ABE Company provided the following account balances on December 31, 2021:

Share capital
Share premium
Retained earnings
Serial bonds payable (P500,000 due every July 1 of each year)
Employees income tax payable
Notes payable
Accrued expenses
Accrued interest on note payable
Income tax payable
Allowance for doubtful accounts
Advances from customers
Accounts receivable
Accumulated depreciation – building
Accumulated depreciation – machinery
Investment in bonds
Land
Machinery
Factory supplies
Notes Receivable
Building
Cash
Claim receivable
Finished goods
Franchise
Good in process
Prepaid insurance
Raw materials
Trading securities
Tools
Goodwill
Plant expansion fund
Accounts payable
ABE COMPANY
Statement of Financial Position
December 31, 2021
ASSETS

Note

Current assets:
Cash and cash equivalents (1) 500,000 420,000
Financial assets at fair value 200,000 250,000
Trade and other receivables (2) 700,000 620,000
Inventories (3) 900,000 1,250,000
Prepaid expenses (4) 50,000 20,000
Total current assets 2,350,000
2,560,000

Non-current assets:
Property, plant and equipment (5) 5,000,000 4,640,000
Investment in associate, at equity 1,000,000
Long-term investments (6) 5,100,000 2,000,000
Intangible assets (7) 2,000,000 300,000
Other non-current assets (8) 100,000
Total non-current assets 13,200,000
6,940,000
Total assets 15,550,000
9,500,000

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Trade and other payables (9) 750,000 620,000
Note payable-short-term debt 400,000
Current portion of bonds payable 200,000 2,500,000
Warranty liability 50,000
Total current liabilities 1,400,000
3,120,000

Non-current liabilities:
Bonds payable-remaining portion 1, 800,000
Note payable-due July 1, 2023 600,000
Deferred tax liability 100,000
Total non-current liabilities 2,500,000

Shareholders’ equity
Share capital, P100 par 5,000,000 5,000,000
Reserves (10) 3,000,000 500,000
Retained earnings 3,650,000 880,000
 Total shareholders’ equity 11,650,000
6,380,000
Total liabilities and shareholders’ equity 15,550,000
9,500,000
=========

Note 1- Cash and cash equivalents

Cash on hand 40,000 420,000
Cash in bank 300,000
Petty cash fund 10,000
BSP Treasury bill, purchased on December 1, 2019
And due March 1, 2020 150,000
Total cash and cash equivalents 500,000 420,000
======

Note 2-Trade and other receivables

Accounts receivable 580,000 500,000
Allowance for doubtful accounts (20,000) (50,000)
Notes receivable 100,000 150,000
Claim Receivable 20,000
Accrued interest on notes receivable 10,000
Advances to employees, collectible currently 30,000
Total trade and other receivables 700,000 620,000
======

Note 3 – Inventories
Finished goods 300,000 400,000
Goods in process 400,000 600,000
Raw materials 150,000 200,000
Manufacturing (Factory) supplies 50,000 50,000
Total inventories 900,000 1,250,000
======

Note 4 – Prepaid expenses

Office supplies unused 30,000
Prepaid insurance 20,000 20,000
Total prepaid expenses 50,000 20,000
=======

Note 5 – Property, plant and equipment

Land 1,500,000 1,500,000
Building 4,500,000 4,000,000
Machinery and equipment 1,000,000 2,000,000
Furniture and fixture 300,000
Patterns, molds, dies and tools, net 100,000 40,000
Total 7,400,000
Accumulated depreciation (2,400,000) (2,900,000)
Carrying amount 5,000,000 4,640,000
========

Accumulated depreciation:
Building 1,900,000 1,600,000
Machinery and equipment 350,000 1,300,000
Furniture and fixtures 150,000
Total accumulated depreciation 2,400,000 2,900,000
========

Note 6 – Long-term investments

Plant expansion fund 2,000,000 500,000
Investment in bonds 3,000,000 1,500,000
Cash surrender value 100,000
Total other long-term investments 5,100,000 2,000,000
========

Note 7 – Intangible assets

Patent 500,000
Goodwill 100,000
Franchise 1,500,000 200,000
Total intangible assets 2,000,000 300,000
========

Note 8 – Other noncurrent assets

Long-term refundable deposit 20,000
Long – term advances to officers 80,000
Total other non-current assets 100,000
=======

Note 9-Trade and other payables

Accounts payable 350,000 300,000
Notes payable 150,000 100,000
Accrued interest on note payable 15,000 10,000
Income tax payable 50,000 60,000
Employees Income tax payable 20,000
Dividends payable 100,000
Advances from customers 100,000
Accrued expenses 85,000 30,000
Total trade and other payables 750,000 620,000
======

Note 10 – Reserves
Share premium 2,000,000 500,000
Retained earnings appropriated for contingencies 1,000,000
total reserves 3,000,000 500,000