Narciso Manufacturing Corporation Statement of Financial Position For the year December 31, 2021 Assets Cash P225,000 Receivable, net 345,700 Inventories 560,000 Prepaid income taxes 40,000 Investments 57,700 Land 450,000 Building 1,750,000 Machinery and Equipment 1,964,000 Goodwill 37.000 Total assets 25,429,400 Liabilities and Equity Accounts payable P 133,800 Mortgage payable, 10% 900,000 Notes payable 500,000 Lawsuit liability 80,000 Income taxes payable 61,200 Deferred tax liability 28,000 Accumulated depreciation 420.000 Total liabilities 2.123.000 Share capital, P50 par, 40,000 shares issued 2,231,000 Retained earnings 1.075.400 Total equity 3.306.400 Total liabilities and equity P5,429.400 Your firm has been engaged to perform an audit, during which time the following data are found: Cher A Checks totaling P10,000 in payment of accounts payable were mailed on December 30, 2021 but were not recorded until 2022. Late in December 2021, the bank returned a customer's P5,000 check, marked DAIF, but no entry was made. Cash includes P100,000 restricted for building purposes Included in accounts receivable is a P20,000 note due on December 31, 2024 and was net of bank overdraft amounting to P25,000. from the company's president. Also, the accounts receivable is net of a 6- months, 12% P100,000 notes payable due on March 31, 2022 to which a P150,000 of the receivables were assigned. Accrual of the interest was incorrectly credited to the accounts payable account con December 26, 2021, a supplier authorized the company to return goods shipped and billed at P40,000 on December 3, 2021. The goods were returned on December 28, 2021. The supplier's credit memo was received and recorded on January 5, 2022. D. During 2021, the company purchased 500 ordinary shares of a major corporation that supplies the company with raw materials. The cost of these shares was P51,300, and the fair value on December 31, 2021 was P47,000. The designated the shares to be financial assets at fair value through comprehensive income. E Treasury shares were recorded at cost when the company purchased 200 of its own shares for P32 per share in May 2021. This amount is own share in May 2021. This amount is included in investments. F. On December 30, 2021, the company borrowed P400,000 from a bank in exchange for a 10% note payable, maturing on December 30, 2025. Equal principal payments are due December 30 of each year, beginning in 2022. This note is collateralized by a P250,000 tract of land acquired as a potential future building site, which is included in land. 2021: G. The balance of this mortgage payable is due on June 30, 2022. On December 25, 2021, the company consummated a noncancelable agreement with the lender to refinance this mortgage. The new terms require P100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2023. The final payment is due February 28, 2030. H. The lawsuit liability will be paid in 2022. The following is an analysis of the deferred tax liability on December 31, Deferred taxes related to depreciation P48,000 Deferred taxes related to lawsuit liability (20.000 Net deferred tax liability P28,000 P25,000 of the deferred taxes related to depreciation that will reverse in The current income tax expense reported in the company's 2021 income statement was P61,200. * The company is authorized to issue 100,000 shares of P50 par value ordinary 2022. shares. 1. Current assets a. P1,100,700 b. P1,125,700 c. P1,225,700 d. P1,135,700 2. Total Assets a. P3,968,000 b. P5,093,700 c. P5,073,700 d. P5,087,300 3. Current liabilities a. P410,000 b. P507,000 c. P520,000 d. P510,000 c. P348,000 d. P948,000 4. Noncurrent liabilities a. P1,248,000 b. P1,348,000 5. Shareholders' equity a. P2,210,000 b. P3,335,700 c. P3,435,700 d. P3,295,700 Narciso Manufacturing Corporation Statement of Financial Position For the year December 31, 2021 Assets Cash P225,000 Receivable, net 345,700 Inventories 560,000 Prepaid income taxes 40,000 Investments 57,700 Land 450,000 Building 1,750,000 Machinery and Equipment 1,964,000 Goodwill 37.000 Total assets 25,429,400 Liabilities and Equity Accounts payable P 133,800 Mortgage payable, 10% 900,000 Notes payable 500,000 Lawsuit liability 80,000 Income taxes payable 61,200 Deferred tax liability 28,000 Accumulated depreciation 420.000 Total liabilities 2.123.000 Share capital, P50 par, 40,000 shares issued 2,231,000 Retained earnings 1.075.400 Total equity 3.306.400 Total liabilities and equity P5,429.400 Your firm has been engaged to perform an audit, during which time the following data are found: Cher A Checks totaling P10,000 in payment of accounts payable were mailed on December 30, 2021 but were not recorded until 2022. Late in December 2021, the bank returned a customer's P5,000 check, marked DAIF, but no entry was made. Cash includes P100,000 restricted for building purposes Included in accounts receivable is a P20,000 note due on December 31, 2024 and was net of bank overdraft amounting to P25,000. from the company's president. Also, the accounts receivable is net of a 6- months, 12% P100,000 notes payable due on March 31, 2022 to which a P150,000 of the receivables were assigned. Accrual of the interest was incorrectly credited to the accounts payable account con December 26, 2021, a supplier authorized the company to return goods shipped and billed at P40,000 on December 3, 2021. The goods were returned on December 28, 2021. The supplier's credit memo was received and recorded on January 5, 2022. D. During 2021, the company purchased 500 ordinary shares of a major corporation that supplies the company with raw materials. The cost of these shares was P51,300, and the fair value on December 31, 2021 was P47,000. The designated the shares to be financial assets at fair value through comprehensive income. E Treasury shares were recorded at cost when the company purchased 200 of its own shares for P32 per share in May 2021. This amount is own share in May 2021. This amount is included in investments. F. On December 30, 2021, the company borrowed P400,000 from a bank in exchange for a 10% note payable, maturing on December 30, 2025. Equal principal payments are due December 30 of each year, beginning in 2022. This note is collateralized by a P250,000 tract of land acquired as a potential future building site, which is included in land. 2021: G. The balance of this mortgage payable is due on June 30, 2022. On December 25, 2021, the company consummated a noncancelable agreement with the lender to refinance this mortgage. The new terms require P100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2023. The final payment is due February 28, 2030. H. The lawsuit liability will be paid in 2022. The following is an analysis of the deferred tax liability on December 31, Deferred taxes related to depreciation P48,000 Deferred taxes related to lawsuit liability (20.000 Net deferred tax liability P28,000 P25,000 of the deferred taxes related to depreciation that will reverse in The current income tax expense reported in the company's 2021 income statement was P61,200. * The company is authorized to issue 100,000 shares of P50 par value ordinary 2022. shares. 1. Current assets a. P1,100,700 b. P1,125,700 c. P1,225,700 d. P1,135,700 2. Total Assets a. P3,968,000 b. P5,093,700 c. P5,073,700 d. P5,087,300 3. Current liabilities a. P410,000 b. P507,000 c. P520,000 d. P510,000 c. P348,000 d. P948,000 4. Noncurrent liabilities a. P1,248,000 b. P1,348,000 5. Shareholders' equity a. P2,210,000 b. P3,335,700 c. P3,435,700 d. P3,295,700