IV AUDIT OF INVESTMENTS

SUMMARY OF PROBLEMS

PROBLEM NO. 1 Analysis of investments in debts instruments HFT, AFS, HTM (preparation of journal entries under

PROBLEM NO. 2 Audit of investments in equity instruments - FVTPL (including preparation of adjusting journal entrie

PROBLEM NO. 3 Audit of investments in equity instruments FVTOCI (including preparation of adjusting journal entr

PROBLEM NO. 4 Analysis of investments in equity instruments (Trading and AFS)

PROBLEM NO. 5 Audit of investments in equity instruments (carried at cost) (including preparation of adjusting journa

PROBLEM NO. 6 Analysis of investments in equity and debt instruments

PROBLEM NO. 7 Analysis of investments in equity instruments (FVTPL and Associate)

PROBLEM NO. 8 Analysis of investments in equity instruments (AFS and Associate)

PROBLEM NO. 9 Analysis of investments in debt instruments (HTM)

PROBLEM NO. 10 Impairment of investments in debt instruments (HTM)

PROBLEM NO. 11 Analysis of investments in associates of an SME

PROBLEM NO. 12 - Theory

PROBLEM NO. 1 - Isabela Corporation

Requirement A
FA@FVTPL Available for Sale (AFS) Held to Maturity (HTM)

A.1) Purchase of investment:

FA@FVTPL P874,164 AFS securities P924,164 HTM securities P924,164

Commission exp. 50,000 Cash P924,164 Cash P924,164
Cash P924,164

A.2) Accrual of interest:

Interest receivable P80,000 Interest receivable P80,000 Interest receivable P80,000

Interest income P80,000 Interest income P80,000 Interest income P80,000

A.3) Amortization of discount (see

schedule below):

No entry AFS securities P12,416 HTM securities P12,416

Interest income P12,416 Interest income P12,416

A.4) FV adjustment:

FA@FVTPL P105,836* AFS securities P43,420** No entry

FV adj. gain (P/L) P105,836 FV adj. G/L (OCI) P43,420
* (P980,000 - P874,164) ** (P980,000 - P936,580)

Amortization schedule:
Date EI (10%) NI (8%) Disc. Amort. Amortized cost
1/1/2012 P 924,164
12/31/2012 P92,416 P80,000 P12,416 936,580
12/31/2013 93,658 80,000 13,658 950,238
12/31/2014 95,024 80,000 15,024 965,262
12/31/2015 96,526 80,000 16,526 981,788
12/31/2016 98,212 80,000 18,212 1,000,000
Requirement B
Carrying amount, 12/31/12
FA@FVTPL
Available for Sale (AFS)
Held to Maturity (HTM)
980,000 Fair value
980,000 Fair value
936,580 Amortized cost

Requirement C
FA@FVTPL Available for Sale (AFS) Held to Maturity (HTM)

To update amortization To update amortization To update amortization

No entry AFS securities P13,658 HTM securities P13,658
Interest income P13,658 Interest income P13,658

FV adjustment before sale FV adjustment before sale FV adjustment before sale

No entry FV adj. G/L (OCI) P3,658* No entry
AFS securities P3,658

* (P990,000 - P993,658)

Disposal entry Disposal entry Disposal entry

Cash P1,070,000 Cash P1,070,000 Cash P1,070,000
FA@FVTPL P980,000 FV adj. G/L (OCI) 39,762 HTM securities P950,238
Interest income 80,000 AFS securities P990,000 Interest income 80,000
Gain on sale of TS 10,000 Interest income 80,000 Gain on sale of HTMS 39,762
Gain on sale of AFS (P/L) 39,762
PROBLEM NO. 2 - IMBC Corporation

Requirement No. 1. a
Sales proceeds 540,000
CA of investment sold (P1,800,000 x 2,400/7,200) 600,000
Loss on sale of 2,400 BACK shares on 3/1/12 (60,000)

Requirement No. 1. b
Total proceeds 1,176,000
Less dividends sold (4,800 shares x P30) 144,000
Net proceeds 1,032,000
CA of investment sold (P1,320,000* x 4,800/6,600**) 960,000
Gain on sale of 4,800 4WARD shares on 8/15/12 72,000
Total cash paid 1,440,000
Less purchased dividend (6,000 x P20) 120,000
Adjusted cost 1,320,000 *
** after 10% share dividend

Sales proceeds 276,000

CA of investment sold (P1,320,000* x 1,200/6,600**) 240,000
Gain on sale of 800 4WARD shares on 9/1/12 36,000

Total gain on sale of 4WARD shares 108,000

Requirement No. 1. c
Declared January 2 -
Declared May 2 -
Declared August 1 (6,600 shares x P30) 198,000
Total dividend income for 2012 198,000

Requirement No. 1. d
4WARD Co. [(6,000 x 1.1) - 4,800 - 1,200] = 600 x P210 126,000
BACK Co. (7,200 - 2,400) = 4,800 x P240 1,152,000
CA of trading securities (FV), 12/31/12 1,278,000

Requirement No. 2
Jan. 10 (See requirement 1.b)
Dividend income 120,000
Trading securities - 4WARD 120,000

Feb. 20
No AJE

Mar. 1 (See requirement 1.a)

Loss on sale of TS - BACK 60,000
Trading securities - BACK 60,000

May 31
Retained earnings 132,000
Trading securities - 4WARD 132,000
Aug. 15 (See requirement 1.b)
Entry made
Cash 1,176,000
Trading securities - 4WARD 1,176,000

Correct entry
Cash 1,176,000
Trading securities - 4WARD 960,000
Dividend income 144,000
Gain on sale of TS - 4WARD 72,000

Adjusting entry
Trading securities - 4WARD 216,000
Dividend income 144,000
Gain on sale of TS - 4WARD 72,000

Sep. 1 (See requirement 1.b)

Trading securities - 4WARD 36,000
Gain on sale of TS - 4WARD 36,000

Dec. 31 (Fair value adjustment)

FV adjustment loss (P/L) 42,000
Trading securities 42,000

Computation of FV adjustment:
January 10 1,320,000
February 20 1,800,000
March 1 (600,000)
August 15 (960,000)
September 1 (240,000)
Should be balance, 12/31/12 before fair value adjustment 1,320,000
Fair value , 12/31/12 (see requirment 1.d) 1,278,000
Unrealized loss (FV adjustment) 42,000

Alternative computation:
Adjusted cost of 4WARD shares (see requirment 1.b) 1,320,000
Cost of BACK shares 1,800,000
Total cost 3,120,000
Less costs of shares sold
March 1 600,000
August15 960,000
September 1 240,000 1,800,000
Adjusted cost, 12/31/12 1,320,000
4WARD Co. [(6,000 x 1.1) - 4,800 - 1,200] = 600 x P210 126,000
BACK Co. (7,200 - 2,400) = 4,800 x P240 1,152,000
Fair value of trading securities, 12/31/12 1,278,000
Unrealized loss (P1,278,000 - P1,320,000) 42,000
PROBLEM NO. 3 - Pin Shop Company
Investment ledger
Particulars Shares Cost/share Total
Balance, 1/1/2012 10,000 39.00 390,000
Share dividend, 4/30/12 5,000 -
Balance 15,000 26.00 390,000
Sale of 5,000 shares, 5/20/2012 (5,000) 26.00 (130,000)
Balance 10,000 26.00 260,000
Sale of 2,000 shares, 12/10/2012 (2,000) 26.00 (52,000)
Balance, 12/31/2012 8,000 208,000

Requirement No. 1. a
Loss on sale 5/20 (see computation below) (5,000)
Gain on sale 12/10 (see computation below) 48,000
Dividend income (see computation below) ###
Net amount to be recognized in P/L ###
Loss on sale 5/20:
Sales proceeds (5,000 shares x P25) 125,000
Cost of investment sold (see investment ledger) (130,000)
Loss on sale of investment (5,000)

Gain on sale 12/10:

Sales proceeds (2,000 shares x P60) 120,000
Dividends sold (2,000 shares x P50 x 20%) (20,000)
Net sales proceeds 100,000
Cost of investment sold (see investment ledger) (52,000)
Gain on sale of investment 48,000

Dividend income:
Cash dividends declared, 11/1/2012 (10,000 shares x P5) 50,000
Cash dividends declared, 12/1/2012 (10,000 shares x P50 x 20%) 100,000
Total dividend income 150,000

FV adjustment:
Fair value 110,000
Cost 208,000
Unrealized loss (FV adjustment) - OCI (98,000)

Requirement No. 1. b
Carrying amount, 12/31/12 (8,000 shares x P13.75) 110,000

Requirement No. 2. a
Amount to be recognized in P/L - Dividend income 150,000
At initial recognition, an entity may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value of an investment in an equity instrument within the scope of
PFRS 9 that is not held for trading.
If an entity makes the election, it shall recognise in profit or loss dividends from that investment when
the entitys right to receive payment of the dividend is established in accordance with PAS 18.

Requirement No. 2. b
Carrying amount, 12/31/12 (8,000 shares x P13.75) 110,000
PROBLEM NO. 4 - La Cost Company

Requirement No. 1
Selling price (4,000 shares x P69) 276,000
CA of shares sold (P528,250 x 4/8) (264,125)
Gain on sale of Totoy Bibo shares 11,875

Requirement No. 2
Selling price (4,000 shares x P62) 248,000
Cost of shares sold (P590,000 x 4/10) (236,000)
Gain on sale of Bulaklak shares 12,000

Requirement No. 3
Yeye Bonel [(10,000+ 3,000) x P76.60] 995,800
Totoy Bibo [(8,000 - 4,000) x P68.50] 274,000
Pasaway (15,000 x P55.25) 828,750
Mayniladlad 205,550
Total fair value - Trading securities 2,304,100

Bulaklak Inc. [(10,000 - 4,000) x P61] 366,000

Jumbo Hotdog (20,000 x P27) 540,000
Total fair value - AFS 906,000
PROBLEM NO. 5 - Lee Buys Company

Entry made Should be entry Adjusting journal entry

1/2 Cash 120,000 Note: the entry made can be considered Dividend income 120,000
Dividend income 120,000 correct if the company accrued the dividend Retained earnings 120,000
in 2011 and reversed in 2012. Since there was
no debit entry in the "Dividend Income" account,
we will assume that no accrual was made in 2011.

3/2 Investment in Silver Tab 2,100,000 Investment in Silver Tab 2,070,000 Dividend income 30,000
Cash 2,100,000 Dividend income 30,000 * Investment in Silver Tab 30,000
Cash 2,100,000
*(30,000 x P1) - purchased dividend

7/15 Cash 2,000,000 Cash 2,000,000 Loss on sale 250,000

Investment in Silver Tab 2,000,000 Loss on sale 250,000 Investment in Silver Tab 250,000
(50,000 shares x P40) Investment in Silver Tab 2,250,000 **

Note: in the absence of specific identification,

use FIFO to determine cost of investment sold

From 2010 lot (30,000 x P35) 1,050,000

From 2011 lot (20,000 x P60) 1,200,000
2,250,000 **

8/10 Investment in Red Tab 10,000 Investment in Red Tab 30,000 Investment in Red Tab 20,000
Dividend income 10,000 Dividend income 30,000 Dividend income 20,000
(100,000/10 x P1) (100,000/10 x P3)
Note: Property dividend received is recorded at FV

12/20 Cash 100,000 Cash 100,000 Dividend income 100,000

Dividend income 100,000 Investment in Silver Tab 100,000 Investment in Silver Tab 100,000
Note: the dividend received is a liquidating dividend.

12/29 None AR - non trade 900,000 * AR - non trade 900,000

Investment in Silver Tab 590,000 Investment in Silver Tab 590,000
Gain on sale 310,000 Gain on sale 310,000
* (10,000 x P90)

From 2011 lot: Shares Cost

Original cost 90,000 5,400,000
Sold on 7/15 (20,000) (1,200,000)
Balance 70,000 4,200,000
Liquidating dividend -
(70,000 x P1) (70,000)
Balance 70,000 4,130,000
(10,000/70,000 x P4,130,000)

Adjusted Investment in Silver Tab Adjusted Dividend Income

Unadjusted balance 6,550,000 Unadjusted balance 380,000
AJE for 3/2 (30,000) AJE for 1/2 (120,000)
AJE for 7/15 (250,000) AJE for 3/2 (30,000)
AJE for 12/20 (100,000) AJE for 8/10 20,000
AJE for 12/29 (590,000) AJE for 12/20 (100,000)
Adjusted balance 5,580,000 Adjusted balance 150,000

Adjusted Investment in Red Tab

Unadjusted balance 10,000
AJE for 8/10 20,000
Adjusted balance 30,000
PROBLEM NO. 6 - Norte Corporation
Requirement No. 1
Sales proceeds 152,000
CA of shares sold (P288,000 x 8/16) (144,000)
Gain on sale of 8,000 Laoag, Inc. shares 8,000

Requirement No. 2
Sales proceeds (3,200 shares x P15) 48,000
Cost of shares sold (P960,000 x 3.2/80) (38,400)
Gain on sale of 3,200 Batac, Inc. shares 9,600

Requirement No. 3
Santiago bonds (P200,000 x 10%) 20,000
Ilocos bonds (P1,926,000 x 14%*) 269,640
Total interest income for 2012 289,640

*Computation of effective interest rate:

Carrying amount, 12/31/11 1,926,000
Less carrying amount, 1/2/11 (Cost) 1,900,000
Discount amortization for 2011 26,000
Add nominal interest (P2,000,000 x 12%) 240,000
Effective interest 266,000
Divide by carrying amount, 1/2/11 1,900,000
Effective interest rate 14.00%

Requirement No. 4
Trading securities
Vigan, Inc. (9,600 x P22) 211,200
Laoag, Inc. [(16,000 - 8,000) x P15] 120,000
10% , P200,000 face value , Santiago bonds 151,200
Total fair value 482,400

Available-for-sale securities
Candon Products (32,000 x P42) 1,344,000
Pagudpud, Inc. (240,000 x P28) 6,720,000
Batac, Inc. [(80,000 - 3,200) x P18] 1,382,400
Ilocos bonds (P2,000,000 x 1.01) 2,020,000
Total fair value 11,466,400

FV adjustment gain on transfer of securities (OCI)

Carrying amount, 12/31/11 1,926,000
Add discount amortization in 2012:
Effective interest (P1,926,000 x 14%) 269,640
Nominal interest (P2,000,000 x 12%) 240,000 29,640
Carrying amount, 12/31/12 1,955,640
Fair value of Ilocos bonds on 12/31/12 (P2M x 1.01) 2,020,000
FV adjustment gain on transfer of securities (OCI) 64,360
PROBLEM NO. 7 - Gateway Company

Amount to be recognized in profit or loss - Investment in Templar

Gain on sale 10/05 (see computation below) 350,000
Gain on sale 11/30 (see computation below) 2,160,000
Dividend income (50,000 shares x P5) 250,000
FV adjustment gain 240,000
Net amount to be recognized in P/L 3,000,000

Gain on sale 10/05:

Sales proceeds (20,000 shares x P65) 1,300,000
Less Cost of investment sold (see below) 950,000
Gain on sale 350,000
Cash paid 1,000,000
Less Purchased dividend 50,000
Correct acquisition cost 950,000

Gain on sale 11/30:

Cash received 3,300,000
Less dividends sold (20,000 shares x P5) 100,000
Net sales proceeds 3,200,000
Less Cost of investment sold 1,040,000
Gain on sale 2,160,000

FV adjustment gain:
Fair value, 12/31/12 (30,000 x P60) 1,800,000
Balance before FV adjustment (see investment ledger) 1,560,000
FV adjustment gain 240,000

Investment in Templar ledger

Sept. 5 acquisition Shares Cost/share Total
Purchase, Sept. 5 20,000 47.50 950,000
Sale, Oct. 5 (use FIFO) (20,000) 47.50 (950,000)
Balance, Dec. 31, 2012 - -
Oct. 1 acquisition Shares Cost/share Total
Purchase, Oct. 1 50,000 52.00 2,600,000
Sale, Nov. 30 (20,000) 52.00 (1,040,000)
Balance, Dec. 31, 2012 30,000 52.00 1,560,000

Amount to be recognized in SFP - Investment in Templar

Fair value, 12/31/12 (30,000 x P60) 1,800,000

Amount to be recognized in profit or loss - Investment in Dark

Share of profit (P800,000 x .195) 156,000

Amount to be recognized in SFP - Investment in Dark

Acquisition cost 1,170,000
Share of profit (P800,000 x .195) 156,000
Dividends received (P200,000 x .195) (39,000)
Investment in stock balance, 12.31.11 1,287,000

* Use equity method since there is a significant influence, i.e. Gateway's President
is represented in the board of directors.
PROBLEM NO. 8 - JR Company

Requirement No. 1
Profit or loss - Dividend income 15,000
OCI - FV adjustment (P570,000 - P500,000) 70,000
Net amount in comprehensive income - 2010 85,000

Requirement No. 2
Profit or loss - Dividend income 20,000
OCI - FV adjustment (P525,000 - P570,000) (45,000)
Net amount in comprehensive income - 2011 (25,000)

Requirement No. 3
None

Requirement No. 4
Fair value of original investment 525,000
Purchase price of 30% interest 1,575,000
Total cost of 40% interest 2,100,000
Share of profit - 2012
Based on reported amount (P550,000 x .4) 220,000
Excess of cost over underlying equity amortization
{[P2.1M - (P4.15M x .4)]/8} (55,000) 165,000
Dividends received (70,000)
Carrying amount, 12/31/12 2,195,000
PROBLEM NO. 9 - Panday Corporation
Requirement No. 1
PV of principal (P6,000,000 x 0.5568) 3,340,800
PV of interest [(P6,000,000 x 4%) x 8.8633] 2,127,192
Purchase price 5,467,992

Requirement No. 2
Date EI (5%) NI (4%) Disc. Amort. Amort. Cost
6/1/11 5,467,992
12/1/11 273,400 240,000 33,400 5,501,392
6/1/12 275,070 240,000 35,070 5,536,462
12/1/12 276,823 240,000 36,823 5,573,285

Carrying amount, 12/1/11 (see amortization schedule) 5,501,392

Add discount amortization, 12/1/11 to 12/31/11 (P35,070/6) 5,845
Carrying amount, 12/31/11 5,507,237

Requirement No. 3
Jan. 1 to May 31 (P275,070 x 5/6) 229,225
June 1 to Nov. 1 (P276,823 x 5/6) 230,686
Total interest income for 2012 459,911

Requirement No. 4
Total proceeds 5,887,500
Accrued interest (P240,000 x 5/6) (200,000)
Net proceeds 5,687,500
Less carrying amount, 11/1/12:
Carrying amount, 6/1/12 (see amortization schedule) 5,536,462
Add discount amortization, 6/1/12 to 11/1/12 (P36,823 x 5/6) 30,686 5,567,148
Gain on sale on investment in bonds 120,352
PROBLEM NO. 10 - Klootz Corporation

Requirement No. 1
Cash flow PVF@8% PV, 1/1/09
Principal 10,000,000 0.6806 6,806,000
Interest 1,000,000 3.9927 3,992,700
Purchase price, 1/1/09 10,798,700

Amortization schedule:
EI (8%) NI (10%) Amort CA
1/1/09 10,798,700
12/31/09 863,896 1,000,000 (136,104) 10,662,596
12/31/10 853,008 1,000,000 (146,992) 10,515,604
12/31/11 841,248 1,000,000 (158,752) 10,356,852
12/31/12 828,548 1,000,000 (171,452) 10,185,400
12/31/13 814,832 1,000,000 (185,400) 10,000,000
-
PV, 1/1/09 10,798,700
Premium amortization, 1/1 to 4/1 (P113,456 x 3/12) (34,026)
PV, 4/1/09 10,764,674
Accrued interest (P10,000,000 x 10% x 3/12) 250,000
Total purchase price 11,014,674

Requirement No. 2
Refer to the amortization schedule 10,662,596

Alternative computation:
Cash flow PVF@8% PV, 12/31/09
Principal 10,000,000 0.7350 7,350,000
Interest 1,000,000 3.3121 3,312,100
Carrying amount, 12/31/11 10,662,100

Requirement No. 3
Carrying amount, 12/31/11 (see amortization schedule) 10,356,852
PV of expected cash flows (P8,000,000 x 0.7972) 6,858,400
Impairment loss 3,498,452

Alternative computation:
Cash flow PVF@8% PV, 12/31/11
Principal 10,000,000 0.8573 8,573,000
Interest 1,000,000 1.7833 1,783,300
Carrying amount, 12/31/11 10,356,300
PV of expected cash flows (P8,000,000 x 0.8573) 6,858,400
Impairment loss 3,497,900

Requirement No. 4
EI (8%) NI (10%) Amort CA
12/31/11 6,858,400
12/31/12 548,672 - 548,672 7,407,072
12/31/13 592,928 - 592,928 8,000,000
(362)

Requirement No. 5
Carrying amount, 12/31/12 (without impairment) 10,185,400
Carrying amount, 12/31/12 (with impairment) 7,407,072
Reversal of impairment loss 2,778,328

The limit on the amount of reversal is what the amortized cost of the asset would have been at
the date of reversal had the impairment loss not been recorded.

Alternative computation:
Cash flow PVF@8% PV, 12/31/12
Principal 10,000,000 0.9259 9,259,000
Interest 1,000,000 0.9259 925,900
Carrying amount, 12/31/12 - without impairment 10,184,900
Carrying amount, 12/31/12 - with impairment 7,407,072
Impairment loss 2,777,828
PROBLEM NO. 11 - Spurs Corporation (SME)

Requirement No. 1 - SFP amount (Cost Model)

B C D Total
Purchase price 10,000,000 15,000,000 28,000,000 53,000,000
Transaction costs 100,000 150,000 280,000 530,000
Total cost 10,100,000 15,150,000 28,280,000 53,530,000
Impairment loss* - - (14,030,000) (14,030,000)
CA, 12/31/12 10,100,000 15,150,000 14,250,000 39,500,000
*Impairment loss computation:
Total cost 10,100,000 15,150,000 28,280,000
FV less cost to sell (RA) 12,350,000 27,550,000 14,250,000
- - 14,030,000

Requirement No. 1 - P/L amount (Cost Model)

B C D Total
Dividend income 250,000 2,000,000 - 2,250,000
Impairment loss - - (14,030,000) (14,030,000)
250,000 2,000,000 (14,030,000) (11,780,000)

Requirement No. 2 - SFP amount (Fair Value Model)

B C D Total
Fair value 13,000,000 29,000,000 15,000,000 57,000,000

Requirement No. 2 - P/L amount (Fair Value Model)

B C D Total
Transaction costs (100,000) (150,000) (280,000) (530,000)
Dividend income 250,000 2,000,000 - 2,250,000
FV adjustment gain (loss)* 3,000,000 14,000,000 (13,000,000) 4,000,000
3,150,000 15,850,000 (13,280,000) 5,720,000

*FV adjustment gain (loss)

Fair value 13,000,000 29,000,000 15,000,000
CA before FV adjustment 10,000,000 15,000,000 28,000,000
3,000,000 14,000,000 (13,000,000)

Requirement No. 3 - SFP amount (Equity Method)

B C D Total
Purchase price 10,000,000 15,000,000 28,000,000 53,000,000
Transaction costs 100,000 150,000 280,000 530,000
SOPA (SOLA) 1,250,000 4,500,000 (5,000,000) 750,000
Dividends (250,000) (2,000,000) - (2,250,000)
CA, 12/31/12 - before impairment 11,100,000 17,650,000 23,280,000 52,030,000
Impairment loss* - - (9,030,000) (9,030,000)
CA, 12/31/12 11,100,000 17,650,000 14,250,000 43,000,000

*Impairment loss computation:

CA, 12/31/12 - before impairment 11,100,000 17,650,000 23,280,000
FV less cost to sell (RA) 12,350,000 27,550,000 14,250,000
- - 9,030,000

Requirement No. 3 - P/L amount (Equity Method)

B C D Total
SOPA (SOLA) 1,250,000 4,500,000 (5,000,000) 750,000
Impairment loss - - (9,030,000) (9,030,000)
1,250,000 4,500,000 (14,030,000) (8,280,000)
PROBLEM NO. 12 - Theory

1 A
2 D
3 D
4 D
5 C
6 A
7 B
8 B
9 C
10 D
 A B C D
1 Cash on hand and in bank 38,700 35,002 34,402 35,502
2 Notes receivable 4,000 4,500 5,000 5,500
3 Accounts receivable 36,000 40,000 42,000 38,000
4 Allow. for doubtful accounts 1,800 2,000 2,100 1,900
5 Accounts receivable-net 40,100 38,000 40,000 39,900
6 Accounts receivable-others 2,750 - 500 1,000
7 Advances to officers and employees 3,840 1,000 2,840 3,740
8 Marketable securities 13,000 10,750 8,500 4,250
9 Allow. for decline in MV of marketable sec. 1,375 250 1,125 -
10 Inventories 15,400 20,000 24,600 16,000
11 Prepayments 100 500 - 900
12 Total curent assets 111,904 113,302 113,950 112,802
13 Property, plant and equipment 990,000 1,910,000 910,000 940,000
14 Accumulated depreciation 346,000 344,000 350,000 356,000
15 PPE-net 566,000 1,566,000 606,000 584,000
16 Total assets 677,904 713,950 679,302 678,802
17 Accounts payable 600 4,000 5,200 2,800
18 Accrued expenses 2,800 4,000 5,200 1,200
19 Total current liabilities 2,800 5,200 4,000 1,200
20 Bonds payable 397,000 400,000 363,000 360,000
21 Bond discount 37,000 3,000 43,000 40,000
22 Total liabilities 400,000 405,200 363,000 368,200
23 Common stock 311,102 200,000 108,750 308,750
24 Retained earnings, end. 125,104 108,750 111,102 94,750
25 Net sales 944,000 948,000 950,000 952,000
26 Cost of sales 669,600 665,000 661,000 664,400
27 Gross Profit 280,400 282,400 285,000 287,000
28 Operating expenses 270,798 264,798 270,000 264,000
29 Operating income 23,602 15,000 17,602 18,400
30 Other income 5,000 7,250 5,500 7,750
31 Other charges 6,500 9,000 6,000 3,000
32 Net income 16,352 11,000 17,000 14,000
33 Gain on sale of Maretable securities-SMC 1,000 2,250 1,750 -
34 Bond discount amortization 1,000 4,000 3,000 -
35 Dividend income-SMC Co. common 1,000 500 2,000 1,500