NAME: Bela, Trishia Mae Q.

SECTION: BSA-B126
Activity 7
ABC Company’s financial information is presented below:

Cash on hand 100,000.00 Unearned service revenue 105,000.00

Cash in bank 280,000.00 Short-term BDO payable 60,000.00
Petty cash fund 40,000.00 Notes payable due 8 months 50,000.00
Travel fund 35,000.00 Current portion of BPI long-term payable 60,000.00
Building 400,000.00 Income tax payable 30,000.00
Short-term investment 125,000.00 Notes payable due 18 months 100,000.00
Accounts receivable 325,000.00 Noncurrent portion of BPI long-term payable 540,000.00
Trade notes receivable 100,000.00 Mortgage payable 400,000.00
Short-term notes receivable 150,000.00 Deferred tax payable 65,000.00
Interest receivable 15,000.00 Capital ?
Commission receivable 35,000.00 Service Revenue 2,340,000.00
Office supplies 10,000.00 Commission income 345,000.00
Prepaid rent 60,000.00 investment income 130,000.00
Prepaid insurance 48,000.00 interest income 45,000.00
Land 200,000.00 Advertising expense 100,000.00
Cash equivalents 150,000.00 Traveling expense 85,000.00
Interest fund 20,000.00 Office supplies expense 30,000.00
Office equipment 245,000.00 Office depreciation expense 60,000.00
Office furniture and fixtures 145,000.00 Office utilities expense 216,000.00
Motor vehicle 600,000.00 Office rent expense 720,000.00
Trade mark 20,000.00 Contribution to charity 100,000.00
Computer software 105,000.00 Accounting fees 105,000.00
Long-term investment 400,000.00 Legal fees 235,000.00
Cash surrender value 220,000.00 Loss due to theft 55,000.00
Long-term notes receivable 400,000.00 Loss on sale of investment 230,000.00
Accounts payable 146,200.00 Income tax expense 277,200.00
Trade notes payable 125,000.00 Interest payable 10,000.00
Requirement: Compute the following
1. Cash and Cash equivalents
2. Trade and other receivables
3. Prepaid expense
4. Total current assets
5. Property and equipment
6. Intangible assets
7. Long-term investment
8. Total noncurrent assets
9. Total assets
10. Trade and other payables
11. Total current liabilities
12. Total noncurrent liabilities
13. Total liabilities
14. Income from operating activity
15. Income from non-operating activity
16. Total income
17. Selling expense
18. Administrative expense
19. Other expenses
20. Total expenses
21. Total Equity
22. Capital
 ANSWERS: 6. Intangible Assets
1. Cash and Cash equivalents Trademark 20,000
Cash on hand 100,000.00 Computer software 105,000
Cash in bank 280,000.00 Total 125,000
Petty cash 40,000.00 7. Long term Investments
fund
Travel fund 35,000.00 Long term 400,000
Cash 150,000.00 Investments
Equivalents Cash Surrender value 220,000
TOTAL 605,000.00 Total 660,000
2. Trade and other receivable 8. Total Noncurrent assets
Property & equip. 1,600,000
Accounts Intangible assets 125,000
receivable 325,000.00 Long term 660,000
Trade notes investments
receivable 100,000.00 Long term 400,000
Short-term notes receivable
receivable 150,000.00 Total 2,785,000
Interest 9. Total assets
receivable 15,000.00
Commission Current Assets 1,263,000
receivable 35,000.00 Noncurrent assets 2,875,000
Unearned service 105,000.00 Total 4,138,000
Revenue 10. Trade and Other Payables
TOTAL 405,000.00
3. Prepaid Expense Accounts payable 146,200.00

Prepaid rent 60,000.00 trade notes payable 125, 000

Prepaid insurance 48,000.00 Notes payable due 50,000.00
8 months
Interest fund 20, 000.00
TOTAL 128, 000.00 Unearned service 105,000.00
4. Total Current assets revenue
Cash 605,000
total 426,200
Trade and other 405,000
receivable 11. Total Current Liabilities
Financial asset 125, 000
Prepaid rent 128,000 Property and equip 426,200
Total 1,263,000 Short-term BDO 60,000.00
5. Property and equipment payable
Notes payable due 50,000.00
Land 200,000.00 8 months
Building 400,000.00 Interest payable 10,000
Office supplies 10,000.00 Total 546,200
Office equipment 245,000.00 12. Total Noncurrent Liabilities
furniture and 145,000.00
fixtures Notes payable due 100,000.00
Motor vehicle 600,000.00 18 months
TOTAL 1,600,000
Noncurrent portion 540,000.00 Office utilities 216,000.00
of BPI long-term expense
payable Office rent expense 720,000.00
Total 640,000 Total 1,026,000
13. Total Liabilities 19. Other expense
Property and equip 426,200 Contribution to 100,000.00
Short-term BDO 60,000.00 charity
payable Accounting fees 105,000.00
Notes payable due 50,000.00 Legal fees 235,000.00
8 months Loss due to theft 55,000.00
Interest payable 10,000 Loss on sale of 230,000.00
Notes payable due 100,000.00 investment
18 months Total 725,000
Noncurrent portion 540,000.00 20. Total Expenses
of BPI long-term
payable Selling expense 462,200
Total 1,186,000 Administrative 1,026,000
14. Income From Operating Expense expense
Other expense 725,000
Service Revenue 2,340,000.00 Total 2,213,200
Commission 345,000.00 21. Total Equity
income
Total 2,685,000 Equity= Assets + Liability
15. Income from non-operating expense
E= 4,138,000 + 1,186,000
investment income 130,000.00 E = 5,324,000
interest income 45,000.00
total 175,000 22. Capital
16. Total income
Capital= Equity – income + expense
Income from 2,685,000
operating expense C= 5,324,000 -2,860,000 + 2,213,200
Income from non- 175,000 C= 4,677,000
operating expense
Total 2,860,000
17. Selling expense

Traveling expense 85,000.00

Advertising 100,000.00
expense
Income tax 277, 200
Expense
Total 462,200
18. Administrative Expense

Office supplies 30,000.00

expense
Office depreciation 60,000.00
expense