Problem 3-6

Cunanan Accounting Services

Income Statement
For the Year ended Dec. 21, 2021

Revenues
Auditing Revenues ₱ 1,361,500.00
Total ₱ 1,361,500.00

Expenses
Salaries Expense ₱ 735,000.00
Depreciation Expense-Building ₱ 55,000.00
Depreciation Expense- Office Equipment ₱ 60,000.00
Office Supplies Expense ₱ 96,000.00
Training Expense ₱ 86,500.00
Rent Expense ₱ 52,500.00
Travel Expense ₱ 41,000.00
Utilities Expense ₱ 18,000.00
Total ₱ 1,144,000.00
Profit ₱ 217,500.00

Cunanan Accounting Services

Statement of Changes in Owner's Equity
For the Year ended Dec. 31, 2020

Cunanan, Owner's Equity 1/1/2020 ₱ 1,193,500.00

Add: Add'l Investment ₱ 22,000.00
Profit ₱ 217,500.00 ₱ 239,500.00
Total ₱ 1,433,000.00
Less: Withdrawals ₱ 165,000.00
Cunanan, Owner's Equity 12/31/2020 ₱ 1,268,000.00
Problem 3-6

Cunanan Accounting Services

Statement of Financial Position
As of December 31, 2020

Assets

Current Assets
Cash ₱ 118,500.00
Accounts Receivable ₱ 198,000.00
Notes Receivable ₱ 60,000.00
Office Supplies ₱ 28,000.00
Total Current Assets ₱ 404,500.00
Non-Current Assets
Land ₱ 75,000.00
Building ₱ 750,000.00
Office Equipment ₱ 362,500.00
Less: Acc. Depreciation-Bldg. ₱ 110,000.00
Acc. Depreciation-Office Equipment ₱ 120,000.00 ₱ 957,500.00
Total Assets ₱ 1,362,000.00

Liabilities and Owner's Equity

Current Liabilities
Accounts Payable ₱ 63,500.00
Salaries Payable ₱ 30,500.00
Total Current Liabilites ₱ 94,000.00
Owner's Equity
Cunanan, Capital 12/31/2020 ₱ 1,268,000.00
Total Liabilities and Owner's Equity ₱ 1,362,000.00
Problem 3-7

a. FA
b. n/a
c.n/a
d. OA
e.FA
f. FA
g.
h.
i