Financial Accounting Project: 1. The owner, Josef Miguel, invested Php250,000 cash in the business. He registered the business with the following expenditures: a. Mayor’s permit, Php5,000 b. DTI registration, Php600 c. BIR/TIN Registration, Php500 d. Transportation during the processing of registration, Php300 2. After the business permit was taken, he started the business with the following cash expenditures: a. Paid in cash rent of office space, Php24,000 b. Paid insurance, Php60,000 c. Purchased supplies, Php3,000 d. Purchased of second-hand delivery truck, Php150,000 3. Total delivery income for the month, Php300,000 of which 40% are on account. 4. Received cash advance amounting to Php180,000 for delivery services to be rendered in 18 months. 5. Billed customers for services rendered, Php45,000. 6. Expenses paid / incurred during the month were as follows: a. Salaries, Php40,000 b. Utilities, Php2,000 c. Transportation, Php3,000 d. Telephone, Php6,000 7. Collected 50% of transaction no. 3 8. Withdrew cash Php20,000 Requirement No.1: Journalize and post the following transactions of the New Delivery Services during December 2021. Requirement No.2: Record the adjustments assuming that: 1. The Php24,000 rent is for 6 months starting December 1, 2021 2. The Php60,000 insurance is for 12 months starting October 31, 2021 3. The unused supplies as of December 31, 2021 amount to Php1,000 4. The delivery truck was acquired October 1, 2021 and has an estimated life of 5 years without scrap value. 5. Out of Php180,000 cash advance, Php120,000 has been delivered to the customer. Requirement No. 3: Prepare the working paper / worksheet for the month of December 2021. Requirement No.4: Prepare the formal financial statements. a. Statement of Comprehensive Income / Profit or Loss b. Statement of Changes in Equity c. Statement of Financial Position d. Statement of Cash Flows Requirement No.5: Close the nominal accounts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Financial Accounting Project:
1. The owner, Josef Miguel, invested Php250,000 cash in the business. He registered the
business with the following expenditures:
a. Mayor’s permit, Php5,000
b. DTI registration, Php600
c. BIR/TIN Registration, Php500
d. Transportation during the processing of registration, Php300
2. After the business permit was taken, he started the business with the following cash
expenditures:
a. Paid in cash rent of office space, Php24,000
b. Paid insurance, Php60,000
c. Purchased supplies, Php3,000
d. Purchased of second-hand delivery truck, Php150,000
3. Total delivery income for the month, Php300,000 of which 40% are on account.
4. Received cash advance amounting to Php180,000 for delivery services to be rendered in
18 months.
5. Billed customers for services rendered, Php45,000.
6. Expenses paid / incurred during the month were as follows:
a. Salaries, Php40,000
b. Utilities, Php2,000
c. Transportation, Php3,000
d. Telephone, Php6,000
7. Collected 50% of transaction no. 3
8. Withdrew cash Php20,000

Requirement No.1: Journalize and post the following transactions of the New Delivery Services
during December 2021.

Requirement No.2: Record the adjustments assuming that:
1. The Php24,000 rent is for 6 months starting December 1, 2021
2. The Php60,000 insurance is for 12 months starting October 31, 2021
3. The unused supplies as of December 31, 2021 amount to Php1,000

4. The delivery truck was acquired October 1, 2021 and has an estimated life of 5 years
without scrap value.
5. Out of Php180,000 cash advance, Php120,000 has been delivered to the customer.

Requirement No. 3: Prepare the working paper / worksheet for the month of December 2021.

Requirement No.4: Prepare the formal financial statements.
a. Statement of Comprehensive Income / Profit or Loss
b. Statement of Changes in Equity
c. Statement of Financial Position
d. Statement of Cash Flows

Requirement No.5: Close the nominal accounts

Requirement No.6: Prepare a post-closing trial balance

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