FABM Editorial Company Financial Transactions

FABM Editorial Company

Balance Sheet
For the Month of February 2020
Date Transaction Assets = Liabilities + Equity
Cash Computer Furniture Office = Account + Owners
Equiptment Supplies Payables Equity
15-Feb Owner's Initial Investment P 200,000 = + P 200,000
16-Feb Purchased three computer unit -75,000 P 75,000 = +
17-Feb Rent Expense -10,000 = + -10,000
18-Feb Purchased three table and chair sets -9,000 P 9,000 = +
19-Feb Revenue 24,000 = + 24,000
Purchased office supplies on account P 5,000 = P 5,000 +
20-Feb Accounts Receivable 15,000 = + 15,000
Revenue 5,000 = + 5,000
Accounts Payable (Feb 19) -5,000 = -5,000 +
21-Feb Revenue 12,000 = + 12,000
22-Feb Revenue 11,350 = + 11,350
23-Feb Revenue 16,000 = + 16,000
24-Feb Owner's Drawing -25,000 = + -25,000
25-Feb Revenue 12,500 = + 12,500
26-Feb Revenue 13,350 = + 13,350
27-Feb Revenue 15,500 = + 15,500
28-Feb Revenue 14,350 = + 14,350
Total P 215,050 P 75,000 P 9,000 P 5,000 = 0 + P 304,050
P 304,050 = P 304,050

Part II:
The total assets for the month of February in the year 2020 is P 304,050, which comprise
primarily of P215,050 in cash and P89,000 in non-current assets. The liabilities has zero
balance since the office supplies that is purchased on account is paid immediately after a
day. Lastly, the Owner's Equity with the total of P304,050, this includes the Initial
investment, the accounts receivable, and the revenues.

Part III:
1. Does it have sufficient cash on hand to pay its bills?

Yes, the owner invested P200,000 into the company and it is enough to pay its bills.

2. It is well managed in terms of collecting what is owed to it?

Yes, it is well managed since every transaction is recorded and is paid immediately.

3. Have the owners invested enough of their capital?

Yes, they did invest enough money to handle all the expenses that happened in the
Month of February 2020.