Transactions of Philippine Airlines

Cash Basis
01 Cash Received in January for February Flights PHP 5,500,000
02 Cash Received in Februaury for February Flights PHP 3,000,000 PHP 3,000,000
03 Cash Received in February for March Flights PHP 4,000,000 PHP 4,000,000
04 Cash Received in March for February Flights PHP 4,500,000
Total Revenue PHP 17,000,000 PHP 7,000,000

Using the accrual rule, determine how much revenue

#1 should be reported for February PHP 13,000,000
Using the cash concept, determine how much
#2 revenue should be reported for February PHP 7,000,000
Accrual Basis
PHP 5,500,000
PHP 3,000,000

PHP 4,500,000
PHP 13,000,000
 Transactions of Bentong Consultancy

01 Salary payments in May for work performed by employees in April PHP 28,000
02 Salary payments in June for work performed by employees in May PHP 20,000
03 Salary payments in June for work performed by employees in June PHP 25,000
04 Salary payments in July for work performed by employees in June PHP 10,000
Total Salary Expense PHP 83,000

Using the accrual rule, determine the salary expense to be reported for PHP 35,000
#1 June
Using the cash concept, determine the salary expense to be reported for PHP 45,000
#2 June
Cash Basis Accrual Basis

PHP 20,000
PHP 25,000 PHP 25,000
PHP 10,000
PHP 45,000 PHP 35,000
 Cash Basis Income Statement

Revenues
Cash from Music Lessons PHP 5,000

Expenses
Wages Paid PHP 800

Cash Income PHP 4,200

 Accrual Basis Income Statement

Revenues
Sales from Music Lessons PHP 12,000

Expenses
Wages Expense PHP 800
Utilities Expense PHP 700

Net Income PHP 10,500

 Income Statement Statement of Financial
Revenues (+) Total Assets
Business Transactions Expenses (-)
01 Owner invested P250,000 cash to put a business PHP 250,000
02 Incurred expenses and paid P150,000 PHP (150,000) PHP (150,000)
03 Received bills for expenses incurred P75,000 PHP (75,000)
04 Issued a note for a cash loan, P500,000 PHP 500,000
05 Received P80,000 cash for service provided PHP 80,000 PHP 80,000
06 Bought car P500,000; 50% down, note for 50% PHP 500,000
PHP (250,000)
07 Bought office equipment on credit, P180,000 PHP 180,000
08 Provided services to clients on credit, P175,000 PHP 175,000 PHP 175,000
09 Collected 50% on client accounts
10 Owner withdrew cash, P5,000 PHP (5,000)
11 Net Income / Net Loss to Owner's Equity PHP 30,000 →
PHP 1,280,000
PHP 1,280,000
Statement of Financial Position

Total Liabilities Owner's Equity Cash Balance

PHP 250,000 PHP 250,000

PHP 75,000
PHP 500,000 PHP 500,000
PHP 80,000
PHP 250,000 PHP (250,000)

PHP 180,000
PHP 175,000

PHP (5,000) PHP (5,000)

→ PHP 30,000
PHP 1,005,000 PHP 275,000
PHP 1,280,000 PHP 750,000
 Business Transactions
07/01 Cash
Medical Supplies
Medical Equipment
A/P on Medical Equipment
a Received cash from patients from medical services performed
b Paid amounts owed for medical equipment
c Received cash from account patients P10,000 for medical services of P20,000
d Paid off office rent for the month
e Charged patients for services performed
f Purchased medical supplies on account
g Received cash from patients for amounts owing P13,000

Paid the following:

Salaries expense P850,
Repair Service Expense P250,
h Utilities Expense P400
i Cost of Medical Supplies she used was P3,980
j Dr. Galing withdrew P10,000 in cash from the clinic for personal use
 Assets Liabilities Owner's Equity
Cash Accounts Receivable Supplies Equipment Accounts Payable Galing, Capital
PHP 54,200
PHP 3,850
PHP 108,050
PHP 75,000
PHP 25,000
PHP 40,000 PHP 40,000
PHP (15,000) PHP (15,000)
PHP 10,000 PHP 10,000 PHP 20,000
PHP (15,000) PHP (15,000)
PHP 8,025 PHP 8,025
PHP 12,450 PHP 12,450
PHP 13,000 PHP (13,000)

PHP (1,500) PHP (1,500)

PHP (3,980) PHP (3,980)
PHP (10,000) PHP (10,000)
PHP 75,700 PHP 5,025 PHP 12,320 PHP 75,000 PHP 22,450 PHP 145,595
PHP 168,045 PHP 168,045
 The Family Medical Clinic
Statement of Comprehensive Income
For the month ended July 20xx

Service Income PHP 68,025

Less: Expenses
Rent Expense PHP 15,000
Salaries Expense PHP 850
Repair Service Expense PHP 250
Utilities Expense PHP 400
Supplies Expense PHP 3,980
Total Expenses PHP 20,480

Net Loss / Gain PHP 47,545

 The Family Medical Clinic
Statement of Financial Position
For the month ended July 31, 20xx

Assets
Current Assets
Cash PHP 75,700
Accounts Receivable PHP 5,025
Supplies PHP 12,320
Equipment PHP 75,000
Total PHP 168,045
Total Assets PHP 168,045

Liabilities and Owner's Equity

Current Liabilities
Accounts Payable PHP 22,450
Total Liabilities PHP 22,450
Owner's Equity
Galing, capital PHP 145,595
Total Liabilities and Owner's Equity PHP 168,045