PROBLEM NO.

3
Account balances and supplemental information for the Seek to Win Corporation as of December 31,
2001, given below:

Accounts Payable P   75,900

Accounts Receivable 141,600
Accumulated Depreciation--Equipment 84,000
Bonds Payable 300,000
Cash 243,900
Ordinary shares 1,560,000
Deferred Income Tax Liability 6,900
Dividends Payable 45,000
Equipment 840,000
Income Taxes Payable 91,500
Inventory 395,100
Investment in Land 510,000
Investment in Subsidiary 492,000
Note Payable 120,000
Notes Receivable 150,000
Prepaid Insurance 7,200
Retained Earnings 453,600
Salaries and Wages Payable 42,900
 (a) ₱300,000 of 12% bonds sold on November 1, 2001, at par.
(b) 40,000 shares of ₱30 par value ordinary shares sold for ₱1,560,000.
(c) All the equipment purchased on January 2, 2000.  The depreciation rate is 10 percent per year.
(d) 5 percent of accounts receivable expected to be uncollectible.
(e) A two-year insurance policy purchased on May 1, 2001, for ₱7,200.
(f) Accrued interest on ₱150,000 of short-term notes receivable from customers was ₱5,100 at
December 31, 2001.
(g) ₱120,000 was borrowed from the bank on a 5-year, 10% note payable dated December 31, 2001. 
The loan is to repaid in 10 semiannual payments of ₱12,000 plus interest, with the first payment due June
30, 2002.

Based on the above data, compute for the following:

1. Current Assets
a. 933,420                                    c. 928,320
b. 928,620                                     d. 940,500

2. Total noncurrent assets

a. 1,002,000                                  c. 1,674,000
b. 1,842,000                                  d. 1,182,000

3. Current Liabilities
a. 299,200                                     c. 261,300
b. 255,300                                     d. 285,300

4. Noncurrent liabilities
a. 402,900                                     c. 420,000
b. 396,000                                     d. 426,900
5. Total shareholders’ equity
a. 2,602,320                                  c. 2,607,420
b. 2,602,620                                  d. 2,614,500