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: Assets Cash Equities P180,000 Accounts Receivable Accounts Payable P 34,000 110,000 Land 90,000 Viesca, Capital 346,000 Total P380,000 Total 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. 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. May 1