Account Title Amount (Php) BS/IS

Accounts Payable 25,200 BS

Accounts Receivable 30,500 BS
Accumulated Depreciation (Equipment) 45,000 BS
Cash 26,000 BS
COGS 518,000 IS
Freight-out 6,500 IS
Equipment 146,000 BS
Depreciation Expense 11,000 IS
Insurance Expense 7,000 IS
Interest Expense 6,400 IS
Interest Revenue 2,000 IS
Inventory 32,000 BS
Notes Payable 37,000 BS
Owner's Capital 101,700 BS
Owner's Drawings 10,000 BS
Prepaid Insurance 3,500 BS
Property Tax Expense 2,500 IS
Property Tax Payable 2,500 BS
Rent Expense 15,000 IS
Salaries and Wages Expense 96,000 IS
Sales Revenue 720,000 IS
Sales Commissions Expense 11,000 IS
Sales Commisions Payable 4,500 BS
Sales Returns and Allowances 8,000 IS
Utilities Expense 8,500 IS
 B Paper Company
Income Statement
For the Year Ended December 31, 2019
Php
Revenue
Sales Revenue 720,000
(Sales Returns and Allowances) -8,000
Interest Revenue 2,000
TOTAL 714000

Operating Expenses
Cost of Goods Sold 518,000
Freight-out 6,500
TOTAL 524500
GROSS MARGIN 189500

Selling and Administrative Expenses

Depreciation Expense 11,000
Sales Commissions Expense 11,000
Salaries and wages Expense 96,000
Utilities Expense 8,500
Insurance Expense 7,000
Rent Expense 15,000
TOTAL 148500
EARNING BEFORE TAX AND INTEREST 41000

Tax and Interest Expenses

Property Tax Expense 2,500
Interest Expense 6,400
TOTAL 8900
NET INCOME 32100
2019
 B Paper Company
Statement of Owner's Equity
For the Year Ended December 31, 20
Php

Beginning Owner's Capital - December 01, 2019 101,700

Add: Net Income 32,100
Less: Owner's Drawings -10,000
Ending TOTAL OWNER'S EQUITY BY DECEMBER 31, 2019 123,800
 B Paper Company
Statement of Owner's Equity
For the Year Ended December 31, 2019
Php
 B Paper Company
Balance Sheet
For the Year Ended December 31, 2019
Php
ASSETS
Current Assets
Cash 26,000
Accounts Receivable 30,500
Inventory 32,000
Prepaid insurance 3,500
TOTAL 92,000

Non-Current
(Accumulated Depreciation - Equipment) -45,000
Equipment 146,000
TOTAL 101000

TOTAL ASSETS 193,000

BALANCE CHECKER 0
 B Paper Company
Balance Sheet
For the Year Ended December 31, 2019
Php
LIABILITIES
Current Liabilities
Accounts Payable 25,200
Notes Payable 37,000
Property Tax Payable 2,500
Sales Commission Payable 4,500
TOTAL LIABILITY 69,200

EQUITY
Owner's Drawing -10,000
Owner's Capital 101,700
Retained Earnings 32,100
TOTAL EQUITY 123800

TOTAL LIABILITIES + EQUITY 193,000

 2019 (Php) 2018 (Php) Change Increase/Decrease?
ASSETS
Cash 15,200 17,700 -2,500 Decrease
Accounts Receivable 25,200 22,300 2,900 Increase
Investments 20,000 16,000 4,000 Increase
Equipment 60,000 70,000 -10,000 Decrease
Accumulated Depreciation - Equipment -14,000 -10,000 -4,000 Decrease
TOTAL ASSETS 106,400 116,000 -9,600

LIABILITIES AND STOCKHOLDER'S EQUITY

Accounts Payable 14,600 11,100 3,500 Increase
Bonds Payable 10,000 30,000 -20,000 Decrease
Common Stock 50,000 45,000 5,000 Increase
Retained Earnings 31,800 29,900 1,900 Increase
TOTAL LIABILITIES AND EQUITY 106,400 116,000 -9,600
Effect on Cash flow statement

Increase
Decrease
Decrease
Increase
Increase

Increase
Decrease
Increase
Increase
 Ramos Corpor
Cashflow Statement (In
December 11,
Php
Cash Flow from Operating Activities
Net Income 18,300
Net Cash Flow from Operating Activities
Depreciation 5,200
Loss on Sale of Equipment Assets 5,500
Increase in Accounts Receivable -2,900
Increase in Accounts Payable 3,500
NET CASH FROM OPERATING ACTIVITIES 29,600

Net Cash Flow from Investing Activities

Increase in Investments -4,000
Proceeds from disposal of equipments 3,300
NET CASH FROM INVESTING ACTIVITIES -700

Net Cash Flow from Financing Activities

Decrease in Bonds Payable -20,000
Increase in Common Stock 5,000
Payment of Cash Dividends -16,400
NET CASH FROM FINANCING ACTIVITIES -31,400

Net Decrease in Cash -2,500

Cash at January 2019 17,700
Cash at December 2019 15,200
 Ramos Corporation
Cashflow Statement (Indirect Method)
December 11, 2019
Php