Problem 1

Prepaid Expense

March 1, 2004 P150,600 July 31,2004 45,760

August 15, 95,450 December 31,2004 90,000

Balance 246,050 135,760

The balance of prepaid expenses on January 1 is 245,675 .What is the balance of prepaid
expenses as of Dec.31

Problem 2

Accrued expense

March 1, 2004 P150,630 July 31,2004 54,760

August 15, 95,170 December 31,2004 60,000

245,700 114,760

The balance of prepaid expenses on January 1 is 245,675 .What is the balance of Accrued Expenses
as of Dec.31..

Problem 3.using T- accounts

The cash account has a January 1,balance of P.567,000

1. During the year , the following transactions increased the cash accounts

a. Company was able to collect 890,000 from its receivables

b. Cash sales totaled 376,855

2. During the year, the following transactions decreased the account:

a. The company paid P.755,000 to suppliers and for other administrative expenses

b. The owner withdrew P100,000 for his personal expenses.

Cash

Particulars debit credit

 Cash

January 1,20s4 balance P 567, 000

1.a. 890,000

1.b. 376,855

2.a. 755, 000

2.b. 100,000

December 31, 20s4 P 1,833,855 P 855, 000

Amihan Company

Statement of Financial Position

Requirement 1

Assets

Current Assets

Cash 77, 000

Accounts Receivables 56, 000

Inventory 157,840

Prepaid expense 56,700

Total Current Assets 347,54 0

Non-Current Assets

Property,plant,equipment 750,000

Notes Receivables 244, 000

Intangible assets 124, 500

Accumulated Depreciation 100,000

Total assets Php.1,366,040

Requirement 2

Liabilities and owners equity

Current liabilities

Accounts payables 65,000

Accrued expense 37,890

Unearned income 15,345

Total Current liabilities Php.118,235

Non- Current liabilities

Note-Payables 120,000

Long-term Payables 500,000

Total liabilities Php.738,235

Requirement 3

Owners’ equity

Amihan co. Capital 627,805

Total liabilities and equity Php.1,366,040

Requirement 4 Requirement 5

Debit Credit

77,000 65, 000

56, 000 37, 000

157,840 15,345

56,700 500,000

750,000 120,000

244, 000

124,500

100,000 627,805

Total debit balances Php.1,366,040 Total credit balances Php.1,366,040

Requirement 6.

Amihan Capital

Beginningbalance Php.500,545

Withdrawal 280,100 Additionalcontribution 100,000

Netincome 120,445

Ending balance 220,445

Requirement 7

Note :

Notes payable due in 6months 65,000

Notes receivables collectible in 9 months 244,000

Prepaid expense will be use during the years