The following list of accounts and their balances represent the unadjusted trial balance of

MACMAC Corporation at December 31, 2022:

Cash - P 482,000

Accounts receivable - 690,000

Allow for uncollectible accounts - P 5,000

Inventory - 547,200

Prepaid rent - 180,000

Trading securities – JAJA Corporation bonds - 700,000

Plant and equipment - 1,560,000

Accumulated depreciation - 147,400

Accounts payable - 113,700

Bonds payable - 900,000

Ordinary share capital - 1,700,000

Retained earnings - 873,800

Sales - 2,220,000

Purchases - 1,500,000

Purchase discounts - 34,000

Transportation out - 110,,000

Transportation in - 44,000

Salaries and wages expense - 320,000

Insurance expense - 39,300

Miscellaneous expense - 8,900

Interest expense - 20,400

Rent revenue - 108,000

6,201,900 6,201,900

Additional information:
On September 30, 2022, MACMAC Corporation received P108,000 rent from its lessee for an
eighteen month operating lease beginning on that date.

The regular rate of depreciation is 20% per year. Acquisitions and retirements during the
year are depreciated at half this rate. There were purchases during the year. On December
31, 2021, the balance of the Plant and Equipment account was P2,300,000.

On December 28, 2022, salaries accrued but unpaid were P42,000.

Based on 12-month credit risk assessment of customers, MACMAC estimates that 10% of the
Accounts Receivable balance on December 31, 2022 will become uncollectible.

On August 1, 2022, MACMAC purchased as financial asset at fair value through profit or loss,
700 P1,000 9% bonds of the JAJA Corporation at par. The bonds mature on August 1, 2026.
Interest payment dates are July 31 and January 31, these bonds sell at 101 at December 31,
2022.

Per physical inventory, inventory on hand at December 31, 2022 was P437,000.

On April 30, 2022, MACMAC rented a warehouse for P15,000 per month, paying P180,000
for the full term of the lease. MACMAC exercised its option not to capitalize the leased
warehouse as a right of use asset.

The balance of the insurance expense account contains the premium costs of these policies:

Policy 1, remaining cost of P15,000, one year term, taken out on May 1, 2021

Policy 2, original cost of P16,200, three-year term, taken out October 1, 2022

Policy 3, original cost of P7,800, one-year term, taken out January 1, 2021.