Questions:

1. The entry to correct/adjust item F is:

1. Investment 50,000

Cash 50,000

2. Other Investments 50,000

Cash 50,000

3. Short-term Investment 50,000

Cash 50,000

4. No Adjustment

2. The entry to correct/adjust item L is:

1. Accounts Payable 50,000

Cash 50,000

2. Cash 50,000

Other liabilities 50,000

3. Cash 50,000

Accounts Payable 50,00

4. No Adjustment

3. The entry to correct/adjust item M is:

1. Investment 150,000

Cash 150,000

2. Other assets 150,000

Cash 150,000

3. Short-term investment 150,000

Cash 150,000

4. No Adjustment

4. DON CORPORATIONS cash and cash equivalents balance at December 31, 2006 is:

1. Overstated by P1,950,100

2. Overstated by P1,895,100

3. Overstated by P1,845,100

4. Overstated by P1,795,100

5. DON CORPORATIONS adjusted cash equivalent balance at December 31, 2006 is:

1. 618,800

2. 623,800

3. 673,800

4. 723,800