Activity 7

ABC Company’s financial information is presented below:

Cash on hand 100,000.00 Unearned service revenue 105,000.00

Cash in bank 280,000.00 Short-term BDO payable 60,000.00
Petty cash fund 40,000.00 Notes payable due 8 months 50,000.00
Travel fund 35,000.00 Current portion of BPI long-term payable 60,000.00
Building 400,000.00 Income tax payable 30,000.00
Short-term investment 125,000.00 Notes payable due 18 months 100,000.00
Accounts receivable 325,000.00 Noncurrent portion of BPI long-term payable 540,000.00
Trade notes receivable 100,000.00 Mortgage payable 400,000.00
Short-term notes receivable 150,000.00 Deferred tax payable 65,000.00
Interest receivable 15,000.00 Capital ?
Commission receivable 35,000.00 Service Revenue 2,340,000.00
Office supplies 10,000.00 Commission income 345,000.00
Prepaid rent 60,000.00 investment income 130,000.00
Prepaid insurance 48,000.00 interest income 45,000.00
Land 200,000.00 Advertising expense 100,000.00
Cash equivalents 150,000.00 Traveling expense 85,000.00
Interest fund 20,000.00 Office supplies expense 30,000.00
Office equipment 245,000.00 Office depreciation expense 60,000.00
Office furniture and fixtures 145,000.00 Office utilities expense 216,000.00
Motor vehicle 600,000.00 Office rent expense 720,000.00
Trade mark 20,000.00 Contribution to charity 100,000.00
Computer software 105,000.00 Accounting fees 105,000.00
Long-term investment 400,000.00 Legal fees 235,000.00
Cash surrender value 220,000.00 Loss due to theft 55,000.00
Long-term notes receivable 400,000.00 Loss on sale of investment 230,000.00
Accounts payable 146,200.00 Income tax expense 277,200.00
Trade notes payable 125,000.00 Interest payable 10,000.00

Requirement: Compute the following

1. Cash and Cash equivalents 12. Total noncurrent liabilities
2. Trade and other receivables 13. Total liabilities
3. Prepaid expense 14. Income from operating activity
4. Total current assets 15. Income from non-operating activity
5. Property and equipment 16. Total income
6. Intangible assets 17. Selling expense
7. Long-term investment 18. Administrative expense
8. Total noncurrent assets 19. Other expenses
9. Total assets 20. Total expenses
10. Trade and other payables 21. Total Equity
11. Total current liabilities 22. Capital
Name: Nolasco, Renzyl Louise M.
Section: BSA-B125

Requirement: Compute the following

1. Cash and Cash Equivalent

Cash on Hand 100,000.00

Cash in Bank 280,000.00
Petty Cash 40,000.00
Travel Fund 35,000.00
Cash Equivalent 150,000.00
Interest Fund 20,000.00
625,000.00

2. Trade and Other Receivables

Accounts receivable 325,000.00

Trade notes receivable 100,000.00
Short-term notes receivable 150,000.00
Interest receivable 15,000.00
Commission receivable 35,000.00
625,000.00

3. Prepaid Expense

Office supplies 10,000.00

Prepaid rent 60,000.00
Prepaid insurance 48,000.00
118,000.00

4. Total current assets

Short-term Investment 125,000.00
Cash and Cash Equivalent 625,000.00
Trade and Other Receivables 625,000.00
Prepaid Expenses 118,000.00
1,493,000.00

5. Property and Equipment

Building 400,000.00
Land 200,000.00
Office Equipment 245,000.00
Office Furniture and Fixtures 145,000.00
Motor Vehicle 600,000.00
1,590,000.00

6. Intangible Assets

Trademark 20,000.00
Computer Software 105,000.00
125,000.00
7. Long-term Investment

Long-term Investment 400,000.00

Cash Surrender Value 220,000.00
620,000.00

8. Total Noncurrent Assets

Long-term Note Receivable 400,000.00

Property and Equipment 1,590,000.00
Intangible Assets 125,000.00
Long-term Investment 620,000.00
2,735,000.00

9. Total Assets

Total Current Assets 1,493,000.00

Total Noncurrent Assets 2,735,000.00
4,228,000.00

10. Trade and Other Payables

Accounts payable 146,200.00

Trade notes payable 125,000.00
Unearned service revenue 105,000.00
Notes payable due 8 months 50,000.00
Interest payable 10,000.00
436,200.00

11. Total Current Liabilities

Short-term BDO Payable 60,000.00
Current Portion of BPI long-term Payable 60,000.00
Income Tax Payable 30,000.00
Trade and Other Payables 436,200.00
586,200.00

12. Total Noncurrent Liabilities

Notes payable due 18 months 100,000.00

Noncurrent portion of BPI long-term payable 540,000.00
Mortgage payable 400,000.00
Deferred tax payable 65,000.00
1,105,000.00
13. Total Liabilities

Total Current Liabilities 586,200.00

Total Noncurrent Liabilities 1,105,000.00
1,691,200.00

14. Income from Operating Activity

Service Revenue 2,340,000.00

Commission Income 345,000.00
2,685,000.00

15. Income from Non-operating Activity

Investment Income 130,000.00

Interest Income 45,000.00
175,000.00

16. Total Income

Total Income for Operating Activity 2,685,000.00

Total Income for Non-operating Activity 175,000.00
2,860,000.00

17. Selling Expense

Advertising Expense 100,000.00

Traveling Expense 85,000.00
185,000.00

18. Administrative Expense

Office Supplies Expense 30,000.00
Office Depreciation Expense 60,000.00
Office Utilities Expense 216,000.00
Office Rent Expense 720,000.00
Contribution to Charity 100,000.00
Accounting Fees 105,000.00
Legal Fees 235,000.00
1,466,000.00

19. Other Expenses

Loss due to Theft 55,000.00

Loss on sale of Investment 230,000.00
285,000.00

20. Total Expenses

Income Tax Expense 277,200.00

Selling Expenses 185,000.00
Administractive Expenses 1,466,000.00
Other Expenses 285,000.00
2,213,200.00

21. Total Equity

Total Assets 4,228,000.00

Total Liabilites 1,691,200.00
2,536,800.00

22. Capital

Total Equity 2,536,800.00

Total Expenses 2,213,200.00
Total Income 2,860,000.00
1,890,000.00

To Double Check:
Assets = Liabilities - Equity
4,228,000.00 1,691,2000 - 2,536,800.00
Equity = Capital + Income - Expense
2,536,800.00 = 1,890,000.00 + 2,860,000.00 - 2,213,000.00