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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