Name: Carlo Cagampang

Instructor: Wilfredo MondidoJr.

WEEK 2 REQUIREMEN

PROBLEM 1

On January 1, 2020, you are hired as the new controller of COVID-

submit to him comparative financial statements of the company for the years ended Decem
company's book of accounts, you have gathered the following information:

Account Title 2018

Accounts Payable 150,000
Accounts Receivable 300,000
Accrued Salaries Expense 60,000
Accrued Taxes & Licenses 40,000
Accumulated Depreciation-Building 210,000
Accumulated Depreciation- Mach & Equ 180,000
Advertising Expense 10,000
Allowance for Doubtful Accounts 30,000
Bonds Payable 1,500,000
Building 1,500,000
Cash and Cash Equivalents 900,000
Common Stock, P10 par value 1,000,000
Cost of Goods Sold 450,000
Depreciation Expense-Building 70,000
Depreciation Expense- Mach & Eq 60,000
Dividends Paid 100,000
Doubtful Accounts Expense 10,000
Freight In 60,000
Freight Out 20,000
Insurance Expense 20,000
Interest Expense 40,000
Land 1,000,000
Long-term Notes Payable 200,000
Loss on Sale of Equipment 0
Machinery & Equipment 600,000
Merchandise Inventory, Dec. 31 200,000
Merchandise Inventory, Jan.1 150,000
Mortgage Payable 0
Preferred Stock, P60 par value 500,000
Prepaid Advertising 50,000
Prepaid Insurance 120,000
Purchase Discount 20,000
Purchase Returns & Allowances 40,000
Purchases ?
Retained Earnings, Dec.31 ?
Retained Earnings, Jan.1 300,000
Salaries Expense 40,000
Sales 1,000,000
Sales Discount 40,000
Sales Returns & Allowances 60,000
Share Premium 500,000
Supplies Expense 10,000
Supplies Inventory 50,000
Taxes & Licenses 20,000

Additional Information:

 During 2019, the company acquired another land at a cost of P500

 At the beginning of 2019, the company replaced an old equipment
equipment was sold for P100,000.
 During 2019, the company paid its P200,000 Long-term Notes Payable
bank.
 During 2019, the company borrowed P500,000 money from another
 The company also paid the P500,000 portion of its Bonds Payable that
 During 2019, the company issued 20,000 shares of its common stock
 During 2019, the company also issued 5,000 shares of its preferred

REQUIREMENT #1: Comparative Income Statement for the years ended December 31,

COVID
Comparative Income Statement
For the Years ended December 31,2018

Sales
Less: Sales Returns & Allowances
Sales Discounts
Net Sales

Cost of Goods Sold:

Merchandise Inventory, Jan.1
Purchases
Freight In
Purchase Returns & Allowance
Purchase Discounts
Total Goods Available for Sale
Less: Merchandise Inventory, Dec.31
Cost of Goods Sold
 Cost of Goods Sold

Gross Profit
-
Total Income

Operating Expenses
Advertising Expense
Depreciation Expense-B
Depreciation Expense- M & Eq
Doubtful Accounts Expense
Freight Out
Salaries Expense
Supplies Expense
Insurance Expense
Taxes & Licenses
Loss on Sale of Equipment
Total Operating Expenses

Operating Income
Less: Finance Cost- Interest Expense

NET INCOME (PROFIT)

REQUIREMENT #2: Comparative Statement of Changes in Retained Earnings for the

COVID
Comparative Statement of Changes in Retain
For the years ended December 31, 2018

Beginning,Balances, Jan.1
Net Income (Profit)
Dividends

Ending Balances, December 31, 2019

REQUIREMENT #3: Statement of Changes in Shareholdler's Equity for the year end

Common
Beginning, Balances, Jan.1 1,000,000 500,0
 Common
Beginning, Balances, Jan.1 1,000,000 500,0
Issuance of Common Stock 200,000
Issuance of Preferred Stock
Net Income(Profit)
Dividends
____________________________
Ending Balances, December 31, 2019 1,200,000

REQUIREMENT # 4: Comparative Statement of Financial Position as of the years end

Current Assets:
Cash and Cash Eqquivalents
Accounts Receivable
Allowance for Doubtful Accounts
Merchandise Inventory, Dec.31
Prepaid Advertising
Prepaid Insurance
Supplies Inventory
Total Current Assets

Non-Current Assets
Land
Building
Accumulated Depreciation-Building
Machinery & Equipment
Accumulated Depreciation- Machinery & Equipment
Total Non-Current Assets

TOTAL ASSETS

Current Liabilities:
Accounts Payable
Accrued Salaries Expense
Accrued Taxes and Licenses
Total Current Liabilities

Non-Current Liabilities:
Bonds Payable
Long-Term Notes Payable
Mortgage Payable
Total Non-Current Liabilities

TOTAL LIABILITIES
 TOTAL LIABILITIES

Shareholders' Equity
Common Stock, P10 par value
Preferred Stock, P60 par value
Retained Earnings, Dec.31
Share Premium
Total Shareholders' Equity

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY

 Class Schedule: 10:40-12;30 PM
Course & Year : BSA 1

WEEK 2 REQUIREMENT

r of COVID-19 COMPANY. As your first job, you are asked by the firm's VP-Finance to
company for the years ended December 31, 2018 and 2019. Upon inspection of the
llowing information:

2019 Income Statement Items Balance Sheet Items

220,000 Current Liability
500,000 Current Asset
90,000 Current Liability
20,000 Current Liability
280,000 Contra-Asset
200,000 Contra-Asset
20,000 Expense
50,000 Contra-Asset
? Non-Current Liability
1,500,000 Non-Current Asset
1,500,000 Current Asset
? Equity
? Cost
70,000 Expense
? Expense
150,000 Equity
? Expense
80,000 Cost of Goods Sold
35,000 Expense
20,000 Expense
60,000 Expense
? Non-Current Asset
? Non-Current Liability
? Other Expense
800,000 Non-Current Asset
250,000 Current Asset
? Cost
? Non-Current Liability
? Equity
30,000 Current Asset
100,000 Current Asset
30,000 (Cost)
50,000 (Cost)
700,000 Cost
 ? Equity
? Equity
60,000 Expense
1,500,000 Revenue
70,000 (Revenue)
80,000 (Revenue)
? Equity
20,000 Expense
30,000 Current Asset
25,000 Expense

500,000.
equipment with a new equipment. The new equipment was purchased for P400,000 while the old

Payable but later on borrowed another P500,000 Long-term Notes Payable from the same

another bank with the building as collateral.

Payable that is due in 2019.
stock for P15.
preferred stock for P120.

t for the years ended December 31, 2018 and 2019

COVID-19 COMPANY
Comparative Income Statement
Years ended December 31,2018 and 2019

2018 2019

1,000,000 1,500,000
(60,000) (80,000)
(40,000) (70,000)
900,000 1,350,000

150,000 200,000
500,000 700,000
60,000 80,000
(40,000) (50,000)
(20,000) (30,000)
650,000 900,000
(200,000) (250,000)
450,000 650,000
 450,000 650,000

450,000 700,000

450,000 700,000

10,000 20,000
70,000 70,000
60,000 80,000
10,000 20,000
20,000 35,000
40,000 60,000
10,000 20,000
20,000 20,000
20,000 25,000
0 40,000
260,000 390,000

190,000 310,000
(40,000) (60,000)

150,000 250,000

nges in Retained Earnings for the years ended December 31, 2018 and 2019.

COVID-19 COMPANY
e Statement of Changes in Retained Earnings
ears ended December 31, 2018 and 2019

2018 2019

300,000 350,000
150,000 250,000
(100,000) (150,000)

350,000 450,000

eholdler's Equity for the year ended December 31, 2019

COVID-19 COMPANY
Statement of Changes in Shareholder's Equity
For the year ended December 31, 2019

Common Stock Preferred Stock Share Premium Retained Earnings TOTAL

1,000,000 500,000 500,000 350,000
 Common Stock Preferred Stock Share Premium Retained Earnings TOTAL
1,000,000 500,000 500,000 350,000
200,000 100,000
300,000 300,000
250,000
(150,000)
__________________________________________________________________________________________
1,200,000 800,000 900,000 450,000

ancial Position as of the years ended December 31, 2018 and 2019

COVID-19 COMPANY
Comparative Statement of Financial Position
As of the years ended December 31, 2018 and 2019

2018 2019
900,000 1,500,000
300,000 500,000
ul Accounts (30,000) (50,000)
ry, Dec.31 200,000 250,000
50,000 30,000
120,000 100,000
50,000 30,000
1,590,000 2,360,000

1,000,000 1,500,000
1,500,000 1,500,000
Building (210,000) (280,000)
600,000 800,000
Machinery & Equipment (180,000) (200,000
2,710,000 3,320,000

4,300,000 5,680,000

150,000 220,000
60,000 90,000
40,000 20,000
250,000 330,000

1,500,000 1,000,000
200,000 500,000
____-____ 500,000
Liabilities 1,700,000 2,000,000

1,950,000 2,330,000
 1,950,000 2,330,000

par value 1,000,000 1,200,000

par value 500,000 800,000
350,000 450,000
500,000 900,000
s' Equity 2,350,000 3,350,000

S & SHAREHOLDERS' EQUITY 4,300,000 5,680,000

 COVID 19 COMPANY
Schedule of Property, Plant and Equipment
For the year ended December 31, 2019

LAND BUILDING
COST
Beg. Balance 1,000,000 1,500,000
Add: New Acquisitions 500,000 -
Less: Disposal sale/sale of old assets ___-___ -
End. Balance 1,500,000 1,500,000

ACCUMULATED DEPRECIATION:
Beg. Balance 210,000
Add: Depreciation Expense 70,000
Less: Related Depreciation of Disposed ____-______
End. Balance 280,000

BOOK VALUE: 1,500,000 1,220,000

LOSS ON DISPOSAL/SALE OF OLD EQUIPMENT

Proceeds from Sale
 LOSS ON DISPOSAL/SALE OF OLD EQUIPMENT
Proceeds from Sale
Less: Book Value of Sold Equipment
Original Cost 200,000
Less: Accumulated Depreciation (60,000)
Loss on Sale of Equipment

arnings TOTAL
50,000 2,200,000
arnings TOTAL
50,000 2,200,000
300,000
600,000
250,000
150,000) (150,000)
____________________________
3,350,000

2019
1,500,000
500,000
(50,000)
250,000
30,000
100,000
30,000
2,360,000

1,500,000
1,500,000
(280,000)
800,000
(200,000)
3,320,000

5,680,000

220,000
90,000
20,000
330,000

1,000,000
500,000
500,000
2,000,000

2,330,000
2,330,000

1,200,000
800,000
450,000
900,000
3,350,000

5,680,000
nt and Equipment
ember 31, 2019

Machinery
BUILDING & Equipment

1,500,000 600,000
400,000
(200,000) WORKBACK
1,500,000 800,000

210,000 180,000
70,000 80,000
______ (60,000) WORKBACK
280,000 200,000

1,220,000 600,000

100,000
 100,000

200,000
(60,000) 140,000
(40,000)