1 Cash balance after reversing check

AR - net
Inventory
Prepaid expenses
Land held for resale
Total current assets

400,000
700,000
1,200,000
200,000
2,000,000
4,500,000 A

2 Unadjusted net assets

Treasury shares carried as an investment
Adjusted net assets

8,750,000
(250,000)
8,500,000 A

3 Share capital
RE (820k - 640k - 30k)
SHE

7,500,000
150,000
7,650,000

Total assets (1.2M + 7.65M)

4 Amount of NP refinanced and class'd noncurrent (6M x 80%)

8,850,000 A
4,800,000 B

5 Officer salaries and loans

3,000,000 D

6 Cash
AR (1150,000 + 250,000)
Total current assets

550,000
1,400,000
1,950,000 A

RE 1/1
NI (3.6M - 2.6M) x 70%
RE 12/31

630,000
700,000
1,330,000 C

7 RE balance (1.7M - 800 - 200 + 75)

775,000 D

8 Cash
NR net of discounted face value
Net total AR (3M + 800) - 100
Inventory
Total current assets

1,500,000
500,000
3,700,000
2,800,000
8,500,000 A

9 Cash
AR (1.42M + 240 - 120)
Inventory
Total current assets

3,200,000
1,540,000
2,800,000
7,540,000 A

10 Total accounts payable

Accrued expenses
Customer advances
Estimated liability for prize coupons
Total current liabilities

4,100,000
1,500,000
500,000
600,000
6,700,000 A

1 Unadjusted net income

Dividends from Mae
Unrealized loss on available for sale investments
Prior period adjustment
Gain on fair value change from credit risk of FL at FVPL
Adjusted net income

7,410,000
(400,000)
540,000
750,000
(500,000)
7,800,000

2 12/31/15 Carrying amount

Less: Residual value
Depreciable amount
Divide by remaining life
2016 Depreciation

3,072,000
200,000
2,872,000
8 years
359,000

3 D, should be an adjustment to retained earnings and not included in the income statement.
4 Litigation loss net of tax (250k x 70%)
5 RM purchased
Freight in
Total
Less: Increase in RM inventory
RM used
Direct labor
Factory overhead
Total manufacturing cost
Decrease in goods in process
Cost of goods manufactured
Decrease in finished goods
Cost of goods sold
6 Dividend
Distribution
Interest
Bank treasury bills income
Net income in trading securities (600 - 150)
Other
Total income
Finance cost
Administrative staff costs
Sundry admn. Costs
Total expenses
Total income
Less: Total expenses
Income before taxes
Less: Taxes
Net income

175,000
4,300,000
250,000
4,550,000
150,000
4,400,000
2,000,000
3,000,000
9,400,000
200,000
9,600,000
350,000
9,950,000
9,200,000
500,000
700,000
100,000
450,000
250,000
11,200,000
300,000
3,800,000
1,200,000
5,300,000
11,200,000
5,300,000
5,900,000
1,700,000
4,200,000

Unrealized gain on CF hedge derivative

Comprehensive income
7 Cost of beginning inventory
Purchases
TGAS
Less: Cost of ending inventory
COGS before loss
Loss on writedown (850 - 700)
Total COGS
Salaries
Pension expense
Delivery
Miscellaneous
Doubtful accounts
Depreciation
Loss on sale
Total expenses
Sales
Dividend income
COGS
Expenses
Income tax expense
Income from continuing operations
Income from discontinued operations
Net income
RE 1/1
Total
Less: Dividends
RE 12/31

400,000
4,600,000
1,040,000
3,720,000
4,760,000
850,000
3,910,000
150,000
4,060,000
1,540,000
280,000
205,000
125,000
10,000
85,000
40,000
2,285,000
8,350,000
100,000
(4,060,000)
(2,285,000)
(105,000)
2,000,000
500,000
2,500,000
3,000,000
5,500,000
1,000,000
4,500,000

income statement.
A

1 Unadjusted cash in bank

NSF check deposited (should be AR)
Undelivered check issued (should be AP)
Adjusted cash in bank
Coins and currencies
Total cash (only)

8,000,000
(3,000,000)
2,500,000
7,500,000
800,000
8,300,000 C

2 Balance per bank June 30

Deposits
Disbursements
Balance per bank on July 1

3,000,000
9,000,000
(7,000,000)
5,000,000

July DIT
July OC
Adjusted cash balance
Unrecorded note collection
Unrecorded bank debits
Cash in bank per ledger

1,000,000
(600,000)
5,400,000 B
(200,000)
150,000
5,350,000 B

Bank deposits
DIT - June
DIT - July
Adjusted deposits
Unrecorded bank collection
Cash receipts per ledger

9,000,000
(400,000)
1,000,000
9,600,000
(200,000)
9,400,000 B

Bank disbursements
OC - June
OC - July
Adjusted disbursements
Unrecorded service charge and NSF check
Cash disbursements per ledger

7,000,000
(900,000)
600,000
6,700,000
(150,000)
6,550,000 B

3 Total write-off (400 + 600 + 700)

Less: Total recovery (30 + 70 + 120)
Net uncollected AR for 3 years
Uncollectible rate (1.48M / (9+13+15M)
Balance before adjustment (1M - 650k + 150)
Doubtful accounts expense (20M x 4%)
12/31 Allowance for doubtful accounts
4 Nov to Dec. (6M x 10%)
Jul. To Oct. (2M x 20%)
Jan. To Jun. (1.5M x 30%)

1,700,000
220,000
1,480,000
4%
500,000
800,000
13,000,000 A
600,000
400,000
450,000

Prior to Jan. 1 (500 - 100) x 50%

Required allowance

200,000
1,650,000 A

1/1 Allowance
Total writeoff (200,000 + 100,000)
Recovery
Provision or DA exp. (SQUEEZED)
Required allowance

1,000,000
(300,000)
50,000
900,000 C
1,650,000

Total Doubtful accounts expense

Less: Interim provision
Debit to DAE and Credit to allowance at yearend

900,000
400,000
500,000 D

AR balance after writeoff

Less: Allowance

9,900,000
1,650,000

NRV

8,250,000 B

1 Unadjusted inventory
In transit goods purchased FOB shipping point
Adjsuted inventory

6,000,000
300,000
6,300,000 D

2 Goods out on consignment with freight (1.8M +100k)

1,900,000 B

3 Unadjusted accounts payable

Undelivered check
Unrecorded purchase at net (750k x 98%)
Adjusted balance of accounts payable

4,500,000
2,000,000
735,000
7,235,000 C

4 Selling price
Less: Cost to complete
NRV that is lower than cost under FIFO

4,000,000
1,500,000
2,500,000 A

5 GAS at retail

6,900,000

Less: Sales
EI at retail price
Cost ratio under conservative (4.9M / 7M)
Estimated ending inventory at cost
6 RM purchased
Less: Increase in RM inventory
RM used
Direct labor
Factory overhead (60% x 5M)
Total manufacturing cost
WIP beginning
Total good placed in process
Less: WIP END (SQUEEZED)
Cost of goods manufactured (18.5M - 6M)
Finished goods beginning
Cost of goods manufactured (14M + 4.5M)
Less: Finished goods end
Cost of goods sold (20M x 70%)

5,500,000
1,400,000
70%
980,000 D
4,000,000
300,000
3,700,000
5,000,000
3,000,000
11,700,000
4,300,000
16,000,000
3,500,000
12,500,000
6,000,000
18,500,000
4,500,000
14,000,000

1 Aggregate MV of trading investment

Less: Total cost
Unrealized loss in P and L

3,200,000
3,600,000
(400,000)

2 Aggregate MV of nontrading investment

Less: Total cost (9M + 600k)
Unrealized loss in OCI

9,200,000
9,600,000
(400,000)

Selling price
Less: Cost of security C
Loss on sale debited from RE

4,600,000
5,300,000
(700,000)

3 BSF balance (450K + 90 +15 +30 - 5)

580,000

4 Cash dividend from Queen

Preferred div from Princess (30% x 8M)
Total dividend income
5

15,000
2,400,000
2,415,000
2016

Unrealized net income

Unrealized gain on sale
Realized gain on sale
Unrealized profit
Realized profit
Realized net income
Equity percentage
Investment income

3,000,000
(300,000)
100,000
(500,000)

500,000
4,600,000
40%
1,840,000
B

Cost
Total investment income
Total dividends received
CA 12/31/17

100,000

2,300,000
40%
920,000
C

6 Cost 1/1/16
Add: Amortization
Interest income (4,562,000 x 10%)
Interest received (5M x 8%)
CA 12/31/16
Add: Amortization
Interest income (4,618,200 x 10%)
Interest received (5M x 8%)
CA 12/31/17

2017
4,000,000

6,000,000
2,760,000
(1,000,000)
7,760,000
4,562,000
456,200
400,000

461,820
400,000

56,200
4,618,200

61,820
4,680,020

C
B

B
A

1 Cash price of first machine

PV of installment on 2nd machine (200,000 x 5.712)
Cash price of 3rd machine
Total cost
Cash price
Less: Cash paid
FV
Less: CA
Loss on exchange

2,000,000
1,142,400
4,000,000
7,142,400 A
4,000,000
1,200,000
2,800,000
3,500,000
(700,000) B

2 Total cost (2.5M + 200 + 600 + 700 + 300)

4,300,000 A

3 Total capital expenditures

1,650,000 A

4 Purchase price allocated to land (2M - 700K)

Legal cost
Total cost

1,300,000
10,000
1,310,000 A

FV of usable office building

Remodelling cost
Total cost
Factory building (3M + 100 + 2.5M - 60 + 70 + 20 + 30 + 140)
5 WA expenditures
Less: Specific borrowing
WA expenditures from general
Rate
Borrowing cost from general
Borrowing cost from specific -net (440,000 - 90,000)
Total capitalized borrowing cost
Total net interest (350,000 + (5M x 9%)
Interest expense

700,000
200,000
900,000 B
5,800,000 C
6,000,000
4,400,000
1,600,000
9%
144,000
350,000
494,000 C
800,000
(306,000) B

1 Cost
Less: RV
Depreciable amount

1,100,000
200,000
900,000

2016 Depreciation under SYD (900k x 2/15)

120,000 A

2 Y1 Depreciation (6.4m x 25%)

Y2 Depreciation (6.4M - 1.6M) x 25%

1,600,000
1,200,000

2017 Depreciation (1.6M x 6/12) + (1.2M x 6/12)

1,400,000 C

3 Depreciable amount (240,000 / 8/55)

RV
Total cost
4
Production
Remaining estimate
Total estimated output
Total cost (28 + 2 + 1 + 4)
Less: RV
Depletable amount
2016 Rate (30M / 10M)
2016 Depletion (3 x 3M)
2017 Rate (30M - 9M) / 6M
2017 Depletion (3.5 x 2.5M)
Total cost
Less: Total depletion
Carrying amount 12/31/17
5 Cost
Less: Accumulated depreciation (1.8M + 400k)
Carrying amount 8/31/2016

1,650,000
50,000
1,700,000 B
2016
3,000,000
7,000,000
10,000,000

2017
2,500,000
3,500,000
6,000,000
35,000,000
5,000,000
30,000,000
3.00 per ton
9,000,000 D
3.50 per ton
8,750,000 D
35,000,000
17,750,000
17,250,000 B
5,600,000
2,200,000
3,400,000 B

The asset is not impaired. The recoverable amount is higher than carrying amount
6 Value in use
Less: Carrying amount
Impairment loss
CA of goodwill
Less: Impairment
CA after impairment

2,700,000
3,300,000
(600,000)
1,100,000
600,000
500,000 D

CA of machinery
7 Revalued amount
Less: Carrying amount
Revaluation surplus 1/1/16
Less: 3 year amortization (7.8M / 39 years x 3)
12/31/18 Balance

2,200,000 A
46,800,000
39,000,000
7,800,000 A
600,000
7,200,000

CA after revaluation
Less: 2 year depreciation (46.8M / 39 x 2)
CA 1/1/18

46,800,000
2,400,000
44,400,000

Revalued amount
Less: Carrying amount
Revaluation surplus 1/1/18

55,500,000
44,400,000
11,100,000 B

Less: Amortization (11.1M / 37)

12/31/18 Balance

300,000
10,800,000

12/31/18 RS (7.2M + 10.8M)

18,000,000 B

1 Cost of patent
Less: Accumulated amortization
CA of Patent 1/1/16
Less: 2016 Amortization (1,680,000 / (8 - 2))
CA 12/31/16

1,920,000
240,000
1,680,000
280,000
1,400,000

Cost of " Non competition contract" (800k x 1/4)

Less: 2016 Amortization (200k / 5)
CA 12/31/16

200,000
40,000
160,000

Total amortization expense (280k + 50k)

Royalty expense
Total expenses

330,000
50,000
380,000 A

Patent
Trademark (800k x 3/4)
Non competition contract
Total Intangible assets 1/1
2 Amortization of patent written off (900k / 10)
Loss on the write off (900k - (90k x 4))
Legal cost for defense of patent
Total expenses
Selling price
Less: CA (4.5M x 12/15)
Gain on sale
3 Book value of net assets
Add/Deduct FV differences:
PPE
Other Assets
Long term debt
FV of net assets
Purchase price
Less: FV of net assets
Goodwill

1,680,000
600,000
200,000
2,480,000 B
90,000
540,000
1,500,000
2,130,000 B
7,500,000
3,600,000
3,900,000 D
32,000,000
7,500,000
(5,000,000)
2,000,000
36,500,000
40,000,000
36,500,000
3,500,000 A

4 Depreciationon R and D equipment (1.8M / 4)

Engineering cost before economic viability
Total R and D expense

450,000
1,200,000
1,650,000 A

5 Software cost (2.4M + 2M + 1.5M)

5,900,000 C

Inventory cost (2.5M + 900)

3,400,000 B

R and D expense (1.3M + 1M)

2,300,000 B

6 Travel and training cost

1,600,000 B

1 Estimated reimbursement (6M x 70%)

Handling cost (4.2M x 10%)
Total coupons expense
Less: Payments
Liability for coupons

4,200,000
420,000
4,620,000
2,200,000
2,420,000 C

2 Actual litigation award only

1,500,000

3 Best estimate

500,000

4 Total interest expense (50 + 90 + 64)

Less: interest expense recorded
Understatement

204,000
150,000
54,000

5 Interest payable (8M x 8% x 3/12)

160,000 B

6 Face value
Discount of converted BP
Share premium from conversion priviledge converted
Less: PV of shares issued (5,000 x 40 x 20)
Share premium

5,000,000
(250,000)
1,000,000
5,750,000
4,000,000
1,750,000 D

Taxable income (6M + 50,000 - 300,000 - 150,000)

5,600,000

Current tax expense

Deferred tax expense (300k x 40%)
Income tax benefit (50k x 40%)
Total tax expense

1,680,000
120,000
(20,000)
1,780,000 D

7 Difference in CA and tax base of equipment

800,000 C

1 Net investment
Divide by
Annual rental
Gross investment (750,000 x 5)
Less: Net Investment
Total interest revenue
2 Selling price
Less: CA
Gain on sale
Net investment
Less: July 1, 2016 payment
Balance
Interest income (6 mos.) 2.9M x 10% x 6/12
3 PV of MLP/Lease liability
Less: Rental paid in advance
Lease Liability after first payment and 12/31/16
Less: Lease payment on 1/1/17applied to lease liability
Lease liability 1/1/17 and 12/31/17
2017 Interest Expense (4,863,000 x 10%)
4 Current service cost
Past service cost
Loss on settlement
Net interest (600 - 350)
Benefit expense

3,234,000
4.312
750,000
3,750,000
3,234,000
516,000 C
3,500,000
2,800,000
700,000 A
3,500,000
600,000
2,900,000
145,000 D
6,330,000
1,000,000
5,330,000
467,000
4,863,000 B
486,300 B
500,000
300,000
250,000
250,000
1,300,000 A

Gain on plan assets (850 - 350)

Actuarial loss
Net remeasurement gain
Benefit expense
Net defined benefit cost

(500,000)
200,000
(300,000)
1,300,000
1,000,000 B

5 Termination benefit (20,000 x 120)

2,400,000 A

Total compensation until closure

Less: Termination benefit
Short term benefit for services until closure
Multiply by
Short term benefit
6 Highest salary (600 x 1.48)
Annual retirement benefit (888,000 x 2% x 15)

60,000
20,000
40,000
100
4,000,000 C
888,000
266,400

PV at date of retirement (266,400 x 5.335)

PV of PBO on 12/31/16 (1,421,244 x .386)

1,421,244
548,600 B

1 Outstanding shares (((125k - 25k) + 13k x 3) - 5k)

2 Cost per treasury share (270k / 6k)
Gain on sale (5 x 3,600)
Loss on sale (4 x 2,400)

Total share premium (900k + 8,400)

3 Share options (100,000 x 8)
SAR (60 - 50) x 30,000 x 1/3
Total compensation expense
Liability for SAR (80 - 50) x 30,000 x 2/3
4 Share premium balance before reorganiztion
Additional share premium from recapitalization (25 x 100k)
Deficit
Share premium balance
5 RE unappropriated 1/1
Prior period error
Net income
Cancellation for reissuance of treasury shares
Increase inappropriation for contingencies
Dividends
Change in accounting policy
RE unappropriated 12/31
6 Total net income (15M + 4M)
Annual preferred dividend (4M / 2)
Preference share premium payable on redemption
Net income to ordinary
Percentage paid up of 1/1 issuance (10 / 50)
Beg. Shares (300,000 x 12/12)
1/1 (25,000 x 20% x 12/12)
4/1 (60,000 x 9/12)
7/1 ((40,000) x 6/12)
Average number
BEPS (16M / 330k)
7 1/1 (300,000 x 12/12)
9/1 (60,000 x 4/12)
Average number

334,000 C
45
18,000
(9,600)
8,400
908,400 C
800,000
100,000
900,000 C
600,000 A
1,500,000
2,500,000
(2,100,000)
1,900,000 C
200,000
100,000
1,300,000
200,000
(100,000)
(500,000)
150,000
1,350,000 B
19,000,000
(2,000,000)
(1,000,000)
16,000,000 B
20%
300,000
5,000
45,000
(20,000)
330,000 B
48.48 A
300,000
20,000
320,000

Net income
Less: Pref. Div. (30 x 10,000)
Net income to ordinary
Divide by
BEPS
Assumed proceeds from share options (30,000 x 20)

6,700,000
300,000
6,400,000
320,000
20 A
600,000

Treas. Shares acquired at average market price (600k / 30)

20,000

Incremental ordinary shares from Share Options (30k - 20k)

Bonds payable
Total potential ordinary shares

10,000
40,000
50,000

Net income to ordinary

Interest on BP net of tax (100,000 x 70%)
Adjusted net income
Divide by
DEPS
8 PV of preference shares
Preferred dividends
Preference shareholders' equity
TSHE
Less: PSHE
Ordinary shareholders' equity
Ordinary shares outstanding
BV per ordinary share

6,400,000
70,000
6,470,000
370,000
17.49 C
500,000
80,000
580,000
1,910,000
580,000
1,330,000
10,000
133 C

1 Salaries payable 1/1

Salaries expense
Total
Less: Salaries paid gross
Salaries payable 12/31
2 Total collections
Rental receivable beginning
Collections of fiscal year's rental revenue
Rental receivable end
Write off
Accrual basis rental revenue
3 Monthly insurance expense (72,000 / 3 years / 12 mos)
Prepaid insurance for 35 mos.

40,000
420,000
460,000
390,000
70,000
2,210,000
(800,000)
1,410,000
1,060,000
30,000
2,500,000
2,000
70,000

Insurance expense (3k + 2k)

5,000

4 Insurance premium balance

Rental deposit
Total prepaid expense

160,000
200,000
360,000

5 Insurance expense
Credit adjustment to prepaid insurance
Insurance premium paid

875,000
35,000
910,000

6 Net income
AR increase
Doubtful accounts expense
Prepaid rent expense decrease
Accounts payable increase
Net cash provided by operating activities

7,500,000
(300,000)
10,000
210,000
150,000
7,570,000

7 Net income
Increase in investment in associate
Decrease in premium on BP
Increase in deferred tax liability
Net cash provided by operating activities

7,500,000
(550,000)
(140,000)
180,000
6,990,000

8 Net income
Depreciation expense (400 + 150)
Gain on sale
Net cash provided by operating activities

3,000,000
550,000
(50,000)
3,500,000

9 Taxes and interest paid

10
Purchased of real estate with funds from bank loan

545,000
Investing
(5,500,000)

Sale of investments
Purchase of patent
Dividends
Issuance of shares
Payment of bank loan
Issuance of bonds
Net cash (used) / provided by
11 NI
Overstatement of beginning inventory
Understatement of ending inventory
Understatement of insurance expense
Overstatement of sales
Adjusted NI

5,000,000
(1,250,000)

.
(1,750,000)
2,000,000
300,000
500,000
(50,000)
(100,000)
2,650,000

B
B

A
Financing
5,500,000

(6,000,000)
2,500,000
(1,500,000)
3,000,000
3,500,000 C/B