16. An inexperienced clerk prepared an income statement for the month of June. Carlos Villa was disappointed with the result of operation. You discovered that a bill for advertising leaflets ordered from Rajah Printing in the amount of P5,000 was not included. Salaries for the last week of June was still unpaid and unreported. You are to prepare a correct income statement. Should the owner be glad with the revised report you gave? VILLA'S MACHINE WORKS June 30, 2018 5:00 P.M. Revenues: Machine work income Investment by Carlos Villa, owner Loan from bank (including P1,000 interest expense) Expenses: Payment to long term creditors Cash withdrawn by Villa Expenses required for services provided to customers (1/4 for utilities, the balance shared equally by rent and salaries) Purchase of land Net Loss Required: Prepare a correct income statement. P 40,000 20,000 60,000 P 32,000 5,000 30,000 64,000 P120,000 131.000 P 11.000

16. An inexperienced clerk prepared an income statement for the month of June. Carlos Villa was disappointed with the result of operation. You discovered that a bill for advertising leaflets ordered from Rajah Printing in the amount of P5,000 was not included. Salaries for the last week of June was still unpaid and unreported. You are to prepare a correct income statement. Should the owner be glad with the revised report you gave? VILLA'S MACHINE WORKS June 30, 2018 5:00 P.M. Revenues: Machine work income Investment by Carlos Villa, owner Loan from bank (including P1,000 interest expense) Expenses: Payment to long term creditors Cash withdrawn by Villa Expenses required for services provided to customers (1/4 for utilities, the balance shared equally by rent and salaries) Purchase of land Net Loss Required: Prepare a correct income statement. P 40,000 20,000 60,000 P 32,000 5,000 30,000 64,000 P120,000 131.000 P 11.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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