Problem No. 1
5-38 | Basic Financial Accounting and Reporting by Prof. WIN Ballada NAME: SCORE: SECTION: PROFESSOR: Problem #12 Preparing the Financial Statements The accounts for the balance sheet, statement of changes in equity, and income statement of Alfred Cesar Quinsay, CPA, are as follows: Accounts Payable P 63,500 Accounts Receivable 198,000 Accumulated Depreciation-Building 110,000 Accumulated Depreciation-Office Equipment 120,000 Auditing Revenues 1,361,500 Building 750,000 Cash 118,500 Depreciation Expense-Building 55,000 Depreciation Expense-Office Equipment 60,000 Quinsay, Capital, 1/1/2019 1,193,500 Quinsay, Withdrawals 165,000 Land 75,000 Notes Receivable 60,000 Office Equipment 362,500 Office Supplies Expense 96,000 Office Supplies 28,000 Professional Development Expense 86,500 Rent Expense 52,500 Salaries Expense Salaries Payable 735,000 Travel Expense 30,500 Utilities Expense 41,000 18,000 During the year, Quinsay invested additional P22,000 in the business. Required: Prepare the income statement, statement of changes in equity and balance sheet.Worksheet and Financial Statements | 5-39 NAME: SECTION: SCORE: PROFESSOR: Problem #13 Statement of Cash Flows a. Cash received from sale of a building. b. Cash paid for salaries. C. Cash received for interest on a note receivable. d. Cash paid to acquire a new truck. e. Cash loaned out to a customer in the form of a long-term note. f. Cash received for services rendered. . Cash paid for interest. h. Cash paid for insurance on equipment. i. Cash received from a debtor representing payments of principal. j. Cash paid out to acquire a building. Required: Categorize each cash flow as (O) for operating, (1) for investing, or (F) for financing. Problem #14 Cash Flows from Operating Activities-Indirect Method Imara Andam Business Solutions had a profit of P330,000 in 2019. During the year, the entity had depreciation expense of P70,000. Accounts receivable increased by P110,000 and accounts payable increased by P50,000. The entity started operations in 2019 and the foregoing are the entity's only current assets and current liabilities. Required: Determine the net cash flows from operating activities using the indirect method.5-40 | Basic Financial Accounting and Reporting by Prof. WIN Ballada NAME: SCORE: SECTION: PROFESSOR: Problem #15 Classification of Events on Statement of Cash Flows The following transactions pertain to the operations of Party Consultants, an events planning entity owned by Eleanor Tan. The entity had the following transactions during the month: 1. Received a P180,000 cash investment from the owner. 2. Provided P400,000 services on account. 3. Incurred P220,000 of operating expenses on account. 4. Collected P320,000 cash from accounts receivable. 5. Allowed a P30,000 cash withdrawal to the owner of the business. 6. Paid P160,000 cash on accounts payable. 7. Performed services for P30,000 cash., 8. Paid P12,000 cash for expenses. Required: 1. Classify each of these transactions as a cash flow from operating activities (OA), investing activities (IA), or financing activities (FA). Transactions that do not affect the statement of cash flows should be identified as "n/a". 2. Prepare a statement of cash flows
