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Lito Obispo started Obispo’s Industrial Spray Service on April 1,2007.During April,Obispo completed the following
transactions:
a.Invested cash in the business P60,000.
b. Bought a service vehicle from Lacson Motors for 112,500,paying P22,500 in cash ,with the remainder due in thirty
days.
c.Bought spray equiplment on account from Giron Company,P18,000.
d.Paid rent for the month,P5,600.
e.Paid cash for insurance on service vehicle for the year,P 5,760
f.Received cash for spray services done on a building,P21,750.
g.Bought supplies for cash,P 5,730
h.Billed customers on account for services performed.P4,440.
i.Paid cash for utilities,P960
j.Received cash from service rendered.P16,420
k.Obispo withdrew cash for personal use,P10,500
l.Paid salaries to employees ,P20,400.
Evelyn Tria,Attorney-at-Law,opened her office on Sept. 1,2007.The following transactions were completed during the
month.
a.Deposited P210,000 in the business.
b.Bought office equipment on account from Perdio Company, P147,000.
c..Invested another P57,000.
d.Paid office rent for the month,P7,600.
e.Bought office supplies for cash,P8,850.
f. Paid insurance for ,P1,860
g.Received professional fees for service rendered,P24,600.
h.Paid electricity bills for P 2,280.
i.Paid salary of 2 part time legal researchers,P9,600
j.Paid car rental expense,P2,880
k.Received professional fees for service rendered,P21,200.
l. Paid for the purchase of equipment on account ,P15,000
m.Pedro withdrew cash for personal use,P20,750.
Laarni Pascua, a veteran photographer,opened a studio for her professional practice on July 1.Transactions completed
during the month:
a.Deposited 146,200 in the business.
b. Bought new photography equipment on account from Canon Equipment,P71,210.
c. Invested another P51,620.
d. Paid office rent for the month ,P5,500
e. Bought photography supplies for cash P7,960
f.Paid insurance for P 1,240
g. Received P8,960 as professional fees for service rendered.
h. Paid salary of part-time assistant,P6,000
i.Paid Telephone expense for P640
j.Paid for the purchase of equipment on account P4,200.
k.Received P15,480 as professional fees for service rendered.
l.Paid for repair expense P760.
m.Pascua withdrew cash for personal use P9,600.
Traders Company
Statement of Financial Position
December 2016 and 2017
Currents Assets 2016 2017
Cash and cash equivalents 8,000 11,000
Trade and other receivables 114,000 139,000
Inventory 310,000 240,000
Prepaid Expenses 10,500 8,500
Total Current Assets 442,500 398,500
Non -Current Assets
Property ,Plant and Equipment 2,000,000 1,400,000
Investment in stocks 400,000 400,000
Total non-current assets 2,400,000 1,800,000
TOTAL ASSETS 2,842,50 2,198,500
0
Current Liabilities
Trade and other payables 119,000 100,000
Other current liabilities 55,000 40,000
Total current liabilities 174,000 140,000
Non-Current Liabilities
Bonds Payable-10% 560,000 600,000
Total LIABILITIES 734,000 740,000
Owner’s Equity
Traders ,Capital 2,108,50 1,458,500
0
Total Liabilities & Owner’s Equity 2,84 2,198,500
2,50
0
Traders Company
Statement of Comprehensive Income
December 2016 and 2017
Net Sales 1,700,000 1,500,000
Cost of Sales 1,050,000 800,000
Selling Expenses 190,000 180,000
Administrative Expense 100,000 120,000
Total 1,340,000 1,100,000
Operating Income 360,000 400,000
Interest Expense 55,000 50,000
Interest before Tax 305,000 350,000
Income Tax-30% 91,500 105,000
Income after Tax 213,500 245,000
Traders Company
Statement of Financial Position
December 2016 and 2017
Currents Assets 2016 2017
Cash and cash equivalents 8,500 115000
Trade and other receivables 115,000 140,000
Inventory 312,000 245,000
Prepaid Expenses 11,000 9,000
Total Current Assets 446,500 509,000
Non -Current Assets
Property ,Plant and Equipment 2,100,000 1,500,000
Investment in stocks 410,000 420,000
Total non-current assets 2,500,000 1,900,000
TOTAL ASSETS 2,946,500 2,409,000
Current Liabilities
Trade and other payables 120,000 110,000
Other current liabilities 50,000 50,000
Total current liabilities 170,000 160,000
Non-Current Liabilities
Bonds Payable-10% 570,000 610,000
Total LIABILITIES 740,000 770,000
Owner’s Equity
Traders ,Capital 2,206,500 1,639,000
Total Liabilities & Owner’s Equity 2,946,500 2,409,000
Traders Company
Statement of Comprehensive Income
December 2016 and 2017
Net Sales 1,800,000 1,600,000
Cost of Sales 1,110,000 900,000
Selling Expenses 180,000 190,000
Administrative Expense 110,000 130,000
Total 1,400,000 1,220,000
Operating Income 400,000 380,000
Interest Expense 65,000 60,000
Interest before Tax 335,000 320,000
Income Tax-30% 100,500 96,000
Income after Tax 234,500 224,000
Traders Company
Statement of Financial Position
December 2016 and 2017
Currents Assets 2016 2017
Cash and cash equivalents 7,500 120,000
Trade and other receivables 125,000 145,000
Inventory 315,,000 250,000
Prepaid Expenses 12,000 10,000
Total Current Assets 459,500 525,000
Non -Current Assets
Property ,Plant and Equipment 2,200,000 1,600,000
Investment in stocks 420,000 425,000
Total non-current assets 2,620,000 2,025,000
TOTAL ASSETS 3,079,500 2,550,000
Current Liabilities
Trade and other payables 125,000 115,000
Other current liabilities 55,000 45,000
Total current liabilities 180,000 160,000
Non-Current Liabilities
Bonds Payable-10% 580,000 710,000
Total LIABILITIES 760,000 870,000
Owner’s Equity
Traders ,Capital 2,319,500 1,680,000
Total Liabilities & Owner’s Equity 3,079,500 2,550,000
Traders Company
Statement of Comprehensive Income
December 2016 and 2017
Net Sales 1,900,000 1,700,000
Cost of Sales 1,120,000 800,000
Selling Expenses 190,000 180,000
Administrative Expense 120,000 110,000
Total 1430,000 1,090,000
Operating Income 470,000 610,000
Interest Expense 60,000 65,000
Interest before Tax 410,000 545,000
Income Tax-30% 123,000 163,500
Income after Tax 287,000 381,500
