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The following selected information is taken from the records of Good Repair Services for the year 2018: Accounts payable Accounts receivable Advertising expense Cash Supplies expense Rent expense P 35,000 65,000 20,000 19,500 46,000 10,000 2.000

The following selected information is taken from the records of Good Repair Services for the year 2018: Accounts payable Accounts receivable Advertising expense Cash Supplies expense Rent expense P 35,000 65,000 20,000 19,500 46,000 10,000 2.000

FINANCIAL ACCOUNTING
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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0,000 000 000 ment ng it al of ated h of two 2 The owner-manager of Megahall spent P3,250 entertaining two balikbayan - relatives and P1,500 for a business associate. Two invoices were given to the accountant. Only P1,500 was reimbursed by the cashier. Explain why, by citing the concept supporting this. How will this be recorded by the accountant? g. Refer to f) above. If the owner gets a reimbursement for P3,250, how will this be recorded? What principle discussed in Chapter 3 did you apply? 2. The following selected information is taken from the records of Good Repair Services for the year 2018: a) b) Accounts payable Accounts receivable Advertising expense Cash Supplies expense Rent expense Utilities expense Miscellaneous expense Owners' equity, Dec 31, 2017 Salaries expense Repair Equipment Notes Payable P 35,000 65,000 20,000 19,500 46,000 10,000 3,000 4,400 140,000 61,000 400,000 150,000 You found out that there are no records for revenues earned by the business. Supplies purchased were all recorded as expenses but half of these are still unused. Required: Determine the total assets and liabilities as at December 31, 2018. Determine the net income as well as revenues 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? Warren King formed a business called Global Consultancy Services. The following are the
Transcribed Image Text:0,000 000 000 ment ng it al of ated h of two 2 The owner-manager of Megahall spent P3,250 entertaining two balikbayan - relatives and P1,500 for a business associate. Two invoices were given to the accountant. Only P1,500 was reimbursed by the cashier. Explain why, by citing the concept supporting this. How will this be recorded by the accountant? g. Refer to f) above. If the owner gets a reimbursement for P3,250, how will this be recorded? What principle discussed in Chapter 3 did you apply? 2. The following selected information is taken from the records of Good Repair Services for the year 2018: a) b) Accounts payable Accounts receivable Advertising expense Cash Supplies expense Rent expense Utilities expense Miscellaneous expense Owners' equity, Dec 31, 2017 Salaries expense Repair Equipment Notes Payable P 35,000 65,000 20,000 19,500 46,000 10,000 3,000 4,400 140,000 61,000 400,000 150,000 You found out that there are no records for revenues earned by the business. Supplies purchased were all recorded as expenses but half of these are still unused. Required: Determine the total assets and liabilities as at December 31, 2018. Determine the net income as well as revenues 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? Warren King formed a business called Global Consultancy Services. The following are the
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