Question
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
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.
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