1. Danhag Company has determined its 2008 Net Income is P3,000,000.In the first –time audit
of company financial statements, you determined he following errors:
P400, 000 revenue received in advanced during 2008was credited to revenue
account.P100, 000 was earned in 2008, P200,00 will be earned in 2009 and the remainder
will be earned in 2010.
A P150, 000 was recognized as a loss resulting from a change in inventory valuation
method during 2008.
What will be the adjusted Net Income during 2008?
a.2, 800,000 c..2, 850,000
b.3,150,000 d.2,600,000
2. Lathan Company was organized on January 1,2006 with the following capital structures:
12%Cumulative preference share,P100 par ,with liquidation value of P120,50,000 shares
authorized, issued and outstanding 20,000 shares,P2,500,000.
Ordinary Share Capital, par value P50, authorized 80,000 shares, issued and outstanding
20,000 shares, P1, 200,000.
The net income for the years December 31, 2006 and December 31, 2007 were P2, 000,000 and
3,000,000, respectively. No dividends were declared. What is the December 31, 2008 book
value per ordinary share?
a.256 c.260
