You have been engaged to examine the financial statements of Nashock Tan Company for the year

2016. The clients provide the following information given below.

Nashock Tan Company

Statement of Financial Position
For the year ended December 31, 2016

Current Assets P 44, 300 Current Liabilities P 66, 600

Long-term investment 13, 600 Long-term liabilities 24,100
Property and Equipment 123, 500 Contributed Capital 17.000
Intangible Assets 7. 700 Unrealized Capital 22.500
Other Assets 13, 600 Retained Earnings 72,500
Total Assets P 202, 700 Total Liabilities and Equities P 202,700

The following information is also available

1. Current assets include cash P 3,800, accounts receivable P 18,500, note receivable ( maturity
date 1, 2018) P 10,000 and land P 12,000
2. Long- term investment include a P 4,600 investment in fair value through other
comprehensive income securities that is expected to be sold in 2017 and a land P 9,000
investment in Day Company bonds that expected to be held until their December 31, 2025
maturity Date
3. Property and Equipment include buildings costing P 63,400, Inventory Costing P30,500 and
equipment costing P29,600
4. Intangible assets include patents that costs P 8,200 and on which 2,300 amortization have
accumulated and treasury shares that cost P 1,800
5. Other assets include prepaid insurance (which expires on November 30, 2017) P2,900,
sinking fund for bond retirement P 7,000 and trademarks that cost P 5,200 and on which
P1,500 amortization has accumulated
6. Current Liabilities include accounts payable P 19,400 and bonds payable (maturity date
December 31, 2027) P 40,000 and accrued income taxes payable P 7,200
7. Long-term liabilities include accrued wages P 4,100 and mortgage payable (which is due in
five equal annual payments starting December 31, 2017) P 20,000
8. Contributed Capital Includes ordinary shares (par P 5.00) P 11,000 and preference shares
(par P100.00) P 6,000
9. Unrealized capital includes premium on bonds payable P 4,300, premium on preference on
preference shares P 2,400, premium on ordinary shares P 14,700 and unrealized increase in
value of securities for sale P 1,100
10. Retained earnings includes unrestricted retained earnings, P 37,800, allowance for doubtful
accounts P 700 and accumulated depreciated om buildings and equipment of P 21,000 and
P13,000 respectively