concerning such concepts as the business entity and the valuation of assets,37liabilities, and owner's equity.BERSOZA PLAYHOUSEStatement of Financial PositionSeptember 30, 2019ASSETSCashP 21,900132,200LIABILITIES & OWNER'S EQUITYLiabilities:AccountsAccounts PayableP 60,000ReceivableProps andCostumesTheatreBuildingLightingEquipmentAutomobile30,000Salaries Payable29,200270,000Total LiabilitiesP 89,20094,000Owner's Equity:350,000Helen Bersoza,808,900CapitalTotalTotalP 898.100P 898.100The following facts were discovered after reviewing the records of thePlayhouse:a. The amount of cash include P 15,000 in the company's bank account, P1,900 in the company's safe and P 5,000 in Bersoza's personal savingsaccount.b. The accounts receivable include P 7,200 owed to Playhouse by ArtisticTours and the remaining P 125,000 is an estimate of future ticket salesfor the next three months,c. Bersoza explains to you that the props and costumes were purchasedfive days ago for P 50,000 of which P 30,000 was paid and a note issuedfor the balance. As this note is not due until March of next year, it wasnot included among the company's liabilities.d. Bersoza rents the theater building from Karyl International at a rate of P30,000 a month. The P 270,000 rent until September was reported asTheater Building.e. The Automobile was purchased two years ago for P 200,000. She heardthat a similar one was advertised for sale at P 350,000. She does not usethe car in the business.f. The accounts payable includes P 41,000, the balance of her personal Visacard.2020.11.19 21:23Required 2020.11.19 21:2438MGMT 101 a: Principles of Accounting Ia) Prepare the correct statement for Bersoza Playhouse on September 30,2016. What will be the correct capital of the owner?b) For each of the six number items above, explain the accountingtreatment you made.c) Compare the amount of liabilities against the assets and the amount ofowner's equity against assets. Is the business solvent? Will the bankapprove the Loan?

38 MGMT 101 a: Principles of Accounting I a) Prepare the correct statement for Bersoza Playhouse on September 30, 2016. What will be the correct capital of the owner? b) For each of the six number items above, explain the accounting treatment you made. c) Compare the amount of liabilities against the assets and the amount of owner's equity against assets. Is the business solvent? Will the bank approve the Loan?

38 MGMT 101 a: Principles of Accounting I a) Prepare the correct statement for Bersoza Playhouse on September 30, 2016. What will be the correct capital of the owner? b) For each of the six number items above, explain the accounting treatment you made. c) Compare the amount of liabilities against the assets and the amount of owner's equity against assets. Is the business solvent? Will the bank approve the Loan?

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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Q1. Describe four of the accounting principles and assumptions and provide an example for each principle and assumption you describe. Q2. In this course, we covered journal entries. What is a journal entry? Why is it important? Give two examples of business transactions that require recording a journal entry, and write the journal entry for each transaction. Q3. What is the difference between accrual basis and cash basis in accounting? Give an example.
What is Mr Arendse’s equity in his business at the end of October 2016? a.R152 100 b.R2 775 900 c.R210 700 d.R1 301 900 e.R39 300
ro.14 Defining common receivalles terms Metch the terms with their correct definition. Lear Definitions Terms a. The party to a credit transaction who takes on an obligation/payable. b. The party who receives a receivable and will collect cash in 1. Accounts receivable 2. Other receivables 3. Debtor the future. C. A written promise to pay a specified amount of money at a particular future date. 4. Notes receivable 5. Maturity date d. The date when the note receivable is due. e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. 6. Creditor f. The right to receive cash in the future from customers for goods sold or for services performed.
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Questions 6 to 9 refer to the following information. Mr Arendse has asked you for some assistance with his financials. The following balances appeared in the books of his business as at the end of October 2016. Select one: O a. R1 633 600 Name of account O b. R1 301 900 O c. R1 608 300 O d. R1 358 300 Business Loan: BizDirect Bank Manufacturing machinery Creditors control Debtors control 6. What is the total amount of assets in his business? Warehouse building Balance (R) 339,200 84,000 358,400 26,700 800,000 Name of account Mortgage bond - Warehouse Petty cash Delivery vehicle Bank-Overdraft Office furniture Balance (R) 700,000 7,000 264.200 56,400 120,000
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What is the total amount of liabilities in his business? a.R1 397 600 b.R1 122 300 c.R1 147 600 d.R1 454 000