PROBLEM 1

Unadjusted Trial Balance

Debit Credit
Cash 210,000
Accounts Receivable 930,000
Prepaid Advertising 360,000
Engineering Supplies 270,000
Survey Equipment 1,890,000
Accum. Dep - Survey Equipment 640,000
Land 100,000
Accounts Payable 190,000
Salaries Payable
Interest Payable
Unearned Survey Revenues 120,000
Notes Payable 500,000
Abella, Capital 1,220,000
Abella, Withdrawals 700,000
Survey Revenues 6,510,000
Advertising Expense
Supplies Expense
Depreciation Expense - SE
Interest Expense
Salaries Expense 3,270,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Miscellaneous Expense 80,000
TOTALS 9,180,000 9,180,000

Above is the unadjusted trial balance of Abella Engineering Services at December 31, 2021.
Consider the following transactions and adjustments to arrive at the updated balances as at year-end.
 The land worth P100,000 was sold at P110,000. This has not been reflected on the trial balance
above.
 Prepaid advertising amounts to P220,000 at year-end.
 Engineering supplies used - P180,000.
 Survey equipment depreciation expense for the year - P160,000.
 Accrued salaries resulted to a payable of P140,000.
 Accrued interest on notes payable - P60,000.
 P40,000 of the unearned revenues has been earned.
Required: Compute for the updated balances of the following:
1. Prepaid Advertising
2. Engineering Supplies
3. Accounts Payable
4. Salaries Payable
5. Interest Payable
6. Unearned Survey Revenues
7. Notes Payable
8. Survey Reveues
9. Advertising Expense
10. Supplies Expense
11. Survey equipment book value
12. Depreciation Expense - Survey equipment
13. Interest Expense
14. Salaries Expense
15. Rent Expense
16. Insurance Expense
17. Total expenses
18. Income before tax
19. Current assets
20. Non-current assets
21. Total assets
22. Current liabilities
23. Non-current liabilities
24. Total liabilities
25. Abella, Capital-end
 PROBLEM 2

Consider the following transactions in the preparation of the statement of cash flows:

Cash received from revenues earned 1,340,000.00

Purchase of land (120,000.00)
Sale of equipment 56,000.00
Cash paid for interest on loans (20,000.00)
Cash paid for salaries (48,000.00)
Depreciation of building (150,000.00)
Proceeds from bank loan 1,000,000.00
Additional investment by the owner 30,000.00
Payment of long term note payable (800,000.00)
Payment of accounts payable (20,000.00)
Collection of accounts receivable 180,000.00
Withdrawals made by the owner (35,000.00)
Cash paid for insurance (24,000.00)
Insurance expense for the year (12,000.00)

Required:
1. Total cash inflow from operating activities
2. Total cash outflow from operating activities
3. Total cash inflow from investing activities
4. Total cash outflow from investing activities
5. Total cash inflow from financing activities
6. Total cash outflow from financing activities
7. Net increase (decrease) in cash.