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by Carlos Villa, owner Loan from bank (including P1,000 interest expense) Expenses: Payment to long term creditors Cash withdrawn by Villa Expenses required for services provided to customers (1/4 for utilities, the balance shared equally by rent and salaries) Purchase of land Net Loss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
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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Cash withdrawn by Villa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
P120,000
30,000
64,000 131.000
P 11.000
Transcribed Image Text: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 P120,000 30,000 64,000 131.000 P 11.000
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