(1) Schedule of Property, Plant and Equipment:

01.01.2022 01.01.2022 01.01.2022 Accumulated Carrying Property, plant and equipment Cost Depreciation amount Land - - Office Building 2,400,000 480,000 1,920,000 Office Furniture and Fixtures 400,000 160,000 240,000 Store Building 3,600,000 720,000 2,880,000 Store equipment 1,200,000 600,000 600,000 Total 7,600,000 1,960,000 5,640,000

(2) The investment in the bonds of Manda Company was acquired on April 1, 2022 with a face amount of P4,000,000, for P3,766,720. The bonds mature on April 1, 2026 and pays 12% interest annually on April 1 with a 14% effective yield. The investment is to be held as financial asset at amortized cost. (3) The investment property is a vacant land that was acquired during 2020 and currently has undetermined use. (4) On January 1, 2022, Bigfork purchased 20,000 shares of Horizon Company, P30 par at P60 per share, representing 20% equity interest. At the time of acquisition, the net assets of the investee are fairly stated. (5) Bigfork purchased 10,000 shares of marketable equity securities of Lagoon Company on June 1, 2022, for P 408,000 and held these as financial assets for trading. (6) The one-year store insurance policy was purchased last October 1, 2021 for an annual premium of P120,000. (7) Bigfork insured the life of its president for P1,000,000, with annual premium of P15,000, the entity being the beneficiary of the ordinary life policy. The policy date was January 1, 2020 and carried the following cash surrender value:

Cash surrender End of policy year value 2020 - 2021 - 2022 15,000 2023 21,000 2024 29,000

(8) The 3-year, P1,200,000 face amount, 10% bonds was issued by Bigfork on January 1, 2022 for P1,242,240, with an effective yield of 8%. The principal and interest are payable annually starting on December 31, 2022. (9) The P720,000 note payable was a 2-year, 8% promissory note, issued on July 1, 2022. Principal payment is due on maturity date but interest is payable every first of the month, beginning August 1, 2022. (10) The 12%, P180,000 note payable was a 6-month promissory note, issued on June 15, 2022. Interest was payable at maturity date. (11) Bigfork has the following payroll information. All employees worked January 1 through December 31:

Employee Share: Employer Share Monthly Monthly Monthly Monthly Designation Salary Income Tax w/held SSS, PHIC, & HDMF SSS, PHIC, & HDMF Mirabel Sales personnel 22,100 255 600 600 Luisa Sales personnel 23,920 620 600 600 Camilo Sales personnel 22,880 410 600 600 Bruno Office personnel 24,180 670 600 600 Isabela Sales personnel 23,400 515 600 600 Antonio Office personnel 24,700 770 600 600 141,180 3,240 3,600 3,600

OCTOBER 2022 1 Issued 100,000 shares of P10 par value ordinary share for cash of P15 per share. 2 Issued 30,000 preference shares for cash of P60 per share. 3 Issued a P2,400,000, 10-year, 9% mortgage payable for land with an existing store building. Mortgage payments of P20,000 plus interest based on the outstanding balance of mortgage are due on the first day of each month, beginning November 1. The assets had the following market values: Land, P200,000; Building, P800,000. 4 Issued a one-year, 10% note payable for P100,000 for office fixtures. The principal and interest are due October 1, 2023. 5 Paid the renewal of annual store insurance premium of P120,000. 6 Paid interest due on the 8% note payable issued last July 1, 2022. 7 Purchased merchandise inventory on account for P1,250,000, terms n/30. 8 Paid P400,000 of accounts payable 9 Collected 80% of accounts receivables. 10 Paid P16,000 for utilities. 11 Paid all liabilities associated with the September 30 payroll. 12 Received a cash dividend of P1.60 per share from Lagoon Company. 13 Recorded cash sales for the month of P560,000 and credit sales of P1,290,000. The cost of the goods sold was P1,100,000 and estimated warranty payable was 8%. 14 Recorded October payroll and paid employees. 15 Accrued employer additional payroll contributions for October. NOVEMBER 2022 1 Paid the first mortgage payment. 2 Purchased 6,000 ordinary shares at P110 per share of Jack Source Co. as a long-term investment, representing 4% ownership. Bigfork irrevocably designate this investment at fair value through other comprehensive income. 3 Paid interest due on the 8% note payable issued last July 1, 2022. 4 Paid suppliers for merchandise inventory purchased on October transaction # 7. 5 Purchased merchandise inventory on account for P1,500,000, terms n/30. 6 Collected 80% of accounts receivable. 7 Purchased 50,000 ordinary shares as treasury for P16 per share. These shares were originally issued for P14 per share. 8 Paid all liabilities associated with the October 31 payroll. 9 Paid P60,000 to satisfy warranty claims. 10 Declared cash dividends of P2 per outstanding share to ordinary shareholders and the preference dividends at the preference rate. 11 Paid P24,500 for utilities. 12 Received a cash dividend of P6.6 per share on the Jack investment. 13 Paid the cash dividends declared on November transaction #10. 14 Recorded cash sales for the month of P420,000 and credit sales of P980,000 The cost of the goods sold was P840,000 and estimated warranty payable was 8%. 15 Recorded November payroll and paid employees. 16 Accrued employer additional payroll contributions for November. Page 5 of 7 DECEMBER 2022 1 Paid the second mortgage payment. 2 Paid interest due on the 8% note payable issued last July 1, 2022. 3 Received a cash dividend of P4.80 per share from Horizon Company. 4 Paid suppliers for merchandise inventory purchased on November transaction #5. 5 Collected 80% of accounts receivable. 6 Paid P100,000 to satisfy warranty claims. 7 Sold 30,000 shares of treasury share for P15 per share. 8 Paid all liabilities associated with the November 30 payroll. 9 Paid the principal and interests of the note payable issued last June 15, 2022. 10 Declared a 10% share dividend to all outstanding ordinary shares to be distributed on December 30, 2022 to shareholders of record December 24, 2022. The market value of the shares as of declaration date is P16 per share. 11 Paid P22,000 for utilities. 12 Purchased merchandise inventory on account for P900,000, terms n/30. 13 Distribute the share dividends. 14 Recorded cash sales for the month of P630,000 and credit sales of P1,470,000 The cost of the goods sold was P1,260,000 and estimated warranty payable was 8%. 15 Recorded December payroll and paid employees. 16 Accrued employer additional payroll contributions for December. 17 Paid the first series of the 10% P1,200,000 bonds and the annual interest. 18 A physical inventory count conducted revealed total cost of P1,000,000. The entity also determined that the net realizable value of inventory was P1,100,000. 19 The bank statement as of December 31, 2022 showed a balance of P5,973,670.00. Upon comparing the statement with the cash records, the following facts were determined: a. The bank debited service charges for December of P10,000. b. Receipts for December 31, 2022 for P500,000 were not recorded by bank until January 2, 2023. c. Checks outstanding on December 31, 2022 totaled P685,000 d. Amount erroneously credited by bank to Bigfork's account, P150,000 20 Appropriated retained earnings equal to the cost of treasury shares. 21 Management decided to cancel the appropriation for contingencies because the possibility of such contingency occurring has now become very remote. 22 The following year-end market values are determined for all of Bigfork's investments as well as their reported earnings:

Investment in Market Value Net Income (Loss) Lagoon Company P 40 per share P 2,000,000 Horizon Company P 62 per share 3,000,000.00 Manda Company 99% of face amount (1,500,000.00) Jack Source Company P 112 per share 6,000,000.00

The following are the accounting policies of Bigfork Company: 1. Investment properties are measured using cost model 2. A full year depreciation is taken in the year of acquisition and no depreciation is taken in the year of disposition. 3. The accounting policy is to report inventory at lower of cost and net realizable value applied to total inventory. Cost is determined under the first-in, first-out method. The entity used the direct write-off method of recording inventory write-down. Any inventory loss will be charged directly to cost of goods sold account. 4. In estimating allowance for doubtful accounts, the entity used percentage of accounts receivables. The policy is to maintain an allowance for doubtful accounts equal to 10% of the outstanding accounts receivable. 5. The entity opted to use the straight line method of depreciation for all property, plant and equipment. Residual values are ignored because they are considered immaterial. The following are the estimated useful life of the properties:

Office Building 20 years b. Office Furniture and Fixtures 5 years c. Store Building 20 years d. Store equipment 6 years

Requirements:

1. Record the transactions for the last quarter in the general journal.

2. Record adjusting entries for the year- ended December 31, 2022: A. Depreciation on the office and store buildings, office furniture and fixtures and store equipment. B. Accruals of interest expense and interest income. C. Expiration of insurance premiums D. Provision for doubtful accounts E. Amortization of discounts or premiums F. Recognition of changes in fair values G. Bank reconciling items. 3. Post adjusting entries and prepare an ADJUSTED trial balance. 4. Post to the general ledger using T-accounts. 5. NO NEED TO PREPARE CLOSING ENTRIES 6. single Statement of Comprehensive Income (Profit or loss statement and other comprehensive income) for the year ended December 31, 2022, using functional presentation. Classify Income as Sales, Other Income and Investment Income. Classify expenses as Cost of goods sold, Selling expenses, Administrative expenses, Other expense and Finance cost. After classifying, present the account titles following the given sequence of account numbers. 7. Statement of Changes in Shareholders' Equity (include a column for TOTALS) as of the year ended December 31, 2022 8.Statement of Financial Position as of the year-ended December 31, 2022, using report form. Classify assets and liabilities as to current and non-current.