256 Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada Worksheet and Financial Statements 255 NAME: SECTION: SCORE: PROFESSOR: Problem #6 Effect of Events on Financial Statements As at Dec. 31, 2019, the accounting records for Catherine Viesca Outdoor Ad Concepts contained the following balances: Equities Accounts Payable P 34,000 Assets Cash Accounts Receivable Land Total P180,000 110,000 90,000 P380,000 Viesca, Capital Total 346,000 P380,000 The following accounting events apply to 2020: Jan. 1 Received P100,000 additional cash investments from the owner. 1 Purchased a service vehicle that cost P80,000. The vehicle has an P8,000 salvage value and a 3-year useful life. Feb. 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-year term. 1 Paid P24,000 cash in advance for a 1-year lease for office space, Mar. 1 Viesca withdrew P30,000 for emergency personal use. April 1' Acquired land that cost P70,000 cash. May 1 Made a cash payment on accounts payable amounting to P15,000. July 1 Received P42,000 cash in advance as a retainer for services to be performed monthly over the coming year. Sept. 1 Sold land for P100,000 cash. The land originally cost P90,000. Oct.1 Purchased P20,000 of supplies on account. Nov. 1 Purchased a 1-year P50,000 certificate of deposit that paid a 6% annual rate of interest. Dec. 31 Total earned service revenues (on account) for the year, P250,000. 31 Total cash collections from accounts receivable amounted to P200,000 31 Incurred other operating expenses on account during the year that amounted to P80,000. 31 Accrued salaries amounted to P32,000. 31 P1,000 of supplies remained on hand at the end of the period. Required: Based on the preceding information, answer the following questions. All questions pertain to the 2020 financial statements. 1. What is the total amount of revenues appearing on the income statement? 2. What is the amount of supplies expense that would appear on the income statement? 3. What is the amount of interest expense that would appear on the income statement? 4. What is the amount of rent expense that would appear on the income statement? 5. What is the amount of total expenses that would appear on the income statement? 6. What is the amount of the gain from the sale of land appearing on the income statement? 7. What is the amount of profit appearing on the income statement? 8. What is the amount of unearned revenue that would appear on the balance sheet? 9. What is the amount of interest payable that would appear on the balance sheet? 10. What is the amount of total liabilities that would appear on the balance sheet? 11. What is the amount of net cash flow from operating activities that would appear on the statement of cash flows? 12. What is the amount of net cash flow from investing activities that would appear on the statement of cash flows? 13. What is the amount of cash flow from financing activities that would appear on the statement of cash flows