Reference no: EM132960315
Comprehensive Problem - Effect of Events on Financial Statements - As of Dec 31, 2018, the accounting records for Roberto Gonzales Outdoor Ad Concepts contained the following balances:
Assets:
Cash 180,000
Accounts Receivable 110,000
Land 90,000
Liabilities:
Accounts Payable 34,000
Owner's Equity:
Gonzales, Capital 346,000
The following accounting events apply to 2019:
Jan. 1 Received P100,000 additional cash investments from the owner.
Jan. 1 Purchased a service vehicle that cost P80,000. The vehicle has an P8,000 salvage value and a 3-year useful life.
Feb. 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-year term.
Feb. 1 Paid P24,000 cash in advance for a 1-year lease for office space.
Mar. 1 Gonzales withdrew P30,000 for emergency personal use.
April 1 Acquired land that cost P70,000 cash.
May 1 Made a cash payment on accounts payable amounting to P15,000.
July 1 Received P42,000 cash in advance as a retainer for services to be performed monthly over the coming year.
Sept. 1 Sold land for P100,000 cash. The land originally cost P90,000.
Oct. 1 Purchased P20,000 of supplies on account.
Nov. 1 Purchased a 1-year P50,000 certificate of deposit that paid a 6% annual rate of interest
Dec. 31 Total earned service revenues (on account) for the year, P250,000.
Dec. 31 Total cash collections from accounts receivable amounted to P200,000
Dec. 31 Incurred other operating expenses on account during the year that amounted to P80,000.
Dec. 31 Accrued salaries amounted to P32,000.
Dec. 31 P1,000 of supplies remained on hand at the end of the period.
Required -
1. Prepare Statement of Comprehensive Income (Multi-Step).
2. Prepare Statement of Financial Position (Classified).
3. Prepare Statement of Change in Equity.
4. Prepare Statement of Cash Flows (Direct and Indirect Method).