Exercise #7 Exercise #8 Exercise #9

SURE IPADALA SERVICES SURE IPADALA SERVICES SURE IPADALA SERVICES Delivery Fees Revenues ₱ 230,000
Statement of Financial Position Income Statement Cash flow Statement Income Summary ₱ 230,000
as of December 31, 2018 for the year ended December 31, 2018 for the year ended December 31, 2018
Income Summary ₱ 231,425
ASSETS Delivery Fees Revenues ₱ 230,000 Cash flow from operating activities Rent expense ₱ 90,000
Current assets: Less: Operating expenses Collections from customers ₱ 224,000 Salaries expense 75,000
Cash on Hand and in Bank 17,775 Rent expense ₱ 90,000 Payment for expenses: Depreciation expense-Equipment 5,000
Accounts Receivable 6,000 Salaries expense 75,000 Rent expense 90,000 Depreciation expense-Truck 10,000
Supplies Unused 3,000 Depreciation expense (Note 4) 15,000 Salaries expense 72,725 Utilities expenses 12,500
Total current assets ₱ 26,775 Other operating expenses (Note 5) 47,500 Utilities expenses 11,000 Supplies 35,000
Payroll contributions (Note 6) 1,925 229,425 Supplies 28,000 201,725 SSS & EC Premium expense 1,125
Noncurrent assets: Net operating income 575 Cash inflow from operating activities ₱ 22,275 Philhealth premium expense 500
Property, Plant and Equipment (note 1) 545,000 Less: Finance cost Pag-ibig Premium expense 300
TOTAL ASSETS ₱ 571,775 Interest expense 2,000 Exercise #10 Interest expense 2,000
NET LOSS ₱( 1,425 ) a. Liquidity
LIABILITIES AND OWNER'S EQUITY Current Ratio=26,775/417,700 0.064 Estrella, Capital ₱ 1,425
Liabilities: Note 4: Depreciation expense Quick Ratio=23,775/417,700 0.057 Income summary ₱ 1,425
Current liabilities Depreciation expense-Equipment ₱ 5,000 Sure Ipadala is not liquid.
Accounts Payable ₱ 10,000 Depreciation expense-Truck 10,000 Estrella, Capital 14,500
Accrued expenses 3,500 ₱ 15,000 b. Solvency Estrella, Drawings 14,500
Payroll liabilities 4,200 Debt Ratio= 467,700/571,775 81.80% 18.20%
Notes Payable 400,000 Note 5: Other operating expenses There is no balanced financial structure. This business is very risky
Total current liabilities ₱ 417,700 Utilities expense ₱ 12,500 leaning more on creditors
Supplies expense 35,000
Noncurrent liabilities ₱ 47,500 c. Profitability
Bank Loan 50,000 The business is losing and unprofitable
Total liabilities ₱ 467,700 Note 6: Payroll contributions
Owner's Equity SSS & EC Premium expense ₱ 1,125
Estrella, Capital 104,075 Philhealth premium expense 500
TOTAL LIABILITIES AND OWNER'S EQUITY ₱ 571,775 Pag-ibig Premium expense 300
₱ 1,925

SURE IPADALA SERVICES

Note 1: Property, Plant and Equipment Statement of changes in Owner's Equity
Equipment ₱ 60,000 for the year ended December 31, 2018
Less: Accumulated Depreciation ( 5,000 ) ₱ 55,000
Delivery Truck ₱ 500,000 Estrella, Capital, January 1, 2018 ₱ 120,000
Less: Accumulated Depreciation ( 10,000 ) 490,000 Less: Net Loss ( 1,425 )
TOTAL ₱ 545,000 Drawings ( 14,500 )
Estrella, Capital, December 31, 2018 ₱ 104,075
Note 2: Accrued expenses
Utilities payable ₱ 1,500
Interest payable 2,000
₱ 3,500

Note 3: Payroll liabilities

Withholding tax payable ₱ 650
SS and EC Premiums payable 2,450
Philhealth premiums payable 500
Pag-ibig premiums payable 600
₱ 4,200