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Conceptual Framework Valix 2019 8-1, 9-1 PDF

The document presents the statement of financial position and income statement of Simple Company and Karla Company as of December 31, 2019. Simple Company's assets total ₱9.5 million, with current assets of ₱2.6 million and non-current assets of ₱6.9 million. Its liabilities are ₱3.12 million with shareholders' equity of ₱6.38 million. Karla Company's income statement shows net income of ₱1 million with net sales of ₱7.7 million and total expenses of ₱6.85 million. Notes provide additional details on line items.

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Tenshi Aina Santos
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307 views

Conceptual Framework Valix 2019 8-1, 9-1 PDF

The document presents the statement of financial position and income statement of Simple Company and Karla Company as of December 31, 2019. Simple Company's assets total ₱9.5 million, with current assets of ₱2.6 million and non-current assets of ₱6.9 million. Its liabilities are ₱3.12 million with shareholders' equity of ₱6.38 million. Karla Company's income statement shows net income of ₱1 million with net sales of ₱7.7 million and total expenses of ₱6.85 million. Notes provide additional details on line items.

Uploaded by

Tenshi Aina Santos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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8–1

SIMPLE COMPANY
Statement of Financial Position
December 31, 2019

ASSETS

Note
Current Assets:
Cash ₱ 420,000.00
Trade and other receivables (1) 620,000.00
Inventories (2) 1,290,000.00
Prepaid Insurance 20,000.00
Trading Securities 250,000.00
Total Current Assets ₱ 2,600,000.00

Non-current Assets:
Property. Plant and Equipment (3) 4,600,000.00
Long-term Investments (4) 2,000,000.00
Intangible Assets (5) 300,000.00
Total Non-current Assets 6,900,000.00

TOTAL ASSETS ₱ 9,500,000.00

LIABILITIES AND SHAREHOLDERS' EQUITY


Current Liabilities:
Trade and other payables (6) ₱ 1,020,000.00
Advances from customers 100,000.00
Total Current Liabilities ₱ 1,120,000.00

Non-current Liabilities:
Serial bonds payabe - remaining portion 2,000,000.00
Total Non-current Liabilities 2,000,000.00

Shareholders' Equity
Share Capital 5,000,000.00
Share Premium 500,000.00
Retained Earnings 880,000.00
Total Shareholder's Equity 6,380,000.00

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ₱ 9,500,000.00


8–1
Notes
Note 1 - Trade and other receivables
Accounts Receivable ₱ 500,000.00
Allowance for Doubtful Accounts (50,000.00)
Notes Receivable 150,000.00
Claim Receivable 20,000.00
TOTAL Trade and other receivables ₱ 620,000.00

Note 2 - Inventories
Finished Goods ₱ 400,000.00
Goods in Process 600,000.00
Raw Materials 200,000.00
Factory Supplies 50,000.00
Tools 40,000.00
TOTAL Inventories ₱ 1,290,000.00

Note 3 - Property, Plant and Equipment


Land ₱ 1,500,000.00
Building 4,000,000.00
Accumulated Depreciation - Building (1,600,000.00)
Machinery 2,000,000.00
Accumulated Depreciation - Machinery (1,300,000.00)
TOTAL Property, Plant and Equipment ₱ 4,600,000.00

Note 4 - Long-term Investments


Plant Expansion Fund ₱ 500,000.00
Investment in Bonds 1,500,000.00
TOTAL Long-term Investments ₱ 2,000,000.00

Note 5 - Intangible Assets


Franchise ₱ 200,000.00
Goodwill 100,000.00
TOTAL Intangible Assets ₱ 300,000.00

Note 6 - Trade and other payables


Accounts Payable ₱ 300,000.00
Notes Payable 100,000.00
Accrued Interest Payable 10,000.00
Income Tax Payable 60,000.00
Employees Income Tax Payable 20,000.00
Accrued Expenses 30,000.00
Current portion of bonds payable 500,000.00
TOTAL Trade and other payables ₱ 1,020,000.00
9–1
Functional Income Statement

KARLA COMPANY
Income Statement
Year ended December 31, 2019

Note
Net Sales (1) ₱ 7,700,000.00
Cost of Goods Sold (2) (5,000,000.00)
Gross Income 2,700,000.00
Other Income (3) 400,000.00
TOTAL Income ₱ 3,100,000.00

Expenses:
Distribution Costs (4) ₱ 950,000.00
Administrative Expenses (5) 800,000.00
Other Expenses (6) 100,000.00 1,850,000.00
Income before Tax 1,250,000.00
Income Tax Expense 250,000.00
NET INCOME 1,000,000.00
9–1
Functional Income Statement
Notes

Note 1 - Net Sales


Gross Sales ₱ 7,850,000.00
Sales Returns and Allowances (140,000.00)
Sales Discount (10,000.00)
NET SALES ₱ 7,700,000.00

Note 2 - Cost of Goods Sold


Merchandise Inventory, January 1 ₱ 1,000,000.00
Purchases 5,250,000.00
Freight In 500,000.00
Total 5,750,000.00
Purchases Returns and Allowances (150,000.00)
Purchases Discount (100,000.00) 5,500,000.00
Goods Available for Sale 6,500,000.00
Merchandise Inventory, December 31 (1,500,000.00)
COST OF SALES ₱ 5,000,000.00

Note 3 - Other Income


Dividend Revenue ₱ 150,000.00
Rent Income 250,000.00
TOTAL ₱ 400,000.00

Note 4 - Distribution Costs


Sales Commision ₱ 650,000.00
Freight Out 175,000.00
Depreciation - Store Equipment 125,000.00
TOTAL ₱ 950,000.00

Note 5 - Administrative Expenses


Officers' Salaries ₱ 500,000.00
Depreciation - Office Equipment 300,000.00
TOTAL ₱ 800,000.00

Note 6 - Other Expenses


Loss on Sale of Investment ₱ 50,000.00
Loss on Sale of Equipment 50,000.00
TOTAL ₱ 100,000.00
9–1
Natural Income Statement

KARLA COMPANY
Income Statement
Year ended December 31, 2019

Note
Net Sales (1) ₱ 7,700,000.00
Other Income (2) 400,000.00
TOTAL Income ₱ 8,100,000.00

Expenses:
Increase in Inventory (3) (500,000.00)
Net Purchases (4) 5,500,000.00
Officers' Salaries 500,000.00
Salesman Commission 650,000.00
Freight Out 175,000.00
Depreciation (5) 425,000.00
Other Expenses (6) 100,000.00 6,850,000.00
Income before Tax 1,250,000.00
Income Tax 250,000.00
NET INCOME ₱ 1,000,000.00
9–1
Natural Income Statement
Notes

Note 1 - Net Sales


Gross Sales ₱ 7,850,000.00
Sales Returns and Allowances (140,000.00)
Sales Discount (10,000.00)
NET SALES ₱ 7,700,000.00

Note 2 - Other Income


Dividend Revenue ₱ 150,000.00
Rent Revenue 250,000.00
TOTAL ₱ 400,000.00

Note 3 - Increase in Inventory


Merchandise Inventory, December 31 ₱ 1,500,000.00
Merchandise Inventory, January 1 (1,000,000.00)
₱ 500,000.00

Note 4 - Net Purchases


Purchases ₱ 5,250,000.00
Freight In 500,000.00
Purchase Returns and Allowances (150,000.00)
Purchase Discount (100,000.00)
NET PURCHASES ₱ 5,500,000.00

Note 5 - Depreciation
Depreciation - Store ₱ 125,000.00
Depreciation - Office 300,000.00
TOTAL ₱ 425,000.00

Note 6 - Other Expenses


Loss on Sale of Investment ₱ 50,000.00
Loss on Sale of Equipment 50,000.00
₱ 100,000.00

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