management and materially changes either the scope of a business of an entity or the manner in which that business is conducted. Test 2 (70 pts.) Problems. Answer as required. A.) You are given the following data on the ledgers of Paolo Corp. as of Dec. 31, 2017 10% Preference shares, P200 par, 50,000 shares authorized, 20,000 shares issued c Accounts payable 8 million 15 million 1 million Notes payable- 1 year Allo. For doubtful accounts Accounts receivable 1 million Accrued expenses Accumulated depreciation is 10% of affected assets Advances to employees Cash on hand Income tax payable 300,000 400,000 500,000 2 million Merchandise inventory Cash in bank Other current assets Bonds payable Building 2 million 3 million 500,000 2 million 5 milliorn 500,000 500,000 500,000 100,000 Cash surrender value Dividends payable Machinery and equipment 1 million Furniture and fixtures Mortgage payable Notes payable 3 yrs. Notes receivable Ordinary shares, P100 par, 100,000 shares authorized, 60,000 shares issued 3 million 2 million Current portion bonds payable Deferred tax liability Accrued interest income 5 million 1 million Other non-current assets 1 million Petty cash fund Plant expansion fund Prepaid expenses Retained earnings Share premium - preference 500,000 Treasury shares-preference 1 million Input VAT Patent BSP treasury bills due in 3 mos. Investment in bonds Office supplies unused Other current liabilities Share premium- ordinary Treasury shares-ordinary Output VAT 15 million 20,000 2 million 200,000 3 million 300,000 500,000 1 milliorn 2 million 600,000 500,000 Premiums-soup bowls Est mated warranty liability 200,000 Decommissioning liability 5 million 100,000 Estimated premium liability Gift certificate payable 200,000 500,000 Required: Prepare the liabilities section of the Statement of Financial Positior.. toil in Surigag Sea. On Jan. 1, 2018 the e