4 WORKSHEET AND 3 FINANCIAL STATEMENTS (5" and 6" Steps of the Accounting Process) Worksheet or working paper is a columnar sheet used as a bridge to connect the trial balance and financial statements. Its purpose is to determine the results of operation Be interes {Income Statement) and financial condition (Balance Sheet) of the business in a fastly ‘manner before finally closing the books of accounts. The preparation of the worksheet is the 5" step of the accounting process and is “optionaf” which means that it may or may not be prepared at all because financial statements can already be prepared even by just looking at the trial balance and the adjusting entries. However, almost all bookkeepers and accountants find the use of a worksheet very helpful in tracing and reviewing the accounts especially if there are z ‘many adjusting entries. Adjusting entries are plotted in the worksheet before they are recorded in the general journal. Em For discussion purposes, we are presenting an 8-column worksheet which provides a = ‘columns for the following: Trial Balance or an Unadjusted Trial Balance Adjusting Journal Entries or simply Adjustments 7 Income Statement Balance Sheet smecessitate a 3 Before enumerating to you the various steps in preparing a worksheet, the followi terms are introduced for you to learn about: Real Accounts ~ these are the Balance Sheet accounts comprising of Assets, Liabilities and (Owner's Equity ‘Nominal Accounts ~ these are the Income Statement accounts comprising of Income, Cost of Sales and Expenses, seest has been PROCEDURES IN PREPARING AN 8-COLUMN WORKSHEET Step 1 - First, indicate the,heading and then copy the figures of the Trial Balance “as is”. Instead of a trial balance, write “Unadjusted Trial Balance” to remind you that the trial balance that you have to prepare is before adjustment. Worksheet and Financil StatementsStep2- Plot your adjusting journal entries in the adjustment column. The letter identifies the sequencing of adjusting entries except for the merchandise inventory. The accounts that are not found in the unadjusted trial balance but are affected in adjustments are listed down below the adjustments column. Step3- The Merchandise Inventory, January 1 (Beginning) is extended to the debit column of the Income Statement which signifies an addition to cost of purchases while the Merchandise Inventory, January 31 (Ending) is extended to both the credit column of the Income Statement and debit column of the Balance Sheet without passing-through the adjustment section. This is called the direct extension method. The extension of the Merchandise Inventory, January 31 to the credit side of the Income Statement signifies the reduction from the cost of goods sold while the extension to the debit column of the Balance Sheet signifies a recognition of an Asset account (Merchandise Inventory) representing the unsold merchandise which are on hand. Step 4- Extend to the Income Statement section the Income, Cost and Expenses accounts and to Balance Sheet section the Assets, Liabilities and Owner's Equity including those accounts that are listed underneath the total of the unadjusted trial balance observing the rules of debit and credit. Step5- When you total the columns of the Income Statement and Balance Sheet sections of your worksheet, you'll find out that the two will not balance and the amount of difference between the income Statement and Balance Sheet are the same. The difference is either a Profit or Loss. It is a profit ifthe total credit of the Income Statement is bigger than the total debit. Conversely, if the credit total of the Income Statement is smaller than the debit, itis Loss. The Profit is extended to the Balance Sheet credit to remind you that Profit will increase owner’s equity while Loss is extended to the Balance Sheet debit which means reduction from capital balance. ‘The adjusting journal entries that were found on pages 194 to 196 are again presented below so that you would be able to follow the plotting of these entries in the worksheet. a. Uncollectible Accounts P 5,422 i Estimated Uncollectible Accounts P 5,422 bb. Guest Supplies Expense P 5,000 Cleaning Supplies Expense 6,000 Office Supplies Expense 2,000 Guest Supplies Inventory P 5,000 Cleaning Supplies inventory 6,000 Office Supplies inventory 2,000 28 Chapter?Rent Expense 100,000 Prepaid Rent 100,000 Insurance Expense P 1,250 Prepaid Insurance P 1,250 Depreciation Expense P 14,250 xtended ‘Acc. Depreciation P 14,250 un of the is called China, Glass and Silverware Expense P 5,000 ventory, China, Glass and Silverware P. 5,000 eduction in of the Linens and Uniforms Expense P 5,000 chandise Linens and Uniform P 5,000 |. Employees’ Meals P 23,750 Expenses Cost of Sales-Food P 23,750 Owner's al of the Utilities Expense P 16,000 Accrued Utilities Expense P 16,000 ce Sheet ance and nce Sheet the total ely, ifthe joss. The Profit will eet debit Shown on the next page is an 8-column worksheet of the Vista del Mar Hotel for the month ended 28 February 20A which is presented in a step-by-step format. Its operation resulted in a “profit”. Observed how the foregoing steps were being applied presented sorksheet,wouDHOM HUE T woyspom uumors | ig{aqoHOM HIERworshs Arowwonuy 21pou04 322450 quemersoy mara jing oeneqcoueert | vou'se0 ave Door 0's oe" ‘00's among oo0'ouea oo o0s't ‘s-auounsnpe Avo ous oooeT ‘058 [eer ooust ueg TE 5 0 a a 2 " saquwne=y au 3 aaa ie ery "YOR 090 Te POPU UIVOW By 203 eoyuOM wuuNIos yeaysyoMn wuesmeysay 214 199 ene ‘Worksheet and Financial StatementsFINANCIAL STATEMENTS (6 Step of the Accounting Process) Finally, we have come to the very purpose of accounting which is to “communicate” to the proprietor of what happened to the Capital that he put into the business through the financial statements. The preparation of financial statements is the sixth step of the accounting process. As mentioned earlier, the worksheet will help facilitate the preparation of the income Statement and the Balance Sheet. The Income Statement section of the worksheet shows all the “Nominal Accounts” while the Balance Sheet shows all the “Real Accounts”. At this point, it is worthy to mention as a reminder that the income Statement or the Nominal Accounts are the temporary accounts of Owner's Equity comprising of Income, Cost and Expenses while the Balance Sheet or Real Accounts are Permanent accounts comprising of Assets, Liabilities and Owner's Equity. This justifies why the period covered in the Income Statement is worded “for the period ended” which can either be a monthly, quarterly, semi-annually or annually while that of the Balance Sheet is worded “as of” which means, it is prepared on specific or particular date. Each of the statement should bear with the following heading: 2. WHO ~ the name of the company or proprietor’s name if there is no trade name b. WHAT — the name or title of the report report/statement ¢. WHEN ~ the date of the report/statement Therefore, if we are to prepare an income Statement, we just take a look at of the Income Statement section of the worksheet. Likewise, if we are to prepare a Balance Sheet, we just take a look at of the Balance Sheet section of the worksheet. All we have to do is to follow the standard format of these statements, INCOME STATEMENT Income Statement is a statement which shows the performance of the enterprise for a Biven period of time. It shows the summary of Income and Expenses derived from and incurred for a given period. The Income Statement under perpetual inventory system of 2 hotel follows the “Single Step” or “Modified Single Step” while under the periodic inventory system it follows the “multiple step form”. Usually, the first statement that we have to prepare is the Income Statement because aside from the reason that this is shown ahead of the Balance Sheet in the worksheet, it is much easier to gather the data and the formation is so simple. RaShown below is an income Statement in a Modified Single-Step form of Vista del Mar Hotel for the month ended 28 Feb. 20A vista del mar Income Statement For the month ended 28 February 208 Revenue: Room Sales Food Sales Beverage Sales Total Revenve Cost of Sales: Food! Beverage Total Cost of Sales Gross Profit Operating Expenses: Uncollectble Accounts ‘Guest Supplies Expenses Cleaning Supplies Expense Office Supplies Expense ‘China, Glass and Siverware Linen and Uniforms Utlties Expense ‘Advertsing Expense Employees’ Meals Taxes and Licenses Salaries and Wages Total Operating Expense Profitbefore Fixed Charges Fixed Charges Insurance Expense Rent Expense Depreciation Expense Total Fixed Charges Profit BALANCE SHEET Balance sheet isa statement that shows the a given date. Abalance sheet is of two forms; 150,312.05 741,742.00 391.963.00 2,084,015.05. P 451,250 120,000 571,250.00 512,766.05, 33.000 136,472.00 376,294.05 “financial position” of the enterprise a5 of “account Form” and the “Report Form”. ‘The Account Form of a balance sheet is patterned after the Accounting Equation, Assets Uiabilites + Owner's Equity wherein the Assets are shown at the left side and Liabilities ‘and Owners Equity at the right side, The three accounting elements are arranged in “horizontal order”. ‘This form of a balance sheet is used when there are plenty of accounts involved. J es 722 Worksheet and Fiancll StatementsThe “Report Form” of a balance sheet, assets are shown first and followed by liabilities and owner's equity in a “vertical order. This form of a balance sheet is used when there are only few accounts involved. Shown below is the “Report Form” of a balance sheet of Vista del Mar Hotel as of 28 Feb. 20A. Vista del Mar Hotel Balance Sheet {As of February 28, 208, ASSETS Current Assets: Cash in Bank 1,793,300.00 Accounts Receivable P_ 271,100.00 Estimated Uncollectible Accounts 5422.00 265,678.00 Food inventory 50,000 Beverage inventory 35,000 Guest Supplies inventory 25,000.00, Cleaning Supplies Inventory 29,000.00, Office Supplies inventory 26,000.00 Prepaid Rent 200,000.00 Prepaid Insurance 28,750.00 Total Current Assets 2,452,728.00 Non-Current Assets: Property and Equipment Furniture & Equipment P 875,000.00 Ace. Depreciation 14,250.00 860,750.00 China, Glass and Silverwares 70,000.00 Liners & Uniforms 20,000.00 Total Non-Current Assets P_ 950,750.00 Total Assets (P3,403,478.00 LIABILITIES&. OWNER’S EQUITY ABILITIES Current Liabilities: ‘Notes Payable P 75,000 Accounts Payable 125,200 Customer's Advance Deposit 200,000.00 Accrued Utilities 16,000.00 VAT Payable 48,483.95, Total Current Liabilities 464,683.95 OWNERS EQUITY R. Miranda, Capital 2,938,794.05 Total Liabilities and Owner's Equity 3,403‘STATEMENT OF CHANGES IN OWNER’S EQUITY ‘This statement summarizes the changes that occurred in Owner's Equity. It is arrived at by determining the Beginning Owner's Equity which is found in the general ledger plus Additional Investment and Profit which is found in Income Statement and the Ending ‘Qwner’s Equity which reconciled with the balance of this statement and what is appearing in the Balance Sheet. Shown below is the Statement of Changes in Owner's Equity of Vista del Mar Hotel for the month of Feb. 204, Vista de! Mar Hotel ‘Statement of Changes in Owner's Equity For the month ended February 28, 20A R, Micanda, Capital ~Feb. 1, 208 3,000, 000.00 {Add: Additional investment 28,000.00 Profit for the month 260,794.05 288,794.05 3,288,794.05 Total Less: Withdrawal 380,000.00 R. Miranda, Capital ~ Feb. 28, 208 2,938, 794.05 In the early part of our study, the financial statements were being presented to you so that, you will have a clear picture of what you are expected to accomplish after learning that various steps of the accounting process. The financial statements that were shown on page 5 and page 8 were the same financial statements that were presented to you ‘on pages 225 and page 226 of this chapter. Can you recall the steps from JOURNALIZING to FINANCIAL STATEMENTS PREPARATION? [AT THIS POINT OF OUR STUDY, THE AUTHOR HOPES THAT YOU ALREADY HAVE ACQUIRED AN ADEQUATE KNOWLEDGE OF THE BASIC STEPS IN PREPARING THE FINANCIAL STATEMENTS. FURTHERMORE, IT IS HOPED THAT BY THIS TIME YOU CAN ALREADY START TO FEEL AND APPRECIATE THE BEAUTY OF ACCOUNTING WHICH WILL INSPIRE YOU TO STUDY MORE. RELATIONSHIP BETWEEN CONTROLLING ACCOUNTS AND SUBSIDIARY LEDGERS When the business has become bigger, it will have many customers as well as creditors. To provide a page or a leaf of a General Ledger of each of these accounts will cause 2 Worksheet and Fine) Statements 2General Ledger to become thick and unwieldy. For this reason, Accounts Receivable if being used to record the customer’s accounts and Accounts Payable for the debts of the business to its creditors instead of their individual names. Therefore, Accounts Receivable and Accounts Payable are being assigned with pages or leaves of the General Ledger. They are being called “controlling accounts”, Due to the difficulty in getting information about the account balance for a particular {ustomer or creditor, other books of final entry are to be maintained. They are called “subsidiary ledgers" While the Controlling Accounts maintained the equality of debits and credits in the General Ledger and furnished information about the transactions with debtors and. creditors in summary form, the Subsidiary Ledgers provided the details of the said Controlling Accounts. For example, The Accounts Receivable Ledger (Controlling Account) showed a balance of 15,000. The Subsidiary Ledgers will show the details or breakdown of the said amount a5 to who are the individuals indebted to the business, the amount total of which will equal also to P15,000. The same holds true with the Accounts Payable Controlling ‘Account and its Subsidiary Ledgers. The relationship between the Controlling Accounts and the Subsidiary Ledgers can be based on the axiom that “the whole of anything is equal to the sum of its part”. FORMATION OF A SUBSIDIARY LEDGER For the Subsidiary Ledger of an Accounts Receivable, the debit column shows the billings or charges of the business to a customer while the credit column shows its collection from the customer's account. ‘Shown below is the formation of an Accounts Receivable Subsidiary Ledger. By Accounts Receivable Subsidiary Ledger [Debit | Credit Balance Presented Ledgers for! the Vista (The listings o debit balance, Davao Jaycees Malvar St Davao City 208 Biling/Charges 7,000 Feb, Collection I 5,000 | 2,000 lj For the Subsidiary Ledger of an Account Payable, the debit column shows the payment Of the business while the credit column shows the creditor's charges or billings to the business, ‘Shown on the next page is the formation of an Accounts Payable Subsidiary Ledgers: 2 Chapter?ple is f the bunts neral icular called in the s and e said nce of mount ch will rolling can be ilfings liection ‘Accounts Payable Subsidiary Ledger Debit |_ Balance ‘ecount from a supplier — 7,000 Payment 5,000 | 2,000, SCHEDULES OF ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE At the end of an accounting period, Schedules of Accounts Receivable and Accounts Payable Controlling Accounts are to be prepared after the completion of an Adjusted Trial Balance. The schedules list down the names of customers or creditors with open balances in their respective Subsidiary Ledger Accounts, Presented below is the General Ledger of Accounts Receivable and its Subsidiary Ledgers for you to understand further about their relationship. The illustrative problem, the Vista del Mar Hotel is used for this purpose. (GENERAL LEDGER) Accounts Receivable Particulars Debit_| 208 Particulars 12,350 258,750 271,100 SUBSIDIARY LEDGER {the listings ofthe customer's name will be done in “alphabetical order. They are with debit balance.) Accounts Receivable Davao Jaycees Malvar St Davao City, 2A Partials F Gear | Balonce | Feb. | 28 1,950, Master Card San Pedro's. Davao City Particulars Balance 2,600 Warkshect and Firancll StatementsRotary Club of Davao. Tat #8 Magsaysay v2 Davao City sh 20A Parteulars 7 [petit [cred _[ ance [Re [28 14 [43.750 143,750 sh Sarona Law office Fcoland Davao Cty 708 Frais a a re. | a [2.000 12,000 Fe ylang and Sons Sta, Ana Avenve Davo Cty The 20A Panicle 7 [debit crest [Balance [8 [ae i03.000 303,000 Visa Cord Govera street coca Davao city Us, [200] Paice =| pes credit | baance fee 38 ia_|_ 7.800 7,00 Fb From the debit balances of each of the subsidiary ledger accounts above, the schedule ee of Accounts Receivable is prepared and shown below: L ee Vista del Mar Hotel Schedule of Accounts Receivable This supports 28 February 208 the amount Monte found it the tanang Davao Jaycees p 1950 | | eatance sheet 2 Master Cord 2600 | | onpase227 Fe Rotary Cub 143,750 Sarona Law office 12,000 Uytengsu and Sons 103000 Visa ard __ 7.800 Ra elit aaah vanang 2H Si eee 30 hoster?Take Note: the Accounts -Receivable General Ledger showed a debit balance of 271,100. The details of the Subsidiary Ledger as deduced from the above schedule also showed a total of P271,100. ‘Shown below is the General Ledger of Accounts Payable as well as its Subsidiary Ledger. GENERAL LEDGER Accounts Payable Particulars Debit [208 Particulars Credit 249,600 | Feb. [2 30,000. 5 20,000 20 324,800 425,200 ‘The listings of the suppliers are in Alphabetical Order. They are with credit balances. Coca-Cola Bottling Co. Ulas, Davao City SUBSIDIARY LEDGER Accounts Payable 208 Particulars Balances Feb, | 20 Pie + Galsano Malt Bajada Street, Davao City 208 Particulars Feb. [3 ‘Monterey Farm Lanang, Davao City 208 Particulars Credit Feb._ | 20 134,000 2 R. Ibanez Poultry Farm Lanang, Davao City, Particulars 20 Se ‘Worksheet ond Financial statements BiSan Miguel Corp. Sta. Cruz Davao del Sur 208 Particulars Feb. [20 Victoria Plaza Mall Bajada, Davao City [-_ 20a Particulars, Balance re |S ar | a From the credit balances of each of the subsidiary ledger accounts above, the schedule of Accounts Payable is prepared as follows: Vista del Mar Hotel Schedule of Accounts Payable ‘This supports 28 February 208 the amount found in the Gaisano Mall Balance Sheet R. Ibanez Poultry on page 227. San Miguel Corporation Take Note: The Accounts Payable General Ledger showed a credit balance of P125,200. The details of the Subsidiary Ledger as deduced from the above schedule also showed @ total of P125,200. OTHER SCHEDULES ‘Aside from the Schedule of Accounts Receivable and Payable, there will also be other schedule, you have to prepare. You have the Schedule of Property and Equipment, Schedule of inventories, Schedule of Notes Receivable and Payable, the details of your ‘cash and cash equivalents which is included in your “Notes to Financial Statements” and others. “The Income Statement and Balance Sheet of Davao Gulf View Restaurant are presented to show how financial statements under the periodic inventory system are prepared geben ae ‘Chapter? RmPERIODIC INVENTORY SYSTEM Davao Gulf View Restaurant Income Statement For the month ended 31 October 208 Sales - Food and Beverage Less: Sales Returns and Allowances Sales Discounts Net Sales Cost of Sales: Food and Beverage Invty., Beg. 350,000 Purchases-Food and Beverage 630,000 Freight-in 5,000 Total 635,000 Less: Purchase Return 8,000 Purchase Discount 4,000 __12,000 _623,000 Goods Available for Sale 973,000 Less: Food and Beverage Invty., End 270,000 Less: Operating Expense Freight-out Salaries and Wages Taxes and Licenses ProfitPERIODIC INVENTORY SYSTEM Davao Gulf View Restaurant Balance Sheet As of 31 October 208 Assets Current Assets: Cash in Bank Accounts Receivable Estimated Uncollectible Accounts Food and Beverage Inventory Operating Supplies Inventory Total Current Assets Non-Current Assets: Property and Equipment Furniture and Equipment 180,000 Acc. Depreciation 5,000 Total Assets Liabilities and Owner's Equity Liabilities Current Liabilities: ‘Accounts Payable VAT Payable Total Current ies ‘Owner's Equity D. Gutierrez, Capital Total Liabilities and Owner's EquityQuestions for Review, Quizzers and Problems 1, Whot is @ Worksheet? What are the sections of an 8-column worksheet? | in what sections of the worksheet where real accounts are extended? In what section of the worksheet where nominal accounts are extended? What comprise the heading of a worksheet? When do we use a report form of a Balance sheet? When do we use an account form of a Balance Sheet? What is a Statement of Changes in Owner's Equity? » Discuss the relationship between Controlling Accounts and Subsidiary Ledger. Mow are the names of debtors and creditors sted in Schedules of Recelvable ond Payable? in-whot column of the Accounts Receivable subsidiory ledger where billings to various ‘customer's ore posted? . inwhat column of the Accounts Payable subsidiary ledger where creditor's bling are posted? Could there be on instance that the controlling accounts and its subsidiory ledger will not tally? ra True or False instruction: Write “T” ifthe statement is correct and "F” if incorrect. Worksheet is used as a bridge connecting the trial balance: and the financial statements. tn a worksheet, when the total of the debit column of the Income Statement exceeds the total ofthe credit column, it signifies a “Net Loss”, In-a worksheet, when the total of the credit column of the Income statement ‘exceeds the total of the debit column it signifies “Net Income”, 4. Allnominal accounts are extended to the Balance Sheet section ofthe worksheet. Werkshect and Financ Sttement| 75All real accounts are extended to the debit side of the Income Statement section of the worksheet, When there is Net income, itis extended to the credit column of the Balance Sheet to effect the increase in Owner's Equity ‘An interim financial statements are statements prepared at any given period during the year. The report form of a balance sheet shows the Asset, Liabilities and Owner’s Equity ina horizontal order. The account form of a balance sheet shows the Assets, Liabilities and Owner's Equity ina vertical order. In an Accounts Receivable subsidiary billings are posted to the credit side while collections to the debit side, {In an Accounts Payable subsidiary, purchases on accounts are posted to the debit side while payments of accounts to the credit side. In preparing the schedules of receivable and payable, the names of the debtors and creditors are arranged alphabetically 7-2 Multiple Choice Instruction: _Encircle the letter of the correct answer in each of the given statement. 1) A worksheet may or may not be prepared to come up, with the financial statements. ‘Therefore, a worksheet is- , Mandatory © optional b. Permanent d. final 2) The drawing account is extended to what section of the worksheet? a. debit side of income statement __¢. _credit side of income statement b. debit side of balance sheet 4d. credit side of balance sheet 3) The real accounts are extended to what section of the worksheet? a. theincome statements section __¢._debit side of balance sheet b._ the balance sheet section d. credit side of balance sheetction sheet period Equity pwner’s je while he debit s debtors nt. statements. ent 4) Abalance sheet which is patterned after the accounting equation, ‘a horizontal order- + OE is presented in a. Natural form & Report form bb. Account form dd. Functional form 5) A balance sheet which shows the Asset followed by Liabilities and Owner's Eaulty In 2 vertical order- a. single-step form report form b. financial position form . account form 6)__The income Statement shows the performance of an enterprise a. as of given date atthe time of erisis bat the end of the period d._at the time of changes 7) Which of te folowing financial statements is completed in a worksheet? ‘a. Notesto Financial Statements €.__ Statement of Changes in Owner's Equity b. Income Statement d._ Statement of Cash Flows 8) Which ofthe following account is extended to balance sheet debit? 2. Accrued Rent income Rent Income b. Unearned Rent income 4d. none of the above 19) The account “Cost of Sales-Food & Beverage” is extended to - ‘a: debit ide of the Balance Sheet. _credit side of the Balance Sheet .. debit side of the Income Statement d. credit side of the Income statement 410) Estimated Uncollectible Account is extended to - ‘a, Balance Sheet, debit ‘c._ Balance Sheet, credit b. Income Statement, debit d. Income Statement, credit 11) Sales-Food and Beverage is extended to- ‘a, Balance Sheet, debit Balance Sheet, credit b. Income Statement, debit 4. Income Statement, credit 12) Food and Beverage inventory under “perpetual” is extencied to- ‘a. Balance Sheet, det ‘c Income Statement, debit Balance Sheet, credit d._ Income Statement, credit ‘Chopter? ‘Worksheet ond Financial statements7-3 Usted below are the real and nominal accounts. On the space provided, place a “check mark” as to what section of the worksheet they are to be extended, (FOR NOMINAL (FOR REAL ACCOUNTS) ACCOUNTS) Income Statement. Balance Sheet Accounts Dr. cr. Sample: Cash in Bank 4. lan Abuzo, Capital 2, Rent Expense 3. Rent Income 4, Prepaid Rent ‘Accrued Rent Income Unearned Rent Income lan Abuzo, Drawing 5. 6 7. Accrued Rent Expense 8 8 Depreciation Expense 430. Acc. Depreciation 11. Store Equipment 12. Guest Supplies Exoense 13, Guest Supplies Inventory 14, Accounts Receivable 45, Et. Uncollectible Acts. 16. Room Sales 17, Sales-Food and Beverage 18, Freight-Out 19, Food and Beverage Invty 20. Employee's Meals 21, Purchase Return & Allow. 22, Sales Discount 23, Freight-in 24, Purchase Discount 25, Sales Return & Allow.7-4 Rowena’s Cafeteria ‘Trial Balance January 31, 208 Cash Food Supplies inventory Furniture and Equipment kitchen Utensils Linens, etc ‘Accounts Payable Rowena Manansala, Capital Rowena Manansala, Drawing Sales Revenue Cost of Sales- Food Salaries Expense Rent Expense Utilities Expense ‘Taxes and Licenses Total Requirement: 1) A6-column Worksheet 2) Income Statement 3) Balance Sheet 4) Statement of Changes in Owner's Equity pe ee ‘Worksheet and Financial stotements 2397-5 Tagbilaran Catering Services Trial Balance December 31, 208 Debit Ceedit (Cash in Bank 98,000 Food and Beverage inventory 30,000 Catering Equipment 115,000 kitchen Utensils 34,000 Accounts Payable Corazon Tabaranza, Capital Corazon Tabaranza, Drawing 13,000 Revenue from Catering Cost of Sales- Food and Beverage 90,000 Salaries Expense 21,000 itchen Expense 10,000 Utilities Expense 12,000 _ Total 423,009 423,000 Additional Data: a) Accrued salaries for the period, P320.00. ©) Catering equipment was acquired on November 1, 208. The estimated life i$ years without any scrap value. Requirement: 1) An 8-column Worksheet 2) Income Statement 3) Balance Sheet 4) Statement of changes in Equity7-6 ‘Anahaw Drive Hotel ‘Trial Balance ‘March 31, 208 Debit Cash in Bank P 475,000 ‘Accounts Receivable 10,000 Food and Beverage Inventory 25,000 Prepaid Rent 300,000 Operating Supplies Inventory 950,000 Furniture and Equipment 41,345,000 Accounts Payable Janet Matuguinas, Capital Janet Matuguinas, Orawing 14,000 Room Revenue Sales-Food and Beverage Cost of Sales-Food and Beverage Salaries Expense ‘Taxes and Licenses, Energy Cost Total Additional Information ‘4)_ ttis estimated that 3% of the outstanding receivable account is doubtful of collection. b) Furniture and Equipment was acquired on January 1, 20A. It has an estimated economic life ff 10 years with P50,000 salvage value at the end of its life. ©) Employee's free-meal allowance has yet to be adjusted in the amount of P50,000. <¢d) Operating supplies actual inventory count showed a balance of P920,000, ) Of the P300,000 prepaid rent, only P250,000 has expired. Requirement: 1) An8-column Worksheet 2) Income Statement for the quarter ended 31 March 208 3) Balance Sheet of March 31, 208 4) Statement of Changes in Owner’s Equity ‘Worksheet and Finance Statements ao eS 241T-1 Bacolod Pension House Trial Balance ‘March 31, 208, Debit Cash in Bank 100,000 ‘Change Fund 1,000 Food Inventory 20,000 Beverage Inventory 15,000 Operating Supplies inventory 14,000 Furniture and Equipment 80,000 China and Glassware Inventory 75,000 ‘Accounts Payable Farah Magada, Capital Farah Magada, Drawing Food Sales Beverage Sales Cost of Sales-Food Cost of Sales-Beverage Salaries Expense Rent Expense Taxes and Licenses Total Data for adjustment: a) Furniture and Equipment was acquired on Feb. 1, 208 with an estimated life of 5 years. 'b) China and Giassware account showed a balance of P74,500. ©) Unpaid utilities expense P4,500. 4d) Operating supplies inventory left on hand was P10,000. Required: 1) 8-column Worksheet 2) Balance Sheet as of March 32, 208 3) Income Statement for the quarter ended 31 March 208,7-8 ‘Dumanjug Pension House ial Balance December 31, 20€ Debit Cash in Bank 1,750,000 ‘Accounts Receivable 25,000 Estimated Uncollectible Accounts Land 450,000 Building 2,300,000 ‘Accumulated Depreciation-Bullding Furniture and Fixtures 1,500,000 ‘Accumulated Depreciation-F/F ‘Accounts Payable Prospero Allera, Capital Prospero Allera, Drawing Room Revenue Rent Income Laundry Expenses Heat, Light and Water Salaries and Wages Total Data for adjustment: a) Unrecorded Depreciation Building -P 230,000 Furniture and Fixtures 150,000 b)_Itig estimated that 4% of the outstanding receivable account should be provided for Uncollectible Accounts. €)_ Uncollectible rent income for the month of December, P20,000. 4) Unpaid light bills, P2,750. Required: 2) An 8-column Worksheet 2) Income Statement for the year ended December 31, 20€ 3) Balance Sheet as of December 31, 20C 44) Statement of Changes in Owner's Equity79 Century Park Hotel ‘Trial Balance December 31, 208 Debit. Cash in Bank 2,180,000 ‘Accounts Receivable 28,000 Food & Beverage Invty., Jan. 2 160,000 (Operating Supplies Inventory 50,000 Furniture and Equipment 2,350,000 China, Glass and Silverwares 106,000 Notes Payable-(Short-term) P_ 280,000 Cecil Rosada, Capital 2,134,000, Cecil Rosada, Drawing 75,000 Room Revenue 1,920,000 Sales-Food and Beverage 2,710,000 Sales Discount 2,500 Purchases-Food and Beverage 1,637,000 Purchase Discount 4,000 Purchase Return and Allow. Taxes and Licenses 18,000 Salaries and Wages 325,000 Employee's Meals, ae ee Total 7.051500 7,051,500 ‘At the end of the year, the following data were taken into consideration: a) Food and Beverage Inventory, December 31, 208 was P180,000. b) It is estimated that 2 % of the outstanding receivable must be provided of an Uncollectible Account. ‘¢)_ Furniture and Equipment was acquired on January 1, 208 with estimated life of 10 ‘years with a salvage value of P20,000, 4d) Unused operating supplies, P35,000. ‘e) China, Glass and Silverware that were damaged and lost, P6,000. Required: 2) An8-column Worksheet 2} Income Statement for the year ended December 31, 208, 3) Balance Sheet as of December 31, 208.7-10 ‘The following were the Accounts Receivable and Accounts Payable transactions of Plaza Hotel and Resto Bar, owned and managed by Andreu Torralba, CPA. Dec. 5 ~ Billings to various customers spina, Arbela P 10,000 Beltran, Irene 15,000 Ardina, Fely 18,000 17 ~ Purchase of various food and beverage from: ‘Nestle Products, Inc. P 50,000 Purefoods, inc 70,000 Monterey Farm 30,000 10 - Collections from the following guests: Beltran, rene P 11,000 Ardina, Fely 12,000 16 - Payment to the following suppliers Purefoods, inc. P 35,000, Nestle Products, Inc. 20,000 25 - Collections from the following customers: Espina, Arbela P 8,000 Ardina, Fely 2,000 28 - Payment to the following suppliers Monterey Farm Nestle Products, in. Purefoods, Inc. 29 - Purchase of various food and beverages: Nestle Products, inc Monterey Farms gvided of an Purefoods, Inc 30 - Collections from a customer's account: life of 10 ee Beltran, Irene Required: ‘Make General Ledgers of Accounts Receivable and Accounts Payable, Make Subsidiary Ledgers of Accounts Receivable for Ardina, Fely; Beltran, Irene and spina, Arbela, (In this order) Make Subsidiary Ledgers of Accounts Payable for Monterey Farms; Nestle Products, Inc. and Purefoods, Inc. In this order) |. Enter the above transactions in the ledgers. (Both General and Subsidiary) Prepare Schedule of Accounts Receivable and Accounts Payable Worksheet and Financil StatementsGeneral Ledger ~ Accounts Receivable _General Ledger ~ Accounts Payable Subsidiary Ledger ~ Accounts Receivable Subsidiary Ledger — Accounts Payable_ ‘Schedule of Accounts Receivable ea Schedule of Accounts Payable