Below is the Trial Balance of JBL Consultancy as of December 31, 2020.

JBL CONSULTANCY
TRIAL BALANCE
December 31, 2020

Cash 153,800
Accounts Receivable 712,500
Allowance for Bad Debts 21,375
Prepaid Rent 30,000
Studio Supplies 6,250
Studio Equipment 985,000
Accumulated Depreciation 260,000

Accounts Payable 124,200

Notes Payable 440,000
Interest Payable 29,333
Unearned Client Fees 31,800
JBL, Capital 750,000
JBL, Drawings 10,000
Client Fees Earned 876,100
Representation expense 33,500
Salaries Expense 185,500
Utilities Expense 150,300
Consultancy Expense 138,000
Rent Expense 30,000
Studio Supplies Expense 53,750
Bad Debts Expense 14,875
Interest Expense 29,333

TOTAL 2,532,808 2,532,808

Required:
Prepare the following Financial Statements
1. Income Statement
2. Statement of Changes in Owner's Equity
3. Statement of Changes in Owner's Equity

Below are taken from the books of Mr. Maspag as of December 31, 2020

Cash received from customers P 250,000

Depreciation Expense 15,000
Cash purchase of Delivery Van 800,000
Additional investment of Mr. Masipag 400,000
Payment of Office Rent 75,000
Cash proceeds of bank loan 500,000
Payment of salaries 150,000
Provision for bad debts 20,000
Proceeds from sale of furniture 7,500
Payment of interest of bank loan 3,500
Cash withdrawal of Mr. Masipag 25,000
Dividends income received 10,000
Payment of principal bank loan 50,000 `
Gain on sale of furniture 1,000

Cash balance on January 1, 2020 is P152,500.

Required:
Prepare a Statement of Cash Flow then determine the following:
1. Net cash from Operating activity
2. Net Cash from Investing Activity
3. Net cash from Financing activity
4. Net increase/decrease in cash
5. Cash balance on December 31, 2020
 JBL Consultancy
Income Statement
31-Dec-20

Income
Client Fees Earned 876,100
Total Income 876,100
Expenses
Representation Expense 33,500
Salaries Expense 185,500
Utilities Expense 150,300
Consultancy Expense 138,000
Rent Expense 30,000
Studio Supplies Expense 53,750
Bad Debts Expense 14,875
Interest Expense 29,333 635,258
Net Income 240,842

JBL Consultancy
Statement of Changes in Owner's Equity
31-Dec-20

JBL, Capital 01/01/20 750,000

Additional Investments 0
Net Income 240,842 240,842
Total 990,842
JBL, Drawings -10,000
JBL, Capital 12/31/20 980,842
 Mr. Masipag
Statement of Cash Flow
31-Dec-20

Cash Flow from Operating Activities:

Cash received from customers 250,000
Depreciation Expense 15,000
Payment of Office Rent -75,000
Payment of Salaries -150,000
Gain on sale of furniture -1,000
Cash Generated from Operations 39,000
Payment of Interest on Bank Loan -3,500
Net Cash from Operating Activities 35,500
Cash Flow from Investing Activities:
Proceeds from Sale of Furniture 7,500
Cash Purchase of Delivery Van -800,000
Net Cash from Investing Activities -792,500
Cash Flow from Financing Activities:
Cash Proceeds of Bank Loan 500,000
Dividends Income Received 10,000
Payment of Principal Bank Loan -50,000
Additional Investment of Mr. Masipag 400,000
Cash Withdrawal of Mr. Masipag -25,000
Net Cash from Financing Activities 835,000
Net Increase(Decrease) in Cash 78,000
Cash balance, 01/01/20 152,500
Cash balance, 12/31/20 230,500
sipag
Cash Flow
c-20