Classified Balance sheet with supporting Schedule/ Notes

Exercise 2-2 B Company provided the following account balances on December 31, 2021. All balances are normal, except Retained Earnings: Accounts receivable P800,000 Advances to officers (not currently collectible) 200,000 Sinking fund 800,000 Building 10,000,000 Long-term refundable deposit 100,000 Cash & cash equivalents 1,000,000 Cash surrender value of life insurance 120,000 Equipment 2,000,000 Right of use asset 200,000 Accrued interest on notes receivable 20,000 Inventories 2,600,000 Land 3,000,000 Land held for speculation 1,000,000 Notes receivable 500,000 Computer software 6,500,000 Prepaid expenses 140,000 Trading securities 560,000 Unearned rent income 80,000 Retained earnings ? Additional paid in capital 1,400,000 Premium on bonds payable 2,000,000 Preferred stock 4,000,000 Notes payable 600,000 SSS premiums payable 20,000 Accounts payable 800,000 Accrued salaries 200,000 Accumulated depreciation 4,400,000 Allowance for doubtful accounts 40,000 Bonds payable 10,000,000 Dividends payable 240,000 Common stock 10,000,000 Withholding tax payable 60,000 Preferred share redemption fund 700,000 REQUIRED: 1. Prepare a properly classified balance sheet (report format) as of Dec. 31, 2021 Prepare supporting schedules.Schedule 8: Depreciation- store P300,000 Depreciation-office 180,000 Total depreciation P480,000 Schedule 9: Loss on sale of investment P60,000 Loss on disposal of property 240,000 Casualty loss from flood 340,000 Total other expenses P640,000 Schedule 10: Interest expense on bank loan P100,000 Interest expense on bonds payable 300,000 Total finance cost P400,000XYZ Company Balance Sheet As of Dec. 31, 2020 Assets Current assets (Schedule 1) Non-current assets: Long-term investment (Schedule 2) Pxxx Plant, property & equipment (Schedule 3) XXX Biological assets (Schedule 4) XXX Intangible assets (Schedule 5) XXX Other assets (Schedule 6) XXX XXX Total assets Pxxx Liabilities Current liabilities (Schedule 7) Pxxx Non-current liabilities (Schedule 8) XXX Total liabilities PxxxCommon stock Stockholders' Equity Additional paid in capital PXxx Retained earnings: XXX Free Appropriated Pxxx Revaluation Increases XXX XXX Total stockholders' equity XXX Total liabilities & stockholders' equity Pxxx PXXX XYZ Company Statement of Retained Earnings* For the Year Ended Dec. 31, 2020 Free Appropriated Appropriated Bank loan Contingency Balances, Jan. 1, 2020 PXXX PXXX None Prior years corrections: 2018 Overstated depreciation XXX 2019 Salaries accrual omitted (XXX) Balances, Jan. 1, 2020 Corrected PXXX PXXX None Current year's transactions: 2020 Net income XXX 2020 Reversal of appropriation XXX XXX) 2020 Declaration of dividends (XXX) 2020 Creation of appropriation (XXX XXX Balances, Dec. 31, 2020 PXXX PXXX PXXX XYZ Company Statement of Changes in Equity* For the Year Ended Dec. 31, 2020 Common Additional Revaluation Stock Paid in Increases Capital PXXX PXXX PXXX Balances, Jan. 1, 2020 Current year's transactions: 2020 issuance of 10,000 shares at P150; par value is P100 XXX XXX 2020 Other comprehensive income XXX 2020 Deficit on revaluation of properties (XXX) Balances, Dec. 31, 2020 PXXX PXXX PXXX *These two can be combined and you will only have one statement of changes in equity