1. Ley Company sells contracts agreeing to service air-conditioners for a three-year period. Information for the year ended December 31, 2019 is as follows: Unearned service contract revenue, January 1 P570,000 Cash receipts from service contracts sold during the year 680,000 Service contracts revenue recognized during the year 490,000

What is the amount to be presented in the 2019 balance sheet as unearned service contract revenue?

2. Met Company sells its products in reusable expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within three years after the year of delivery. Met Company accounts for any containers not returned within the time limit as being retired by sale at the deposit amount. Information relating to customer deposits follows: Containers held by customers at December 31, 2018 from deliveries in 2017 P 75,000 2018 215,000 P290,000 Containers delivered in 2019 390,000 Containers returned in 2019 from deliveries in 2017 P 45,000 2018 125,000 2019 143,000 313,000

What amount should Met report as a liability for deposits on returnable containers at Dec. 31, 2019?

3. Mei Company operates a retail grocery store that required by law to collect refundable deposits of P5 on soda cans. Information for the current year are as follows: Liability for refundable deposit -Jan 1 P150,000 Cans of soda sold 110,000 Soda cans returned 100,000

What amount should be reported as current liability for deposit on December 31?

4. Lop Company requires advance payments with special orders for machinery constructed to the customer specifications. Information for 2019 are as follows: Customer advances- balance 12/31/2018 P 118,000 Advances received with orders in 2019 184,000 Advances applied to orders shipped in 2019 164,000 Advances applicable to orders cancelled in 2019 50,000

How much should be reported as a non-current liability for advances from customer?

5. During 2019, Roi Publishing, a newly organized magazine publisher, received payment of P454,000 for the subscriptions of their two high-end magazines that were being issued monthly (twelve times a year). Magazine Number of Subscriptions Annual Subscription Price Me Time 100 P2,500 Yu World 60 3,400

Of the 100 Me Time subscriptions, effectivity date of the 40 subscriptions was January 1, 2019 while the remainder had April 1, 2019 effectivity. All of the Yu World magazine subscriptions started with the maiden issue published in June 2019. What amount should Roi Publishing report in its December 31, 2019 statement of financial position as unearned subscriptions revenue?