DEMONSTRATION PROBLEM 2.
April 3 Received P15,000 cash from clients for various trips around the country..
April 8 Mr. Gray paid the balance of his account in full..
April 16 Bills paid P8,000 utilities, P3,000 gas and oil, P2,000 repair of cars P3,000..
April 18 Paid P20,000 cash on the loan.. DATE CASH ACCOUNTS RECEIVABLE ASSETS LIABILITIES OWNER'S EQUITY GOMEZ, CAPITAL EXPLANATION IN CHANGE IN OWNER'S EQUITY CARS EQUIPMENT FURNITURE LOANS PAYABLE UTILITIES PAYABLE MAR 31 57,000 18,000 750,000 55,000 45,000 100,000 825,000 APR 3 + 15,000 + 15,000 SERVICE INCOME APR 8 + 8,000 - 8,000 APR 16 - 8,000 - 3,000 UTILITIES - 2,000 GAS & OIL - 3,000 REPAIR APR 18 - 20,000 - 20,000.
April 20 Billed SMB Cooperative for a trip to Tagaytay, P7,500..
April 25 Collected P5,000 from the Faculty Club of Angelicum..
April 27 Received the PLDT bill for April P750. The bill was not paid..
April 29 Paid for rent, P10,000 and salaries, P9,000..
April 30 Gomez made another cash withdrawal of P5,000 to pay a personal liability..
DATE CASH ACCOUNTS RECEIVABLE ASSETS LIABILITIES OWNER'S EQUITY GOMEZ, CAPITAL EXPLANATION IN CHANGE IN OWNER'S EQUITY CARS EQUIPMENT FURNITURE LOANS PAYABLE UTILITIES PAYABLE MAR 31 57,000 18,000 750,000 55,000 45,000 100,000 825,000 APR 3 + 15,000 + 15,000 SERVICE INCOME APR 8 + 8,000 - 8,000 APR 16 - 8,000 - 3,000 UTILITIES - 2,000 GAS & OIL - 3,000 REPAIR APR 18 - 20,000 - 20,000 APR 20 + 7,500 + 7,500 SERVICE INCOME APR 25 + 5,000 - 5,000 APR 27 + 750 750 UTILITIES APR 29 - 10,000 - 10,000 RENT - 9,000 - 9,000 SALARIES APR 30 - 5,000 - 5,000 GOMEZ, DRAWING 33,000 12,500 750,000 55,000 45,000 80,000 750 814.750 895,500 = 895,500.
Accounting principles. a.) Accrual Rule or Expense Recognition Principle expenses should be recorded even if no payment was made. b.) Objectivity Principle requires that all recordings be substantiated by business documents such as invoices from the furniture company and official receipt from the gas station. c.) Business Entity Principle drawing in cash should be recognize as a decrease in cash and owner’s equity..
HAPPY TOUR & TRAVEL INCOME STATEMENT For the month ended April 30, 2018 Service Income Less Expenses: Gas &Oil Expense Repair Expensc Rent Expense Salaries Expense Utilities Expense Net Loss P 2,000 3,000 10,000 9,000 3 750 P22,500 27.750 P 5.250.
HAPPY TRAVEL OF FINANCIAL posrr10N Apnl 30, 2018 ASSEIS Current Assets• Cash Accounts Receivable Total Provx•tty Equipment: Equipment Fumiture & Fixturs Toal TOÄI Assets 12.500 P 45,500 55.0 45 850 ooo LIABILITIES & OWNERS EQUITY Current Liabilitis: l..«ins Payable Payable Total O,mer's Equity: Capital Total Liabilities & Owner's Equity P 80,cm P 80,750 814 750.
Classification of Assets & Liabilities. Current Assets – include cash and cash equivalents which are not restricted in use, at operating cycle of the business or one year, whichever is longer..