WHITE FEATHERS COMPANY

HYPOTHETHICAL ECONOMIC TRANSACTIONS

DATE
1/1/2020
1/2/2020
1/3/2020
1/4/2020
1/5/2020
1/6/2020
1/7/2020
1/8/2020
1/9/2020
1/10/2020
1/11/2020
1/13/2020
1/20/2020
1/21/2020
1/22/2020
1/25/2020
1/26/2020
1/27/2020
1/28/2020
1/28/2020
1/29/2020
1/30/2020
1/30/2020
1/31/2020
1/31/2020
 WHITE FEATHERS COMPANY
HYPOTHETHICAL ECONOMIC TRANSACTIONS

TRANSACTIONS
Purchased 20,000 1-day old chicks from San Miguel Corporation for Php20.00 each on account
Created a bank account with metrobank and deposited P50,000 cash.
Purchased office computer worth P40,000 on account with a useful life of 5 years.
Paid prepaid rent for the year for 120,000 cash.
Purchased special equipment to automate feeds for P40,000 on cash with a useful life of 8 years
Constructed a warehouse for inventory storage worth P150,000. The warehouse has a useful life of 10 years.
Purchased office supplies worth P12,000.
Purchased chicken medicinal supplements worth P20,000 and feeds P30,000 with cash.
Paid P100,000 insurance premium for the warehouse.
Purchased a P150,000 delivery vehicle on account with a useful life of 6 years.
Purchased furniture and fixtures worth P30,000 on cash with a total useful life of 10 years.
Acquired P2,000,000 loan from Metrobank payable on December 31, 2025 with 10% interest.
Paid outstanding electricity, water and telecommunication bills worth P80,000.
Paid San Miguel Corp for the chicks bought on account.
Paid maintenance expenses worth P20,000.
Paid business permit and licenses worth P10,000
Withdraw cash from bank worth 5,000 to set up a petty cash fund.
Collection of accounts receivable from various customers amounted to P600,000.
Paid employee salaries with a total of P30,000.
Sold 10,000 matured chickens on cash to Bounty Fresh for 2,400,000. The total change in fair value due to price and physical change of the
chickens on that date is 2,000,000.
Paid 2,500 cash for repairs made to the delivery vehicle.
Paid local newspaper advertisement for P25,000.
Sold chicken poop as scrap for P20,000 cash
Paid professional fees to doctor for monthly check ups of chicks worth P6,000
Hired an accountant for auditing services for P15,000.
 WHITE FEATHERS COMPANY
CHART OF ACCOUNTS

CURRENT ASSETS
1110 CASH
1120 CASH IN BANK
1130 PETTY CASH FUND
1140 ACCOUNTS RECEIVABLE
1150 OFFICE SUPPLIES
1160 PREPAID RENT
1170 PREPAID INSURANCE
1180 INVENTORY- FEEDS
1190 INVENTORY- MEDICINE
1210 BIOLOGICAL ASSET

NON-CURRENT ASSETS
1220 EQUIPMENT
1225 ACCUMULATED DEPRECIATION- EQUIPMENT
1230 EQUIPMENT- OFFICE COMPUTER
1235 ACCUMULATED DEPRECIATION- OFFICE COMPUTER
1240 WAREHOUSE
1245 ACCUMULATED DEPRECIATION- WAREHOUSE
1250 DELIVERY VEHICLE
1255 ACCUMULATED DEPRECIATION- DELIVERY VEHICLE
1260 FURNITURES AND FIXTURES
ACCUMULATED DEPRECIATION- FURNITURES AND
1265
FIXTURES
CURRENT LIABILITIES
2110 ACCOUNTS PAYABLE
2120 NOTES PAYABLE
2130 RENT PAYABLE
2140 INCOME TAX PAYABLE
2150 PAYROLL

NON-CURRENT LIABILITIES
2210 LOANS PAYABLE

EQUITY
3100 CAPITAL

INCOME
4110 SALES
4120 GAIN FROM CHANGE IN FAIR VALUE
 EXPENSE
5110 INTEREST EXPENSE
5120 UTILITIES EXPENSE
5130 DEPRECIATION EXPENSE
5140 RENT EXPENSE
5150 SALARIES EXPENSE
5160 REPAIRS AND MAINTENANCE EXPENSE
5170 ADVERTISEMENT EXPENSE
5180 PROFESSIONAL EXPENSE
5190 TAXES AND LICENSES
 WHITE FEATHERS COMPANY
POST-CLOSING TRIAL BALANCE
FOR THE YEAR ENDED DECEMBER 31, 2019

ACCOUN TITLE DEBIT CREDIT

CASH ₱ 845,000
CASH IN BANK 950,000
PETTY CASH FUND 50,000
ACCOUNTS RECEIVABLE 600,000
OFFICE SUPPLIES 50,000
PREPAID RENT 40,000
PREPAID INSURANCE 10,000
INVENTORY- FEEDS 25,000
INVENTORY- MEDICINE 15,000
EQUIPMENT 300,000
ACCUMULATED DEPRECIATION-
₱ 100,000
EQUIPMENT
EQUIPMENT- OFFICE COMPUTER 20,000
ACCUMULATED DEPRECIATION- OFFICE
5,000
COMPUTER
FURNITURES AND FIXTURES 30,000
ACCOUNTS PAYABLE 30,000
LOANS PAYABLE 1,200,000
CAPITAL 1,600,000
TOTAL ₱ 2,935,000 ₱ 2,935,000
 WHITE FEATHERS COMPANY
GENERAL JOURNAL
DATE PARTICULARS REF DEBIT CREDIT
1/1/2020 BIOLOGICAL ASSET 1210 ₱ 400,000
ACCOUNTS PAYABLE 2110 ₱ 400,000

2/1/2020 CASH IN BANK 1120 50,000

CASH 1110 50,000

3/1/2020 EQUIPMENT- OFFICE COMPUTER 1230 40,000

ACCOUNTS PAYABLE 2110 40,000

4/1/2020 PREPAID RENT 1160 120,000

CASH 1110 120,000

5/1/2020 EQUIPMENT 1220 40,000

CASH 1110 40,000

6/1/2020 WAREHOUSE 1240 150,000

ACCOUNTS PAYABLE 2110 150,000

7/1/2020 OFFICE SUPPLIES 1150 12,000

CASH 1110 12,000

8/1/2020 INVENTORY- FEEDS 1180 30,000

INVENTORY- MEDICINE 1190 20,000
CASH 1110 50,000

9/1/2020 PREPAID INSURANCE 1170 100,000

CASH 1110 100,000

10/1/2020 DELIVERY VEHICLE 1250 150,000

CASH 1110 150,000

11/1/2020 FURNITURES AND FIXTURES 1260 30,000

 CASH 1110 30,000

1/13/2020 CASH 1110 2,000,000

LOANS PAYABLE 2210 2,000,000

1/20/2020 UTILITIES EXPENSE 5120 80,000

CASH 1110 80,000

1/21/2020 ACCOUNTS PAYABLE 2110 400,000

CASH 1110 400,000

1/22/2020 REPAIRS AND MAINTENANCE EXPENSE 5160 20,000

CASH 1110 20,000

1/25/2020 TAXES AND LICENSES 5190 10,000

CASH 1110 10,000

1/26/2020 PETTY CASH FUND 1130 5,000

CASH IN BANK 1120 5,000

1/27/2020 CASH 1110 600,000

ACCOUNTS RECEIVABLE 1140 600,000

1/28/2020 SALARIES EXPENSE 5150 30,000

CASH 1110 30,000

1/28/2020 ACCOUNTS RECEIVABLE 1140 2,400,000

BIOLOGICAL ASSET 1210 400,000
GAIN FROM CHANGE IN FAIR VALUE 4120 2,000,000

1/29/2020 REPAIRS AND MAINTENANCE EXPENSE 5160 2,500

CASH 1110 2,500

1/30/2020 ADVERTISEMENT EXPENSE 5170 25,000

CASH 1110 25,000
1/30/2020 CASH 1110 20,000
SALES 4110 20,000

1/31/2020 PROFESSIONAL EXPENSE 5180 6,000

CASH 1110 6,000

1/31/2020 PROFESSIONAL EXPENSE 5180 15,000

CASH 1110 15,000
WHITE FEATHERS COMPANY
WORKSHEET
BEGINNING
REF ACCOUNT TITLE DEBIT
1110 CASH ₱ 845,000
1120 CASH IN BANK 950,000
1130 PETTY CASH FUND 50,000
1140 ACCOUNTS RECEIVABLE 600,000
1150 OFFICE SUPPLIES 50,000
1160 PREPAID RENT 40,000
1170 PREPAID INSURANCE 10,000
1180 INVENTORY- FEEDS 25,000
1190 INVENTORY- MEDICINE 15,000
1210 BIOLOGICAL ASSET
1220 EQUIPMENT 300,000
1225 ACCUMULATED DEPRECIATION- EQUIPMENT
1230 EQUIPMENT- OFFICE COMPUTER 20,000
1235 ACCUMULATED DEPRECIATION- OFFICE COMPUTER
1240 WAREHOUSE
1245 ACCUMULATED DEPRECIATION- WAREHOUSE
1250 DELIVERY VEHICLE
1255 ACCUMULATED DEPRECIATION- DELIVERY VEHICLE
1260 FURNITURES AND FIXTURES 30,000
1265 ACCUMULATED DEPRECIATION- FURNITURES AND FIXTURES
2110 ACCOUNTS PAYABLE
2120 NOTES PAYABLE
2130 RENT PAYABLE
2140 INCOME TAX PAYABLE
2150 PAYROLL
2210 LOANS PAYABLE
3100 CAPITAL
4110 SALES
4120 GAIN FROM CHANGE IN FAIR VALUE
5110 INTEREST EXPENSE
5120 UTILITIES EXPENSE
5130 DEPRECIATION EXPENSE
5140 RENT EXPENSE
5150 SALARIES EXPENSE
5160 REPAIRS AND MAINTENANCE EXPENSE
5170 ADVERTISEMENT EXPENSE
5180 PROFESSIONAL EXPENSE
5190 TAXES AND LICENSES
TOTAL ₱2,935,000
NET INCOME
TOTAL
BEGINNING TRANSACTIONS/ADJUSTMENTS TRIAL BALANCE
CREDIT DEBIT CREDIT DEBIT CREDIT
₱ 2,620,000 ₱ 1,140,500 ₱ 2,324,500
50,000 5,000 995,000
5,000 55,000
2,400,000 600,000 2,400,000
12,000 62,000
120,000 160,000
100,000 110,000
30,000 55,000
20,000 35,000
400,000 400,000
40,000 340,000
₱ 100,000 ₱ 100,000
40,000 60,000
5,000 5,000
150,000 150,000

150,000 150,000

30,000 60,000

30,000 400,000 590,000 220,000

1,200,000 2,000,000 3,200,000

1,600,000 1,600,000
20,000 20,000
2,000,000 2,000,000

80,000 80,000

30,000 30,000
22,500 22,500
25,000 25,000
21,000 21,000
10,000 10,000
₱2,935,000 ₱ 6,755,500 ₱ 6,755,500 ₱ 7,145,000 ₱ 7,145,000
 INCOME STATEMENT BALANCE SHEET CLOSING ENTRIES
DEBIT CREDIT DEBIT CREDIT DEBIT
₱ 2,324,500
995,000
55,000
2,400,000
62,000
160,000
110,000
55,000
35,000

340,000
₱ 100,000
60,000
5,000
150,000

150,000

60,000

220,000

3,200,000
1,600,000 ₱ 188,500
₱ 20,000 ₱ 20,000 20,000
2,000,000 2,000,000

₱ 80,000

30,000
22,500
25,000
21,000
10,000
188,500 2,020,000 6,956,500 5,125,000 ₱ 2,208,500
 1,831,500 1,831,500
₱ 2,020,000 ₱ 2,020,000 ₱ 6,956,500 ₱ 6,956,500
CLOSING ENTRIES POST-CLOSING TRIAL BALANCE
CREDIT DEBIT CREDIT
₱ 2,324,500
995,000
55,000
2,400,000
62,000
160,000
110,000
55,000
35,000

340,000
₱ 100,000
60,000
5,000
150,000

150,000

60,000

220,000

3,200,000
₱ 2,020,000 3,431,500

80,000

30,000
22,500
25,000
21,000
10,000
₱ 2,208,500 ₱ 6,956,500 ₱ 6,956,500
 WHITE FEATHERS COMPANY
CLOSING ENTRIES
DATE ACCOUNT TITLE REF DEBIT CREDIT
12/31/2020 SALES 4110 ₱ 20,000
GAIN FROM CHANGE IN FAIR VALUE 4120 2,000,000
CAPITAL 3100 ₱ 2,020,000

12/31/2020 CAPITAL 3100 188,500

UTILITIES EXPENSE 5120 80,000
SALARIES EXPENSE 5150 30,000
REPAIRS AND MAINTENANCE EXPEN 5160 22,500
ADVERTISEMENT EXPENSE 5170 25,000
PROFESSIONAL EXPENSE 5180 21,000
TAXES AND LICENSES 5190 10,000
 WHITE FEATHERS COMPANY
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE MONTH ENDED JANUARY 31, 2020

SCRAP SALES 20,000

GAIN FROM CHANGE IN FAIR VALUE 2,000,000
TOTAL INCOME 2,020,000

LESS:
OPERATING EXPENSES
UTILITIES EXPENSE 80,000
SALARIES EXPENSE 30,000
REPAIRS AND MAINTENANCE EPENSE 22,500
ADVERTISEMENT EXPENSE 25,000
PROFESSIONAL EXPENSE 21,000
TAXES AND LICENSES 10,000 188,500
NET INCOME 1,831,500
 WHITE FEATHERS COMPANY
STATEMENT OF CASH FLOWS
FOR THE MONTH ENDED JANUARY 31, 2020

CASH FLOWS FROM OPERATING ACTIVITIES

INFLOWS
CASH COLLECTIONS FROM ACCOUNTS RECEIVABLE ₱ 600,000
CASH SALES OF SCRAP 20,000 ₱ 620,000

OUTFLOWS
PURCHASE OF INVENTORIES 50,000
PURCHASE OF SUPPLIES AND PREPAID EXPENSES 232,000
PAYMENTS OF OPERATING EXPENSES 188,500
PAYMENTS OF ACCOUNTS PAYABLE 400,000
BANK DEPOSITS 50,000 (920,500)
(300,500)

CASH FLOWS FROM INVESTING ACTIVITIES

OUTFLOWS
PURCHASE OF FACTORY EQUIPMENT (40,000)
PURCHASE OFDELIVERY VEHICLE (150,000)
PURCHASE OF FURNITURES AND FIXTURES (30,000) (220,000)

CASH FLOWS FROM FINANCING ACTIVITIES

INFLOWS
CASH PROCEEDS FROM LOAN 2,000,000 2,000,000
TOTAL 1,479,500

ADD: CASH BEGINNING BALANCE 845,000

CASH ENDING BALANCE AS OF JANUARY 31, 2020 ₱ 2,324,500
 WHITE FEATHERS COMPANY
STATEMENT OF CHANGES IN OWNER'S EQUITY
FOR THE MONTH ENDED JANUARY 31, 2020

BEGINNING BALANCE ₱ 1,600,000

ADD:
NET INCOME 1,831,500
ENDING BALANCE ₱ 3,431,500
 WHITE FEATHERS COMPANY
STATEMENT OF FINANCIAL POSITION
AS OF JANUARY 31, 2020

ASSETS
CURRENT ASSETS
CASH ₱ 2,324,500
CASH IN BANK 995,000
PETTY CASH FUND 55,000
ACCOUNTS RECEIVABLE 2,400,000
OFFICE SUPPLIES 62,000
PREPAID RENT 160,000
PREPAID INSURANCE 110,000
INVENTORY- FEEDS 55,000
INVENTORY- MEDICINE 35,000
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
BIOLOGICAL ASSET
EQUIPMENT ₱ 340,000
ACCUMULATED DEPRECIATION- EQUIPMENT (100,000) 240,000
EQUIPMENT- OFFICE COMPUTER 60,000
ACCUMULATED DEPRECIATION- OFFICE COMPUTER (5,000) 55,000
WAREHOUSE 150,000
DELIVERY VEHICLE 150,000
FURNITURES AND FIXTURES 60,000
TOTAL NON-CURRENT ASSETS
TOTALS ASSETS

LIABILITIES AND OWNER'S EQUITY

LIABILITIES
CURRENT LIABILITIES
ACCOUNTS PAYABLE ₱ 220,000
NON-CURRENT LIABILITIES
LOANS PAYABLE 3,200,000
TOTAL LIABILITIES
OWNER'S EQUITY
CAPITAL
TOTAL LIABILITIES AND EQUITY
₱ 6,196,500

655,000
₱ 6,851,500

₱ 3,420,000

3,431,500
₱ 6,851,500