Note: the answer in no. 1 was already given. Answer only the following financial statements: -Income Statement -Statement of changes in Owner’s Equity -Statement of Cash Flows -Statement of Financial Position or Balance Sheet

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Note: the answer in no. 1 was already given. Answer only the following financial statements: -Income Statement -Statement of changes in Owner’s Equity -Statement of Cash Flows -Statement of Financial Position or Balance Sheet
DATE
March
Total
Claire Santos opened Little Steps and Sway Dance Studio which offers yoga, ballet and
stretch classes for children. The following are her transactions for March 2022:
1
Opened a bank account with a cash deposit of P500,000 for the business.
2
Signed a contract of lease and paid P30,000 for the month's rental to Robinson's Place.
3
A computer and fax machine, personal properties of Ms. Santos purchased at P70,000 were
transferred to the studio.
4 Purchased a stereo set at P250,000 from Music Depot. Terms: P50,000 DP and balance
payable in two months starting at the end of the month.
Purchased yoga mats and other supplies for P15,000 cash.
5
8
Ms. Santos withdrew P10,000 for personal use.
Bought furniture and fixtures from a friend, Ms. Dizon and gave 50% down payment of
P20,000. Issued a note for the balance due for payment within 15 days.
15 Received P150,000 cash as payment of O.B. Montessori for the yoga classes provided by
Little Steps and Sway Dance Studio to its students.
Paid the promissory note which matures today.
Received the telephone and electricity bill from PLDT and Meralco amounting to P2,500 and
P13,000, respectively. They are due to be paid on April 15.
Paid the first installment to Music Depot.
Paid the salary of her assistant at P5,000.
10
25
26
30
31
P
a. Analyze the transactions using the table below.
b. Prepare the four financial statements as of March 31, 2022.
C
.. the form
VINCIL
ASSETS
LIABILITIES
P
OWNER'S EQUITY
Explanation of
changes in owner's
equity
Transcribed Image Text:DATE March Total Claire Santos opened Little Steps and Sway Dance Studio which offers yoga, ballet and stretch classes for children. The following are her transactions for March 2022: 1 Opened a bank account with a cash deposit of P500,000 for the business. 2 Signed a contract of lease and paid P30,000 for the month's rental to Robinson's Place. 3 A computer and fax machine, personal properties of Ms. Santos purchased at P70,000 were transferred to the studio. 4 Purchased a stereo set at P250,000 from Music Depot. Terms: P50,000 DP and balance payable in two months starting at the end of the month. Purchased yoga mats and other supplies for P15,000 cash. 5 8 Ms. Santos withdrew P10,000 for personal use. Bought furniture and fixtures from a friend, Ms. Dizon and gave 50% down payment of P20,000. Issued a note for the balance due for payment within 15 days. 15 Received P150,000 cash as payment of O.B. Montessori for the yoga classes provided by Little Steps and Sway Dance Studio to its students. Paid the promissory note which matures today. Received the telephone and electricity bill from PLDT and Meralco amounting to P2,500 and P13,000, respectively. They are due to be paid on April 15. Paid the first installment to Music Depot. Paid the salary of her assistant at P5,000. 10 25 26 30 31 P a. Analyze the transactions using the table below. b. Prepare the four financial statements as of March 31, 2022. C .. the form VINCIL ASSETS LIABILITIES P OWNER'S EQUITY Explanation of changes in owner's equity
Date
Cash Supplies
Mar-01 500000
Mar-02 -30000
Mar-03 -70000
Mar-04 -50000
Mar-05 -15000 15000
Mar-08 -10000
Mar-10 -20000
Mar-15 15000
Mar-25 -20000
Mar-26
Mar-30 -100000
Assets (P)
Office
Equipment
70000
250000
Mar-31 -5000
Total 195000 15000 320000
570000
Furniture and
Fixtures
40000
40000
Liabilities (P)
Accounts
Payable
200000
15500
-100000
115500
Notes
Payable
20000
-20000
0
570000
Owner's Equity
(P)
500000
-30000
-10000
15000
-15500
-5000
454500
Explanation of Changes in Owners Equity
Increase in Owners Equity by Raise the Capital for the Business
Decrease the Owners Equity due to payment of Rent Expenses
No Effect in Owners Equity it affect only in the assets of the business
No Effect in Owners Equity. It increase liabilities and assets of the business
No Effect in Owners Equity it affect only in the assets of the business
Decrease the Owners Equity due to withdrawal
No Effect in Owners Equity. It increase liabilities and assets of the business
Increase in Owners Equity due to sales revenue generated
No Effect in owners equity it reduces both assets and liabilities
It decreases the owners equity due to generate utility expenses
No Effect in owners equity it reduces both assets and liabilities
It decreases the owners equity due to generate salary expenses
Transcribed Image Text:Date Cash Supplies Mar-01 500000 Mar-02 -30000 Mar-03 -70000 Mar-04 -50000 Mar-05 -15000 15000 Mar-08 -10000 Mar-10 -20000 Mar-15 15000 Mar-25 -20000 Mar-26 Mar-30 -100000 Assets (P) Office Equipment 70000 250000 Mar-31 -5000 Total 195000 15000 320000 570000 Furniture and Fixtures 40000 40000 Liabilities (P) Accounts Payable 200000 15500 -100000 115500 Notes Payable 20000 -20000 0 570000 Owner's Equity (P) 500000 -30000 -10000 15000 -15500 -5000 454500 Explanation of Changes in Owners Equity Increase in Owners Equity by Raise the Capital for the Business Decrease the Owners Equity due to payment of Rent Expenses No Effect in Owners Equity it affect only in the assets of the business No Effect in Owners Equity. It increase liabilities and assets of the business No Effect in Owners Equity it affect only in the assets of the business Decrease the Owners Equity due to withdrawal No Effect in Owners Equity. It increase liabilities and assets of the business Increase in Owners Equity due to sales revenue generated No Effect in owners equity it reduces both assets and liabilities It decreases the owners equity due to generate utility expenses No Effect in owners equity it reduces both assets and liabilities It decreases the owners equity due to generate salary expenses
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