Chapter 4: Exercise 3 pt. 2 page 87 Warren King formed a business called Global Consultancy Services.?REQUIRED: a.) Prepare a statement of changes in owner's equity for May. b.) Prepare a properly classified report form of statement of financial position as of May 31. Rent Deposit is classified as Other Non-Current Asset after Property and Equipment.c.) Using the cash data, analyze its movement (inflow or outflow) in a working paper. Give the net flow of cash from its operating, financing and investing activities. Note: Pls put the commas properly. 3. Warren King formed a business called Global Consultancy Services. The following are thetransactions for May, the first month of operation of the business:nues earned, using the concept of capitalmaintenance.c) Had there been a P5,000 cash withdrawal made by owner, what would have been thenet income under the concept of capital maintenance?3Mr. King wrote a check for P50,000 against his personal checking account anddeposited it to the account of Global Consultancy Services.Purchased for office use electronic equipment worth P100,000 from Electro World.Made a down payment of P50,000 out of his personal cash with the balance payable bythe business after 15 days.11 Purchased office supplies costing P4,500 in cash.6282914He rented an office space which was already fully furnished for a monthly rental ofP15,000. Gave a rental deposit of P30,000 refundable upon termination of rent contract.Billed SMC for a project feasibility study on its new business venture. SMC issued acheck for P100,000.1521222527873031The account with ElectroWorld was paid.Received and paid a bill in the amount of P500 for cards ordered from Hansen.Completed the installation of a computerized accounting system and billed The Racks P120,000.Withdrew cash of P15,000 for personal use.Attended a seminar on Quality Management and paid P5,000.Paid annual membership fee of P1,500 to People Management Association of thePhilippines.Paid P17,500 for rent and P6,000 for utilities.Paid for the salary of the office clerk, P4,500.Supplies used amounted to P500. DateMay-03May-06May-1150,000-50,000-4,500May-14-30,000May-15 1,00,000May-21-50,000May-22-500May-25May-27May-28May-29May-30May-30May-31May-31CashTotal-15,000-5,000-1,500-17,500-6,000-4,500-34,500Accounts Receivable Equipment1,20,000Assets1,20,0001,00,0001,00,000Accounting EquationDeposit for Rent30,00030,000Supplies4,500-5004,000LiabilitiesAccounts Payable50,000-50,000King CapitalCapitalNature of Transaction50,000 Investment1,00,000 Professional Income-500 Advertising Expenses1,20,000 Professional Income-15,000 King Drawings-5,000 Seminar Fees Expense-1,500 Membership Fees Expense-17,500 Rent Expense-6,000 Utilities Expenses-4,500 Salaries Expense-500 Supplies Expenses2,19,500

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Description: Chapter 4: Exercise 3 pt. 2 page 87 Warren King formed a business called Global Consultancy Services.?REQUIRED: a.) Prepare a statement of changes in owner's equity for May. b.) Prepare a properly classified report form of statement of financial posi

Financial statements are those statements which are prepared at the end of accounting period for…

Answered: Chapter 4: Exercise 3 pt. 2 page 87…

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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Chapter 4: Exercise 3 pt. 2 page 87 Warren King formed a business called Global Consultancy Services. ?REQUIRED: a.) Prepare a statement of changes in owner's equity for May. b.) Prepare a properly classified report form of statement of financial position as of May 31. Rent Deposit is classified as Other Non-Current Asset after Property and Equipment. c.) Using the cash data, analyze its movement (inflow or outflow) in a working paper. Give the net flow of cash from its operating, financing and investing activities. Note: Pls put the commas properly.

3. Warren King formed a business called Global Consultancy Services. The following are the
transactions for May, the first month of operation of the business:
nues earned, using the concept of capital
maintenance.
c) Had there been a P5,000 cash withdrawal made by owner, what would have been the
net income under the concept of capital maintenance?
3
Mr. King wrote a check for P50,000 against his personal checking account and
deposited it to the account of Global Consultancy Services.
Purchased for office use electronic equipment worth P100,000 from Electro World.
Made a down payment of P50,000 out of his personal cash with the balance payable by
the business after 15 days.
11 Purchased office supplies costing P4,500 in cash.
6
28
29
14
He rented an office space which was already fully furnished for a monthly rental of
P15,000. Gave a rental deposit of P30,000 refundable upon termination of rent contract.
Billed SMC for a project feasibility study on its new business venture. SMC issued a
check for P100,000.
15
21
22
25
27
87
30
31
The account with ElectroWorld was paid.
Received and paid a bill in the amount of P500 for cards ordered from Hansen.
Completed the installation of a computerized accounting system and billed The Racks P120,000.
Withdrew cash of P15,000 for personal use.
Attended a seminar on Quality Management and paid P5,000.
Paid annual membership fee of P1,500 to People Management Association of the
Philippines.
Paid P17,500 for rent and P6,000 for utilities.
Paid for the salary of the office clerk, P4,500.
Supplies used amounted to P500.

Date
May-03
May-06
May-11
50,000
-50,000
-4,500
May-14
-30,000
May-15 1,00,000
May-21
-50,000
May-22
-500
May-25
May-27
May-28
May-29
May-30
May-30
May-31
May-31
Cash
Total
-15,000
-5,000
-1,500
-17,500
-6,000
-4,500
-34,500
Accounts Receivable Equipment
1,20,000
Assets
1,20,000
1,00,000
1,00,000
Accounting Equation
Deposit for Rent
30,000
30,000
Supplies
4,500
-500
4,000
Liabilities
Accounts Payable
50,000
-50,000
King Capital
Capital
Nature of Transaction
50,000 Investment
1,00,000 Professional Income
-500 Advertising Expenses
1,20,000 Professional Income
-15,000 King Drawings
-5,000 Seminar Fees Expense
-1,500 Membership Fees Expense
-17,500 Rent Expense
-6,000 Utilities Expenses
-4,500 Salaries Expense
-500 Supplies Expenses
2,19,500

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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