Activity Sheet No.

1 (Statement of Financial Position)

Name: Angelica Alexis Allorde Date:

Year & Section: 12-Confucuis

Illustrative Problems:

A. Determining the balance of the account using T-accounts

The T-account below is for the account Prepaid Expense.

Prepaid Expense

April 1 2019 P148500 August 31,2019 P35720

September 15, 2019 82350 December 31, 2019 70000

The balance of prepaid expenses on January 1, 2019 is P347680. What is the balance of Prepaid Expenses as of
December 31, 2019? Show your Solution.

Prepaid Expenses as of December 31,2019 is P472,810

SOLUTION:
347,680 + 148,500 + 82,350 = 578,530 – 35,720 – 70,000 = P472,810

B. Determining the balance of the account using T-accounts

The T-account below is for the account Accrued Expenses

Accrued Expense
April 1 2019 P137620 August 31,2019 P52730

September 15, 2019 85160 December 31, 2019 50000

The balance of Accrued expenses on January 1, 2019 is P347680. What is the balance of Accrued expenses as of
December 31, 2019? Show your solution.

Accrued Expenses as of December 31,2019 is P227,630

SOLUTION:

347,680 + 52,730 + 50,000 = 450,410 – 137,620 – 85,160 = P227,630

C. The cash account has a January 1,2019 balance of P687000.

1. During the year, the following transactions increased the cash account.
a. Company was able to collect P750000 from its receivables.
b. Cash sales totaled P380655.
2. During the year, the following transactions decreased the cash account:
a. The company paid P652000 to suppliers and for other admin expenses.
b. The owner withdrew P120000 for his personal expenses.
Fill in the T-account for the effects of the above transactions.

Cash

Particulars Debit Credit

January 1,2019 balance PHP 687,0000

1. A- Collected on Account 750,000

1. B- Cash Sales 380,655

2. A- Paid the suppliers and other admin 652,000

expenses
2. B- Owner, Draing 120,000

December 31, 2019 balance PHP 1,045,655