CASH BASIS INCOME STATEMENT

Revenues
Cash from Music Lessons 10,000
(5,000 + 5,000)
Expenses
Wages paid 1,500

Cash Income 8,500

ACCRUAL BASIS INCOME STATEMENT

Revenues
Sales from Music Lessons 10,000

Expenses
Wages Expense 1,500
Utilities Expense 2,000
3,500
Net income 6,500
5
Business Transactions

1 Owner invested P 250,000 cash in business.

2 Incurred legal expenses and paid P120,000
3 Received bills for expenses incurred, P80,000
4 Issued note for cash borrowed, P500,000.
5 Received P80,000 cash for service provided.
6 Bought car P500,000. 50% cash, bal note

7 Bought office equipment credit P180,000.

8 Provided services on credit, P170,000.
9 Collected 50% on receivable from clients.
10 Owner withdrew cash, P5,000.
Net Income to Owner’s Equity.

Totals

Cash

ROE - RETURN ON EQUITY

 Income
Statement of Financial Position
Statement
+Revenues Total Owner’s
Total Assets
-Expenses Liabilities Equity

250,000 250,000
- 120,000 - 120,000
- 80,000 80,000
500,000 500,000
80,000 80,000
500,000 250,000
- 250,000
180,000 180,000
170,000 170,000
85,000
- 85,000
- 5,000 - 5,000
50,000 50,000

1,305,000 1,010,000 295,000

100% 77% 23%
1,305,000 1,305,000
540,000

NI/OE 17%
ROI 20%
Exercise 11
ASSETS
Due From
Cash Supplies Furniture Equipment
Date Customers
Apr-30 61,000 14,500 50,500 25,000

May-02 45,000
2 28,000
5 - 10,000
8 - 7,250 7,250
10 8,000
11 - 7,500 15,000
14 5,000
15 - 15,000
18 12,000
20 1,000
24 - 5,000
25 6,000 - 6,000
27 3,500
28
29 12,000

30 - 22,500

31 - 3,500
Balances 98,750 9,500 18,250 50,500 40,000

217,000

FERIA TRAVEL AGENCY

INCOME STATEMENT
FOR THE MONTH ENDED MAY 31, 2019

Revenues
Processing Fees
Commission Income
Total revenue
Expenses
Salaries 30,000
Utilities 9,000
Taxes and Licenses 8,000
Rent 7,500
Registration Fees 6,000
 Supplies 3,500
Net Income

FERIA TRAVEL AGENCY

STATEMENT OF CHANGES IN OWNER'S EQ
FOR THE MONTH ENDED MAY 31, 2019

Feria, Capital, April 30, 2019

Add: Net Income
Feria, Capital, May 31, 2019

FERIA TRAVEL AGENCY

STATEMENT OF FINANCIAL POSITION
As of MAY 31, 2019

ASSETS
Cash
Due from Customers
Supplies
Furniture
Equipment
Total Assets
LIABILITIES AND OWNER'S EQUITY
Accounts Payable
Utlities Payable
Accounts Due to Ros
24-month Note due to BDO
Total Liabilities

Feria, Capital
Total Liabilities and Owner's Equity

CASH FLOW WORKING PAPER

Apr-30 61,000 Operating Investing Financing

May-02 45,000 45,000

2 28,000 28,000
5 - 10,000 - 10,000
8 - 7,250 - 7,250
10 8,000 8,000
 11 - 7,500 - 7,500
14 5,000 5,000
15 - 15,000 - 15,000
18
20 1,000 1,000
24 - 5,000 - 5,000
25 6,000 6,000
27
28
29 12,000 12,000

30 - 22,500 - 22,500

31
Balances 98,750 55,250 - 7,500 - 10,000

37,750 increase in Cash

61,000 BEG CASH
98,750 END CASH
 LIABILITIES OE
Accounts Utilities Account due to 24-month Note
Feria, Capital
Payable Payable Ros due to BDO
15,000 50,000 100,000
- 8,000
- 6,000

45,000
28,000
- 10,000

8,000
7,500
5,000
- 15,000
12,000
1,000
- 5,000

3,500
9,000 - 9,000
4,500
7,500
- 7,500
- 15,000
- 3,500
7,500 9,000 10,000 40,000 150,500

217,000

AVEL AGENCY
STATEMENT
H ENDED MAY 31, 2019

PHP 67,500
47,000
114,500
 64,000
PHP 50,500

AVEL AGENCY
NGES IN OWNER'S EQUITY
H ENDED MAY 31, 2019

PHP 100,000 Capital, beg

50,500 Add: Additional Investment
PHP 150,500 Net income
Total
Less: Withdrawals
AVEL AGENCY Capital, end
FINANCIAL POSITION
MAY 31, 2019

SSETS
PHP 98,750
9,500
18,250
50,500
40,000
PHP 217,000
ND OWNER'S EQUITY
7,500
9,000
PHP 10,000
40,000
66,500

150,500
PHP 217,000
 Explanation
Investment
Taxes & Licenses
Registration Fees

Processing fees
Commission Income
Partial payment of note
Purchase supplies
Commission Income
Purchase equipment
Processing Fees
Salaries
Processing Fees
Processing Fees
Partial payment of acct
Partial collections
Commission Income
Utilities
Processing Fees
Commission Income
Rent
Salaries
Supplies
 xxx
dditional Investment xxx
xxx
xxx
xxx
xxx
 ASSETS
Accounts
Date Cash Supplies Delivery Van
Receivable
7-Jan 100,000
2 - 20,000 120,000
3 - 15,000
5 22,000 22,000
9 - 2,000
12 1,500
15 12,500 - 12,500
17
20 15,000 - 5,000
23 - 25,000
26 - 2,500
29 - 7,500
30 - 30,000
- 1,000

47,500 4,500 500 120,000

172,500

Fed Deliveries
Income Statement
For the month of June 30,20__

Revenues

Expenses:
Rent 15,000
Gas 7,500
Utilities 5,000
Supplies 1,000
Salaries 30,000
Net Loss

Fed Deliveries
Statement of Owner’s Equity
 For the month of June 30, 20__

Capital, Jan 1
Less: Drawings

Less: Net Loss

Fedor, Capital June 30

Fed Deliveries
Statement of Financial Position
June 30, 20__
Assets
Cash
Accounts Receivable
Supplies
Delivery Panel
Total
Liabilities and Owner's Equity
Notes Payable
Accounts Payable
Fedor, Capital
Total
 LIABILITIES OWNER'S EQUITY
Accounts Fedor Capital Revenues
Notes Payable Account Title
Payable (Drawings) (Expenses)
100,000
100,000
- 15,000 Rent
44,000 Service fees
- 2,000
1,500

7,500 - 7,500 Gas and oil

10,000 Service fees
- 25,000
2,500 - 5,000 Utilities
- 7,500
- 30,000 Salaries
- 1,000 Supplies
- 4,500 - 4,500 Net loss
75,000 4,000 93,500

172,500

d Deliveries
e Statement
h of June 30,20__

54,000

58,500
- 4,500

f Owner’s Equity
h of June 30, 20__

100,000
2,000
98,00
4,500
93,500

Financial Position

Assets
47,500
4,500
500
120,000
172,500
nd Owner's Equity
75,000
4,000
93,500
172,500
 Accts
14 Cash Supplies Furniture Equipment
Recble

Jul-01 50,000 10,000

2 - 25,000
4 120,000
6 - 2,500 2,500
8 32,000
10 27,000
15 - 6,200
18 15,000 - 15,000
25 40,000 60,000
28 - 5,000
28 - 4,000
31 - 6,200
31
- 2,000
88,100 72,000 500 10,000 120,000

290,600

Income Statement
For the month of July 2018

Revenues
Expenses:
24,500
Rent
Salaries 12,400
6,100
Utilities

2,000
Supplies

Net Income
 Statement of Owner’s Equity
For the month of July 2018

Capital, July 1

Less:
Drawings

Add: Net Income

Wong, Capital July 31

Statement of Financial Position

July 31, 2018
Assets
Cash
Accounts
Receivable
Supplies
Furniture
Equipment
Total
Liabilities and Owner's Equity
Accounts
Payable

Wong, Capital
Total
 Accounts Wong, Revenues Change in
Payable Capital (Expenses) capital

60,000
- 24,500 Rent
- 500 Utilities
120,000

32,000 Prof Fees

27,000 Prof Fees
- 6,200 Wages

100,000 Prof Fees

- 5,000 Wong,Drawings
- 4,000
- 6,200 Wages
5,600 - 5,600 Utilities
- 2,000 Supplies Used
121,600 55,000 114,000

290,600

me Statement
month of July 2018

159,000

45,000

114,000
t of Owner’s Equity
month of July 2018

60,000

5,000
55,000
114,000

169,000

of Financial Position
uly 31, 2018
Assets
88,100
72,000
500
10,000
120,000
290,600
and Owner's Equity

121,600

169,000
290,600
PROBLEM 1

a. June 1 - Dec 31 7 mos @P20,000 140,000

b. (Cost - salvage value)Depreciable Cost/estimated life years = annual depreciation

1,500,000 / 10 years 150,000 x 6/12 75,000

Delivery Truck 1,500,000

Less: Accumulated Depreciation 75,000
Book Value 1,425,000

c. Total bills received 42,000

Utility bill for December 3,800 42,000

d. 1st semester Collected 1,250,000

Not collected 250,000 1,500,000

2nd semester Collected 1,250,000

Not collected 150,000 1,400,000
 Rent expense

= annual depreciation

Depreciation expense-Delivery truck

Accumulated depreciation-Delivery truck contra-asset account

Utility expense

Fees earned

Fees earned
Problem 5
Accounts Furniture &
Cash
Receivable Fixtures
7-Jan 1,000,000
2- 150,000 300,000
8
11 - 100,000
12 240,000
15 - 125,000
20 40,000 40,000
21 70,000
25 - 50,000
27 - 40,000
28
29 480,000

30 - 125,000
31 - 90,000
1,150,000 40,000 300,000

Income Statement
For the month ended July. 31, 2018
Revenues: Transport Fares
Cargo Fares
Less Expenses:
Advertising
Utilities
Salaries
Rent
Gas & Oil
Net Income
 Capital Statement
For the month ended July 31, 2018
Brown, Capital, June 1
Add Net Income
Total
Less Drawings
Brown, Capital, June 30

Cash
Accts Receivable
Furniture & Fixtur
Buses
Totals
 Accounts Brown,
Buses Notes Payable Rent Payable
Payable Capital
1,000,000
150,000
1,999,800 1,999,800
- 100,000
240,000
- 125,000
80,000
70,000
- 50,000
- 40,000
75,000 - 75,000
360,000
120,000
- 125,000
- 90,000
1,999,800 150,000 1,999,800 75,000 1,265,000

3,489,800 3,489,800

PTL
Income Statement
For the month ended July. 31, 2018
nues: Transport Fares 680,000
Cargo Fares 190,000 870,000

100,000
40,000
250,000
75,000
90,000 555,000
315,000
 PTL
Capital Statement
For the month ended July 31, 2018
wn, Capital, June 1 1,000,000
315,000
1,315,000
50,000
wn, Capital, June 30 1,265,000

PTL
Statement of Financial Position
July 31, 2018

Assets Liabilities & Owner's Equity

1,150,000 Notes Payable 1,999,800
40,000 Accounts Payable 150,000
300,000 Rent Payable 75,000
1,999,800 Advincula, Capital 1,265,000
3,489,800 Totals 3,489,800
Explanation
Investment

Advertising
Transport Fares
Salaries
Transport Fares
Cargo Fare
Drawings
Utilities
Rent
Transport Fare
Cargo Fare
Salaries
Gas & Oil