XFUNAC

Laxa, Rendell M.
B-131
Sir. Jaypaul Ocampo Acidera

Page 84 & 85

10.Using the cash column of Straight and True Advertising, prepare a cash flow working paper
using this format:
Date Transaction Operating Investing Financing
Feb 2 Investment of Cely P150,000

11.Sue Feria opened a travel agency business on April 5, 2019. A month after she was able to
comply with the legal requirements and documents, the business started operation. The
following balances were taken on April 30, 2019:
Date Cash Due from Supplier Furnitur Equipment Account 24- Feria Explanation
month
customers s e due to Capital for changes
Note
Ros Due to
BDO
61,000 14,500 50,500 25,000 15,000 50,000 +1000,000 Investment
- Taxes and
8,000 Licenses
- Registration
6,000 Express

The following transactions took place during the month of May:

2 Received P45,000 from the office of Pagcor for the processing of their documents with the
Department of Foreign Affairs. Use the revenue title-Processing Fees
2 Received from various airline companies commission for ticket purchased for clients,
P28,000. Use the revenue title-Commission Income.
5 Paid P10,000 to BDO.
8 Paid for supplies bought P7,250.
10 Received P8,000 commission from airline companies for tickets purchased for clients.
11 Bought a photocopying machine for P15,000 by paying 50% in cash, the balance on
account.
14 Collected service fees of P5,000 from clients for processing of visa and passport.
15 Paid cash for salaries, P15,000.
18 Billed Moyses Company P12,000 for processing of visa visa and passport of their officers.
20 Mr. and Mrs. Smith paid P1,000 for the processing of their papers.
24 Paid P5,000 of the account due to Ros.
25 Moyses Company paid 50% of their account.
27 Billed PAL P3,500 for commissions accruing on tickets purchased.
28 Bills were received from the following: PLDT, P3,500 and Meralco, P5,000.
29 Receipts from various clients for services rendered: from tourist and immigrants, P4,500
and airline companies, P7,500.
30 Paid cash P7,500 for rent and P115,000 for salaries.
31 Supplies used up, P3,500.
Analyze the above transactions, start with the balances given on April 30.
a) Present an income statement, statement of changes in owner’s equity, a properly
classified report form of stataement of financial position.
b) Using the cash column, prepare a working paper of cash flows.

12. Fay Fedor started a delivery service, Fed Deliveries,on July 1, 2019. The following
transactions occurred during the month of July.
July 1 She contributed P100,000 cash.
2 Purchased a used van for deliveries for P 120,000 by paying P20,000 cash and
signed a two-year notes payable for the remaining balance
3 Paid P15,000 for office rent for the month.
5 Delivery services amounted to P44,000,half on account.
9 Cash of P2,000 withdrawn by May.
12 Purchased supplies for P1,500 on accoun.
15 Received cash of P12,500 for services provided on June 5.
17 Purchased gasoline for P7,500 on account.
20 Received P15,000 from customers of which P5,000 was for past accounts.
23 Made a cash payment of P25,000 on the note payable.
26 Received bills for utilitites P5,000 but paid only P2,500.
29 Paid for the gasoline purchased on account on June.
30 Paid P30,000 for employee salaries. A third of supplies remained on hand,
Instructions:
a. Show the effects of the above transections on the accounting equation using the following
format.
Date Cash Accounts Supplies Deliver Notes Accounts Fedor,Capita Revenues Account
Receivabl Van Payable Payable l (Expenses) Title
e (Drawings)
b. Prepare an income statement for the month of July.
c. Prepare a classified statement of financial position as at July 31

13.Refer to Exercise 12. Look for the cash on the format you did and analyze its movement
(inflow or outflow) in a working paper. Did the cash increase? Explain by citing the net flow of
cash in the operating, financing and investing activities of the business.
14. Mabel Wong began a professional practice as system analyst on July 1. She plans to
prepare monthly financial statements. During July the owner complete these transactions:

1 Owner invested P50,000 cash along with furnitures and fixtures that had a P20,000
market value two years ago but was now worth P10,000 only.
2 Paid P25,000 cash for July rent (including P500 water bill) of a fully furnished office
space at the Madrigal Building.
4 Purchased P120,000 worth of state of the art equipment on credit for thirty monthly
installment payments.
6 Purchased office supplies for cash, P2,500.
8 Completed work for a client and immediately collected the P32,000 cash earned.
10 Completed work for a client and sent a bill for P27,000 to be paid within thirty days.
15 Paid as assistant P6,200 cash as wages for 15 days.
18 Collected P15,000 cash on the amount owed by the client.
25 Completed work for another client who paid only P40,000 OR 40% Of the total
computerized system. The client promised to pay the balance in thirty days.
28 Owner withdrew P5,000 cash for personal use.
28 Paid the first installment to settle the liability on the equipment purchased.
30 Paid salary assistant.
31 Received PLDT bill, P1,800 and Merlaco bill, P3,800
Used up P2,000 worth of supplies.

Required:
Analyze the above transactions in an accounting equation table using the following headings
for columns: Cash; Accounts Receivable; Office Suplies; Equipment; Accounts Payable; Notes
Payable; Utilities Payable; Wong, Capital; Explanation of Changes in Capital. Then use
additions and subtractions to show the effects of the transactions on individual items of the
accounting equation. Show balances after all transactions are recorded.
a. Prepare an income statements for the month of July.
b. Prepare a statement of owner’s equity for the month of July.
c. Prepare a classified report form of statement of financial position as at July 31.