Construct the statement of cash flow: Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations: January 1. The owner, Link, invested P1,000,000 cash to start the business. January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash. January 1. Bought furniture and fixtures using cash, P400,000. January 1. Bought machineries totaling P500,000 on account. January 3. Bought office supplies amounting 50,000 cash. January 7. Rendered services amounting to P800,000, on account. January 8. Rendered services amounting to P200,000 cash. January 13. Paid 300,000 for the machineries bought on January 1. January 27. Received P400,000 cash as payment for the services rendered on January 31. January 31. Paid P100,000 for the month’s utilities.
Construct the statement of cash flow: Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations: January 1. The owner, Link, invested P1,000,000 cash to start the business. January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash. January 1. Bought furniture and fixtures using cash, P400,000. January 1. Bought machineries totaling P500,000 on account. January 3. Bought office supplies amounting 50,000 cash. January 7. Rendered services amounting to P800,000, on account. January 8. Rendered services amounting to P200,000 cash. January 13. Paid 300,000 for the machineries bought on January 1. January 27. Received P400,000 cash as payment for the services rendered on January 31. January 31. Paid P100,000 for the month’s utilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Construct the statement of
Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations:
- January 1. The owner, Link, invested P1,000,000 cash to start the business.
- January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash.
- January 1. Bought furniture and fixtures using cash, P400,000.
- January 1. Bought machineries totaling P500,000 on account.
- January 3. Bought office supplies amounting 50,000 cash.
- January 7. Rendered services amounting to P800,000, on account.
- January 8. Rendered services amounting to P200,000 cash.
- January 13. Paid 300,000 for the machineries bought on January 1.
- January 27. Received P400,000 cash as payment for the services rendered on January 31.
- January 31. Paid P100,000 for the month’s utilities.
Transcribed Image Text:QUESTION: Construct the statement of cash flow:
Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations:
January 1. The owner, Link, invested P1,000,000 cash to start the business.
January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash.
January 1. Bought furniture and fixtures using cash, P400,000.
January 1. Bought machineries totaling P500,000 on account.
January 3. Bought office supplies amounting 50,000 cash.
January 7. Rendered services amounting to P800,000, on account.
January 8. Rendered services amounting to P200.000 cash.
January 13. Paid 300,000 for the machineries bought on January 1.
January 27. Received P400,000 cash as payment for the services rendered on
January 31. January 31. Paid P100,000 for the month's utilities.
Hyrule Motors
Worksheet
For the Year Ended December 31, 2020
Adjustments
Adjusted Trial Balance
Debit
P240,000
425,000
50,000
90,000
500,000
240,000
400,000
Income Statement
Credit
Balance Sheet
Credit
Trial Balance
Debit
P240.000
400,000
50,000
360,000
500,000
240,000
400,000
No.
Account Title
Credit
Debit
Credit
Credit
Debit
Debit
P240,000
425,000
50,000
90,000
500.000
240,000
400,000
110
Cash
120
Accounts Receivable
P25,000
130
Office Supplies
140 Prepaid Rent
P270,000
140
150 Machineries
160 Computer Equipment
|170
210 | Accounts Payable
220 Utilities Payable
Furniture and Fixtures
P200,000
P200,000
50,000
45,000
1,000,000
1,070,000
P200,000
50,000
45,000
1,000,000
50,000
230
Unearned Revenue
90,000
1,000,000
1,000,000
45,000
310
Link, Capital
410
70,000
P1,070,000
Service Revenue
Utilities Expense
Rent Expense
150,000
270.000
P390,000 P2,365,000 P2,365,000
100,000
50,000
270,000
P390,000
P150,000
270.000
P420,000 P1,070,000 P1,945,000 P1,295,000
650.000
P1,070,000 P1,070,000 P1,945,000 P1,945,000
510
520
|
P2,290,000 P2,290,000
Profit
650,000
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