Ia3 22 23
Ia3 22 23
Ia3 22 23
Soniel
IA3
COA 2E
22-16
2019 2020
Historical Fraction Restated Historical
Cash 3,000,000 200/120 5,000,000 4,250,000
Inventory 2,200,000 200/110 4,000,000 3,000,000
Equipment (net) 1,500,000 200/100 3,000,000 1,400,000
Land 11,200,000 21,000,000 13,150,000
23-12
Legaspi Company
Income Statement
Year Ended 12/31/20
Sales 5,000,000
COGS 3,500,000
Gross Income 1,500,000
Other Income:
Realized holding gain 330,000
Unrealized Holding gain 1,340,000 1,670,000
Total Income 3,170,000
Operating Expenses:
Expenses 700,000
Depreciation 130,000 830,000
Income Before Tax 2,340,000
Less: Income Tax 350,000
Net Income 1,990,000
Legaspi Company
Statement of Financial Position
12/31/20
Assets
Current Assets:
Cash 500,000
Accounts Receivable 600,000
Inventory 1,000,000 2,100,000
Noncurrent Assets:
Land 1,500,000
Equipment 1,600,000
Less: Accumulated Depreciaton 160,000 1,440,000 2,940,000
Total Assets 5,040,000
Solution
Cost of Goods Sols
Ave. Current cost 3,500,000
Historical cost 3,200,000
Realized holding gain 300,000
Inventory Dec 31
Ave. Current cost 1,000,000
Historical cost 900,000
Unrealized holding gain 100,000
Land
Ave. Current cost 1,500,000
Historical cost 800,000
Unrealized holding gain 700,000
2,000,000
3,500,000
200/100 3,000,000
5,300,000
19,800,000