Table of Contents

Exit Conference
Clients Adjustment
Clients FS

1-6
6A - 6M
7-15

Balance Sheet Analysis

Cash in bank
Receivables
Investment
Inventories
Property Plant Equipment
Other Assets

16
17-33
34-36
37-41
42-65
66-106
107-119

Trade and other payables

Advances from Stockholders
Capital Stock
Revaluation
Income Statement Analysis
Revenue
Expenses
Cash Flow
lease contract
tax
Audited FS
Audit Notes and findings

120-129
130-143
144-147
148
149
150-176
177-183
183
184
185
186
187

GWEILO CORPORATION
SUMMARY OF ADJUSTMENTS
DECEMBER 31, 2012

Auditor's adjustments
Debit
1) Income tax payable
Provision for income tax
Sub - Total

Credit
998
998
998

998

ADJUSTMENTS
1 SALES
1,900,000.00
ACCOUNTS RECEIVABLE
to reverse FMM sales accounted for twice

1,900,000.00

2 ACCOUNTS PAYABLE
3,120,392.00
PURCHASES
3,120,392.00
to eliminate intercompany purchases (from company's own Commissary)

COST OF GOODS SOLD

BEGINNING INVENTORY

371,205.00

371,205.16

ADD: TOTAL PURCHASES

19,274,439.10

TOTAL GOODS AVAILABLE FOR SALES

19,645,644.10

19,503,253.20

4,996,562.00

(4,996,562.04)

14,649,082.10

14,506,691.16

LESS: ENDING INVENTORY

COST OF GOOD SOLD

22,394,831.10

19,132,048.04

142,390.94

petty cash e
ew
ho
mkt
moa

kitchen fue
ew
ho
mkt
moa

purchases-c

per schedule
purchases - bev
ew
ho
mkt
moa

purchases - resto
ew
ho
mkt
moa

per TB

3,215,247.15
130,704.93
1,474,496.07
2,637,222.00
7,457,670.15

7,457,670.15

1,641,743.71
1,439,046.14
2,778,322.37
1,911,775.76

1,649,902.23
1,439,046.14
2,778,322.37
1,921,322.84

7,770,887.98

7,788,593.58

15,228,558.13

15,246,263.73

2,347,796.29

2,347,796.29

454,079.91

454,079.91

18,030,434.33
1,101,613.71

18,048,139.93
1,101,613.71

19,132,048.04

19,149,753.64

petty cash exp

ew
ho
mkt
moa

kitchen fuel
ew
ho
mkt
moa

purchases-cc

GWEILO CORPORATION
Working Trial Balance
December 31, 2012

Account Name
CASH IN BANK
Cash in bank
Cash in bank
Cash in bank
Cash in bank
Cash on hand
TRADE AND OTHER RECEIVABLE
Accounts receivable
Accounts receivable
Accounts receivable
Accounts receivable
Subscription receivable
Credit cards - charge sales
Credit cards - charge sales
Credit cards - charge sales
INVENTORIES
BAR ITEMS
Makati
Eastwood
MOA
San Juan
KITCHEN FOOD SUPPLIES
Makati
Eastwood
MOA
San Juan
OTHER CURRENT ASSETS
Receivable from cashier
Receivable from cashier
Receivable from cashier
CA-employees
CA-employees
CA-employees
CA-employees
Advances-Uniforms
Advances-Uniforms

BR.

ew
ho
mkt
moa
ho
ew
ho
mkt
moa
ho
ew
mkt
moa

Unadjusted Trial Balance

debit
credit

918,459
1,575,254
626,111
198,583

1,380,097

615,000
13,688
63,752
43,008

mkt
ew
moa
ho

1,340,101
1,330,771
816,167
53,583

mkt
ew
moa
ho

116,411
425,771
718,477
195,281

ew
moa
mkt
ew
ho
mkt
moa
ew
ho

20,650
13,000
21,000
-

Adjusments
debit
credit

Adjusted Trial Balance

debit
credit

918,459
1,575,254
626,111
198,583
1,380,097
615,000
13,688
63,752
43,008
1,340,101
1,330,771
816,167
53,583
116,411
425,771
718,477
195,281
20,650
13,000
21,000
-

Income Statement
debit
credit

Balance Sheet
debit
credit

918,459
1,575,254
626,111
198,583
1,380,097
615,000
13,688
63,752
43,008
1,340,101
1,330,771
816,167
53,583
116,411
425,771
718,477
195,281
20,650
13,000
21,000
-

Account Name
Advances-Uniforms
Advances-Uniforms
Advances for liquidation
Advances for liquidation
Loans to employees
Loans to employees
Input tax
Input tax
Input tax
Input tax
Payroll account
PROPERTYAND EQUIPMENT
Leasehold Improvements
Office Furniture and Fixtures
Acc. Dep-Leasehold improvement
Acc. Dep-Office Furniture and Fixtures
OTHER ASSETS
RENT DEPOSITS
Makati
MOA
Eastwood
San Juan
Franchise fee- Mario's Kitchen
Accumlated Amortization - Franchise
Consultancy Fee
Management fee
Management fee
MCIT
Investment
Rights
Other assets
Various deposit
Intangible assets
Creditable tax
TRADE AND OTHER PAYABLES
Accounts payable
Accounts payable
Accounts payable
Accounts payable
Accounts payable-Raul de Castro
Accounts payable-licenses

BR.
mkt
moa
ew
moa
ho
mkt
ew
ho
mkt
moa
ho

Unadjusted Trial Balance

debit
credit

9,241
23,102
1,077,117
517,420
794,410
701,168
7,000

43,174,991
9,883,391

mkt
moa
ew
ho
ho
ho
ho
ew
moa

ho

ew
ho
mkt
moa
ho
ho

212,571
162,804
713,745
453,761
8,500,000
5,100,000
8,790,714

328,196
9,400,000

480,401
169,508
75,390
253,510
847,087

Adjusments
debit
credit

Adjusted Trial Balance

debit
credit
9,241
23,102
1,077,117
517,420
794,410
701,168
7,000
43,174,991
9,883,391
212,571
162,804
713,745
453,761
8,500,000
5,100,000
8,790,714
328,196
9,400,000
480,401
169,508
75,390
253,510
847,087
-

Income Statement
debit
credit

Balance Sheet
debit
credit
9,241
23,102
1,077,117
517,420
794,410
701,168
7,000
43,174,991
9,883,391
212,571
162,804
713,745
453,761
8,500,000
5,100,000
8,790,714
328,196
9,400,000
480,401
169,508
75,390
253,510
847,087
-

Account Name
BR.
Accounts payable-rents
ho
Rent payable
ew
Rent payable
mkt
Rent payable
moa
Salaries payable
ew
Salaries payable
ho
Salaries payable
mkt
Salaries payable
moa
Utilities payable
ew
Utilities payable
ho
Utilities payable
mkt
Utilities payable
moa
Unearned revenue
Unearned revenue
Credit card pruchases
ho
WHTP-C
ew
WHTP-C
moa
WHTP-E
ew
WHTP-E
mkt
WHTP-E
moa
SSS Payable
ew
SSS Payable
ho
SSS Payable
mkt
SSS Payable
moa
SSS settlement
ho
Payable to Eastwood
moa
Accrued expense
ho
INCOME TAX PAYABLE
ho
LOANS PAYABLE - BDO
LOANS PAYABLE - INVESTORS
ADVANCES FROM STOCKHOLDERS
ho
DEPOSIT FOR FUTURE STOCKSUBSCRIPTION
ho
EQUITY
Subscribed Capital
ho
Subscription receivable
ho
Retained earnings
ho
SALES
Makati
MOA
Eastwood
San Juan

Unadjusted Trial Balance

debit
credit

Adjusments
debit
credit

483,978
630,240
282,047
179,953
63,246
98,661
159,748
50,738
36,511
137,593
1,410

201,112

6,000

315,677

1,806,234
705,893
2,500,000

59,225,000
18,000
2,538,467
9,542,582
12,995,748
16,093,638
695,769

998

Adjusted Trial Balance

debit
credit
483,978
630,240
282,047
179,953
63,246
98,661
159,748
50,738
36,511
137,593
1,410
201,112
6,000
315,677
1,805,236
705,893
2,500,000
59,225,000
18,000
2,538,467
9,542,582
12,995,748
16,093,638
695,769

Income Statement
debit
credit

9,542,582
12,995,748
16,093,638
695,769

Balance Sheet
debit
credit
483,978
630,240
282,047
179,953
63,246
98,661
159,748
50,738
36,511
137,593
1,410
201,112
6,000
315,677
1,805,236
705,893
2,500,000
59,225,000
18,000
2,538,467
-

Account Name
Sales - Commissary
Discount
Discount
Discount
Discount
COST OF SALES
Makati
MOA
Eastwood
San Juan
OPERATING EXPENSES
Salaries and Wages
Rent
Utilities
Telephone and communication
Employee benefits
Depreciation expense
Profession fees
Transportation and travel
Music and entertainment
Gas(LPG)
Ice
Stationery and office supplies
Repairs and maintenance
Taxes and licenses
Common area charges
Expenses thru DSR
Other operating supplies
Signage/rent
Miscellaneous expense
Penalty
Amortization Expense
OTHER INCOME(LOSS)
Other income
Payment of service charge
Interest expense
Bank charges
Interest income
Revenue from franchise fee
Provision for income tax

BR.
ew
ho
mkt
moa

Unadjusted Trial Balance

debit
credit
3,594,957
418,436
53,655
254
9,526
14,649,082

Adjusments
debit
credit

8,671,009
6,537,578
2,632,829
245,569
1,324,538
1,605,295
221,704
310,000

23,171
327,409
43,038
312,515
120,916
21,429
60,279
61,273
1,700,000
5,000
346,172
214,563
3,326
3,000,000
1,806,234

998

Adjusted Trial Balance

debit
credit
3,594,957
418,436
53,655
254
9,526
14,649,082
8,671,009
6,537,578
2,632,829
245,569
1,324,538
1,605,295
221,704
310,000
23,171
327,409
43,038
312,515
120,916
21,429
60,279
61,273
1,700,000
5,000
346,172
214,563
3,326
3,000,000
1,805,236
-

Income Statement
debit
credit
3,594,957
418,436
53,655
254
9,526
14,649,082
8,671,009
6,537,578
2,632,829
245,569
1,324,538
1,605,295
221,704
310,000
23,171
327,409
43,038
312,515
120,916
21,429
60,279
61,273
1,700,000
5,000
346,172
214,563
3,326
3,000,000
1,805,236
-

Balance Sheet
debit
credit

Account Name
TOTAL
Net Loss

BR.

Unadjusted Trial Balance

debit
credit
129,624,346
129,624,346
0

Adjusments
debit
credit
997.92
997.92
-

Adjusted Trial Balance

debit
credit
129,623,348
129,623,348
0

Income Statement
debit
credit
41,715,476
45,931,020
(4,215,544)

Balance Sheet
debit
credit
87,907,872
83,692,328
(4,215,544)

GWEILO CORPORATION
STATEMENTS OF FINANCIAL POSITION
December 31, 2012 and 2011
(Centavo Omitted)

ASSETS

Notes

CURRENT ASSETS
Cash
Accounts receivable
Inventories
Other current assets

5
6
7
8

2012

Total Current Assets

NON - CURRENT ASSETS
Property and equipment
Other non-current assets

9
10

Total Non-Current Assets

TOTAL ASSETS

2011

3,318,407
2,115,546
4,996,562
3,184,108

4,499,648
2,047,261
371,205
-

13,614,623

6,918,114

33,291,600
23,461,791

25,210,978
14,713,273

56,753,391

39,924,251

70,368,014

46,842,365

3,625,721
1,805,236

715,194
204,000
954,638

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Trade and other payables
Accrued expense
Income tax payable

11
12
20

Total Current Liabilities

NON-CURRENT LIABILITIES
Loans payable
Deposit for future stock subscription

14
13

Total Non-Current Liabilities

TOTAL LIABILITIES
STOCKHOLDERS' EQUITY (DEFICIENCY) (EXHIBIT C)
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

5,430,957

1,873,832

4,052,980
-

47,500,000

4,052,980

47,500,000

9,483,937

49,373,832

60,884,077
P

70,368,014

(See accompanying notes to financial statements)

2,531,467 )
P

46,842,365

EXHIBIT A

GWEILO CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME
For the Years Ended December 31, 2012 and 2011
(Centavo Omitted)

Notes
REVENUE

15

COST OF SALES

16

2012
P
(

GROSS INCOME
OPERATING EXPENSES
Salaries and Wages
Rental
Utilities
Amortization Expense
Depreciation
Employee Benefits
Communication
Transportation and Travel
Repairs and maintenance
Interest and Financial Charges
Music and Entertainment
Office Supplies
Miscellaneous

17

18

Total Operating Expenses

NET INCOME (LOSS) FROM OPERATIONS
OTHER INCOME (EXPENSES)

19

NET INCOME (LOSS)

PROVISION FOR INCOME TAX

20

NET INCOME (LOSS) FOR THE PERIOD (To Exhibit C)

OTHER COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE LOSS

42,440,823

2011
P

38,033,343

14,649,082 ) (

12,550,555

27,791,741

25,482,788

8,671,009
6,537,578
2,632,829
1,700,000
1,605,295
1,324,538
245,569
327,409
346,172
310,000
23,171
841,153

7,595,683
7,126,552
1,756,573
1,700,000
1,605,295
1,067,403
231,615
204,993

24,564,724

22,251,869

3,227,017
2,793,763

3,230,919
1,797,904

6,020,780
1,805,236 ) (

5,028,823
1,508,291

4,215,544
-

3,520,532
-

4,215,544

(See accompanying notes to financial statements)

204,000
127,767
127,445
504,543

3,520,532

EXHIBIT B

EXHIBIT B

GWEILO CORPORATION
STATEMENTS OF STOCKHOLDERS' EQUITY
For the Years Ended December 31, 2012 and 2011
(Centavo Omitted)

Notes
EQUITY
Authorized Capital Stock - 1,000 shares
with par value of P100 per share
Subscribed 592,250 shares
Less: Subscriptions receivable

2012

2011

13
P 59,225,000
P
(
18,000 ) (

Paid-up Capital

59,207,000

DEFICIT
Balance, Beginning
Prior Period Adjustment
Net Income (Loss) (Exhibit B)
Balance, Ending
TOTAL STOCKHOLDERS' EQUITY (To Exhibit A)

25,000
18,000 )
7,000

2,538,467 ) (
(
4,215,544

5,446,999 )
612,000 )
3,520,532

1,677,077

2,538,467 )

( P

2,531,467 )

P 60,884,077

(See accompanying notes to financial statements)

EXHIBIT C

GWEILO CORPORATION
STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2012 and 2011
(Centavo Omitted)

Notes
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)(Exhibit B)
Adjustments to reconcile net income to cash
Prior period adjustment
Amortization expense
Depreciation
Operating income before working capital changes
Decrease (increase) in:
Accounts receivable
Inventories
Other current assets
Increase (decrease) in:
Trade and other payables
Accrued expenses
Income tax payable

2012

6
7

11
12
20

8
9

68,285 ) (
4,625,357 )
3,184,108 )

1,281,080
260,791

2,910,527
(
204,000 )
850,598

818,768
204,000
507,235
5,086,005

(
(

7,211,138 ) (
10,448,518 ) (

1,383,179
3,680,793

17,659,656 ) (

5,063,972

4,052,980
59,200,000
(
47,500,000 )

43,500,000
47,500,000

CASH IN BANK AT THE BEGINNING OF THE YEAR

CASH IN BANK AT THE END OF THE YEAR

612,000
1,700,000
1,605,295

(
(
(

14
13
13

3,520,532

6,213,827

Net cash provided by financing activities

NET INCREASE (DECREASE) IN CASH IN BANK

3,200,215

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Loans payable
Additional subscribed capital
Advances from stockholders
Deposit for future stock subscription

7,520,839

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment
Decrease in other assets except franchise fee

4,215,544
1,700,000
1,605,295

9
8

2011

15,752,980

4,000,000

(1,293,539) )

4,022,033

4,499,648
P

5,793,186

(See accompanying notes to financial statements)

477,615
P

4,499,648

EXHIBIT D

)
)
)

EXHIBIT D

GWEILOCORPORATION
LAPSING SCHEDULE
DECEMBER 31, 2011
Acquisition
(Disposal)

COST

2009

Leasehold Improvents
Office Furniture and Fixtures

26,500,000
2,701,700

2,904,195

26,500,000
5,605,895

Total

29,201,700

2,904,195

32,105,895

ACCUMULATED DEPRECIATION

2009

Depreciation

2010

2010

Leasehold Improvements
Office Furniture and Fixtures

3,775,000
1,292,506

1,250,000
355,295

5,025,000
1,647,801

Total

5,067,506

1,605,295

6,672,801

BOOK VALUE

24,134,194

25,433,094

Addition
(Disposal)

2011

Addition
(Disposal)

2012

1,383,179
-

27,883,179
5,605,895

7,211,138

27,883,179
12,817,033

1,383,179

33,489,074

7,211,138

40,700,212

Depreciation

2011

Depreciation

2012

1,250,000
355,295

6,275,000
2,003,096

1,250,000
355,295

7,525,000
2,358,391

1,605,295

8,278,096

1,605,295

9,883,391

25,210,978

30,816,821
33,291,600.00

43,174,991.00

8,101,417

PPE - GROSS
BEGINNING
ADDITIONS:
P.O.S.
ACQUIRED BY EASTWOOD
EL GRUPO ASSETS
COMMISSARY - THE FORT - RENOVATION (PARTIAL)
COMMISSARY - THE FORT - KITCHEN EQUIPMENT (PARTIAL)
OTHER KITCHEN UTENSILS
MAKATI
MOA
SAN JUAN

33,489,074.00

TOTAL, DEC.31,2012

43,174,991.00

1,500,000.00
84,500.00
3,000,000.00
1,784,631.00
690,148.00
1,635,221.00
704,773.00
286,644.00

INTANGIBLES (Names bought)

BEGINNING
ADDITIONS:
GRAB N GO
CLUBDREDD
DADDY O'S

3,800,000.00
1,400,000.00
4,200,000.00

TOTAL, DEC.31,2012

9,400,000.00

TOTAL
BEGINNING
ROLDAN BALUYOT
REIDENBACH - CLUB DREDD
ROMMEL PANGANIBAN
RDC - GRAB N GO
WILLIAM CHIA
SUBSCRIPTION FULLY PAID

47,500,000.00
2,500,000.00
1,400,000.00
1,500,000.00
3,800,000.00
2,500,000.00
25,000.00
59,225,000.00

MISCELLANEOUS
2012

2011

Professional fee
Supplies
Penalty
Taxes and licenses
Signage
Gas(LPG)
Ice
Common area charges
Others

221,704
120,916
61,273
43,038
21,429
372,794

90,817
140,488
109,753
87,450
76,035
-

Total

841,153
841,153

504,543

TAXES AND LICENSES

2012
Business Permits
BIR Registration Fee

2011

42,538
500

139,988
500

43,038

140,488

GWEILO CORPORATION
December 31, 2011
Tax Computation

REGULAR CORPORATE INCOME TAX (RCIT)

Net income before tax
Less: Interest income

6,020,780
(3,326)

Taxable Income
Rate

6,017,453
30%

Provision for income tax

1,805,236

MINIMUM CORPORATE INCOME TAX (MCIT)

Gross Income
Rate
MCIT

30,791,741
2%
615,835

Tax Due whichever is Higher

Less : Creditable Tax withheld 2307

1,805,236
-

Income tax payable

1,805,236

Cash
Noted that Bank reconciliation per bank was only provided as of December 31, 2012.
Noted that adjusted cash balance per bank of P3,119,824.22 is less than the recorded cash per book of P3,318,407.24.
Equity
Increase in subscribed capital. Increase in authorized capital.
Disclosure
Taxes and licenses - breakdown
2012
BIR registration fee
Business permit
Others
Total

43,037.62

Tax on compensation
Expanded withholding tax
Output VAT
Input VAT
VAT Payable

Property and equipment - lapsing

2011
Leasehold improvement
Office furnitures and fixtures

Additions (disposals)

27,883,179.00
5,605,894.87
33,489,073.87

7,211,138.00

Sales - breakdown
2012
Sales commissary
Sales purchasing
Eastwood
MOA

2012

(329,276.19)
(1,570,723.81)

40,700,211.87

Makati
San Juan
Total

42,440,823.37

(1,900,000.00) adjustment - decrease

Cost of Sales - breakdown

inv., beg
Eastwood
MOA
Makati
San Juan

6,037,210.25
5,163,117.66
4,689,399.77
3,384,711.80

1,756,542.04
1,534,644.31
1,456,512.04
248,863.65

371,205.00

19,274,439.48

4,996,562.04

Salaries and wages

679,177.80

adjustment - increase

679,177.80

SSS contribution - HO

Rental

72,717.47
350,000.00
320,559.21
508,400.02

adjustment - increase
ew
ho
mkt
moa

Utilities
(29,238.30) adjustment - decrease
(29,238.30) HO
Communication
(449,729.92) adjustment - decrease
(450,620.07) ho

inv., end

186,098.00
185,107.00

14,649,082.44

1,251,676.70

purchases

(3,120,391.95) adjustment - decrease

2,304.38 ew
(1,414.23) moa
Other income
449,609.84
(300,000.00)
(3.39)
0.66
(147,865.38)

adjustment - decrease

h per book of P3,318,407.24.

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nt - decrease

cost of sales
4,466,766.21
3,813,580.35
3,232,887.73
3,135,848.15
14,649,082.44

nt - decrease
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COMMENT
Pls see attached revised bank recon.
The difference pertains to cash on hand. Pls revisit working trial balance.
198583.02

Pls refer to 2011's disclosure.

Pls see attached schedule. Documents are available at the Head Office.

Pls see schedule. Documents to support additions are available at the Head Office.

Elimination of intercompany sales (Commissary to Branches deliveries)

To account for unrecorded SSS contribution for 2012 and previous years (condonation)

To account for unrecorded rental paid/accrued.

Common Area charges recorded twice.

Adjusted misclassification.

Other income recorded twice.

GWEILO CORPORATION
December 31, 2012
SUMMARY OF AUDIT NOTES (10/1/12)

1) OTHER ASSETS
Audited FS Format

2011

2010

Franchise fee- Mario's Kitchen

Less : Accumulated Amortization - Franchise

8,500,000
3,400,000

8,500,000
1,700,000

Net Franchise fee - Mario's Kitchen

Consultancy Fee
Investment
MCIT
Rent Deposits
Makati
MOA
Eastwood
San Juan
Various Deposit

5,100,000
4,000,000
3,800,000
-

6,800,000
4,000,000
447,403

212,571
453,761
713,745
105,000
328,196

212,571
453,761
713,745
105,000
-

14,713,273
16,860,767
2,147,494

12,732,480

Total
Other Assets per Updated FS (9/26/12)
Unaccounted Balance

Remarks

Changes was from amortization of franchise, amortization of 1,700,000

should be charge to this account not to PPE.

Nature of this account?, is it also rent deposit? If yes what branch?

2) PROPERTY AND EQUIPMENT

COST

2010

Leasehold Improvements
Office Furniture and Fixtures

26,500,000
5,605,895

Total

32,105,895

Addition
(Disposal)
1,383,179
-

2011
27,883,179
5,605,895
33,489,074

Remarks
Increase was due to capitalization of Repairs and Maintenance and
advances made by RDC
Repairs and Maintenance P1,317,298
Advances made by RDC
65,881
Total

1,383,179

ACCUMULATED
DEPRECIATION

2010

Depreciation

2011

Leasehold Improvements
Office Furniture and Fixtures

5,025,000
1,647,801

1,250,000
355,295

6,275,000
2,003,096

Total

6,672,801

1,605,295

8,278,096

BOOK VALUE

25,433,094

Amortization of franchise fee should not be included to this account

depreciation of PPE should only be 1,605,295 (3,305,295-1,700,000)

25,210,978

3) TAXES AND LICENSES

2011
Business Permits
BIR Registration Fee
Stamps tax

2010

13,800
500
190
-

4) Salaries and Wages

Per Schedule

Per summary of
Expenses

Remarks
Amount paid for this various account?

14,490

Difference

MOA
EASTWOOD
MAKATI
SAN JUAN

2,318,739
2,611,264
1,628,191
998,167

2,063,274
2,906,051
1,628,191
998,167

(255,465)
294,787
-

TOTAL

7,556,361

7,595,683

39,322

Remarks
account include in schedule was for rental expense
account include in schedule was for rental expense

Net adjustment

5) Accrued expense on previous year should accounted as prior period adjustment on retained earnings for the
current year.
6) Current liabilities amounting to P447,403 in 2010 should be income tax payable not SSS and Philhealth payables as presented in 2011 updated FS
(See Audited Finacial Statement for 2010). SSS and Philhealth Payable As line item in 2011 amounting to 4,000.00 is not included
in Trade and other payable composition which also include SSS and Philhealth Payable account?

7) MISCELLANEOUS
2011
Repairs and maintenance
Gas(LPG)
Ice
Common area charges
Supplies
Taxes and licenses (See Audit note no.3)
Others

Total

841,153

Prepared by:
Victor L. Tagtagon
Group Supervisor

2010
394,058
140,122
76,576
76,035
62,204
14,490
988,945
1,752,430

Remarks
Amount on this various expenses

GWEILO CORP.
SUMMARY OF FINDINGS
December 31, 2012

1)

No TAX RETURNS provided

- Alphalist on withholding tax on compensation (1604 CF)
- Alphalist on Expanded withholding tax (1604 E)
- Quarterly VAT (2550Q)
- Quarterly income tax (1702 Q)

2)

No GIS provided

3)

No inventory booked for the year-end

4)

No bank reconciliation on bank accounts

5)

No Lapsing schedule

6)

Accounts not included in trial balance

- Franchise fee
- Consultancy fee
- Investment
** are this accounts already closed/disposed?

7)

Rental deposit
Makati
MOA
Eastwood
San Juan
Total

Per 2011 AFS

212,571
453,761
713,745
105,000
1,485,077.00

T/B 2012
57,804.00
190,332.00
-

Changes
(212,571.00)
(395,957.00)
(523,413.00)
(105,000.00)

248,136.00

(1,236,941.00)

** Is there changes in lease contract?

8)

What is the nature of the account RIGHTS- HO amounting to P500,000.00 ?

9)

Accounts with negative balances:

A) CASH IN BANK
DR (CR)
CASH IN BANK - EW
CASH IN BANK - HO
CASH IN BANK - MKT
CASH IN BANK - Moa

(218,227.72)
(7,775,608.80)
2,142,894.86
2,880,558.89

NET

(2,970,382.77)

B) CASH ADVANCES - EMP.

DR (CR)
CA - EW
CA - MKT
CA - MOA

(31,393.57)
(1,500.00)
(20,646.23)

Total

(53,539.80)

C) ADVANCES - UNIFORM
DR (CR)
Advances - uniform HO
Advances - uniform MKT

(1,040.00)
(2,860.00)

Total

(3,900.00)

D) UNEARNED REVENUE
DR (CR)
UNEARNED REVENUE -MKT

239,955.60

E) PAYABLE TO EASTWOOD
DR (CR)
Payable to eastwood

350,107.38

F) ADVANCES FROM STOCKHOLDERS

DR (CR)
Advances from stockholders

1,900,000.00

E) PETTY CASH EXPENSE

DR (CR)
Petty cash expense

(611.00)

10) No supporting document filed on sale of eastwood dated Sept. 15, 2012
amountind to P79,531.00.