1.Below are the account balances prepared by the bookkeeper for SQUELCH TO SILENCE Company as of December 31, 20x1:

Assets Liabilities Cash 30,000 Accounts payable 40,000 Accounts receivable, net 88,000 Notes payable 200,000 Inventory 80,000 Prepaid income tax 16,000 Prepaid assets 10,000 Investment in subsidiary 20,000 Land held for sale 56,000 Property, plant and equipment 100,000 Totals 400,000 240,000- Cash consists of the following: Petty cash fund (unreplenished petty cash expenses, P3,000) 4,000 Cash in bank (20,000) Payroll fund 28,000 Tax fund 14,000 Cash to be contributed to a sinking fund set up for the retirement of bonds maturing on December 31, 20x3 Total Cash 4,000 30.000 Accounts receivable consists of the following: Accounts receivable B Allowance for W ! ltl Credit balance in customers' accounts I: Er} Selling price of unsold goods sent on consignment to QUELL, Inc. at 120% of cost and excluded from SQUELCH's inventor}:r 24334313 Accounts receivable, net 88 EDD