Assignment #2: As of June 1 To June 30
Assignment #2: As of June 1 To June 30
C. Kaila opened a new business called “KD Talk Foreign.” This is a language center where
lessons are given for foreign languages like Mandarin, French, Italian, or Japanese. The
following business transactions took place from June 1 to June 30:
(1) The owner, Kaila, invested P250,000 in cash.
(2) She applied for a business bank loan and received P250,000 in cash.
(3) Paid cash of P350,000 for office equipment purchased.
(4) Received cash of P120,000 as tuition fee revenues.
(5) Paid cash for expenses: rent, P15,000; salary P20,000; and utility P30,000.
KD Talk Foreign
As of June 1 to June 30
Income Statement:
Revenues from Tuition Fees P 120,000
Less: Expenses: Rent (15,000)
Salary (20,000)
Utility (30,000)
Profit P 55,000
Capital Statement:
Kaila, Capital June 1 P 250,000
Add Profit 55,000
Kaila, Capital June 30 P 305,000
Statement of Cash Flows:
Cash inflows from: Investment P 250,000
Loan 250,000
Services Rendered 120,000
Total P 620,000
Cash outflows for: Equipment bought (350,000)
Expenses paid (65,000)