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PORTFOLIO OF A SERVICE ENTITY’S

ACCOUNTING CYCLE

In Partial Fulfilment of the

Course Requirements in FAR1

1st Semester, A.Y. 2020-2021

Submitted to Mr. Francis Louie S. Regala

CSUCC Accounting Department

Submitted by BSA & BSMA Block B, Group 14

Cabusao, Karen A.

Duncano, Missy

Gaper, Rolando P.

Gimena, Jennifer L.

Magallanes, Maristle

Moca, Christlyn A.

Pulvera, Angelyn

Rama, Mabel L.

January 18, 2021

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TABLE OF CONTENTS

A. BUSINESS NAME ------------------------------------------------------------------------------4

B. BUSINESS LOGO -------------------------------------------------------------------------------4
C. VISION AND MISSION OF THE BUSINESS -------------------------------------------5
a) Vision of the business -------------------------------------------------------------5
b) Mission of the business -------------------------------------------------------------5
D. INTRODUCTION -----------------------------------------------------------------------------5-6
E. PROFILE ----------------------------------------------------------------------------------------6
F. INFORMATION ABOUT THE BUSINESS -----------------------------------------6-7
a) Owner’s Name ----------------------------------------------------------------------6
b) Date Started -------------------------------------------------------------------------------6
c) Address -------------------------------------------------------------------------------6
d) Employees -------------------------------------------------------------------------------7
e) Working Hours ----------------------------------------------------------------------7
f) Working Days ----------------------------------------------------------------------7
g) Business Form ----------------------------------------------------------------------7
h) Business Type --------------------------------------------------------------------7-8
G. FINANCIAL STATEMENT FORM ----------------------------------------------------8
a) Statement of Financial Performance -------------------------------------------8
b) Statement of Changes in Owner’s Equity -------------------------------------------8
c) Statement of Cash Flow -------------------------------------------------------------8
d) Statement of Financial Position ----------------------------------------------------8
H. METHODS USED IN RECORDING POSITION ----------------------------------8
I. OTHER INFORMATION --------------------------------------------------------------------8-9
a) About the Price Every Recipes --------------------------------------------------8-9
b) About the Wages of the Employees ----------------------------------------------------9
J. TRANSACTIONS OF THE BUSINESS ------------------------------------------------9-10
a) Chart of Accounts ----------------------------------------------------------------------9
b) Transactions ------------------------------------------------------------------------------10
K. SOURCE DOCUMENT -----------------------------------------------------------------11-24
L. GENERAL JOURNAL -----------------------------------------------------------------25-26
M. GENERAL LEDGER -----------------------------------------------------------------27-30
N. UNADJUSTED TRIAL BALANCE ---------------------------------------------------31
O. TRANSACTIONS FOR ADJUSTING ENTRIES ------------------------------------------32
P. ADJUSTING ENTRIES IN GENERAL JOURNAL ---------------------------------32
Q. ADJUSTED TRIAL BALANCE ------------------------------------------------------------33
R. WORKSHEET ------------------------------------------------------------------------------34
S. FINANCIAL STATEMENTS --------------------------------------------------------35-38
a) Statement of Financial Performance ------------------------------------------35
b) Statement of Changes in Owner’s Equity ------------------------------------------36
c) Statement of Cash Flow ------------------------------------------------------------37
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d) Statement of Financial Position ---------------------------------------------------38

T. CLOSING ENTRIES ---------------------------------------------------------------------39
U. POST-CLOSING TRIAL BALANCE ---------------------------------------------------40
V. INSIGHTS ---------------------------------------------------------------------------------------41
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A. BUSINESS NAME

The group members had many suggestions on what will be the name of the catering

services. Some suggested according to the group members, some suggested a name that is

written from the member’s dialect, some suggested an interesting name and more. But, the

members ended up in voting to have a clean result and the majority of the result is from Ms.

Rama’s suggested business name, which is “Foodwhile Catering Services”

The business name came from the combined words of food and while. This explains the

practice of most individuals attending in a particular occasion. People eat foods while having

conversation with family, eating foods while meeting with co-workers and usually eating foods

while dating with friends.

B. BUSINESS LOGO

Logo is not just merely an illustration, but also it is a point of identification. Members

agreed that logo must be suitable, simple and cozy. Logo is suitable. It has fire, flipper spatula

and grill which are crucial in making dishes. It is appropriate for the concept. It contains red,

which can get an attention and makes people hungry, orange signifies affordability, yellow

promotes happiness, and black represents to the seriousness of the employees in a way that they

are please to serve the customers. It is simple, it only compromise 3 essential elements that can

help people easy to recognize and remember the business logo. Business logo is cozy because it

gives warmth to the customer's eyes. "Sulit na, Namnam pa!!!" tagline of the business refers to

the worthwhileness, delectability and affordability of the foods that the business offered.

Members would like to thank logo maker for helping them to make the logo more attractive and

creative.
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C. VISION AND MISSION OF THE BUSINESS

C. 1. Vision of the Business

To be one of the well-known services in the Philippines by providing good services that

will make a good relationship with the customers and also providing deluxe and delectable yet

affordable foods.

C. 2. Mission of the Business

 To provide good services to the customers that will surely lead to having a good relationship

with each other.

 To build a strong bond and care for the welfare of the employees.

 To ensure the satisfaction of the customer's good services use and delectable yet affordable

food packages.

D. INTRODUCTION

According to Richard Branson, a big business starts small. Businesses always begin from

the bottom as preparatory to becoming a well-known and large commerce. The business

markets different kinds of foods that will be catered to the customers which give onto the sole

proprietor to come up with the business name Foodwhile Catering Services.

According to Avin, catering is usually done by prearranged contract- foods and drinks

provided at a certain cost to a specific number of people. The menu at a catered event is usually

more limited than a restaurant menu and is chosen in advance by the client. The way the food is

prepared is different too. And as a host, you can relax knowing that the caterers will handle

everything for you. A good service provider will know how to offer a few dishes to take care of

the needs of people with allergies. They also know how to address the needs of those who are

very choosy about what they eat. They will also offer special dishes for kids and they may also

provide a few choice dishes for those who are looking for cultural food.

The business aimed to be the greatest service business that offers delicious foods at an

affordable cost. Foodwhile Catering Services intent not just only to gain profit but also it

supports the community by providing jobs to the unemployed persons within the area. The

business knows the customer's value and the owner trains the staff with love and respect. The
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business purposed is to sustain the needs of the people to have successful events such as

birthdays, fiestas, weddings, meetings, etc.

E. PROFILE

The business owner builds these catering services because of the Filipinos who love and

are accustomed to having family gatherings every celebration. But due to the busyness of the

Filipinos, they don't have enough time to prepare for food. The purpose of this service is to help

those who host a celebration to have their dream or the events they want in an elegant yet

affordable way.

The business owner conducted research and surveys on how to start this catering services.

The owner survey where will be the best spot for the office of Foodwhile Catering Services.

And after having the surveys and decided where to put the office, the owner prepare all the

possible expenses by investing money to the business. Then, posting thru social media for an

informal invitation and informed everyone about the new business open in that area.

F. INFORMATION OF THE BUSINESS

a) Owner’s Name

The owner of Foodwhile Catering Servies is Ms. Amara Dela Torre , 30 years of age who

lived in Brgy. Buhang of the Municipality of Magallanes. She is the single proprietor of

Fooodwhile Catering Services.

b) Date Started

Ms. Amara Dela Torre opened the Foodwhile Catering Services starting on June 1, 2020.

c) Address

The business can be found at Municipality of Magallanes which is exactly located at

Purok 6, Barangay Marcos. The costumers can visit there, look and reserve for food packages

that the business offered. They may also check the business on Facebook page Foodwhile

Catering Services for more information. The sole proprietor decided to situate the business

since the area is located near the roadway which can help customers find the business easily.
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d) Employees

AMARA DELA TORRE

OWNER

ROLANDO RAMOS RAMON MAGLASANG

KAYE SIBUGAN DEITHER AMORSOLO

MARITES PEREZ JANE MABINI

CHEFS SERVERS

JUANITO ALFONSO

DRIVER/DISHWASHER

e) Working Hours

The Foodwhile Catering Services work at least 8 hours per day. It opens 8 in the morning

to 12 Noon for the employees lunch break. And will resume at 1 PM, by 4 in the afternoon, the

office of Foodwhile Catering Services will be closed.

f) Working Days

The Foodwhile Catering Services were open from Monday- Sunday. During this days, the

customers can booked or have their reservations but the catering services will not receive an

everyday event because it may cause hectic schedule and chaos on the work of the caterers.

g) Business Form

Foodwhile Catering Services "Sulit na, nam² pa" is in a form of sole proprietorship

wherein owner control over the business as well as the profits and losses.

h) Business Type

Foodwhile Catering Services "Sulit na, nam² pa" is a service type of business that

prepares and creates a good quality of food to serve to clients.

Catering are similar to fast food like Jollibee and Mang Inasal. It is a service and a

manufacturing type of business, because they buy raw foods and manufacture it into a new foods

and serve it to the customers. But, it is more a service than manufacturing. Because
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manufacturing just manufacture goods for their business while the catering services prepare and

serve the foods, in charge of cleaning and set-ups according on the customers command, delivers

the food to the event where the occasion will be held and most especially, in catering services,

they can communicate with their customers.

G. FINANCIAL STATEMENT FORMS

a) Statement of Financial Performance

The group used the Single-Step Income Statement and used the formula: Net Income =

(Revenues + Gains) – (Expenses + Loss).

b) Statement of Changes in Owner’s Equity

The members just simply add the June 1, 2020 Amara Dela Torre capital and net profit or

net income of June and minus Amara Dela Torre withdrawal. The results ₱656,859

The Amara Dela Torre capital of June 30, 2020.

c) Statement of Cash Flow

Members used direct method wherein it listed where the cash inflows came from and

where the cash outflows went.

d) Statement of Financial Position

The group used the report form in presenting the balance sheet.

H. METHODS USED IN RECORDING ADJUSTMENTS

The group used three types of methods in recording adjustments. In the transaction A, B

and D, the group used expense method in adjusting prepayments. In transaction C, the method

used is straight-line method in recognizing depreciation. And in transaction E is income method

in adjusting unearned income.

The members used adjusting to update the accounts and amounts. It involves one nominal

account and one real account for every transaction except in transaction C, there were three real

account accounts or contra-asset accounts.

And lastly, every transaction has a useful life of 10 years.

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I. OTHER INFORMATION

a) About the price every recipes:

 3 recipes - ₱150.00 per person

 4 recipes - ₱200.00 per person

 5 recipes - ₱250.00 per person

 6 recipes - ₱300.00 per person

b) About the Wages of the Employees:

The employees’ wages were according to the days they’ve worked it. And

₱300.00 per day. The employees’ work happened 3 days every event, it includes:

 1st day of work: Preparing for catering supplies

 2nd day of work: Preparing for the next day’s event

 3rd day of work: The day were the catering services incurred

J. TRANSACTIONS OF THE BUSINESS

Ms. Amara Dela Torre opened a catering services in Magallanes named Foodwhile

Catering Services and the operation began on June 1, 2020. Given below is her chart of

accounts:

Chart of Accounts
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Here are the transaction of her Catering Services:

June 1 Ms. Dela Torre started a catering services invested cash worth ₱ 650,000.

by depositing it in BCBMPC.

June 2 Paid rent in advance for 3 months, ₱ 27,000.

June 2 Paid business permits and licenses expenses worth ₱ 2,500 on cash to the

Municipal Hall of Magallanes.

June 3 Acquired second hand service vehicle from Philkotse worth of 150,000

with a package free maintenance within a month. Foodwhile Catering Services

paid a 70% down payment and the balance will be paid on June 29.

June 3 Purchased catering equipment worth ₱24,284, catering kitchen utensils

₱ 68,624 and furnitures and fixtures ₱2,092 on cash in Imperial Appliance

Plaza.

June 4 Received partial payment of ₱ 3,000 from faculty and staff of MNHS and

the remaining balance ₱ 2,000 will be paid on June 7 and the service will

be rendered on June 8.

June 5 Purchased supplies in Magallanes Public Market on cash, ₱ 2,500.

June 6 Bought gasoline on cash from Uni V gasoline station, ₱ 1,000.

June 7 Faculty and Staff of MNHS paid the remaining balance, ₱ 2,000.

June 8 Foodwhile Catering Services rendered service to MNHS, ₱5,000.

June 10 Received bill from Mark FM Radio for advertising expense, ₱ 1,000.

June 20 Received cash advance from Ms. Carmila ₱3,000. Catering services are

expected to be provided by the end of June.

June 25 Received ₱ 75,000 cash from Barangay Captain of Caloc-an that will be

rendered on June 28.

June 26 Ms. Dela Torre withdrew ₱ 5,000 for personal use.

June 27 Purchased supplies in Magallanes Public Market on cash, ₱ 35,000.

June 28 Rendered service to Barangay Captain of Caloc-an, ₱75,000.

June 29 Paid Wages Expense - ₱ 18, 900.

June 29 Paid the remaining balance of service vehicle, ₱ 45,000.

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K. SOURCE DOCUMENTS
 June 1, initial cash in bank investment of Ms. Dela Torre (includes the passbook of
BCBMPC). This type of source document is bank statement.

 June 2, advance rent payment of property (includes the official receipt of LGU and
check disbursement voucher)
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 June 2, payment of business permits and licenses (includes the official receipt of DTI,
BIR and LGU, certificate from DTI and check disbursement voucher of DTI, BIR and
LGU)
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 June 3, acquiring second-hand service vehicle (includes the official receipt of PhilKotse
and check disbursement voucher)
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 June 3, purchasing catering equipment, kitchen utensils and furnitures and fixtures in
Imperial Appliance Plaza. (include the sales invoice of Imperial Appliance Plaza and
check disbursement voucher)

 June 4, partial payment from MNHS faculty and staff (includes the service billing
statement)
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 June 5, purchased supplies from Magallanes public market (includes sales invoice and
check disbursement voucher)
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 June 6, purchased gasoline from Uni V gasoline station (includes the sales invoice and
check disbursement)

 June 10, advertising invoice from Mark FM Radio Station.

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 June 20, booking from Ms. Carmila. (includes official receipt)

 June 25, booking from the Barangay Captain of Caloc-an (includes official receipt)
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 June 26, withdrawal of Ms. Amara Dela Torre for personal use (includes the ban
statement from BCBMPC)

 June 27, purchased supplies from the Magallanes Public Market (includes the sales
invoice and check disbursement voucher)
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 June 29, payment of wages to the employees. (includes the payslip of the catering
services)
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 June 29, paid the remaining balance in PhilKotse (includes the official receipt with
stamp)
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 List of the deposit and withdrawal transactions in BCBMPC (includes the bank
statement)
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L. GENERAL JOURNAL

Page 1
General Journal
Date
2020 Particulars PR Debit Credit
June 1 Cash in Bank 110 650000-
A. Dela Torre, Capital 310 650000-
Initial cash investment

2 Prepaid Rent 140 27000-

Cash in Bank 110 27000-
Paid rent in advance for 3 months

2 Permits and Licenses Expense 535 2500-

Cash in Bank 110 2500-
Paid permits and licenses for the business

3 Service Vehicle 160 150000-

Cash in Bank 110 105000-
Accounts Payable 210 45000-
Purchased service vehicle for cash
with the balance on account

3 Catering Equipment 160 24284-

Furniture and Fixtures 180 2092-
Catering Kitchen Utensils 150 68624-
Cash in Bank 110 95000-
Purchased equipment and
furniture and fixtures

4 Cash in Bank 110 3000-

Accounts Receivable 120 2000-
Unearned Catering Revenue 220 5000-
Received cash from customer and
billed customer on account

5 Catering Supplies 130 2500-

Cash in Bank 110 2500-
Purchased supplies on cash

6 Utilities Expense 520 1000-

Cash in Bank 110 1000-
Payment of gasoline for
service vehicle

7 Cash in Bank 110 2000-

Accounts Receivable 120 2000-
Collected the remaining balance from
faculty and staff of MNHS
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Page 2
General Journal
Date
2020 Particulars PR Debit Credit
June 8 Unearned Catering Revenue 220 5000-
Catering Revenue 410 5000-
Rendered catering service

10 Advertising Expense 530 1000-

Account Payable 210 1000-
Received advertising bill

20 Cash in Bank 120 3000-

Unearned Catering Revenue 410 3000-
Received cash advance from Ms. Carmela

25 Cash in Bank 110 75000-

Unearned Catering Revenue 220 75000-
Received cash from Barangay
Captain of Caloc-an

26 A. Dela Torre, Drawing 320 5000-

Cash in Bank 110 5000-
Withdrawal of cash for personal use

27 Catering Supplies 130 35000-

Cash in Bank 110 35000-
Purchased supplies on cash

28 Unearned Catering Revenue 220 75000-

Catering Revenue 75000-
Rendered catering service

29 Wages Expense 510 18900-

Cash in Bank 110 18900-
Payment for wages expense

29 Accounts Payable 210 45000-

Cash in Bank 110 45000-
Paid the remaining balance of
Service vehicle
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M. GENERAL LEDGER

General Ledger
Date Balance
Items PR Debit Credit Debit Credit

2020 Cash Acc. No. 110

June 1 GJ1 650000- 650000-
2 GJ1 27000- 623000-
2 GJ1 2500- 620500-
3 GJ1 105000- 515500-
3 GJ1 95000- 420500-
4 GJ1 3000- 423500-
5 GJ1 2500- 421000-
6 GJ1 1000- 420000-
7 GJ1 2000- 422000-
20 GJ2 3000- 425000-
25 GJ2 75000- 500000-
26 GJ2 5000- 495000-
27 GJ2 35000- 460000-
29 GJ2 18900- 441100-
29 GJ2 45000- 396100-

Accounts Receivable Acc. No.120

June 4 GJ1 2000- 2000-
7 GJ1 2000- ----------

Catering Supplies Acc. No. 130

June 5 GJ1 2500- 2500-
27 GJ2 35000- 37500-
30 GJ3 31700- 5800-

Prepaid Rent Acc. No. 140

June 2 GJ1 27000- 27000-
30 Adjusting GJ3 9000- 18000-

Catering Kitchen Utensils Acc. No 150

June 3 GJ1 68624- 68624-

Accumulated Depreciation-Kitchen Utensils Acc. No. 155

June Adjusting GJ3 572- 572-

Catering Equipment Acc. No. 160

June 3 GJ1 24284- 24284-
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Accumulated Depreciation- Equipment Acc. No.165

June 30 Adjusting GJ3 202- 202-

Service Vehicle Acc. No. 170

June 3 GJ1 150000- 150000-
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General Ledger
Date Balance
Items PR Debit Credit Debit Credit
2020 Accumulated Depreciation – Service Vehicle Acc. No. 175
June 30 Adjusting GJ3 1250- 1250-

Furnitures and Fixtures Acc. No. 180

June 3 GJ1 2092- 2092-

Accumulated Depreciation- Furnitures and Fixtures Acc. No. 185

June 30 Adjusting GJ3 17- 17-

Accounts Payable Acc. No.210

June 3 GJ1 45000- 45000-
10 GJ2 1000- 46000-
29 GJ2 45000- 1000-

Unearned Catering Revenue Acc. No. 220

June 4 GJ1 5000- 5000-
8 GJ2 5000- ----------
20 GJ2 3000- 3000-
25 GJ2 75000- 78000-
28 GJ2 75000- 3000-
30 Adjusting GJ3 3000- ----------

Utilities Payable Acc. No. 230

June 30 Adjusting GJ3 5000- 5000-

A. Dela Torre, Capital Acc. No. 310

June 1 GJ1 650000- 650000-
30 Closing GJ4 11859- 661859-
30 Closing GJ4 5000- 656859-

A. Dela Torre, Drawings Acc. No. 320

June 26 GJ1 5000- 5000-
30 Closing GJ4 5000- ----------

Income Summary Acc. No. 340

June 30 Closing GJ4 83000- 83000-
30 Closing GJ4 71171- 11859-
30 Closing GJ4 11859- ----------

Catering Revenue Acc. No. 410

June 8 GJ2 5000- 5000-
28 GJ2 75000- 80000-
30 Adjusting GJ3 3000- 83000-
30 Closing GJ4 83000- ----------
Wages Expense Acc. No. 510
July 29 GJ2 18900- 18900-
30 Closing GJ4 18900- ----------
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General Ledger
Date Balance
Items PR Debit Credit Debit Credit
2020 Rent Expense Acc. No.515
July 30 Adjusting GJ3 9000- 9000-
30 Closing GJ4 9000- ----------

Utilities Expense Acc. No. 520

June 6 GJ1 1000- 1000-
30 Adjusting GJ3 5000- 6000-
30 Closing GJ4 6000- ----------

Catering Supplies Expense Acc. No. 525

June 30 Adjusting GJ3 31700- 31700-
30 Closing GJ4 31700- ----------

Advertising Expense Acc. No. 530

June 10 GJ2 1000- 1000-
30 Closing GJ4 1000- ----------

Permit and Licenses Acc. No. 535

June 2 GJ1 2500- 2500-
30 Closing GJ4 2500- ----------

Depreciation Expenses Acc. No.540

June 30 Adjusting GJ3 2041- 2041-
30 Closing GJ4 2041- ----------
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N. UNADJUSTED TRIAL BALANCE

Foodwhile Catering Services

Unadjusted Trial Balance
June 30,2020

Acc. No. Accounts Debit Credit

110 Cash in Bank ₱ 396100-
130 Catering Supplies 37500-
140 Prepaid Rent 27000
150 Catering Kitchen Utensils 68624-
160 Catering Equipment 24284-
170 Service Vehicle 150000-
180 Furnitures and Fixtures 2092-
210 Accounts Payable ₱ 1000-
220 Unearned Catering Revenue 3000-
310 A. Dela Torre, Capital 650000-
320 A. Dela Torre, Drawings 5000-
410 Catering Revenue 80000-
510 Wages Expense 18900-
520 Utilities Expense 1000-
530 Advertising Expense 1000-
535 Permit and Licenses 2500-
Total ₱734000 - ₱734000 -
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O. TRANSACTIONS FOR ADJUSTING ENTRIES

At the end of June, the adjustment data for Foodwhile catering sets are as follows:

a) Catering supplies on hand ₱ 5,800

b) Prepaid rent unexpired portion is ₱ 18,000

c) Depreciation on catering kitchen utensils -₱ 572 per month, catering equipment -₱

202 per month, Service Vehicle- ₱1,250 and Furniture and Fixture-₱17.

d) Incurred utilities expense but not yet paid, ₱5,000.

e) ₱ 3,000 of unearned catering revenue has been earned.

P. ADJUSTING ENTRIES IN GENERAL JOURNAL

Page 3
Adjusting Entries in the General Journal
Date
2020 Particulars PR Debit Credit
June 30 Catering Supplies Expense 525 31700-
Catering Supplies 130 31700-
Used Catering Supplies

30 Rent Expense 515 9000-

Prepaid Rent 140 9000-
Expired Rent

30 Depreciation Expense 540 2041-

Accumulated Depreciation- Kitchen Utensils 155 572-
Accumulated Depreciation- Equipment 165 202-
Accumulated Depreciation – Service Vehicle 175 1250-
Accumulated Depreciation-Furnitures and 185 17-
Fixtures
Monthly Depreciation

30 Utilities Expense 520 5000-

Utilities Payable 230 5000-
Unpaid Utilities

30 Unearned Catering Revenue 220 3000-

Catering Revenue 410 3000-
Earned Catering Revenue
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Q. ADJUSTED TRIAL BALANCE

Foodwhile Catering Services
Adjusted Trial Balance
June 30,2020

Acc. No. Accounts Debit Credit

110 Cash ₱ 396100-
130 Catering Supplies 5800-
140 Prepaid Rent 18000-
150 Catering Kitchen Utensils 68624-
155 Accumulated Depreciation- Kitchen Utensils ₱572-
160 Catering Equipment 24284-
165 Accumulated Depreciation- Equipment 202-
170 Service Vehicle 150000-
175 Accumulated Depreciation – Service Vehicle 1250-
180 Furniture and Fixture 2092-
185 Accumulated Depreciation- Furnitures and Fixtures 17-
210 Accounts Payable 1000-
230 Utilities Payable 5000-
310 A. Dela Torre, Capital 650000-
320 A. Dela Torre, Drawings 5000-
410 Catering Revenue 83000-
510 Salaries Expense 18900-
515 Rent Expense 9000-
520 Utilities Expense 6000-
525 Catering Supplies Expense 31700-
530 Advertising Expense 1000-
535 Permit and Licenses 2500-
550 Depreciation Expense 2041-
Total ₱ 741041- ₱ 741041-
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R. WORKSHEET
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S. FINANCIAL STATEMENTS
a) Statement of Financial Performance

Foodwhile Catering Services

Income Statement
For the month ended June 31,2020

Catering Revenue ₱ 83000

Less Expense:

Catering Supplies Expense ₱31,700

Salaries Expense 18,900

Rent Expense 9,000

Utilities Expense 6,000

Permit and Licenses 2,500

Depreciation Expense 2,041

Advertising Expense 1,000 71,141

Net Income 11,859

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b) Statement of Changes in Owner’s Equity

Foodwhile Catering Service

Statement of Charges in Owner's Equity

For the month ended June 30 2020

A. Dela Torre, Capital- June 1 2020 ₱650,000

Add: Net Profit ₱11,859

Total ₱661,859

Less: A. Dela Torre, Drawings 5,000

A. Dela Torre, Capital- June 30 2020 ₱656,859

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c) Statement of Cash Flow

Foodwhile Catering Services

Statement of Cash Flows
For the month ended June 30 2020

Cash Flow From Operating Activities:

Cash in Bank received from customers ₱ 83,000
Cash in Bank paid for:
Paid for rental and permits and licenses (29,500)
Supplies purchased (37,500)
Paid for utilities (1,000)
Salaries of employees (18,900)
Net cash used by operating activities (₱3,900)

Cash Flow from Investing Activities:

Payment for kitchen utensils,furniture and fixture, service vehicle and equipment (245,000)
Net cash used by investing activities (245,000)

Cash Flows from Financing Activities:

Cash investment by the owner 650,000
Cash withdrawn by the owner (5,000)
Net cash provided by financing activities 645,000
₱
Net increased in cash 396,100
Add: Beginning Cash in Bank Balance 0
₱
Cash in Bank Balance, June 30, 2020 396,100
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d) Statement of Financial Position

Foodwhile Catering Service

Statement of Financial Position

As of June 30, 2020

Asset
Cash in Bank ₱ 396,100
Catering Supplies 5,800
Prepaid Rent 18,000
Catering Kitchen Utensils ₱68624
Accumulated Depreciation- Kitchen Utensils 572 68,052
Catering Equipment 24,284
Accumulated Depreciation- Equipment 202 24,082
Service Vehicle 150,000
Accumulated Depreciation – Service Vehicle 1250 148,750
Furniture and Fixture 2,092
Accumulated Depreciation- Furnitures and Fixtures 17 2,075
Total Asset ₱ 662,787

Liabilities
Accounts Payable ₱1,000
Utilities Payable 5,000
Total of Liabilities ₱6,000

Owner' Equity
A. Dela Torre, Capital ₱656,787
Total of Liabilities and Owner's Equity ₱ 662,787
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T. CLOSING ENTRIES

Page 4
General Journal
Date
2020 Particulars PR Debit Credit
Closing Entries
June 30 Catering Revenue 410 83000-
Income Summary 340 83000-
To close Income Account

30 Income Summary 340 71141-

Salaries Expense 510 18900-
Rent Expense 515 9000-
Utilities Expense 520 6000-
Catering Supplies Expense 525 31700-
Advertising Expense 530 1000-
Permit and Licenses 535 2500-
Depreciation Expense 550 2041-
To close Expense Account

30 Income Summary 340 11859-

A. Dela Torre, Capital 310 11859-
Net Profit for the month

30 A. Dela Torre, Capital 310 5000-

A. Dela Torre, Drawings 320 5000-
To close Drawings to Capital
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U. POST-CLOSING TRIAL BALANCE

Foodwhile Catering Services

Post-Closing Trial Balance

June 30,2020

Acc. No. Accounts Debit Credit

110 Cash in Bank ₱ 396100-
130 Catering Supplies 5800-
140 Prepaid Rent 18000-
150 Catering Kitchen Utensils 68624-
155 Accumulated Depreciation- Kitchen Utensils ₱572-
160 Catering Equipment 24284-
165 Accumulated Depreciation- Equipment 202-
170 Service Vehicle 150000-
175 Accumulated Depreciation- Service Vehicle 1250-
180 Furniture and Fixture 2092-
185 Accumulated Depreciation- Furnitures and Fixtures 17-
210 Accounts Payable 1000-
230 Utilities Payable 5000-
310 A. Dela Torre, Capital 656859-
Total ₱664900- ₱664900-
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V. INSIGHTS
The group is required to make this portfolio for the major subject Financial Accounting

and Reporting I. The members faced a lot of struggles in making the portfolio, adjusting time in

every meeting, hectic schedules because of other subject, some members can’t attend in online

forum discussion due to the fact of poor internet connection and struggles in finding the right

place to have personal discussion because of the different location of every member. In the

process of making this task, the members asked people who are knowledgeable in this field.

Asking for some help if some part of the task was understandable.

Group 14 learned that no one can stop those students who were eager in pursuing their

dreams despite this new normal system, time management is important, members must be

updated always to not be left behind in every group discussion. Members also learned on how

to start a business, making the process of accounting cycle, on how to identify what type of

source document must be used in every transaction.

Encouraging members to continue fighting the battle even though everyone having a hard

time because of this pandemic.

Success is not an activity but a process. ~ De philosopher DJ Kyos