NOTES:

NOTE 1: CASH AND CASH EQUIVALENTS

Cash and cash equivalents ₱ 1 000 000

ADD: Overdraft 200 000
TOTAL CASH AND CASH EQUIVALENTS ₱ 1 200 000

NOTE 2: TRADE AND OTHER RECEIVABLES

Accounts Receivable ₱ 1 500 000

ADD: Net Credit 200 000
Total Accounts Receivable ₱ 1 700 000

Allowance for Doubtful Account (200 000)

Accounts Payable-Debit Balance 100 000
Dividends Receivable 200 000
Interest Receivable 300 000
Notes Receivable 2 000 000
Loans Receivable-current portion 1 000 000
TOTAL TRADE AND OTHER RECEIVABLES ₱ 5 100 000.

NOTE 3: PREPAID EXPENSES

Prepaid Asset and Office Supplies ₱ 300 000

NOTE 4: SHORT TERM INVESTMENTS

Land held for Sale ₱ 2 000 000

Investment in Trading Securities 3 000 000
TOTAL SHORT TERM INVESTMENTS ₱ 5 000 000

NOTE 5: PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment ₱ 5 000 000

LESS: Acc. Depreciation (800 000)
CARRYING AMOUNT ₱ 4 200 000

NOTE 6: INTANGIBLE ASSETS

Intangible Assets ₱ 2 000 000

LESS: Acc. Depreciation (200 000)
CARRYING AMOUNT ₱ 1 800 000
NOTE 7: LONG TERM INVESTMENTS

Investment Property ₱ 500 000

Cash surrender value 50 000
Bond sinking fund 1 500 000
Plant expansion fund 5 000 000
Investment in Joint Venture 2 000 000
Investment in Subsidiary 3 000 000
TOTAL LONG TERM INVESTMENTS ₱ 12 050 000

NOTE 8: INVESTMENT IN HELD TO MATURITY SECURITIES

Investment in held to maturity securities ₱ 2 400 000

LESS: Unamortized Discount (400 000)
TOTAL INVESTMENT IN HELD TO MATURITY SECURITIES ₱ 2 000 000

NOTE 9: INVESTMENT IN ASSOCIATE

Investment in Preference Shares ₱ 3 000 000

Investment in Ordinary shares 4 000 000
TOTAL INVESTMENT IN ASSOCIATE ₱ 7 000 000

NOTE 10: OTHER NONCURRENT ASSETS

Loan receivable-current portion ₱ 4 000 000

Deferred tax asset 300 000
TOTAL OTHER NONCURRENT ASSETS ₱ 4 300 000

NOTE 11: TRADE AND OTHER PAYABLES

Accounts Payable ₱ 400 000

ADD: Debit balance 100 000
Total Accounts Payable ₱ 500 000

Salaries Payable 100 000

Interest Payable 30 000
Income tax Payable 100 000
Utilities Payable 300 000
Cash dividends payable 100 000
Accounts Receivable-credit balance 200 000
Notes Payable 200 000
Bank Overdraft 200 000
TOTAL TRADE AND OTHER PAYABLES ₱ 1 730 000
NOTE 12: TRADE AND OTHER PAYABLES-NONCURRENT

Bonds Payable ₱ 1 500 000

Unamortized Premium 300 000
LESS: Unamortized Discount 100 000
TOTAL BONDS PAYABLE ₱ 1 700 000

Notes payable-noncurrent 200 000

TOTAL TRADE AND OTHER PAYABLES-NONCURRENT ₱ 1 900 000

NOTE 13: SHARE CAPITAL

Ordinary shares at par ₱ 500 000

ADD: Subscribed share capital 200 000
Total Share Capital ₱ 700 000

Preference shares at par 100 000

Stock Dividends Payable 1 000 000
TOTAL SHARE CAPITAL ₱ 1 800 000

NOTE 14: RESERVES

Revaluation Surplus ₱ 200 000

Cumulative unrealized gain-FAFVOCI 200 000
Cumulative unrealized gain- FLFVPL 100 000
Retained earnings- appropriated for plant expansion 5 000 000
Retained earnings- appropriated for treasury 600 000
Cumulative translation debit -foreign operation (300 000)
Cumulative unrealized loss-FAFVOCI equity instrument (100 000)
Cumulative unrealized loss – cash flow hedge (300 000)
Net remeasurement loss (400 000)
TOTAL RESERVES ₱ 5 000 000

NOTE 15: RETAINED EARNINGS

Retained Earnings, beginning ₱ 2 000 000

ADD: Net Income 34 520 000
LESS: Cash Dividends Payable (100 000)
Share Dividends Payable (1 000 000)
Retained earnings – appropriated (5 600 000)
TOTAL RETAINED EARNINGS ₱ 29 820 000

NOTE 16: SHARE PREMIUM

Donated Capital ₱ 200 000

Share Premium – Preference share 2 000 000
Share Premium- Ordinary Shares 1 000 000
Donated capital 200 000
Conversion options 400 000
Share options 500 000
TOTAL SHARE PREMIUM ₱ 4 100 000