Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

IN PHOTO: PROBLEM: The adjusted accounts presented below were provided by the accountant of the Issa Hobby Shop for the year ended Dec. 31, 2003.

IN PHOTO:
PROBLEM: The adjusted accounts presented below were provided by the accountant of the Issa Hobby Shop for the year ended Dec. 31, 2003. Using the periodic inventory system, the merchandise inventory as of December 31 per physical count is P35,000.
Cash - 76,000
Marketable Securities - 12,800
Notes Receivable - 60,000
Accounts Receivable - 15,700
Interest Receivable - 600
Merchandise Inventory 1/1 - 45,000
Prepaid Insurance - 9,500
Office Supplies - 3,000
Store Supplies - 2,000
Land - 55,000
Building - 250,000
Accumulated Depreciation - Building - 37,500
Office Equipment - 35,000
Accumulated Depreciation - Office Equipment - 4,000
Store Equipment - 40,000
Accumulated Depreciation - Store Equipment - 3,500
Accounts Payable - 60,000
Salaries Payable - 15,000
Utilities Payable - 1,700
Notes Payable (due July 7, 2004) - 15,000
Notes Payable (due July 1, 2006) - 25,000
Interest Payable - 4,000
Mortgage Payable (due December 31, 2006) - 100,000
Issa Lara, Capital - 227,910
Issa Lara, Drawing - 7,000
Sales - 350,000
Sales Returns and Allowances - 4,500
Sales Discount - 5,000
Purchases - 150,800
Purchase Returns and Allowances - 7,540
Purchase Discounts - 3,250
Freight-in - 5,800
Depreciation Expense - Building - 18,000
Depreciation Expense - Office Equipment - 2,000
Depreciation Expense - Store Equipment - 2,500
Utilities Expense - 2,000
Advertising Expense - 9,000
Sales Salaries Expense - 15,800
Transportation-out - 3,700
Office Supplies Used - 1,500
Store Supplies Used - 1,200
Office Salaries Expense- 20,000
Insurance Expense - 8,000
Interest Income - 6,000
Rent Income (specialty shop) - 5,000
Interest Expense - 4,000
OTHER BITS OF INFORMATION INCLUDE:
Building Usage - 40% office and 60% store
Utilities Consumption - 30% office and 70% store
Insurance benefit - 20% office and 80% store
REQUIRED: Prepare a
a) Income Statement
b) Statement of Changes in Owner's Equity
c) Balance Sheet
MAKE SURE THAT THE BALANCE SHEET'S TOTAL ASSETS IS EQUAL TO TOTAL LIABILITIES + OWNER's EQUITY.
Everything is in Philippine Peso.
image text in transcribed
PROBLEM 4 The adjusted accounts presented below were provided by the accountant of the fas Hobby Shop for the year ended Dec. 31, 2003. Using the periodic inventory system, the merchandise inventory as of December 31 per physical count is P35,000. Other bits of information include: building usage, 40% office and 60% store; Utilities consumption, 30% office and 70% store; and Insurance benefit 20% office and 80% store Required: Prepare a) Balance Sheet b) Income Statement c). Statement of Changes in Owner's Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring Public Relations Global Strategic Communication

Authors: Ralph Tench, Liz Yeomans

4th Edition

1292112182, 9781292112183

More Books

Students also viewed these Accounting questions

Question

Describe major criticisms of Freuds system of thought.

Answered: 1 week ago