FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2

INDEPENDENT LEARNING SESSION 2

The Trial balance and additional information for adjustments appear below for Carla Auto
Repair Shop after one year of operation

Cash on Hand 25,000

Cash on Bank 45,000
Accounts Receivable 49,000
Notes Receivable 30,000
Prepaid Insurance 15,000
Machinery and Equipment 150,000
Furniture and Fixtures 25,000
26,000
Accounts Payable
50,000
Notes Payable
132,850
Bella, Capital
Bella, Personal 5,000
275,000
Repair Income 15,000
Referral Income’
45,000
Salaries Expense
600
Supplies Expense
55,000
Rent Expense
7,250
Taxes and Licenses Expense
46,750
Utilities Expense
250 P498,850
Interest Expense
P498,850
TOTALS

 10% of the Account Receivable should be provided as bad debts (2 pts)

 Insurance premium recorded as Prepaid Insurance was for 6 months starting Sept 1,
2021
 Supplies still on hand, P200 (3 pts)
 The Note Receivable presents a 60-day 12% note received from customers on Nov 16,
2021. (5 pts)
 Machinery and Equipment were acquired April 1, 2021 with an estimated useful life of
10 years and scrap value of P50,000 (5 pts)
 The Notes Payable is for 60-days at 18% due to Republic Finance dated Dec 1, 2021 (5
Pts)

1. Prepare a 10 column worksheet (10 pts)

2. Prepare the Statement of Comprehensive Income (5 pts)
3. Prepare the Statement of Changes in Equity (5 pts)
4. Prepare the statement of Financial Position (5 pts)
 5. Prepare the Statement of Cash Flows (5 pts)
Please submit using the following format
Font: Times New Roman
Size: 12
File Type: PDF
File Name: FAB2_ILS2_Name (SN, FN, MI)