CALCULATE THE MISSING AMOUNT THAT RELATES TO THE FINANCIAL POSITION OF AN ENTERPRISE:

A. A business firm has an obligation P 450,000. If the total assets are P 950,000, how much is the amount of owner's equity?

B. A company's residual interest showed a balance of P 350,000. If it claims an ownership in assets worth P 1,000,000, how much is the liabilities?

C. If a firm has an owner's equity of P700,000 and a financial obligation of P 300,000 how much is the Firm's total assets?

ACTIVITY 2

The following relates to the operating results (performance) of the business:

CASE 1 CASE 2 CASE 3 CASE 4

TOTAL INCOME P 800,000 P 900,000 P ? P ?

LESS: TOTAL EXPENSES 550,000 ? 400,000 150,000

NET INCOME (LOSS) P ? P 700,000 P 100,000 (P 10,000)

ACTIVITY # 3

NET INCOME(NETLOSS)

INCOME - EXPENSES = - BREAKEVEN -

CASE A P 350,000 P 260,000 P ?

CASE B P 450,000 P ? P 270,000

CASE C P 150,000 P ? P ----

CASE D P 270,000 P 290,000 P ?

CASE E P ? P 270,000 (P 20,000)

CASE F P ? P 350,000 P 35,000

CASE G P 310,000 P ? (P 50,000)

CASE H P ? P 400,000 P ----

ACTIVITY 4

MS. FELY ARDINA MADE THE FOLLOWING INVESTMENTS:

CASH P 40, 000

EQUIPMENT 50, 000

TOTAL P90, 000

AT THE END OF THE MONTH, THE TOTAL INCOME EARNED AND TOTAL EXPENSES INCURRED BY THE BUSINESS WERE

P 60,000 AND P 40,000 RESPECTIVELY. SHE MADE NO DRAWINGS.

QUESTION: HOW MUCH IS THE CAPITAL BALANCE MS. ARDINA AT THE END OF THE MONTH?

ACTIVITY 5

FLORDELIZA ORBITA OPENS A SMALL BUSINESS. AT THE END OF THE PERIOD, HER BOOKKEEPER INFORMED HER THAT THE BUSINESS MADE A NET PROFIT OF P 10,000. THE FOLLOWING DATA TAKEN FROM THE RECORDS OF HER BUSINESS:

BEGINNING CAPITAL INVESTMENT P 120,000

TOTAL INCOME EARNED 75,000

TOTAL EXPENSE INCURERED 65,000

PERSONAL DRAWING 15,000

HER BOOKKEEPER TOLD HER THAT HER CAPITAL INVESTMENT DECREASED BY P 5,000 AT THE END OF THE PERIOD. SHE GOT SURPRISED WHY HER CAPITAL INVESTMENT DECREASED BY P 5,000 WHEN THE BUSINESS WAS MAKING PROFIT. SHE CANNOT UNDERSTAND WHY THE NED PROFIT OF P 10,000 RESULTED TO A DECREASE IN HER CAPITAL INVESTMENT BY P5,000.

REQUIRED: CALCULATE THE ENDING CAPITAL BALANCE OF FLORDELIZA ORBITA SHOWING THE NET INCREASE OR NET DECREASE IN HER CAPITAL INVESTMENT. GIVE YOU SOUND ADVISE TO HER.

The following data for adjustments were taken from the records of Flordelis Valencia, The owner manager of Oriental Inn of Domaguece City- 1. Salaries of employees were unpaid, 14.500. 3, Rental collection was received in advance, P7,600. An income account was credited. At the end of the period. F1,GOD is not yet earned. 3. Puld an insurance premium amounting to F1 000. Expense Method was used. At the end of the period, P3/400 has actually expired. . An Interest on Notes Receivable was received in advance in the amount of 12,200. Liability account was credited. At the end of the period F1,800 is actually earned. 5. A purchase of supplies was debited to an asset account, 13,809. P1,200 cost of supplies were nebanlly on hand when the period ended. Required: 1. Prepare adjusting entries 3. Prepare reversing entries if deemed necessary.The following adjusting entries were prepared at the end of the accounting period. (Explanation are intentionally omitted]. ADJUSTING ENTRIES REVERSING ENTRIES 1) Bad Debts P1,100 Accumulated Depreciation P1, 100 2) Utilities Expense 1,500 Accrued Utilities Expense 1,500 3) Depreciation 3,200 Accumulated Depreciation 3,200 Activ