NAME: Bacani, Jomar V.

PROGRAM/YR: BSBA FM 1-1

BALANCE SHEET EXERCISES
Practice solving problems
Below are indepe

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
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. Wh
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
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: 1. W 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? A
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 p

Show your computation.

Prepared by:
CORAZON T. VILLEGAS, CPA, MBM
Chairperson - Accountancy Dept

ANSWERS:

BALANCE SHEET EXERCISES

1.) ASSETS LIABILITIESOWNER'S EQUITY Dr

Cash Service revenue Cash 1000
1000 1000 Service revenue
Both Assets and Owner's Equity increased and there's no effect on the Liabilit

2.) ASSETS LIABILITIES OWNER'S EQUITY

105,000 20,000 85,000

The total assets at the end of the year is 105,000.

3.) ASSETS LIABILITIES

Accounts Laundry Utilities
Cash Accounts payable
Receivable supplies Expenses
75,000
a.) 15,000
balance: 90000
b.) 125,000
balance: 90000 125000
c.) 200,000 200,000
balance: 90000 125000 200000 200000
d.) -3,000 3,000
balance: 87000 125000 200000 3000 200000
e.) 26,000 -26,000
balance: 113000 99000 200000 3000 200000
total: 415000 200000

The Cash balance at the end of the day is a total of P113,000.

4.) Surf Laundry beg. capital 50,000

additional capital 5,000

 profit 25,000 30,000

Surf Laundry withdrawals 10,000

Surf Laundry, ending capital 70,000

INCOME STATEMENT EXERCISES

Case 1:
days 24
Items per kilo
5,000
everyday
price per kilo 20

Service revenue 2400000

Cost of services 288000

Gross Profit 2112000

Operating Expenses 1200000

Net profit 912000

Case 2:
days 24
Items per kilo
5500
everyday
price per kilo 20

Service revenue 2640000

Cost of services 316800

Gross profit 2323200

operating expenses 1320000

Net profit 1003200

Case 3
days 24
 Items per kilo
5,000
everyday
price per kilo 23

Service revenue 2760000

Cost of services 331200

Gross profit 2428800

Operating expenses 1380000

Net profit 1048800

Therefore, I conclude that when the price per kilo of items increased, the Gross profit and Net profit are also
undry Shop?

lity. During the year, Surf Laundry Shop borrowed P20,000 from DBP
e end of the year?

ransaction transpired. What is its cash balance at the end of the day?

tions occurred:

re two laundry assistants and one supervisor operating the business daily.
rice per kilo is P20.00

Monthly gross profit? And monthly net income?

what is the effect of the price increase on gross profit and net income?
 Cr

1000

OWNER'S EQUITY

Capital Service revenue

75,000
15,000
75000 15000
125,000
75000 140000

75000 140000

75000 140000

75000 140000
215000
t and Net profit are also increases.