Ily Abella Surveyors

Income Statement
For the Year Ended May 31, 2021

Survey Revenues P 6,550,000√

Less: Operating Expenses
Salaries Expense P 3,410,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Miscellaneous 80,000
Advertising Expense 140,000
Supplies Expense 180,000
Depreciation Expense 160,000
Interest Expense 60,000 5,400,000√
Profit√ P_1,150,000√ ( 2 pts.)

Ily Abella Surveyors

Statement of Changes in Owner’s Equity
For the Year Ended May 31, 2021

Abella, Capital – June 1 P 1,120,000

Add: Profit 1,150,000√
Total P 2,270,000√
Less: Withdrawals 700,000
Abella, Capital –May 31 P 1,570,000√ ( 2 pts.)

Page 1 of 3
 Ily Abella Surveyors
Balance Sheet
As of May 31, 2021

ASSETS
Current Assets:
Cash P 210,000
Accounts Receivable 930,000
Prepaid Advertising 220,000
Engineering Supplies 90,000
Total Current Assets P1,450,000√

Noncurrent Assets:
Survey Equipment P1,890,000√
Less: Accu. Depreciation __ 800,000√
Total Noncurrent Assets 1,090,000√

TOTAL ASSETS P_2,540,000√ ( 2

pts.)

LIABILITIES
Current Liabilities:
Accounts Payable P 190,000
Unearned Revenues 80,000
Notes Payable 500,000
Salaries Payable 140,000
Interest Payable 60,000
Total Liabilities P 970,000√
OWNER’S EQUITY
Abella, Capital _1,570,000√

TOTAL LIABILITIES & OWNER’S EQUITY P_2,540,000√ ( 2

pts.)

CLOSING ENTRIES: 3. Income Summary 700,000

Abella, Withdrawals 700,000
1. Survey Revenues 6,550,000
Income Summary 6,500,000
Income Summary
2. Income Summary 5,400,000 5/31 5,400,000 5/31 6,550,000
Salaries Expense 3,410,000 5/31 1,550,000 Bal. 1,550,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Miscellaneous Expense 80,000
Advertising Expense 140,000
Supplies Expense 180,000
Depreciation Expense 160,000
Interest Expense 60,000

Page 2 of 3
 4. Income Summary 1,150,000
Abella, Capital 1,150,000

Abella, Capital
Drawing 700,000 Beg. 1,120,000
700,000 Profit 1,150,000
2,270,000
End. 1,570,000

Page 3 of 3