Polytechnic University of the Philippines

College of Accountancy & Finance

Sta. Mesa, Manila

ACCO 4083 – Advanced Financial Accounting & Reporting (AFAR)

4th Evaluation Examination

March 1, 2017

INSTRUCTION: Select the letter of the best possible answer.

1. Which of the following is an example of volunteer services received by a not-for-profit entity that should
be recognized as revenue?

I. Services required specialized skills, provided by individuals with those skills, that otherwise would
have to be purchased
II. Services of lay faculty at a private university operated by a religious order.
III. Services that create or enhance non-financial assets regardless of whether or not they require
special skills.

a. I only b. I, II, and III c. I and III only d. II and III only

2. A voluntary health and welfare organization received a PHP 300,000 contribution on January 5, 2017,
from a donor who stipulated the donation be invested permanently in stocks and bonds. The donor further
stipulated earnings from the investments be spent according to the wishes of the governing board of the
voluntary health and welfare organization. Earnings from the investments for the year ended December 31,
2017 amounted to PHP 16,000.

How would the voluntary health and welfare organization report this information for the year ended
December 31, 2017?

a. Increase in permanently restricted net assets of PHP 316,000.

b. Increase in permanently restricted net assets of PHP 300,000, and in temporarily restricted net
assets of PHP 16,000.
c. Increase in permanently restricted net assets of PHP 300,000, and in board-designated net assets
of PHP 16,000.
d. Increase in permanently restricted net assets of PHP 300,000, and in unrestricted net assets of
PHP 16,000.

3. A private not-for-profit hospital received the following restricted contributions and other receipts during
the year ended December 31, 2017: For research, PHP 3,000,000; for acquisition of equipment, PHP
2,000,000; Income from endowment to be used for the construction of new hospital building PHP
10,000,000. None of the contributions or other receipts were expended during the year ended December
31, 2017.

For the year ended December 31, 2017, what amount would be reported on the hospital’s statement of
changes in net assets as an increase in temporarily restricted net assets?

a. PHP 15,000,000 b. PHP 12,000,000 c. PHP 13,000,000 d. PHP 3,000,000

4. Mr. Noh agrees to contribute PHP 500,000 per year at the end of each of the next five years to a voluntary
health and welfare organization. The donor did not place any use restrictions on the amount pledged. The
first payment of PHP 500,000 is received at the end of the first year. The stream of the payment is
discounted at 6%. The present value factor for a five-payment annuity due on December 31, at 6% is
4.2124. Based on the preceding information, the journal entry to recognize the present value at the time
the pledge is received includes:

a. A credit to Pledges Receivable – Temporarily Restricted for PHP 2,500,000.

b. A debit to Contributions – Temporarily Restricted for PHP 2,106,000.
c. A debit to Pledges Receivable – Temporarily Restricted for PHP 2,106,200.
d. A credit to Contributions – Temporarily Restricted for PHP 2,500,000.

5. Based on the information in no. 4, at the end of the first year, the pledge increase unrestricted net assets
by:

a. PHP 2,500,000 b. PHP 2,106,200 c. PHP 421,200 d. PHP 500,000

6. Activities treated as deductions from gross revenues (contra-revenue accounts) in not-for-profit hospitals
and other health care organizations include(s)

a. Charity care services c. Courtesy allowances

b. Estimated bad debts d. All of the above

7. The governing board of a not-for-profit hospital designated PHP 5,000,000 cash for the acquisition of
hospital equipment. On the hospital’s statement of financial position, the cash designated for the acquisition
of hospital equipment would be disclosed in which of the following classes of net assets?

a. Temporarily restricted c. Plant replacement and expansion

b. Board designated assets d. Unrestricted net assets

8. A not-for-profit hospital received a donation of medicine from Getz Pharma Philippines on March 15,
2017. The cost of the medicines to the company was PHP 264,000 and its market value was PHP 440,000.
Twenty percent of the medicines used by the hospital during the year ended December 31, 2017. On the
hospital’s statement of operations for the year ended December 31, 2017, the contribution of medicine
would increase operating revenues by

a. PHP 264,000 b. PHP 211,200 c. PHP 440,000 d. PHP 352,000

9. For the year ended December 31, 2017, a university assessed its student a total of PHP 40,000,000 for
tuition and fees. Included in this amount was PHP 3,000,000 of tuition remissions awarded to graduate
teaching assistants, and PHP 1,500,000 of scholarships awarded to undergraduate students, Tuition and
fees totaling PHP 35,500,000 were collected during the year ended December 31, 2017. What amount
should be reported in the unrestricted funds as net revenue from tuition and fees for the year ended
December 31, 2017?

a. PHP 38,500,000 b. PHP 37,000,000 c. PHP 35,500,000 d. PHP 40,000,000

10. A private university offers graduate assistantship to qualified students each year. In exchange of waiver
of tuition, graduate assistants are required to assist faculty members with research and other activities.
Assume a graduate assistant received a PHP 40,000 tuition waiver for the current academic year. Based
on these facts, the university should record

a. Tuition revenue of PHP 0 and expenditures of PHP 0

b. Tuition revenues of PHP 40,000 and expenditure of PHP 40,000
c. Tuition revenues of PHP 40,000 and expenditure of PHP 0
d. Tuition revenues and a reduction of tuition revenues of PHP 4,000

Use the following data to answer no. 11 –

11. During the first quarter of 2017, a national government agency received it Notice of Cash Allocation
from DBM for PHP 10M covering its operating requirement for the quarter. The following selected
transactions took place:

1. Payment were made for equipment with an invoice price of PHP 500,000 (exclusive of VAT).
2. Advances for local travel were paid to Officers and Employees, PHP 150,000, but only PHP
125,000 were liquidated.
3. Paid the electricity bills, PHP 1,500,000 (VAT-inclusive).
4. Paid the telephone bills, PHP 150,000 (VAT-inclusive).
5. Paid the water bills, PHP 100,000 (VAT-inclusive).
6. Office supplies were purchased on account PHP 112,000 (VAT-inclusive).
7. Salaries and wages for the first half of the month follows:
Salaries and wages, regular 3,500,000
PERA 1,400,000
Total 4,900,000
Less deductions:
Withholding Tax 500,000
Life and Retirement Premium 315,000
Pag-IBIG Premium 35,000
PhilHealth Premium 60,000 910,000
Net Amount 3,990,000

The entry to record the payroll includes a credit to

a. Due to Officers and Employees, 4,900,000 c. Due to Officers and Employees, 3,990,000
b. Salaries and Wages, Regular, 3,500,000 d. Salaries and Wages, Regular, 3,990,000

12. The entry to record payment of payroll includes a credit to

a. Cash Modified Disbursement System, Regular, 3,990,000

b. Cash Modified Disbursement System, Regular, 4,900,000
c. Cash Local Currency Current Account, 3,990,000
d. Cash Local Currency Current Account, 4,900,000

13. The total amount due to BIR is

a. PHP 643,375 b. PHP 642,161 c. PHP 651,375 d. PHP 665,340

14. The entry to record constructive receipts of NCA for TRA is

a. Debit Cash Tax Remittance Advice, 65,375

 b. Debit Subsidy from National Government, 645,375
c. Credit Cash Tax Remittance Advice, 642,161
d. Credit Subsidy from National Government, 642,161

15. Assume the equipment was acquired on February 16 of the current year with an estimated useful life
of 15 years, how much is the deprecation expense for the year?

a. PHP 79,167 b. PHP 83,333 c. PHP 88,667 d. PHP 85,333

16. The entry to record remittance of refund of excess cash advance for travel include a

a. Debit Cash – Treasury/Agency Deposit, Regular, 25,000

b. Credit Cash – Collecting Officer, 150,000
c. Debit Cash – Treasury/Agency Deposit, Regular, 150,000
d. Credit Subsidy from National Government, 25,000

17. UCARE Insurance Company reported the following information for its non-life premium. The company
is using the 24th method in determining premiums earned during the period. The company’s reporting period
ends December 31, 2017.

Premiums Written Premiums Ceded Premiums Retained

January PHP 30,000,000 PHP 12,000,000 PHP 18,000,000
February 20,000,000 8,000,000 12,000,000
March 24,000,000 9,600,000 14,400,000

How much is the total premiums earned as of March 31, 2017?

a. PHP 2,475,000 b. PHP 5,850,000 c. PHP 5,250,000 d. PHP 39,150,000

18. REDA Company purchased inventory of varying amounts from different foreign suppliers as follows:
January 10, USD, 3,000; January 24, SGD, 1,000; February 14, CNY, 2,000; February 20, JPY, 10,000

Spot rates (date acquired) Spot rate (settlement date)

USD PHP 44.65 PHP 44.56
SGD 32.50 32.85
CNY 5.70 5.67
JPY 0.36 0.35

The total/net forex gain or (loss) upon settlement is

a. PHP 0 b. PHP 220.00 c. PHP 80.00 d. (PHP 80.00)

19. PBB Company purchases 20,000 USD under a forward contract dated November 1, 2017, for deliver
on January 31, 2015. The following are the direct exchange rates of a US dollar:

11/01/2017 12/31/2017 01/31/2018

Spot rates 45.75 45.90 44.50
30-day forward rate 45.30 45.15 45.20
60-day forward rate 45.65 45.30 45.75
90-day forward rate 44.25 45.45 45.10
If the forward contract is intended for a firm commitment for delivery of equipment on January 31, 2018,
how much is the cost of the equipment on January 31, 2018?

a. PHP 885,000 b. PHP 913,000 c. PHP 915,000 d. PHP 890,000

20. If the forward contract is a hedge of an import transaction of $20,000 dated November 1, 2017, payable
on January 31, 2018, how much FOREX gain (loss) should the company report on its December 31, 2017
Statement of Comprehensive Income?

a. PHP 3,000 b. (PHP 3,000) c. (PHP 15,000) d. PHP 15,000

21. Selected balance sheet accounts of a foreign subsidiary in USA of Western Company at December 31,
2017 are as follows: (functional currency is US Dollar)

Cash $ 100,000
Accounts Receivable 1,200,000
Inventory 300,000
Prepaid Expenses 500,000
Property and Equipment 2,000,000
Ave. exchange rate – PHP 45 Closing Rate – PHP 50 Historical Rate – PHP 40

What total amount of assets should be included in Western Company’s December 31, 2017 Consolidated
Balance Sheets for the above accounts?

a. 205,000,000 b. 184,500,000 c. 164,000,000 d. 197,000,000

22. Phillips Company using the weighted average costing method maintain a Spoilage Expense Account
for spoiled goods. This account is charged with the cost of units spoiled in process. Each unit spoiled is
considered 80 percent complete with respect to conversion costs and 100 percent complete with respect
to materials at the time of spoilage. The accounting records show the following information for the activities
in the work in process inventory account:

Beginning Inventory
Direct Materials PHP 14,800
Conversion Costs 21,650
Current Period
Direct Material Costs 43,100
Conversion Costs 79,220
Units transferred out 18,200
Units spoiled 2,300
Ending Inventory (40% materials; 25% conversion) 6,400

Compute the costs to be assigned to the spoiled units

a. PHP 15,000 b. PHP 14,352 c. PHP 15,342 d. PHP 16,001

23. The total cost assigned to the units transferred out would be:

a. PHP 130,532 b. PHP 144,884 c. PHP 147,028 d. PHP 139,109

24. Edward Company employs a standard absorption system for product costing. The standard cost of its
product is as follows: Direct Materials, PHP 14.50; Direct Labor (2 Direct Labor Hours @ PHP 8.00) PHP
16.00; Factory Overhead (2 Direct Labor Hours @ PHP 11.00) PHP 22.00. The manufacturing overhead
rate is based upon normal capacity of 600,000 direct labor hours. Edward planned to produce 25,000 units
each month during the year. The budgeted annual overhead is: Variable, PHP 3,600,000; Fixed, PHP
3,000,000. During October, Edward produced 26,000 units. Edward used 53,500 direct labor hours in
October at a cost of PHP 433,350. Actual manufacturing overhead for the month were PHP 250,000 fixed
and PHP 325,000 variable. The variable spending variance for October is:

a. PHP 4,000 U b. PHP 9,000 F c. PHP 9,000 U d. PHP 13,000 U

25. The labor efficiency variance is:

a. PHP 16,500 U b. PHP 16,500 F c. PHP 12,500 F d. PHP 12,500 U

26. Hershey Company purchases cocoa beans and processes them into cocoa butter, cocoa powder, and
cocoa shells. The standard yield from each 100-pound sack of unprocessed cocoa beans is 20 pounds of
butter, 45 pounds of powder, and 35 pounds of shells. The butter must be molded and packed before it can
be sold. A further processing cost of PHP 1.50 per pound was incurred for Cocoa Butter before it can be
sold for PHP 12.50 per pound. The powder can be sold for PHP 9.00 per pound at the split-off point. The
shells, which are considered a by-product, sell for PHP 0.40 per pound. The company estimates net
realizable values at split-off if no market price is available at that point. The cost of the cocoa beans is PHP
150.00 per pound. It costs PHP 370.00 in labor and overhead to process each 100 pounds of beans up to
split-off point. Assuming that the shells are recorded as other income at the time they are sold, compute
the allocated joint costs of butter produced from 100 pounds of beans using the net realizable value method.

a. PHP 520.00 b. PHP 198.47 c. PHP 336.96 d. PHP 183.04

27. Assuming the net realizable value of shells is a deduction from the total joint costs, compute the
allocated joint costs to cocoa powder using the physical measure method

a. PHP 350.31 b. PHP 155.69 c. PHP 360.00 d. PHP 160.00

28. R & E Construction Company incurred the following in one of its construction projects in 2017:

Cost of labor in the site including amount paid to sub-contractor of 500,000 3,500,000
Cost of construction materials, including 500,000 of special materials to be used in 2018 11,000,000
Depreciation of construction equipment and other overhead in the site 2,800,000
Depreciation of idle construction equipment 900,000
Pre-selling expenses incurred by broker and sale agent 1,000,000
Estimated cost to complete 31,200,000
Contract Price 75,000,000

How much is the balance of the Construction in Progress in 2017?

a. PHP 26,250,000 b. PHP 21,000,000 c. PHP 21,600,000 d. PHP 24,600,000

29. The Cebu branch of Guess Company is billed for merchandise by the home office at 20% above cost.
Cebu branch in turn, prices merchandise for sale purposes at 25% above billed price. On January 17, all
of the branch merchandise is destroyed by fire. No insurance was maintained. The Cebu branch accounts
show the following information:

Merchandise Inventory, January 1 (at billed price) PHP 264,000

Shipments from home office (January 1-17) 200,000
Sales 150,000
 Sales Returns 20,000
Sales Allowances 10,000

What was the merchandise destroyed by fire at cost?

a. PHP 360,000 b. PHP 306,667 c. PHP 300,000 d. PHP 288,000

30. PBB Company acquired 80% of the outstanding shares of DVoice Company for PHP 1,000,000 at the
beginning of 2017. Book value of the Voice Company’s net assets is PHP 1,000,000. Upon re-measurement
of acquiree’s net assets, it shows that inventory has a fair market value higher by PHP 40,000 than its book
value, and equipment has a fair value and book value of PHP 450,000 and PHP 360,000, with remaining
life of five years. PBB measures NCI at fair value. The fair value of NCI at the beginning of 2017 was
250,000. PBB reported net income of PHP 300,000 for the year ended December 31, 2017. DVoice
Company’s net income for 2017 amounts to PHP 120,000. Goodwill is impaired by 15,000. The 2017
consolidated net income is

a. PHP 427,000 b. PHP 426,000 c. PHP 394,000 d. PHP 347,000

31. The goodwill on the consolidated balance sheet on December 31, 2017 is

a. PHP 105,000 b. PHP 120,000 c. PHP 160,000 d. PHP 185,000

32. Edward, Maymay and Kisses are partners in a wholesale business. On January 1, 2017, the total capital
and drawings presented are as follows:

Capital Drawing – Credit

Edward PHP 375,000 PHP 36,000
Maymay 550,000 24,000
Kisses 1,125,000 17,000

Partners agree that profit and loss ratio are shared equally. Because of failure of some debtors to pay their
outstanding accounts, the partnership loses heavily and are compelled to liquidate. The operating loss in
2017 is PHP 252,000. After exhausting the partnership assets, they still owe PHP 207,000 to creditors on
December 31, 2017. Maymay has no personal assets but others are well off.

How much was absorbed by Kisses to eliminate the capital deficiency of Maymay?

a. PHP 100,333 b. PHP 103,000 c. PHP 102,000 d. PHP 204,000

33. Diamond Company uses a job order cost accounting system. Overhead applied is at a predetermined
rate based on direct labor cost. The following postings appear in the ledger accounts of the company for
the month of September 2015: Work in process, Sept. 1, PHP 300,000; Direct materials, PHP 650,000;
Direct labor, PHP 500,000; Factory overhead, PHP 400,000. On September 30, 2015, finished goods
completed from the work in process costing, PHP 1,600,000. Job 300 was the only job not completed in
September and has been charged PHP 46,000 for factory overhead. The direct materials charged to Job
300 was:

a. PHP 103,500 b. PHP 146,500 c. PHP 200,000 d. PHP 250,000

34. Some units of output failed to pass final inspection at the end of the manufacturing process. The
production and inspection supervisors determined that the incremental revenue from reworking the units
exceeded the cost of rework. The rework of the defective units was authorized, and the following costs were
incurred in reworking the units: Direct materials PHP 5,300; Direct labor PHP 14,000. The manufacturing
overhead budget includes an allowance for rework. The predetermined manufacturing overhead rate is
150% of direct labor cost. The account(s) to be charged and the appropriate charges for the reworked cost
would be:

a. Work in process inventory for PHP 19,300

b. Work in process inventory for PHP 5,000 and factory overhead for PHP 35,300
c. Factory overhead for PHP 19,300
d. Factory overhead for PHP 40,300

35. A company has identified the following overhead costs and cost drivers for the coming year:

Overhead Item Cost Driver Budgeted Cost Budgeted Activity Level

Machine Setup No. of setup PHP 20,000 200
Inspection No. of inspection 130,000 6,500
Material handling No. of material moves 80,000 8,000
Engineering Engineering Hours 50,000 1,000

The following information was allocated on the three jobs that were completed during the year:

Job 001 Job 002 Job 003

Direct materials PHP 5,000 PHP 12,000 PHP 8,000
Direct labor 2,000 2,000 4,000
Units completed 100 50 200
No. of setups 1 2 4
No. of inspections 20 10 30
No. of material moves 30 10 50
Engineering Hours 10 50 10

Budgeted direct labor cost was PHP 100,000 and budgeted direct material cost was PHP 280,000.

Compute the cost of each unit of Job 002 using Activity-based Costing:

a. PHP 340 b. PHP 392 c. PHP 440 d. PHP 520

36. Dream Company uses the installment sales method of accounting. On January 2, 2017, Dream
Company had an installment accounts receivable balance of PHP 200,000. PHP 40,000 was collected in
2017 after which no further collections could be made. The merchandise was repossessed in 2018, and
had a fair value of PHP 70,000. The merchandise was originally sold at a gross profit rate of 40%. The gain
(loss) on repossession is

a. PHP 6,000 b. (PHP 6,000) c. PHP 26,000 d. (PHP 26,000)

37. Kuya J Restaurant sold a franchise to Tanner Corporation. The sale agreement signed on January 2,
2017, called for a down payment of PHP 600,000 plus two PHP 200,000 annual payments, representing
the value of initial franchise services rendered by Kuya J. In addition, the agreement required the franchisee
to pay 5% of its gross sales to the franchisor. This was deemed sufficient to cover the cost and provide a
reasonable profit margin on continuing franchise services to be performed by Kuya J. The restaurant
opened in May 2017, and its sales for the year amounted of PHP 1,800,000.

Assuming a 10% interest rate is appropriate, Kuya J’s earned revenue from the franchise fee is:

a. PHP 600,000 b. PHP 1,037,100 c. PHP 1,000,000 d. PHP 1,063,132

38. Polar Company sold equipment with a remaining three-year useful life and a book value of PHP 145,000
to its 80%-owned subsidiary, Solar Corporation, for PHP 160,000 on January 2, 2015. A consolidated
working paper entry on December 31, 2015 to eliminate the unrealized profits from the Intercompany sales
of equipment will include:

a. A debit to gain on sale of equipment of 10,000 c. A credit to depreciation expense for 15,000
b. A debit to gain on sale of equipment of 15,000 d. A debit to equipment for 15,000

39. The following information is taken from the Statement of Affairs of ABC Corp.:

Assets pledged with fully secured liabilities (fair market value, PHP 328,000) PHP 360,000
Assets pledged with partially secured liabilities (fair value, PHP 230,000) 296,000
Free assets (fair market value, PHP 180,000) 280,000
Unsecured liabilities with priority 28,000
Fully secured liabilities 120,000
Partially secured liabilities 240,000
Unsecured liabilities without priority 440,000

The estimated amount payable to partially secured creditors is:

a. PHP 390,000 b. PHP 238,000 c. PHP 230,000 d. PHP 330,000

40. XYZ Company is undergoing liquidation since January 1, 2017. Its condensed statement of realization
and liquidation as of April 30, 2017, showed:

Assets to be realized PHP 2,750,000 Liabilities not liquidated PHP 3,400,000

Assets acquired 500,000 Liabilities to be liquidated 4,500,000
Assets realized 2,400,000 Liabilities assumed 3,250,000
Assets not realized 800,000 Supplementary charges 6,250,000
Liabilities liquidated 3,750,000 Supplementary credits 5,250,000

If cash balance at the end is PHP 3,000,000, how much is the ending shareholder’s equity?

a. PHP 400,000 b. (PHP 50,000) c. (PHP 550,000) d. PHP 2,000,000

41. On October 1, 2017, Samsung Co. shipped 150 units of refrigerator, costing PHP 18,000 each on
consignment basis to SM Appliances to be sold at PHP 30,000 each. SM Appliances is to be allowed a
commission of 15%. SM Appliances incurred PHP 30,000 in shipping the 150 units. The agreement requires
that SM Appliances will advance 50% of the cost of the refrigerator, to be applied to periodic remittances in
proportion to the units sold. Any expenses related to the consigned units incurred by SM Appliances are
also deductible from the remittance. On December 31, 2017, SM Appliances rendered an account sale that
includes the following deductions: Advertising costs of PHP 30,000; Delivery expenses to customer of PHP
700 per unit; commission of 292,500. How much was the remittance received by Samsung Co. at December
31, 2017?

a. PHP 967,000 b. PHP 1,041,800 c. PHP 607,000 d. PHP 997,000

42. Fabricating and Finishing are the two production departments of a manufacturing company. Building
Operations and Information Services are support departments that provide support to the two production
as well as to each other. The company employs departmental overhead rates in the two production
departments. To allocate the support department costs to production departments, square footage is used
to allocate Building Operations and computer time is used to allocate Information Services. The costs of
the two support departments and relevant operating data are as follows:

Bldg. Operation Information Services Fabricating Dept. Finishing Dept.

Labor and benefit cost PHP 200,000 PHP 300,000
Other traceable costs 350,000 900,000
Square feet occupied 5,000 10,000 16,000 24,000
Computer time (in hrs.) 200 1,200 600

If the company employs the direct method to allocate support department costs, then the amount of building
operation costs allocated to Fabricating would be:

a. PHP 140,000 b. PHP 160,000 c. PHP 176,000 d. PHP 220,000

43. Using data in No. 42, if the company employs the step method of allocating support department costs,
the total amount of support department costs allocated to Finishing would be: (Allocate Information Services
first)

a. PHP 656,000 b. PHP 681,000 c. PHP 730,000 d. PHP 762,000

44. The phase in the budget process which start with the budget call up to the submission of the proposed
budget to the President

a. Budget preparation and presentation c. Budget authorization

b. Budget implementation d. Budget accountability

45. The approved national budget for 2017 is

a. PHP 3.35T b. PHP 3.50T c. PHP 3.25T d. PHP 3.50T

46. Authorization made by a legislative body to allocate funds for purposes specified by the legislative or
similar authority

a. Automatic Appropriation c. Appropriation

b. Allotment d. Continuing Appropriation

47. Authorization issued by Department of Budget and Management to national government agencies to
incur obligations for specified amounts contained in a legislative appropriation in the form of budget release
documents.

a. Automatic Appropriation c. Appropriation

b. Allotment d. Continuing Appropriation

48. The authorizations programmed annually or for some other period prescribed by law, by virtue of
outstanding legislation which does not require periodic action by congress.

a. Automatic Appropriation c. Appropriation

b. Allotment d. Continuing Appropriation

49. The following information was taken from the accounts and records of NFLS Foundation, a private, not-
for-profit organization. All balances as of December 31, 2018, unless otherwise noted.

Unrestricted Support – Contributions PHP 3,000,000

 Unrestricted Support – Membership Dues 700,000
Unrestricted Revenues – Investment Income 76,000
Temporarily Restricted gain on sale of investment 19,000
Expenses – Research 2,200,000
Expenses – Fund Raising 400,000
Expenses – Management and General 500,000
Temporarily Restricted Support – Contributions 600,000
Temporarily Restricted Revenues – Investment Income 40,000
Permanently Restricted Support – Contributions 70,000
Unrestricted Net Assets, December 31, 2017 450,000
Temporarily Restricted Net Assets, December 31, 2017 2,100,000
Permanently Restricted Net Assets, December 31, 2017 60,000

The unrestricted support from contribution was received in cash during the year. The expenses included
PHP 800,000 payable from donor – restricted resources.

How much is the balance of the unrestricted net assets on December 31, 2018?

a. PHP 1,226,000 b. PHP 1,926,000 c. PHP 5,026,000 d. PHP 676,000

50. How much is the balance of temporarily restricted net assets on December 31, 2018?

a. PHP 2,759,000 b. PHP 1,959,000 c. PHP 1,956,000 d. PHP 659,000