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Financial Analysis and Cash Reconciliation for Billiard and Bowling Place Assignment
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Assignment Task
The ledgers of Billiard and Bowling Place at the end of its first year of operation in 2018 revealed the following balances:
|
Cash On Hand and In Bank |
P 150,000 |
Billiard Revenue |
P |
50,000 |
|
Due from Customers |
25,000 |
Bowling Revenue |
|
95,000 |
|
Accumulated Depreciation |
2,500 |
Prepaid Supplies |
|
2,750 |
|
Furniture & Equipment |
250,000 |
Rent Expense |
|
22,000 |
|
Accounts Payable-Delta Co. |
28,000 |
Advertising Expense |
|
15,000 |
|
Notes Payable to PNB |
60,000 |
Utilities Expense |
|
14,400 |
|
Wages Payable |
5,000 |
Wages Expense |
|
28,000 |
|
Supplies Expense |
2,250 |
Utilities Payable |
|
12,500 |
|
Taxes Payable |
3,700 |
Taxes Expense |
|
8,750 |
|
Depreciation Expense |
2,500 |
Ramon, Drawings |
|
5,000 |
The Bookkeeper prepared an income statement showing a net income of P 52,100 and a statement of financial position showing the owner's capital as P 316,050. The owner is wondering what happened to the cash and why it is only P 150,000 when she invested P 268,950.
1. From the data presented above
Verify if the net income reported by the bookkeeper is correct by preparing the following:
- A detailed Income statement and
- A Capital statement to explain the changes in the owner’s
- Preparing Closing entries of the above information
2. From the data presented above
Explain why the cash is only P 150,000 by showing the;
- Cash received from customers
- Cash paid for expenses
- Cash paid for furniture and equipment
- Cash borrowed from the bank
- Cash invested by the owner
Takeaways
Directions: Manage your takeaways from the lesson by answering the following:
1. Give at least four property accounts subject to depreciation
2. What are the factors in the computation of depreciation
3. Enumerate the steps in making the closing entries.
Evaluate
Directions: Write the word true inside the answer box if the statement is true; and if the statement is false, provide the correct recommendation that will make the answer true.
1. Nominal or temporary accounts are those accounts appearing in Income
2. All adjusting entries that need to be reversed in the next succeeding accounting
3. Post-closing trial balance is the result of the aftereffect of closing
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