1.

Presented below are the balance sheet accounts of

Galvez Consultancy Firm. Prepare a report form
balance sheet for the year December 31, 2020. (15
Land (Non-Current Assets) Php 68,000 PTS)
Building (Non-Current Php 350,000
Assets)
Furniture and Fixture Php 4,500
(Non-Current Assets)
Accumulated Depreciation Php 50,000
– Building (Non-Current
Assets)
Allowance for Bad Debts Php 6,000
(Current Assets)
Cash (Current Assets) Php 101,000
Supplies (Current Assets) Php 700
Accounts Receivable Php 46,500
(Current Assets)
Galvez Capital (Owner’s Php 469,200
Equity)
Accounts Payable (Current Php 5,000
Liabilities)
Loans Payable (Current Php 50,000
Liabilities)
Utilities Payable (Current Php 500
Liabilities)
Prepaid Insurance (Current Php 10,000
Assets)
Notes to Financial Statement
Note 1- Trade and other Receivable
Note 2- Prepaid Expenses
Note 3- Property, Plant and Equipment
Note 4- Trade and Other Payables
*Note* SOLVE FIRST THE NOTES TO FINANCIAL
STATEMENT BEFORE YOU PROCEED TO
STATEMENT OF FINANCIAL POSITION
2. From the information given from the records of
Gracia’s Consultancy Services, prepare a statement of
changes in owner’s equity for year ended December 31,
2019.
Gracia, Capital Php 400,000
Gracia, Drawing Php 40,000

A.The company generated a Php 150,000 net income.

Gracia made an additional investment of Php 80,000.
(5 PTS)
B. Using the same information above, except that,
instead of a net income, the company incurred a net
loss of Php 55,000. (5 PTS)