Business Simulation

MODULE 1

Account Element Classification

1. Accounts Payable Liability Current
2. Accounts Receivable Asset Current
3. Notes Payable Liability Current
4. Cash Asset Current
5. Cash in Bank Asset Current
6. Cash on Hand Asset Current
7. Interest Payable Liability Current
8. Pangit ka, Capital Equity Equity
9. Notes Payable – 5 years Liability Non- Current
10. Notes Receivable Asset Current
11. Land Asset Non- Current
12. Furniture & Fixtures Asset Non- Current
13. Salaries Payable Liability Current
14. Ganda Ko, Capital Equity Equity
15. Utilities Payable Liability Current
16. Accrued Payable Liability Current
17. Intangibles Asset Non- Current
18. Merchandise Inventory Asset Current
19. Loans Payable Liability Non- Current

PART 2
a. Liability
b. Equity
c. Statement of Financial Position
d. Capital / Equity
e. Income Statement
f. Balance Sheet
PART 3

Transaction Assets = Liabilities + Equity

1. I D NE
2. D NE I
3. I NE D
4. CURRENT ASSETS
I D NE
Cash 5. I D 56,000 NE
Accounts
6. Receivable D I 77,000 NE
Prepaid Expense 59,000
Inventory 245,000
Notes Receivable 158,000 EXERCISES
Total Current Assets 595,000
1.1
NON-CURRENT ASSETS A.
Property, Plant, and Equipment 750,000
Intangible Assets 125,000 Current Assets
Total Non-Current Assets 875,000 Cash
Accounts
Total Assets 1,470,000 Receivable
Prepaid Rent
Inventory
CURRENT LIABILITIES Notes
Notes Payable 120,000 Receivable
Accounts Payable 65,000 Total Current Assets
Unearned Income 15,000
Total Current Liabilities 200,000

NON-CURRENT LIABILITIES
Long term- payable 500,000
Total Non-Current Liabilities 500,000

Total Liabilities 700,000

 Amihan Company
Statement of Financial Position
As of December 31, 2017

Current Assets
Cash 77,000
Account Receivable 56,000
Notes Receivable 245,000
Prepaid Expense 59,000
Inventory 158,000
Total Current Assets 595,000

Non-Current Assets
Property, Plant, and Equipment 750,000
Intangible Assets 125,000
Less: Accumulated Depreciation (100,000)
Total Non-Current Assets 775,000

Total Assets 1,370,000

LIABILITIES AND OWNER’S EQUITY

Current Liabilities
Notes Payable 120,000
Accounts Payable 65,000
Unearned Income 15,000
Total Current Liabilities 200,000

Non-Current Liabilities
Long-term payable 500,000
Total Non-Current Liabilities 500,000

Owner’s Capital 670,000

EXERCISE 1.3
Total Liabilities and Owner’s Equity 1,370,000
a.
 1. The name of the company
2. The “Statement of Financial Position” and the date shouldn’t be together
b.
C ABRAMS & SONS CONSTRUCTION
Statement of Financial Position
For the Year Ended 2017

EXERCISE 1.4

a. 324,000
b. 236,000
c. 45,000
d. 120,000
e. 197,000
f. 95,000

EXERCISE 1.5

GREMLIN AUTO WASH

Statement of Financial Position
As of June 30, 2017

Current Assets
Cash 300
Accounts Receivable 4,600
Supplies 2,800
Total Current Assets 7,700

Non- Current Assets

Building 20,000
Equipment 26,000
Land 40,000
Total Non-Current Assets 86,000

Total Assets 93,700

Current Liabilities
Accounts Payable 4,000
Notes Payable 46,000
Total Current Liabilities 50,000

Equity
Susan, Young Capital 43,700
Total Liabilities & Owner’s Equity 93,700
GREMLIN AUTO WASH
Statement of Financial Position
As of July 2, 2017

Current Assets
Supplies 500
Total Assets 500

Current Liabilities
Accounts Payable 9,000

Equity
Additional Investment 15,000
Total Liabilities & Owner’s Equity 24,000
 Problems
1.1
ASSETS
Current Assets
Cash 5,000
Accounts Receivable 4,000
Total Current Assets 9,000
Non-Current Assets
Office Equipment 5,700
Automobile 25,000
Total Non-Current Assets 30,700

Total Assets 39,700

LIABILITIES AND OWNER’S EQUITY

Current Liabilities
Accounts Payable 7,200
Notes Payable 30,000
Total Liabilities 37,200

Equity
Owner’s Capital 2,500

Total Liabilities & Owner’s Equity 39,700

ASSETS = LIABILITIES + OWNER’S EQUITY

Cash Office Accounts Automobiles Accounts Notes Travel Corp, Capital
Equipment Receivable Payable Payable

5,000 5,700 4,000 25,000 7,000 30,000 2,500

1.2
1) REPORT FORM

JUAN SARI-SARI STORE

Statement of Financial Position

ASSETS
Current Assets
Cash 50,000
Merchandise Inventory 30,000
Prepaid Rent 12,000
Total Current Assets 92,000

Non-Current Assets
Furniture 100,000
Total Non-Current Assets 100,000

Total Assets 192,000

 2) ACCOUNT FORM

JUAN SARI-SARI STORE LIABILITIES & OWNER’S EQUITY

Statement of Financial Position
Current Liabilities
ASSETS Unearned Income 75,000
Current Assets Account Payables 5,000
Cash 50,000 Utilities Expense 3,000
Merchandise Inventory 30,000 Total Current Liabilities 83,000
Prepaid Rent 12,000
Total Current Assets 92,000 Non-Current Liabilities
Loan Payables – 3 years 50,000
Non-Current Assets Total Non- Current Liabilities 50,000
Furniture
1.3 100,000
Total Non-Current Assets 100,000 Equity
Juans, Capital 59,000
Total Assets 192,000
Total Liabilities & Owner’s Equity 192,000

1.3

ABM Merchandise
Statement of Financial Position
As of December 31, 2018

ASSETS
Current Assets
Cash 800,000
Accounts Receivables 700,000
Less: Allowance (50,000) 700,000
Inventories 900,000
Store Supplies 150,000
Office Supplies 50,000
Total Current Assets 2,600,000

Non-Current Assets