NOTES

1. Accounts receivable, net P 380,000

Notes receivable 250,000
Accrued interest on notes receivable 10,000
TRADE AND OTHER RECEIVABLES 640,000

2. Land 1,500,000
Building 5,000,000
Accumulated depreciation-building (2,000,000) 3,000,000
Equipment 1,000,000
Accumulated depreciation-equipment (200,000) 800,000
CARRYING AMOUNT 5,300,000

3. Sinking fund 400,000

Preference share redemption fund 350,000
Cash surrender value 60,000
Land held for speculation 500,000
LONG-TERM INVESTMENTS 1,310,000

4. Lease rights 100,000

Computer software 3,250,000
INTANGIBLE ASSETS 3,350,000

5. Advances to officers - not currently collectible 100,000

Long-term refundable deposit 50,000
OTHER ASSETS 150,000

6. Accounts payable 400,000

Accrued salaries 100,000
SSS payable 10,000
Withholding tax payable 30,000
Unearned rent income 40,000
Dividends payable 120,000
Notes payable 300,000
TRADE AND OTHER PAYABLES 1,000,000

7. Ordinary share capital 5,000,000

Preference share capital 2,000,000
SHARE CAPITAL 7,000,000

8. Share premium – ordinary 200,000

Share premium – preference 500,000
RESERVES 700,000