Unadjusted Accounts Payable, December 31, 2020

a) Uncleared checks
b) Shipped returned goods
c) Goods shipped FOB shipping point not yet recorded
d) Goods shipped FOB shipping point was lost in transit and not yet recorded
e) Goods shipped FOB shipping point properly recorded
f) Goods shipped FOB destination not yet recorded
g) Goods shipped FOB destination
Adjusted Accounts Payable, December 31, 2020
₱ 1,200,000.00
525,000.00
- 105,000.00
45,000.00
55,000.00

- 78,000.00
₱ 1,642,000.00
 JOURNAL ENTRIES FOR 2020
Dec 31 Rent Expense 92500
Rent expense payable 92500

Advertising expense 75000

Advertising expense payable 75000
Environmental cost 1,500,000
Estimated liability for environmental cost 1,500,000

Loss on lawsuit 5,000,000

Estimated liability for lawsuit 5,000,000
PROVIDE

DISCLOSE
 JOURNAL ENTRIES FOR 2019
Jan 1 Premiums 18,000,000
Cash 18,000,000

Cash 10,800,000
Premium expense 5,400,000
Premiums 16,200,000

Premium expense 5,060,000

Estimated premium liability 5,060,000

Cash 3,640,000
Unearned warranty revenue 3,640,000

Warranty expense 1,200,000

Cash 1,200,000

Dec 31 Unearned warranty revenue 800,800

Cash 800,800

JOURNAL ENTRIES FOR 2020

Jan 1 Estimated premium liability 5,060,000
Premium expense 5,060,000

Premiums 26,000,000
Cash 26,000,000

Cash 15,000,000
Premium expense 9,225,000
Premiums 24,225,000

Premium expense 17,077,500

Estimated premium liability 17,077,500

Cash 5,110,000
Unearned warranty revenue 5,110,000

Warranty expense 10,220,000

Estimated warranty liability 10,220,000

Estimated warranty liability 2,600,000

Cash 2,600,000
Dec 31 Unearned warranty revenue 1,124,200
Cash 1,124,200
 Table for computation of warr
1/1/19 7/1/19- 1/1/20
2019 Sales -6/30/19 12/31/19 -6/30/20
Jan 1 1,820,000 800,800 800,800 691,600
July 1 1,820,000 800,800 800,800

2020 Sales
Jan 1 2,555,000 1,124,200
July 1 2,555,000
for computation of warranties
7/1/20- 1/1/21 7/1/21- 1/1/22 7/1/22- 1/1/23
12/31/20 -6/30/21 12/31/21 -6/30/22 12/31/22 -6/30/23
691,600 327,600 327,600
691,600 691,600 327,600 327,600

1,124,200 970,900 970,900 459,900 459,900

1,124,200 1,124,200 970,900 970,900 459,900 459,900
 JOURNAL ENTRIES FOR 2019
Mar 1 Cash
Convertible bonds payable
Premium on bonds payable
Share premium - conversion privilege

Dec 31 Interest expense

Interest Payable

Premium on bonds payable

Interest expense

JOURNAL ENTRIES FOR 2020

Jan 1 Interest Payable
Interest Expense

Mar 1 Interest expense

Cash

Premium on bonds payable

Interest expense

Convertible bonds payable

Share premium - conversion privilege
Premium on bonds payable
Share capital
Share premium - Issuance

Interest expense
Cash

Dec 31 Premium on bonds payable

Interest expense
 Amortization Table
5,401,500 Date Interest Paid Interest Expense
5,000,000 1/3/2019
194,500 12/31/19 416,667 389,588
207,000 1/3/2020 83,333 77,918
12/31/20 416,667 387,150
416,667 1/3/2021 83,333 77,430
416,667 12/31/21 416,667 384,494
1/3/2022 83,333 76,899
27,079 12/31/22 416,667 381,598
27,079 1/3/2023 83,333 76,320
12/31/23 416,667 378,442
1/3/2024 83,333 75,662
416,667
416,667

441,667 SLIDE 21 ACCCTNG FOR CONVERTIBLE BONDS PPT

441,667
Computation for conversion
1,771 Face Value of Bonds Converted
1,771 x nominal rate
x number of months from Jan 1 to Mar 1
1,500,000 divided by number of months in a year
62,100 Accrued interest on Bonds Converted
46,831
750,000 Amortization of Premium for Year 2020
765,269 x number of months from Jan 1 to Mar 1
divided by number of months in a year
350,000 Amortization of Premium from Jan 1 to Mar 31 for the entire 5M Bon
350,000 x Face Value of Bonds Being Retired
Divided by Total FV of Bonds Issued
24,794 2020 Amortization Applicable to Bonds Converted
24,794
Premium on Bonds Recognized in Mar 1 2019
x Face Value of Bonds Being Retired
Divided by Total FV of Bonds Issued
Premium on Bonds Applicable to Bonds Converted
Less: Amortization Applicable to Converted Bonds Recognized in 202
Less: Amortization Applicable to Converted Bonds from Jan 1 to Dec
Unamortized Premium Applicable to Converted Bonds

Face Value of Bonds Converted

Less: Unamortized Discount Applicable to Converted Bonds
Carrying Amount of Bonds Converted

Number of P1,000 bonds issued

x number of shares issued per 1,000 bonds
x par value per share
Par Value of Shares Issued Upon Conversion

Carrying Amount of Bonds Converted

Add: Share Premium - Conversion Privilage Applicable to the Bonds C
Total Consideration in Exchange for Shares Issued
Less: Par Value of Shares Issued Upon Conversion
Share Premium - Issuance

Face Value of Bonds Remaining

x nominal rate
Interest Payment on the remaining 2M Bonds

Amortization of Premium for Year 2020

x Face Value of Remaining Bonds
Divided by Total FV of Bonds Issued
2020 Premium Amortization for the Remaining Bonds
zation Table
Amortization PV
5,194,500
27,079 5,167,421
5,416 5,162,005
29,516 5,132,489
5,903 5,126,585
32,173 5,094,413
6,435 5,087,978
35,068 5,052,910
7,014 5,045,896
38,224 5,007,672
7,672 5,000,000

1,500,000
10%
2
12
25,000

35,420
2
12
to Mar 31 for the entire 5M Bonds 5,903
1,500,000
5,000,000
ds Converted 1,771

194,500
1,500,000
5,000,000
nds Converted 58,350
verted Bonds Recognized in 2020 9,749
verted Bonds from Jan 1 to Dec 31, 2021 1,771
Converted Bonds 46,831

1,500,000
le to Converted Bonds 46,831
 1,453,169

1,500
5
100
750,000

1,453,169
vilage Applicable to the Bonds Converted 62,100
Shares Issued 1,515,269
n Conversion 750,000
765,269

3,500,000
10%
350,000

35,420
3,500,000
5,000,000
Remaining Bonds 24,794
 Journal Entry for 2019
Oct 1 Equipment 1,265,500
Discount on note payable 234,500
Note payable 1,500,000

Dec 31 Interest expense 29,312.50

Discount on note payable 29,313

Journal Entry for 2020

Oct 1 Note Payable 500,000
Cash 500,000

Dec 31 Interest expense 107,479

Discount on note payable 107,479

Journal Entry for 2021

Oct 1 Note payable 500,000
Cash 500,000

Dec 31 Interest expense 68,396

Discount on note payable 68,396

Journal Entry for 2022

Oct 1 Note payable 500,000
Cash 500,000

Interest expense 29,312.50

Discount on note payable 29,312.50
 Amortization Table
Date Note Payable Fraction Amortization
1/10/2020 1500000 1/2 117,250
1/10/2021 1,000,000 1/3 78,167
1/10/2022 500,000 1/6 39,083
3,000,000 234,500
Year 2019
Aug 1 Cash
Share Capital - Preference Share
Share Premium - Preference Share

Dec 31 Retained Earnings

Dividends Payable

Year 2020
Jan 1 Cash
Redeemable Preference Share
Share Capital - Ordinary Share
Share Premium - Ordinary Share

20 Dividends Payable
Cash

Apr 1 Cash
Share Capital - Preference Share
Share Premium -Preference Share

Nov 1 Treasury Shares

Cash

Retained Earnings
Retained Earnings Appropriated for Treasury Preference Shares

Dec 31 The company received 3,000 preference shares as donation.

Retained Earnings
Dividends Payable

Adjusting Journal Entries

Dividends Payable
Retained Earnings

Interest Expense
Cash
3150000
3000000
150000

150000
150000

8000000
5000000
2000000
1000000

150000
150000

1100000
1000000
100000

204000
204000

204000
204000

390000
390000

500000
500000

500000
500000
Year 2019
Mar 1 Cash
Subscription Receivable - Ordinary Shares

Subscribed Ordinary Share Capital

Ordinary Share Capital

May 1 Retained Earnings

Share Dividends Distributable

Jun 1 Cash
Retained Earnings
Treasury Shares

Retained Earnings Appropriated for Treasury Shares

Retained Earnings

Dec 31 Retained Earnings

Dividends Payable

Year 2020
Jan 1 Preference Share tab

20 Dividends Payable
Cash

Mar 1 Bonds Payable tab

Jul 1 Share Dividends Distributable

Ordinary Share Capital

Aug 1 Issued 107,100 new shares with par value of P50 hindi ba dat 214,200 kasi titimes 2 mo 107,100?

Sept 1 Treasury Shares

Cash

Retained Earnings
Retained Earnings Appropriated for Treasury Shares

Nov 1 Cash
Treasury Shares
Share Premium - Treasury Shares
 Retained Earnings Appropriated for Treasury Shares
Retained Earnings

Dec 31 Retained Earnings

Dividends Payable
 500000
500000

1000000
1000000

710000 As of May 31, 2019

710000 Issued Shares
Treasury Shares
120000 Shares Entitled to Receive Dividends
45000
165000

165000
165000

725000 As of December 31, 2019

725000 Issued Shares
Treasury Shares
Shares Entitled to Receive Dividends

725000
725000

710000
710000

mes 2 mo 107,100?

280000
280000

280000
280000

195000
165000
30000
 165000
165000

1485400 As of December 31, 2020

1485400 Issued Shares
Share Dividends
Converted bonds payable
On Preference Share tab
Treasury Shares
Shares Entitled to Receive Dividends
75000
-4000
71000

75000
-2500
72500
150000 219200
14200
15000 10960000
40000
-7000
212200
Year 2019
Jan 1
Granted 60,000 and 100,000 share options under management stock option program and executive long-
term incentive program respectively.

Dec 31
 Management Stock Option Program
ram and executive long-
Number of Options Granted
Percentage of Employees who will Remain
Number of Options Granted to Employees Remained
Multiply by: Fair Value of Share Option
Total Value of Compensation
Multiply by: Ratio
Cumulative Salaries Expense
Cumulative Compensation in Previous Years
Salaries Expense During the Year

Number of Ordinary Shares Issued thru Exercise of Options

Net Sales Revenue

Change in Sales Revenue from Previous Year
Growth in Annual Net Revenues
Percentage of Options to be Granted

Executive Long-Term Incentive Program

Number of Options Granted

Percentage of Options to be Granted
Number of Options Granted
Percentage of Employees who will Remain
Number of Options Granted to Employees Remained
Multiply by: Fair Value of Share Option
Total Value of Compensation
Multiply by: Ratio
Cumulative Salaries Expense
Cumulative Compensation in Previous Years
Salaries Expense During the Year

Number of Ordinary Shares Issued thru Exercise of Options

 2019 2020
60000 60000
80% 85%
s Remained 48000 51000
13.5 13.5
648000 688500
1/3 2/3
216000 459000
-216000
216000 243000

xercise of Options 16000 34000

2018 2019 2020

135000000 150000000 185000000
15000000 35000000
0.111111111 0.23333333
50% 150%

2019 2020
100000 100000
50% 150%
50000 150000
90% 85%
s Remained 45000 127500
13.5 13.5
607500 1721250
1/3 2/3
202500 1147500
-202500
202500 945000

xercise of Options 15000 85000