WEEK 1 STATEMENT OF FINANCIAL POSITION

Prepare the following base on the given details below:

a. Properly classified Statement of Financial Position for M. Cruz as of December 31, 2017.
b. Prepare the Statement of Financial Position as of December 31, 2017 for M. Cruz using:
Account Form
c. Prepare the Statement of Financial Position as of December 31, 2017 for M. Cruz using:
Report Form

The December 31, 2017 statement of financial position of M. Cruz is shown below in alphabetical order

Accounts Payable ₽ 236,000

Accounts Receivable 115,000

Accumulated Depreciation-Equipment 25,000

Allowance for Bad Debts 8,000

Cash and Cash Equivalents 65,000

Equipment 600,000

Inventory 150,000

M. Cruz 366,000

Notes Payable (due in 2019) 200,000

Salaries Payable 20,000

Supplies 5,000

Withholding Taxes Payable 80,000

WEEK 2 STATEMENT OF COMPREHENSIVE INCOME

Prepare an Income Statement of Comprehensive Income for the following information:

Accounts Receivable ₽ 235,000

Professional Income 750,000

Utilities Expense 35,000

Fixed Assets 450,000

Prepaid Expense 45,000

Salaries Expense 150,000

Rent Expense 15,000

Accrued Expense 2,500

Taxes and Licenses 3,850

Interest Expense 1,500

WEEK 3 STATEMENT OF COMPREHENSIVE INCOME

Look at these accounts from Lopez’s adjusted trial balance

Required: Prepare Lopez’s Multi-step Income Statement

Debit Credit

Sales ₽ 275,000

Sales Discount ₽ 2,000

Sales Return and Allowances 1,000

Interest Revenue 150

Cost of Goods Sold 159,000

Commissions Expense 10,000

Advertising Expense 7,000

Sales Salaries Expense 20,000

Rent Expense-sales 12,000

Rent Expense-office 12,000

Office Salaries Expense 40,000

Utilities Expense 5,000

Interest Expense 50

WEEK 4 PREPARE A STATEMENT OF CHANGES IN EQUITY

Answer the following

1. Give at least five examples of sole proprietorship in your area.

2. Give at least 5 examples of partnership form of business organizations in the Philippines.
3. Give At least 5 examples each for Stock and Non-Stock Corporations in the Philippines.
Prepare a Statement of Owner’s Equity of a service type sole proprietorship business, Garcia Transport
Services.

Assume that the Company started the year 2017 with ₽ 100,000 capital. During the year, the owner
made ₽ 10,000 additional contributions and ₽ 20,000 total withdrawals. The company generated a Net
Income of ₽ 54,000 for the year.

WEEK 5 COMPONENTS AND STRUCTURE OF CASH FLOW STATEMENT

For each of the following items indicate on the blank before each number which part will be affected.
Indicate (O) for Operating activities, (I) for Investing Activities, (F) for Financing Activities.

___________1. Cash collected from customers

___________2. Interest and Dividends received.

___________3. Cash Paid to employees

___________4. Cash Paid to suppliers

___________5. Interest Paid

___________6. Depreciation Expense

___________7. Proceeds from the sale of equipment

___________ 8. Gain on sale of automobile

___________ 9. An increase in the balance in retailer’s Merchandise Inventory

___________ 10. An increase in the balance in Accounts Receivable

PREPARE A CASH FLOW STATEMENT

Exercise 2. Prepare a Cash Flow Statement for Online Deal Co using the indirect method.

Eugene Perez is a college student who enjoys buying and selling merchandise using the Internet. On
January 2, 2017 , he decided to turn his hobby into a business called “Online Deal Co.”The following
were the transactions:

1. On January 2, 2017 Eugene invested ₽ 50,000 of his personal money into his sole proprietorship,
Online Deal Co.
2. On January 20, Online Deal bought 14 graphing calculators for ₽ 1,500 per calculator-this was
about 50% less than the selling price Eugene observed at the retail stores. The total cost to
Online Deal for all 14 calculators was ₽ 21,700. Online Deal had no other transactions during
January.
3. On February 25, 2017 Online Deal sold 10 calculators to a nearby highschool for ₽ 2,000 each.
Eugene delivered the calculators on February 25 and gave the school a ₽20,000 invoice due by
March 10. Eugene received ₽ 20,000 form the school on March 8.
 WEEK 6 FINANCIAL RATIOS
The following ratios are interpreted and depicted.

Match Column A (financial ratios) with columm B (interpretation)

Column A Column B

1. Liquidity Ratios a. Tell me you didn’t spend it all in one place

2. Debt Ratios b. Give me That Cash
3. Gross profit c. How we doin’out there
4. Operating ratio d. Was it really worth it?
5. Working capital e. Better pay or else

VERTICAL AND HORIZONTAL ANALYSIS

The following are the information for the years December 31, 2016 and December 31, 2017 of Lea’s
Merchandising Company, for which you are required to prepare an Income Statement and a horizontal
analysis.

2016 2017

Advertising Expense ₽ 265,000 ₽ 325,850

Cost of Goods Sold 4,120,000 5,450,785

Depreciation Expense 135,000 285,300

Insurance Expense 87,300 97,450

Rent Expense 220,000 345,600

Salaries and Wages 1,235,450 2,148,250

Sales 7, 285,600 10,985,340

Supplies Expense 75,000 95,250

Utilities Expense 313,000 435,650

Other Expenses 110,000 312,500

WEEK 7 COMPUTE AND INTERPRET FINANCIAL RATIOS

Assume the following information, compute and look for what is being asked in each item:

1. Cash ₽ 15,000
Accounts Receivable 10,000
Inventory 5,000
Prepaid Advertising 3,500
Total Current Liabilities 35,000
 *Compute for the current ratio and interpret the result

2. Inventory ₽ 5,000
Prepaid taxes 500

Total current assets 21,500

Current Liabilities 15,000

*Compute the Quick Ratio and interpret the result

3. The current assets of Mae’s water delivery amounts to ₽ 245,000 while its current liabilities
totaled to ₽150,000.
*Compute the working capital and interpret the result

4. A company has ₽ 450,000 Notes Payable aside from Bonds Payable amounting to ₽ 2,550,000.
The owners have total investment of ₽ 5,000,000.

*Compute the debt to equity ratio and interpret the result

5. Angelo’s statement of financial position shows total current assets amounting to ₽ 250,000 and
the total liabilities amount to ₽ 200,000.

*Compute Angelo’s debt ratio and interpret the result

WEEK 8 TYPES OF BANK ACCOUNT

Exercise 1. Multiple choice: Select and encircle the letter of the correct answer.

1. If you don’t want to send cash in the mail and you don’t have a bank account, how can you pay
someone?
a. Money order c. Money order and wire transfer
b. Wire transfer d. Sen through bus
2. Where can you cash a check if you don’t have a bank account?
a. At a check cashing center c. at any bank
b. At a cash exchange place d. at the bank where it was drawn
3. Which of these compounding methods will grow your savings balance the quickest?
a. Daily c. monthly
b. Quarterly d. annual
4. Which of the following will not deduct money from your bank account directly?
a. An ATM c. a debit card
b. A credit card d. a check
 5. Which of the following insures money held in a bank?
a. Philippine Deposit Insurance Corp. (PDIC)
b. Asian Development Bank
c. Philippine National Bank
d. Land Bank of the Philippines

Exercise 2. Answer the following questions

1. What are the types of bank accounts?

2. Differentiate Debit card from Credit card.

PREPARATION OF BANK DEPOSIT AND WIDTHRAWAL SLIP

You are going to make your deposit using the following information.

1. Depository Bank: Any Bank

2. You will deposit ₽55,452.60 cash.
3. You have a checks from BDO-Caloocan amounting to ₽ 25,120.50 and from DBP-Aparri
amounting to ₽ 120,000.00
4. Your Account number is 000000012345.
5. Account Name: Your Name

WEEK 9 IDENTIFY AND PREPARE CHECKS

Fill-out the check, provide your own details. D

A B C
C E
G
F
H I
 CONTENTS OF A BANK STATEMENT
Study the statement and answer the questions that follow:

Juan receives the following statement from BDO with details on the transactions from 25/01/2017 to
20/02/2017.

25/01/2017 Salary ₽ 8,000.00 8,050.50

27/01/2017 Car Insurance 100.00 7,950.50
01/02/2017 Electronic transfer Mr. See (rent) 3,000.00 4,950.50
01/02/2017 Debit order Heath saver medical aid 500.00 4,450.50
02/02/2017 Debit order Mobi contract 250.00 4,200.50
03/02/2017 Debit order Sua Fashion Store 300.00 3,900.50
05/02/2017 Purchase at Shop ‘n Save 2,000.00 900.50
14/02/2017 PAYMENT Mrs S Ko 500.00 2,400.50
20/02/2017 Automechanix 1,000.00 1,400.50

1. How much is the difference between the debits and the credits statements?
2. Lis Juan’s Debit and Credit for the month.
3. In the first line of this statement, Juan receives a salary of 8,000. Look at the balance to work out
what Juan had in the account before the payment was made.
4. Juan receives some birthday money as well as his salary this month. Identify this transaction.
5. How much money would he have been left with, if he hadn’t received money for his birthday?
6. Juan wants to save 15% of his remaining money this month. How much cam he save?