Week 6-7 ULOb Lets Analyze Solution

Activity 1

Marife Sarmiento, CPA

Income Statement
December 31, 2020

Revenue:
Auditing Revenues P1,361,500

Expenses:
Depreciation Expense-Building P55,000
Depreciation Expense-Office Equipment 60,000
Office Supplies Expense 96,000
Professional Development Expense 86,500
Rent Expense 52,500
Salaries Expense 735,000
Travel Expense 41,000
Utilities Expense 18,000 1,144,000
Profit P 217,500

Marife Sarmiento, CPA

Statement of Comprehensive Income
December 31, 2020

Sarmiento, Capital, 1/1/2020 P 1,193,500

Add: Additional investment P22,000
Profit 217,500 239,500
Total P 1,433,000
Less: Withdrawals (165,000)
Sarmiento, Capital, 12/31/2020 P 1,268,000

Marife Sarmiento, CPA

Statement of Financial Position/Balance Sheet
December 31, 2020

ASSET
Current assets:
Cash P118,500
Notes Receivable 60,000
Accounts Receivable 198,000
Office Supplies 28,000
Total Current assets P404,500

Noncurrent assets:
Land P 75,000
Building 750,000
Accumulated Depreciation-Building (110,000) 640,000
Office Equipment 362,500
Accumulated Depreciation-Office Equipment (120,000) 242,500
Total noncurrent assets 957,500
Total assets P 1,362,000

LIABILITIES AND OWNERS EQUITY

Current liability:
Accounts Payable P 63,500
Salaries Payable 30,500
Total liability P 94,000

Equity:
Sarmiento, Capital 1,268,000
Total liability and equity P1,362,000
Activity 2

FA 1. Received a P180,000 cash investment from the owner.

n/a 2. Provided P400,000 services on account.
n/a 3. Incurred P220,000 of operating expenses on account.
OA 4. Collected P320,000 cash from accounts receivable.
FA 5. Allowed a P30,000 cash withdrawal to the owner of the business.
OA 6. Paid P160,000 cash on accounts payable.
OA 7. Performed services for P30,000 cash.
OA 8. Paid P12,000 cash for expenses.

*n/a means there is no cash involved in the transaction so need to include in the statement of cash flow.

Party Consultants
Statement of Cash Flows
October 31, 2020

Operating activities:
Collected cash from accounts receivable P320,000
Performed services for cash 30,000
Paid cash on accounts payable (160,000)
Paid cash for expenses (12,000)
Net cash provided by operating activities P178,000

Financing activities:
Received cash investment from the owner P180,000
Cash withdrawal to the owner of the business (30,000)
Net cash provided by financing activities 150,000
Net increase in cash P328,000
Cash, beginning -
Cash, ending P328,000