1. Mari Tes, owner of ABC Company, is preparing its December 31, 2023 financial Statements.

The
following items are reported in the adjusted trial balance

ABC COMPANY
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2023

Dr. Cr.
Cash P 800,000
Accounts Receivable 500,000
Inventory 600,000
Supplies 100,000
Land 2,000,000
Equipment 1,250,000
Accounts Payable P 700,000
Notes Payable (Due 2025) 300,000
Tes, Capital 3,000,000
Tes, Drawing 500,000
Sales 6,000,000
Cost of Sales 2,500,000
Depreciation Expense 300,000
Interest Expense 50,000
Salaries Expense 300,000
Utilities Expense 300,000
Taxes Expense 600,000
Rent Expense 200,000
Total P 10,000,000 P 10,000,000

Additional Information:
Beginning Ending
Cash P 500,000 P 800,000
Accounts Receivable 300,000 500,000
Inventory 700,000 600,000
Supplies 100,000 100,000
Land 1,000,000 2,000,000
Equipment 1,000,000 1,250,000
Accounts Payable 500,000 700,000
Notes Payable 400,000 300,000

Required: Prepare ABC Company’s Balance Sheet, Income Statement, Changes in Equity, and Cash Flows
2. Loid Forger owner S.P.Y. Company had the following income statement for the year ended
December 31, 2023.

Sales P 4,500,000
Cost of Goods Sold:
Beginning Inventory P 750,000
Purchases 2,850,000
Freight-In 400,000
Cost of Goods Available for Sale P 4,000,000
Ending Inventory -600,000 3,400,000
Gross Profit P 1,100,000
Operating Expenses:
Salaries P 200,000
Rent 250,000
Insurance 20,000
Depreciation 50,000
Other Expenses 100,000 -620,000
Net Income P 480,000

Additional Information:
Dec. 31 Jan. 1
Accounts Receivable P 500,000 P 420,000
Inventory 600,000 750,000
Prepaid Insurance 15,000 10,000
Accounts Payable 280,000 160,000
Accrued Salaries Payable 50,000 80,000
Equipment 1,200,000 1,200,000
Accumulated Depreciation 290,000 240,000

Prepare the operating activities section of the statement of cash flows, using the direct and
indirect method, for the year ending December 31, 2023.
3. Jo King Company had the following comparative Financial Statement in the year 2023 and 2022.
As the accountant of Mountain Company, the manager asked you to prepare horizontal and
vertical analysis on the upcoming meeting.

Jo King Company
Income Statement
For the year Ended December 31, 2023

Sales P 4,000,000
Cost of Goods Sold -1,200,000
Gross Profit P 2,800,000
Operating Expenses:
Salaries P 500,000
Utilities 400,000
Rent 100,000
Insurance 100,000
Depreciation 200,000
Other Expenses 200,000 -1,500,000
Net Income P 1,300,000

Jo King Company
Comparative Statement of Financial Position
As of December 31, 2022 and 2023

2023 2022
Assets:
Current Assets
Cash P 1,000,000 P 1,200,000
Accounts Receivable 500,000 200,000
Inventory 800,000 400,000
Supplies 100,000 200,000
Prepaid Insurance 40,000 140,000
Prepaid Rent 60,000 160,000
Total Current Assets P 2,500,000 P 2,300,000

Non-Current Assets
Land P 1,500,000 P 1,000,000
Building 2,000,000 2,000,000
Accumulated Depreciation - Bldg -1,000,000 -900,000
Equipment 1,500,000 1,000,000
Accumulated Depreciation - Eqpt -500,000 -400,000
Total Non-Current Assets P 3,500,000 P 2,700,000
Total Assets P 6,000,000 P 5,000,000
Liabilities and Equity
Current Liabilities
Accounts Payable P 300,000 P 200,000
Salaries Payable 200,000 50,000
Utilities Payable 100,000 50,000
Total Current Liabilities P 600,000 P 300,000

Non-Current Liabilities
Bonds Payable P 700,000 P 400,000
Notes Payable 400,000 900,000
Total Non-Current Liabilities P 1,100,000 P 1,300,000

Equity
Capital P 3,500,000 P 1,900,000
Net Income 1,300,000 2,000,000
Withdrawal -500,000 -500,000
Total Equity P 4300000 P 3,400,000
Total Liabilities & Equity P 6,000,000 P 5,000,000