1 G

2 D
3 B
4 F
5 A
6 G
7 C
8 A
9 H
10 A
11 G
12 G
13 A
14 B
15 A
16 B
17 F
18 G
19 H
20 B
21 B
22 B
 CAPITAL STATEMENT
Beg Capital P200,000
Additional investment 160,000
Less: Drawings -5,000
Capital before profit or loss P355,000
Ending Capital P420,000

Net Income P 65,000

STATEMENT OF FINANCIAL POSITION

Current asset:
Cash P?
Accounts Receivable 75,000
Supplies 15,000
Total P200,000

Non-Current Asset
Equipment P160,000
Car (450,000-150,000) 300,000
460,000

Total Assets P660,000

Liabilties and Owner's Equity

Liabilities
Accounts Payable P40,000

Non Current
Notes Payable 200,000
Total Liabilities 240,000

Owner’s Capital 420,000

(360-5,000) = 420,000 (355-
420= profit 65,000)

Total Liabilities & Owner’s

Equity P660,000
 STATEMENT OF FINANCIAL POSITION
Current Assets
Cash P 7,000
Accounts Receivable 35,000
P 42,000
Land 110,000
Car 120,000
(net of P60,000 depreciation) P 130,000

Total Assets P272,000

(P272,000 – 166,000 known liabilities and capital= Notes Payable of 106,000)

Current Liabilirties
Accounts Payable 4,000
Interest Payable 2,000
Total Current Liabilities P112,000

Notes Payable 106,000

Green Capital 160,000
(80 beg captl -50 drawings +130 net income)

Total Liabilities and Capital P272,000

Bad Debts P5,000

Accounts Receivable

Depreciation Expense 60,000

Accumulated Depreciation
P5,000

60,000
 Company A Company B Company C Company D
December 31, 2017:
Assets P50,000 P40,000 P30,000 P180,000
Liabilities 23,500 22,500 14,000 38,000
Equity P26,500 P17,500 P16,000 P142,000

December 31, 2018:

Assets 53,000 44,000 P53,750* 250,000
Liabilities 17,000* 27,500 25,000 64,000
Equity P36,000 P16,500 P28,750 P186,000

Supporting computation to solve the missing figures w/ asterisk(*):

Owner’s investments 5,000 1,500 7,750 38,000*
Net income (loss) 7,500 2,500* 9,000 12,000
Owner’s drawings -3,000 -5,000 -4,000 -6,000
Beg Capital 2018 26,500 17,500 16,000 142,000
Ending Capital 2018 36,000 16,500 28,750 186,000
a) b)
Rental Fees Revenue P93,500
Interest Income 1,250
Gain on Sale of Car 15,000
Total Revenues P109,750
Total Expenses 12,250
Profit P97,500
 LUNA CAPITAL
1. Rental Fees Revenue 90 000 2 12,250 1 109,750
Interest Revenue 1 250 3 97,500
Gain on Sale of Car 15 000
Income Summary 109 750

2. Income Summary 12, 250

Advertising 800 INCOME SUMMARY
Doubtful Accounts 2,200 4 6,00 Beg Bal. 750,000
Insurance Expense 8,000 3 97,500
balance: 841,500
3. Income Summary 97,500
Luna, Capital 97,500

4. Luna Capital 6,000

Luna Drawing 6,000
 CAPITAL STATEMENT
For the year ended December 31, 2018
Luna Capital, Beginning P750,000
Net Income 97,500
Less: Luna, Drawings -6,000

Luna Capital, Ending P841,500

 Billiard and Bowling Plaza
Income Statement
For the year ended December 31, 2016
Billiard Revenue P 50,000
Bowling Revenue 95,000
Total P145,000
Expenses:
Wages 28,000
Rent 22,000
Advertising 15,000
Utilities 14,400
Taxes 8,750
Depreciation 2,500
Supplies 2,250 92,900
Net Income P52,100

Billiard and Bowling Plaza

Capital Statement
For the year ended December 31, 2016
Capital, Beginning P268,950
Net Income 52,100
Drawings -5,000
Capital, Ending P316,050
 Billiard and Bowling Plaza
Statement of Cash Flows
For the year ended December 31, 2016
Operation Revenues P120,000
(145,000-25,000)
Expenses 71,950 P 48,050
(92,900-5,000-2,500+2,750-3,700-12,500)
Financing PNB Loan 60,000
Investment 268,950
Drawings -5,000 323,950
Investing Acquisition of Furniture & Equ
(250,000-28,000) -222,000 -222,000
P150,000

Cash is correct at P150,000. It decreased because of the investing activities. To prove prepare a statement of
financial position. Total Assets will be P425,250 against liabilities and owner’s equity of P425,250.
 Dec. 31, 2017
Current Assets: Current Liabilities
Cash P17,775 Accounts Payable P 10,000

Accounts Receivable 6,000 Accrued Expenses Note 2 3,500

Supplies 3,000 Notes Payable 400,000
Total 26,775 Payroll Liabilities 4,200

Total P417,700
Property, Plant and
Equipment (Note 1) P545,000
Non Current Liabilities:
Total P571,775 Bank Loan 50,000
Total Liabilities P467,700

Estrella, Capital 104,075

Total P571,775

Note 1: Note 5: Payroll Contributions:

Equipment P 60,000 SS Premiums P 1,125
Accumulated
Depreciation 5,000 PH Premiums 500
P 55,000 HDMF Premiums 300
P1,925
Delivery Truck P500,000
Accumulated
Depreciation 10,000
490,000 Note 4: Depreciation
Depreciation Expense-
Equipment P 5,000
Total: P545,000 Depreciation -Truck 10,000
P15,000

Note 2: Accrued Expenses Supplies P35,000

Utilities Payable P1,500 Utilities 12,500
Interest Payable 2,000 P47,500
4,000

Note 3: Payroll Liabilities

Withholding Tax P 650
SS Premiums 2,450
PH Premiums 500
HDMF Premiums 600
Total P4,200
 For the year ended Dec. 31, 2017
Delivery Fee Revenues 230,000
Less Expenses

Rent 90,000
Salaries 75,000
Depreciation (note 4) 15,000
Other operating expenses (note
5) 47,500

Payroll Contributions (note 6) 1,925

Interest Expense 2,000
Total 231,425
Net Loss P 1,425

CAPITAL STATEMENT
Estrella Capital June 1 P120,000
Less: Net Loss -1,425
Drawings -14,500

Estrella Capital Dec. 31 P 104,075

Collections from Delivery Fees (230,000 – 6,000) P224,000
Payment for Expenses: Rent P90,000
Salaries (75,000+ 1,925 -650-2,450-500- 600) 72,725
Supplies (35,000+3,000-10,000) 28,000
Utilities (12,500 – 1,500) 11,000
201,725
Cash flow from operation: 22,275
Acquisition of equipment (60,000 – 20,000 investment) -40,000
Acquisition of delivery truck -100,000

Cash Flow from Investing -140,000

Bank Loan P50,000
Investment 100,000
Drawings -14,500
Cash Flow From Fnancing 135,500
Cash Balance, Dec.31, 2016 P17,775
 ESTRELLA, CAPITAL
Service Fee Revenue 230,000 CE 3 1,425
Income Summary 230,000 CE 4 14,500

Income Summary 231,425

Rent 90,000
Salaries 75,000
Supplies 32,000
Utilities 12,500
Depreciation Expense
- Equipment 5,000
Depreciation - Truck 10,000
Interest Expense 2,000
SS Premiums 1,125
PH Premiums 500
HDMF Premiums 300

Estrella, Capital 1,425

Income Summary 1,425

Estrella, Capital 14,500

Estrella, Drawings 14,500
A, CAPITAL
120,000