 2011, amounted to P252,000. The warranty
costs on sales made from April 1, 2011 to March 31, 2012, are estimated at
P630,000. The actual warranty costs incurred during 2011 – 2012 fiscal year are as
follows: Warranty claims honored on 2010 – 2011 sales Warranty claims honored on
2011 – 2012 sales Total

P 252,000 285,000 P 537,000

Trade payables Accounts payable for supplies, goods, and services purchases on open
account amount to P560,000 as of March 31, 2012. Dividends On March 10, 2012,
PRTC’s board of directors declared a cash dividend of P0.30 per ordinary share and
a 10% ordinary share dividend. Both dividends were to be distributed on April 5,
2012 to ordinary shareholders on record at the close of business on March 31, 2012.
As of March 31, 2012, PRTC has 5 million, P2 par value, ordinary shares issued and
outstanding. Bonds payable PRTC issued P5,000,000, 12% bonds, on October 1, 2006 at
96. The bonds will mature on October 1, 2016. Interest is paid semi-annually on
October 1 and April 1. PRTC uses the straight line method to amortize bond
discount.
QUESTIONS: Based on the foregoing information, determine the adjusted balances of
the following as of March 31, 2012: 31. Estimated warranty payable a. P252,000 b.
P345,000 32. Unamortized bond discount a. P110,000 b. P100,000 33. Bond interest
payable a. P 0 b. P300,000 34. Total current liabilities a. P6,445,000 b.
P5,105,000 35. Total noncurrent liabilities a. P7,700,000 b. P7,500,000 PROBLEM NO.
8 The shareholders’ equity section of the PRTC Corporation’s statement of financial
position as of December 31, 2011 is presented below: 12% Preference share capital,
P100 par Ordinary share capital, P20 par Share premium – preference Share premium –
ordinary Share premium – treasury shares Retained earnings Total shareholders’
equity P 270,000 1,598,400 36,800 235,200 3,200 1,585,840 P3,729,440

c. P630,000 d. P882,000

c. P200,000 d. P 90,000

c. P150,000 d. P250,000

c. P5,445,000 d. P3,945,000

c. P7,590,000 d. P7,610,000

PRTC had 65,000 ordinary shares as December 31, 2010. The following shareholders’
equity transactions were recorded in 2011 and 2012: 2011 May 1 July 1 Jul. 31

Aug. 30

Dec. 31

Sold 9,000 ordinary shares for P24, par value P20. Sold 700 preference shares for
P124, par value P100. Issued an 8% share dividend on ordinary shares. The market
value of ordinary share was P30 per share. Declared cash dividends of 12% on
preference shares and P3 per share on ordinary shares. Profit for the year amounted
to P1,345,040.

2012 Feb. 1 May 1 May 31

Sold 2,200 ordinary shares for P30. Sold 600 preference shares for P128. Issued a
2-for-1 split of ordinary shares. The par value of the ordinary share was
2012 Sep. 1 Oct. 1 reduced to P10 per share. Purchased 1,000 ordinary shares for
P18 to be held as treasury shares. Declared and paid cash dividends of 12% on
preference shares and P4 per share on ordinary shares. Sold 1,000 shares of
treasury shares for P22. Profit for the year amounted to P991,520.

Nov. 1 Dec. 31 QUESTIONS:

Determine the amounts, as required, in PRTC Corpor ation’s comparative financial

statements as of and for the years ended December 31, 2011 and 2012. 36. Dividends
paid to ordinary shareholders in 2012 a. P652,690 c. P652,960 b. P692,560 d.
P656,960 37. Retained earnings as of December 31, 2012 a. P1,880,800 c. P1,892,000
b. P1,884,800 d. P1,888,000 38. Total equity as of December 31, 2012 a. P4,175,200
b. P4,171,200 39. Basic earnings per share for 2011 a. P17.12 b. P 8.21 40. Basic
earnings per share for 2012 a. P7.40 b. P7.34 PROBLEM NO. 9 PRTC Corporation, a
nonpublic entity, was incorporated on December 1, 2011, and began operations one
week late closing the books for the fiscal year ended November 30, 2012, the
controller prepared the following financial statements: PRTC Corporation Statement
of Financial Position November 30, 2012 Assets Current assets: Cash Marketable
securities , at cost Accounts receivable Allowance for doubtful accounts
Inventories Prepaid insurance Total current assets Property, plant and equipment
Less accumulated depreciation Property, plant and equipment, net Research and
development costs Total assets

c. P4,182,400 d. P4,157,200

c. P 8.56 d. P18.49

c. P5.86 d. P5.81

P 150,000 60,000 450,000 ( 59,000) 430,000 __15,000 1,046,000 426,000 ( 40,000)

386,000 120,000 P1,552,000
Liabilities and Shareholders' equity Current liabilities: Accounts payable and
accrued expenses Income taxes payable Total current liabilities Shareholders'
equity: Share capital, P10 par value Retained earnings Total shareholders' equity
Total liabilities and shareholders' equity

P 592,000 224,000 816,000 400,000 336,000 736,000 P1,552,000

PRTC Corporation Statement of Income For the Fiscal Year Ended November 30, 2012
Net sales Operating expenses: Cost of sales Selling and administrative Depreciation
Research and development Income before income taxes Provision for income taxes Net
income P2,950,000

1,670,000 650,000 40,000 30,000 2,390,000 560,000 224 000 P 336,000

PRTC is in the process of negotiating a loan for expansion purposes, and the bank
has requested audited financial statements. During the course of the audit, the
following additional information was obtained: a. The investment portfolio consists
of short-term investments in marketable equity securities with a total market
valuation of P55,000 as of November 30, 2012. Based on an aging of the accounts
receivable as of November 30, 2012, it was estimated that P36,000 of the
receivables will be uncollectible. Inventories at November 30, 2012 did not include
work in process inventory costing P12,000, sent to an outside processor on November
29, 2012. A P3,000 insurance premium paid on November 30, 2012 on a policy expiring
one year later was charged to insurance expense. PRTC adopted a pension plan on
June 1, 2012 for eligible employees to be administered by a trustee. Based upon
actuarial computations, the first twelve months' normal pension was estimated at
P45,000. On June 1, 2012, a production machine purchased for P24,000 was charged to
repairs and maintenance. PRTC depreciates machines of this type on the straight-
line method over a five-year life with no salvage value, for financial and tax
purposes. Research and development costs of P150,000 were incurred the development
of a patent, which PRTC expects to be granted during the fiscal year ending
November 30, 2013. PRTC initiated a five-year amortization of the P150,000 total
cost during the fiscal year ended November 30, 2012. During December 2012, a
competitor company filed suit against PRTC for patent infringement claiming
P200,000 damages. PRTC's legal counsel believes that an unfavorable outcome is
probable. A reasonable estimate of the court's award to the plaintiff is P50,000.
The 40% effective tax rate was determined to be appropriate for calculating the
provision for income taxes for the fiscal year ended November 30, 2012. Ignore
computation of the deferred portion of income taxes.

b.

c.

d.

e.

f.

g.

h.

i.
QUESTIONS: Based on the above and the result of your audit, determine the following
as of and for the fiscal period ended November 30, 2012: 41. Net income a. P253,260
b. P283,260 42. Current assets a. P1,084,000 b. P1,061,000 43. Total assets a.
P1,484,200 b. P1,486,600 44. Total liabilities a. P833,340 b. P783,340 45. Total
equity a. P683,260 b. P635,260 PROBLEM NO. 10 PRTC, Inc., a nonpublic enterprise,
is negotiating a loan for expansion purposes and the bank requires audited
financial statements. Before closing the accounting records for the year ended
December 31, 2012, PRTC's controller prepared the following comparative financial
statements for 2012 and 2011: PRTC, Inc. Statements of Financial Position December
31, 2012 and 2011 2012 2011 Assets Cash Trading securities Accounts receivable
Allow. for doubtful accounts Inventories Property and equipment Accumulated
depreciation Total assets Liabilities and Equity Accounts payable and accrued
liabilities Estimated liability from lawsuit Share capital, P10 par Share premium
Retained earnings Total liabilities and equity P 275,000 78,000 487,000 (50,000)
425,000 310,000 (150,000) P1,375,000 P150,000 78,000 392,000 (32,000) 307,000
217,000 (121,000) P 991,000

c. P235,260 d. P239,760

c. P1,079,000 d. P1,073,000

c. P1,489,200 d. P1,491,600

c. P855,840 d. P805,840

c. P639,760 d. P653,260

P 420,000 100,000 260,000 130,000 465,000 P1,375,000

P347,000 260,000 130,000 254,000 P 991,000

Net sales Operating expenses: Cost of sales Selling and admin. Depreciation Est.
loss from lawsuit Profit

PRTC, Inc. Income Statements For the Years Ended December 31, 2012 and 2011 2012
2011 P1,580,000 P1,250,000 P 755,000 485,000 29,000 100,000 P1,369,000 P 211,000 P
690,000 365,000 18,000 P1,073,000 P 177,000

During the course of the audit, the following additional information was obtained:
a. The trading securities were acquired on December 31, 2011. The securities have a
fair value of P67,000 at December 31, 2012. In discussion with the company
officials, it was determined that the doubtful accounts expense rate based on net
sales should be reduced to 2% from 3%, effective January 1, 2012. As a result of
errors in the physical count, inventories were overstated by P12,000 at December
31, 2011 and by P17,500 at December 31, 2012. On January 1, 2011, the cost of
equipment purchased for P30,000 was debited to repairs and maintenance. PRTC
depreciates equipment of this type by the straight-line method over a five-year
life with no residual value. On July 1, 2012, fully depreciated equipment purchased
for P21,000, was sold as scrap for P2,500. The only entry PRTC made was to debit
cash and credit property and equipment for the scrap proceeds. The property and
equipment (net) had a current cost of P250,000 at December 31, 2012. Advertising
and promotion expense for the year ended December 31, 2011 includes the P25,000
cost of printing sales catalogs for a special promotional campaign held in January
2012. PRTC was named as a defendant in a lawsuit in October 2012. PRTC's counsel is
of the opinion that PRTC has a good defense, and does not anticipate any impairment
of PRTC's assets or that any significant liability will be incurred. Nevertheless,
PRTC’s management wished to be conservative and, therefore, established a loss
contingency of P100,000 at December 31, 2012. QUESTIONS: Based on the above and the
result of your audit, compute for the following: (Disregard income taxes) 46.
Adjusted retained earnings as of January 1, 2012 a. P266,000 c. P285,000 b.
P297,000 d. P291,000 47. Adjusted profit for the year ended December 31, 2012 a.
P281,800 c. P287,800 b. P181,800 d. P306,800 48. Adjusted current assets as of
December 31, 2012 a. P1,226,760 c. P1,154,900 b. P1,190,300 d. P1,202,300 49.
Adjusted carrying amount of property and equipment as of December 31, 2012 a.
P168,500 c. P178,000 b. P180,500 d. P192,500 50. Adjusted shareholders’ equity as
of December 31, 2012 a. P962,800 c. P974,800 b. P950,800 d. P862,800

b.

c.

d.

e.

f.

g.