BALANCE SHEET EXERCISES

Practice solving problems

Below are

1. Mr. Extra paid P1,000 pesos for the services rendered by Surf Laundry shop.
What is the effect of this transaction on the assets, liabilities, and owners equity of Surf Laundry Shop?

2. At the beginning of the year, Surf Laundry had total assets of P75,000 and had no liability. During the year, Surf Laundry Shop borrowed P20,000 from DBP
and the owner deposited P10,000 for additional capital. What are its total assets at the end of the year?

3. Surf Laundry has a beginning cash balance of P75,000. During the day, the following transaction transpired. What is its cash balance at the end of the day?
a. surf received P15,000 for services rendered during the day
b. Surf rendered services to Hotel A on account, P125,000
c. Surf purchased laundry supplies on account, P200,000
d. Surf paid PLDT bill, P3,000
e. Surf received payment from the customer account, P26,000

4. Surf laundry has a beginning capital of P50,000. During the year, the following transactions occurred:
a. Increase in profit of P25,000
b. increase in owners withdrawal by 10,000
c. placement of additional capital of P5,000
what is Surf laundry capital balance at the end of the year?

INCOME STATEMENT EXERCISES

Practice solving problems: show your computation.

Case 1.
Surf Laundry opens for business from Monday thru Saturday or 24 days a month. There are two laundry assistants and one supervisor operating the business daily.
Surf laundry receives an average of 5,000 kilos of laundry items everyday. The laundry price per kilo is P20.00
The cost of laundry is 12% of total revenue. Total operating expenses is 50% of total revenue.
Question: What is Surf Laundry monthly average service income?
 2. What is its gross profit per month?
3. What is its net income per month?
Case 2.
If the average laundry increased the volume by 10%, what is its monthly service revenue? Monthly gross profit? And monthly net income?
Case 3.
If the average laundry remains at 5,000 kilos every day, but it increased its price by 15%; what is the effect of the price increase on gross profit and net income?

Show your computation.

Prepared by:

CORAZON T. VILLEGAS, CPA, MBM

Chairperson - Accountancy Dept
owed P20,000 from DBP

ce at the end of the day?

r operating the business daily.

oss profit and net income?