b. C . On March 10, 2018, Karen Company's board of directors declared a cash dividend...

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b. C . On March 10, 2018, Karen Company's board of directors declared a cash dividend of P0.30 per ordinary share and a 1.0% ordinary share dividend. Both dividends were to be distributed on April 5, 2018 to shareholders on record at the close of business on March 31, 2018. As of March 31, 2018, Karen Company has 6 million, P2 par value, ordinary shares issued and outstanding. Bonds payable Karen Company issued P6,000,000, 12% bonds, on January 1, 2012 at 96. The bonds will mature on October 1, 2022. Interest is paid semi-annually on October 1 and April 1. Karen Company uses the straight line method to amortize bond discount. Required: Based on the foregoing information, determine the adjusted balances of the following as of March 31, 2018: a. Estimated warranty payable b. Unamortized bond discount c. Bond interest payable d. Total current liabilities e. Total noncurrent liabilities 13. Karen Company carries a wide variety of music promotion techniques warranties and premiums to attract customers. Musical instruments and sound equipment are sold on a one-year warranty for replacement of parts and labor. The estimated warranty cost based on past experience is 2% of sales. In addition, the premium is offered on the recorded and sheet music. Customers receive a coupon for each peso spent on recorded music or sheet music. Customers may exchange 200 coupons and P20 for an AM/FM radio, Karen Company pays P34 for each radio and estimates that 60% of the coupons given to customers will be redeemed. Karen Company total sales for 2018 were P57,600,000 and P43,200,000 from musical instrument and sound reproduction equipment and P14,400,000 from recorded music and sheet music. Replacement parts and labor for warranty works totaled P1,312,000 during 2018. A total of 52,000 AM/FM radio used in the premium program were purchased during the year and there were 9,600,000 coupons redeemed in 2018. The accrual method is used by Karen Company to account for the warranty and premium costs for financial reporting purposes. The balance in the accounts related to warranties and premiums on January 1, 2018, were as shown below: Inventory of Premium AM/FM main Estimated Premium Claims Outstanding Estimated Liability from Warranties P 319,600 358,400 1,088,000 Required: Based on the above and the result of your audit, determine the amounts that will be shown on the 2018 financial statements for the following: a. Warranty expense b. Estimated liability from warranties c. Premium expense d. Inventory of AM/FM radio e. Estimated liability for premiums 14. For the year ended December 31, 2018, Karen Company reported a pretax financial income of Php 2,500,000. The taxable income was Php 2,400,000. The difference is due to an accrued interest income. The income tax rate is 30% and Karen Company made an estimated tax payment during 2018 of Php 250,000. Required: Based on the above date, answer the following: a. How much should Karen Company report as current tax expense for 2018? How much should Karen Company report as income tax expense for 2018? How much should Karen Company report as income tax payable for 2018? 15. For the year ended December 31, 2018 Karen Company reported a book income of Php 9,000,000 before income tax. Selected information for 2018 is as follows: Interest income on government bonds - Php 1,500,000 Depreciation per tax return in excess of per book-Php 500,000 Warranty expense on the accrual basis-Php 1,000,000 Actual warranty expenditures - Php 300,000 Income tax payments - Php 500,000 Income tax rate is 30% Required: Based on the above, answer the following: a. How much is the current liability for 2018 income tax? b. How much is the total income tax expense for 2018? c. How much is the tax payable for 2018? b. C . On March 10, 2018, Karen Company's board of directors declared a cash dividend of P0.30 per ordinary share and a 1.0% ordinary share dividend. Both dividends were to be distributed on April 5, 2018 to shareholders on record at the close of business on March 31, 2018. As of March 31, 2018, Karen Company has 6 million, P2 par value, ordinary shares issued and outstanding. Bonds payable Karen Company issued P6,000,000, 12% bonds, on January 1, 2012 at 96. The bonds will mature on October 1, 2022. Interest is paid semi-annually on October 1 and April 1. Karen Company uses the straight line method to amortize bond discount. Required: Based on the foregoing information, determine the adjusted balances of the following as of March 31, 2018: a. Estimated warranty payable b. Unamortized bond discount c. Bond interest payable d. Total current liabilities e. Total noncurrent liabilities 13. Karen Company carries a wide variety of music promotion techniques warranties and premiums to attract customers. Musical instruments and sound equipment are sold on a one-year warranty for replacement of parts and labor. The estimated warranty cost based on past experience is 2% of sales. In addition, the premium is offered on the recorded and sheet music. Customers receive a coupon for each peso spent on recorded music or sheet music. Customers may exchange 200 coupons and P20 for an AM/FM radio, Karen Company pays P34 for each radio and estimates that 60% of the coupons given to customers will be redeemed. Karen Company total sales for 2018 were P57,600,000 and P43,200,000 from musical instrument and sound reproduction equipment and P14,400,000 from recorded music and sheet music. Replacement parts and labor for warranty works totaled P1,312,000 during 2018. A total of 52,000 AM/FM radio used in the premium program were purchased during the year and there were 9,600,000 coupons redeemed in 2018. The accrual method is used by Karen Company to account for the warranty and premium costs for financial reporting purposes. The balance in the accounts related to warranties and premiums on January 1, 2018, were as shown below: Inventory of Premium AM/FM main Estimated Premium Claims Outstanding Estimated Liability from Warranties P 319,600 358,400 1,088,000 Required: Based on the above and the result of your audit, determine the amounts that will be shown on the 2018 financial statements for the following: a. Warranty expense b. Estimated liability from warranties c. Premium expense d. Inventory of AM/FM radio e. Estimated liability for premiums 14. For the year ended December 31, 2018, Karen Company reported a pretax financial income of Php 2,500,000. The taxable income was Php 2,400,000. The difference is due to an accrued interest income. The income tax rate is 30% and Karen Company made an estimated tax payment during 2018 of Php 250,000. Required: Based on the above date, answer the following: a. How much should Karen Company report as current tax expense for 2018? How much should Karen Company report as income tax expense for 2018? How much should Karen Company report as income tax payable for 2018? 15. For the year ended December 31, 2018 Karen Company reported a book income of Php 9,000,000 before income tax. Selected information for 2018 is as follows: Interest income on government bonds - Php 1,500,000 Depreciation per tax return in excess of per book-Php 500,000 Warranty expense on the accrual basis-Php 1,000,000 Actual warranty expenditures - Php 300,000 Income tax payments - Php 500,000 Income tax rate is 30% Required: Based on the above, answer the following: a. How much is the current liability for 2018 income tax? b. How much is the total income tax expense for 2018? c. How much is the tax payable for 2018?