Masipag Corporation

Statement of Profit or Loss

For the Year Ended December 31, 20X8

Sales [1] ₱6,437,000.00

Less: Cost of sales [2] ₱4,060,000.00
Gross Profit ₱2,377,000.00
Add: Other income [3] ₱224,848.00
Total Income ₱2,601,848.00
Less: Operating expenses [4] ₱1,511,509.00
Other expenses [5] ₱37,500.00 ₱1,549,009.00
Net Income before income taxes ₱1,052,839.00
Less: Provision for income tax [6] ₱285,612.00
Net Income after income taxes ₱767,227.00
Note 1 - Sales

Unadjusted Balance 6,950,000.00

Consignment - 500,000.00
SI 969 & 970 (No shipment made) - 13,000.00
Adjusted Balance 6,437,000.00

Note 2 - Cost of sales

Unadjusted Balance 4,400,000.00

Consignment - 400,000.00
Received goods but no invoice 60,000.00
Adjusted Balance 4,060,000.00

Note 3 - Other income

Unadjusted Balance 85,000.00

Interest Income 16,000.00
Dividend Income 40,000.00
Share dividend - 54,000.00
Gain on sale of securities 32,000.00
Unrealized Gain - trading securities 145,600.00
Recognition of UII and reduction of gain on sale of land - 54,545.00
Amortization of UII 4,545.00
Amortization of Discount on LTI 4,915.00
Accrued interest income 5,333.00
Adjusted Balance 224,848.00

Note 4 - Operating expenses

Unadjusted Balance 1,302,537.00

Bank Charges 1,500.00
Petty cash expenses 2,000.00
Doubtful accounts expense 21,900.00
Insurance expense 46,250.00
Supplies expense 5,000.00
Rent expense 120,000.00
Entertainment cost 20,000.00
Insurance expense on bldg 27,500.00
Reduction of DE recognized - 115,578.00
Insurance expense on eqpt 10,000.00
Depreciation expense 55,400.00
Warranty expense 15,000.00
Adjusted Balance 1,511,509.00

Note 5 - Other expenses

Unadjusted Balance 75,000.00

Interest expense 12,500.00
Cancellation of loss on lawsuit recognized - 50,000.00
Adjusted Balance 37,500.00

Note 6 - Provision for income tax

Sales 6,437,000.00
Less: Cost of sales 4,060,000.00
Gross Profit 2,377,000.00
Less: Operating expenses 1,511,509.00
Operating Income 865,491.00
Multiply: Effective tax rate 33%
Provision for income tax - 20X8 285,612.03
Less: Recognized Provision for income tax 409,683.00
Decrease in Provision for income tax - 124,070.97
 Masipag Corporation
Statement of Financial Position
As of December 31, 20X8

ASSETS

Current Assets
Cash [7]
Marketable securities - Trading [8]
Accounts receivable [9] ₱442,000.00
Less: Allowance for doubtful accounts [10] ₱33,150.00
Notes receivable ₱600,000.00
Less: Unearned interest income [11] ₱50,000.00
Accounts receivable - others [12]
Other assets [13]
Inventory, December 31, 20X8 [14]
Prepaid expenses [15]
Total
Noncurrent Assets
Long-term bond investment [16]
Land [17]
Building [18] ₱3,612,500.00
Less: Accumulated depreciation - Bldg. [19] ₱121,922.00
Equipment [20] ₱1,654,000.00
Less: Accumulated depreciation - Eqpt. [21] ₱235,400.00
Total Assets

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
Current Liabilities
Accounts payable [22]
Accrued expenses payable
Estimated warranties [23]
Bank loan payable [24]
Income taxes payable [25]
Other current liabilities [26]
Total Liabilities

Shareholders' Equity
Ordinary share capital
Additional paid-in capital
Retained earnings, December 31, 20X8 [27]
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity
 Note 7 - Cash

Unadjusted Balance
Undelivered Check
DAUD (debit memo)
Payment of loan and interest (debit memo)
₱734,000.00 Remittance of customer (credit memo)
₱545,600.00 Bank charges
Interest income
₱408,850.00 Unreplenished petty cash
Adjusted Balance
₱550,000.00
₱96,333.00 Note 8 - Marketable securities - Trading
₱110,000.00
₱1,960,500.00 Unadjusted Balance
₱175,250.00 Cash dividend (added back)
₱4,580,533.00 Share dividend
Gain on sale of securities
₱743,215.00 Unrealized Gain
₱1,062,500.00 Adjusted Balance

₱3,490,578.00 Note 9 - Accounts Receivable

₱1,418,600.00 ₱6,714,893.00 Unadjusted Balance

₱11,295,426.00 DAUD (debit memo)
Remittance of customer (credit memo)
Y Consignment
Common carriers' claims - balance
IOUs
₱877,000.00 Advances to suppliers
₱59,000.00 Overpayment of customers
₱70,000.00 SI 969 & 970 (No shipment made)
₱1,100,000.00 Adjusted Balance
₱73,729.00
₱100,000.00 Note 10 - Allowance for doubtful accounts
₱2,279,729.00
Unadjusted Balance
Doubtful accounts expense
₱5,000,000.00 Adjusted Balance
₱1,655,250.00
₱2,360,447.00 Note 11 - Unearned interest income
₱9,015,697.00
₱11,295,426.00 Recognition of UII and reduction of gain on sale of land
Amortization of UII
Adjusted Balance

Note 12 - Accounts receivable - others

IOUs from employees - petty cash

Common carriers' claims - balance
IOUs
Advances to suppliers
Claims from insurance company - inventory
Accrued interest income
Adjusted Balance

Note 13 - Other assets

Unadjusted Balance
Advances to lessor
Adjusted Balance

Note 14 - Inventory, December 31, 20X8

Unadjusted Balance
Consignment
Goods received not included in physical count
Loss on unsalable goods
Adjusted Balance

Note 15 - Prepaid expenses

Unadjusted Balance
Insurance expense
Supplies expense
Rent expense and advances to lessor
Unexpired prepaid insurance - bldg.
Unexpired prepaid insurance - eqpt.
Adjusted Balance

Note 16 - Long term bond investment

Unadjusted Balance
Amortization of Discount on LTI
Adjusted Balance

Note 17 - Land
Acquisition Price
Multiply: Allocation to FV
Acquisition price attributable to land

Note 18 - Building

Acquisition Price
Multiply: Allocation to FV
Acquisition price attributable to building
Renovation costs
Adjusted Balance

Note 19 - Accumulated depreciation - bldg.

Carrying amount of bldg.

Less: Residual Value (10% of CA)
Depreciable Amount
Divide: Estimated useful life
Annual depreciation
Multiply: Actual depreciation
Adjusted Balance

Note 20 - Equipment

Unadjusted Balance
Prepaid insurance (not capitalizable)
Adjusted Balance

Note 21 - Accumulated depreciation - eqpt.

Unadjusted Balance
Depreciation expense
Adjusted Balance

Note 22 - Accounts payable

Unadjusted Balance
Undelivered check
Received goods but no invoice
Goods received not included in physical count
Deposit from customer
Adjusted Balance

Note 23 - Estimated warranties

Unadjusted Balance
Warranty expense adjustment
Adjusted Balance

Note 24 - Bank loan payable

Unadjusted Balance
Payment of loan (debit memo)
Adjusted Balance

Note 25 - Income taxes payable

Unadjusted Balance
Decrease in Provision for income tax
Adjusted Balance

Note 26 - Other current liabilities

Unadjusted Balance
Overpayment of customers
Deposit from customer
Cancellation of loss on lawsuit recognized
Adjusted Balance

Note 27 - Retained earnings, December 31, 20X8

Unadjusted Balance
Net Income after income taxes
Adjusted Balance
 874,000.00
200,000.00
- 10,000.00
- 412,500.00
75,000.00
- 1,500.00
16,000.00
- 7,000.00
734,000.00

382,000.00
40,000.00
- 54,000.00
32,000.00
145,600.00
545,600.00

1,040,000.00
10,000.00
- 75,000.00
- 500,000.00
- 15,000.00
- 5,000.00
- 50,000.00
50,000.00
- 13,000.00
442,000.00

11,250.00
21,900.00
33,150.00

of gain on sale of land 54,545.00

 - 4,545.00
50,000.00

5,000.00
15,000.00
5,000.00
50,000.00
16,000.00
5,333.00
96,333.00

50,000.00
60,000.00
110,000.00

1,551,500.00
400,000.00
ysical count 25,000.00
- 16,000.00
1,960,500.00

369,000.00
- 46,250.00
- 5,000.00
- 180,000.00
27,500.00
10,000.00
175,250.00

738,300.00
4,915.00
743,215.00
 4,250,000.00
1/4
1,062,500.00

4,250,000.00
3/4
3,187,500.00
425,000.00
3,612,500.00

3,612,500.00
361,250.00
3,251,250.00
20
162,562.50
3/4
121,922.00

1,674,000.00
- 20,000.00
1,654,000.00

180,000.00
55,400.00
235,400.00

642,000.00
200,000.00
60,000.00
ysical count 25,000.00
- 50,000.00
877,000.00
 55,000.00
15,000.00
70,000.00

1,500,000.00
- 400,000.00
1,100,000.00

197,800.00
- 124,071.00
73,729.00

50,000.00
50,000.00
50,000.00
- 50,000.00
100,000.00

mber 31, 20X8

1,593,220.00
767,227.00
2,360,447.00
 Unadjusted Trial Balance Net Adjustments
Debit Credit Debit
Cash 874,000.00
Marketable securities - Trading 382,000.00 163,600.00
Accounts receivable 1,040,000.00
Allowance for doubtful accounts 11,250.00
Notes receivable 600,000.00
Discount on notes receivable -
Accounts receivable - others - 96,333.00
Inventory, December 31, 20X8 1,551,500.00 409,000.00
Prepaid expenses 369,000.00
Long-term bond investment 738,300.00 4,915.00
Land and building 4,512,500.00
Accumulated depreciation - Building -
Equipment 1,674,000.00
Accumulated depreciation - Equipment 180,000.00
Other assets 50,000.00 60,000.00
Accounts payable 642,000.00
Bank loan payable 1,500,000.00 400,000.00
Accrued expenses payable 59,000.00
Other current liabilities 50,000.00
Income taxes payable 197,800.00 124,071.00
Estimated warranties 55,000.00
Ordinary share capital 5,000,000.00
Additional paid-in capital 1,655,250.00
Retained earnings, December 31, 20X7 1,593,220.00
Sales 6,950,000.00 513,000.00
Cost of sales 4,400,000.00
Operating expenses 1,302,537.00 208,972.00
Other income 85,000.00
Other expenses 75,000.00
Provision for income tax 409,683.00
Total 17,978,520.00 17,978,520.00 1,979,891.00
Land
Building
Unearned interest income
Total
Net Income after tax
Total
Net Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit
140,000.00 734,000.00 734,000.00
545,600.00 545,600.00
598,000.00 442,000.00 442,000.00
21,900.00 33,150.00
600,000.00 600,000.00

96,333.00 96,333.00
1,960,500.00 1,960,500.00
193,750.00 175,250.00 175,250.00
743,215.00 743,215.00
4,512,500.00 -
121,922.00 121,922.00
20,000.00 1,654,000.00 1,654,000.00
55,400.00 235,400.00
110,000.00 110,000.00
235,000.00 877,000.00
1,100,000.00
59,000.00
100,000.00
73,729.00
15,000.00 70,000.00
5,000,000.00
1,655,250.00
1,593,220.00
6,437,000.00 6,437,000.00
340,000.00 4,060,000.00 4,060,000.00
1,511,509.00 1,511,509.00
139,848.00 224,848.00 224,848.00
37,500.00 37,500.00 37,500.00
124,071.00 285,612.00 285,612.00
6,554,891.00 12,955,519.00 17,580,519.00 5,894,621.00 6,661,848.00
1,062,500.00 1,062,500.00
3,612,500.00 3,612,500.00
50,000.00
17,630,519.00 17,630,519.00 11,735,898.00
767,227.00
6,661,848.00 6,661,848.00 11,735,898.00
Balance Sheet
Credit

33,150.00

121,922.00

235,400.00

877,000.00
1,100,000.00
59,000.00
100,000.00
73,729.00
70,000.00
5,000,000.00
1,655,250.00
1,593,220.00

50,000.00
10,968,671.00
767,227.00
11,735,898.00
 Cash Marketable securities - trading
Debit Credit Balance Debit Credit
874,000.00 874,000.00 382,000.00
200,000.00 1,074,000.00 40,000.00
10,000.00 1,064,000.00 54,000.00
412,500.00 651,500.00 32,000.00
75,000.00 726,500.00 145,600.00
1,500.00 725,000.00
16,000.00 741,000.00
7,000.00 734,000.00
734,000.00
734,000.00
734,000.00
734,000.00
734,000.00
734,000.00
734,000.00
734,000.00

Prepaid expenses Long-term bond investment

Debit Credit Balance Debit Credit
369,000.00 369,000.00 738,300.00
46,250.00 322,750.00 4,915.00
5,000.00 317,750.00
180,000.00 137,750.00
27,500.00 165,250.00
10,000.00 175,250.00
175,250.00
175,250.00
175,250.00
175,250.00
175,250.00
175,250.00
175,250.00
175,250.00
175,250.00
175,250.00

Bank loan payable Accrued expenses payable

Debit Credit Balance Debit Credit
1,500,000.00 1,500,000.00 59,000.00
400,000.00 1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00
1,100,000.00

Sales Cost of sales

Debit Credit Balance Debit Credit
6,950,000.00 6,950,000.00 4,400,000.00
500,000.00 6,450,000.00 400,000.00
13,000.00 6,437,000.00 60,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
6,437,000.00
 securities - trading Accounts receivable Allowance for doubtful accou
Balance Debit Credit Balance Debit
382,000.00 1,040,000.00 1,040,000.00
422,000.00 10,000.00 1,050,000.00
368,000.00 75,000.00 975,000.00
400,000.00 500,000.00 475,000.00
545,600.00 15,000.00 460,000.00
545,600.00 55,000.00 405,000.00
545,600.00 50,000.00 455,000.00
545,600.00 13,000.00 442,000.00
545,600.00 442,000.00
545,600.00 442,000.00
545,600.00 442,000.00
545,600.00 442,000.00
545,600.00 442,000.00
545,600.00 442,000.00
545,600.00 442,000.00
545,600.00 442,000.00

m bond investment Land and building Accumulated depreciation - B

Balance Debit Credit Balance Debit
738,300.00 4,512,500.00 4,512,500.00
743,215.00 4,250,000.00 262,500.00
743,215.00 425,000.00 - 162,500.00
743,215.00 20,000.00 - 182,500.00
743,215.00 55,000.00 - 237,500.00
743,215.00 237,500.00 -
743,215.00 -
743,215.00 -
743,215.00 -
743,215.00 -
743,215.00 -
743,215.00 -
743,215.00 -
743,215.00 -
743,215.00 -
743,215.00 -

expenses payable Other current liabilities Income taxes payable

Balance Debit Credit Balance Debit
59,000.00 50,000.00 50,000.00
 59,000.00 50,000.00 100,000.00 124,071.00
59,000.00 50,000.00 50,000.00
59,000.00 50,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00
59,000.00 100,000.00

ost of sales Operating expenses Other income

Balance Debit Credit Balance Debit
4,400,000.00 1,302,537.00 1,302,537.00
4,000,000.00 1,500.00 1,304,037.00
4,060,000.00 2,000.00 1,306,037.00
4,060,000.00 21,900.00 1,327,937.00 54,000.00
4,060,000.00 46,250.00 1,374,187.00
4,060,000.00 5,000.00 1,379,187.00
4,060,000.00 120,000.00 1,499,187.00 54,545.00
4,060,000.00 20,000.00 1,519,187.00
4,060,000.00 27,500.00 1,546,687.00
4,060,000.00 115,578.00 1,431,109.00
4,060,000.00 10,000.00 1,441,109.00
4,060,000.00 55,400.00 1,496,509.00
4,060,000.00 15,000.00 1,511,509.00
4,060,000.00 1,511,509.00
4,060,000.00 1,511,509.00
4,060,000.00 1,511,509.00
Allowance for doubtful accounts Notes receivable
Credit Balance Debit Credit Balance
11,250.00 11,250.00 600,000.00 600,000.00
21,900.00 33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00
33,150.00 600,000.00

Accumulated depreciation - Bldg Equipment

Credit Balance Debit Credit Balance
121,922.00 121,922.00 1,674,000.00 1,674,000.00
121,922.00 20,000.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00
121,922.00 1,654,000.00

Income taxes payable Estimated warranties

Credit Balance Debit Credit Balance
197,800.00 197,800.00 55,000.00 55,000.00
 73,729.00 15,000.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00
73,729.00 70,000.00

Other income Other expenses

Credit Balance Debit Credit Balance
85,000.00 85,000.00 75,000.00 75,000.00
16,000.00 101,000.00 12,500.00 87,500.00
40,000.00 141,000.00 50,000.00 37,500.00
87,000.00 37,500.00
32,000.00 119,000.00 37,500.00
145,600.00 264,600.00 37,500.00
210,055.00 37,500.00
4,545.00 214,600.00 37,500.00
4,915.00 219,515.00 37,500.00
5,333.00 224,848.00 37,500.00
224,848.00 37,500.00
224,848.00 37,500.00
224,848.00 37,500.00
224,848.00 37,500.00
224,848.00 37,500.00
224,848.00 37,500.00
 Discount on notes receivable Accounts receivable - others
Debit Credit Balance Debit Credit Balance
- 5,000.00 5,000.00
- 15,000.00 20,000.00
55,000.00 75,000.00
16,000.00 91,000.00
5,333.00 96,333.00
96,333.00
96,333.00
96,333.00
96,333.00
96,333.00
96,333.00
96,333.00
96,333.00
96,333.00
96,333.00
96,333.00

Accumulated depreciation - eqpt. Other assets

Debit Credit Balance Debit Credit Balance
180,000.00 180,000.00 50,000.00 50,000.00
55,400.00 235,400.00 60,000.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00
235,400.00 110,000.00

Ordinary share capital Additional paid in capital

Debit Credit Balance Debit Credit Balance
5,000,000.00 5,000,000.00 1,655,250.00 1,655,250.00
 5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00
5,000,000.00 1,655,250.00

Provision for income tax Land

Debit Credit Balance Debit Credit Balance
409,683.00 409,683.00 1,062,500.00 1,062,500.00
124,071.00 285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00
285,612.00 1,062,500.00

Unearned Interest In
Debit

4,545.00
 Inventory, December 31, 20X8
Debit Credit Balance
1,551,500.00 1,551,500.00
400,000.00 1,951,500.00
25,000.00 1,976,500.00
16,000.00 1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00
1,960,500.00

Accounts payable
Debit Credit Balance
642,000.00 642,000.00
200,000.00 842,000.00
842,000.00
60,000.00 902,000.00
25,000.00 927,000.00
50,000.00 877,000.00
877,000.00
877,000.00
877,000.00
877,000.00
877,000.00
877,000.00
877,000.00
877,000.00
877,000.00
877,000.00

Retained earning, December 31, 20X7

Debit Credit Balance
1,593,220.00 1,593,220.00
 1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00
1,593,220.00

Building
Debit Credit Balance
3,187,500.00 3,187,500.00
425,000.00 3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00
3,612,500.00

Unearned Interest Income

Credit Balance
54,545.00 54,545.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
1) Cash 200,000.00
Accounts Payable 200,000.00

2) Accounts Receivable 10,000.00

Cash 10,000.00

3)
a) Bank Loan Payable 400,000.00
Other expenses 12,500.00
Cash 412,500.00

b) Cash 75,000.00
Accounts receivable 75,000.00

c)Operating expenses 1,500.00

Cash 1,500.00

d) Cash 16,000.00
Other income 16,000.00

e) No Entry

4) Accounts Receivable - others 5,000.00

Operating expenses 2,000.00
Cash 7,000.00
5) Marketable securities - Trading 40,000.00
Other income 40,000.00

Other income 54,000.00

Marketable securities - Trading 54,000.00

Marketable securities - Trading 32,000.00

Other income 32,000.00

Marketable securities - Trading 145,600.00

Other income 145,600.00

163,600.00
6) Sales 500,000.00
Accounts receivable 500,000.00

Inventory, December 31, 20X8 400,000.00

Cost of sales 400,000.00

Accounts receivable - others 15,000.00

Accounts receivable 15,000.00

Accounts receivable - others 55,000.00

Accounts Receivable 55,000.00

Accounts receivable 50,000.00

Other current liabilities 50,000.00

Operating expenses 21,900.00

Allowance for doubtful accounts 21,900.00
7) Other income 54,545.00
Unearned interest income 54,545.00

Unearned interest income 4,545.00

Other income 4,545.00
8) Cost of sales 60,000.00
Accounts payable 60,000.00

Inventory, December 31, 20X8 25,000.00

Accounts payable 25,000.00

Accounts receivable - others 16,000.00

Inventory, December 31, 20X8 16,000.00

Sales 13,000.00
Accounts receivable 13,000.00
9) Operating expenses 46,250.00
Prepaid expenses 46,250.00

Operating expenses 5,000.00

Prepaid expenses 5,000.00

Other assets 60,000.00

Operating expenses 120,000.00
Prepaid expenses 180,000.00
10) Long term bond investment 4,915.00
Other income 4,915.00

Accounts receivable - others 5,333.00

Other income 5,333.00
11) Land 1,062,500.00
Building 3,187,500.00
Land and Building 4,250,000.00

Building 425,000.00
Land and Building 425,000.00

Operating expenses 20,000.00

Land and building 20,000.00

Operating expenses 27,500.00

Prepaid expenses 27,500.00
Land and building 55,000.00

Land and Building 237,500.00

Operating expenses 115,578.00
Accumulated depreciation - building 121,922.00

-
12) Operating expenses 10,000.00
Prepaid expenses 10,000.00
Equipment 20,000.00

Operating expenses 55,400.00

Accumulated depreciation - equipment 55,400.00
13) Accounts payable 50,000.00
Other current liabilities 50,000.00
14) Operating expenses 15,000.00
Estimated warranties 15,000.00
15) Other current liabilities 50,000.00
Other expenses 50,000.00

16) Income taxes payable 124,071.00

Provision for income tax 124,071.00