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    Performance Task - Difuntorum, Jaryl B. (12 - St. Jacinta Marto)

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    Jay-Ar Difuntorum
    1) The adjusted trial balance shows the company's revenues from auditing exceeded its expenses, generating a net income. 2) The income statement confirms the company was profitable after accounting for expenses like supplies, rent, salaries, and utilities. 3) The statement of financial position indicates the company has sufficient current assets to cover its current liabilities of accounts and salaries payable, demonstrating an ability to meet short-term obligations.

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    Performance Task - Difuntorum, Jaryl B. (12 - St. Jacinta Marto)

    Uploaded by

    Jay-Ar Difuntorum
    26 views6 pages
    1) The adjusted trial balance shows the company's revenues from auditing exceeded its expenses, generating a net income. 2) The income statement confirms the company was profitable after accounting for expenses like supplies, rent, salaries, and utilities. 3) The statement of financial position indicates the company has sufficient current assets to cover its current liabilities of accounts and salaries payable, demonstrating an ability to meet short-term obligations.

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    Performance Task- Difuntorum, Jaryl B.(12- St. Jacinta Marto)

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    1) The adjusted trial balance shows the company's revenues from auditing exceeded its expenses, generating a net income. 2) The income statement confirms the company was profitable after accounting for expenses like supplies, rent, salaries, and utilities. 3) The statement of financial position indicates the company has sufficient current assets to cover its current liabilities of accounts and salaries payable, demonstrating an ability to meet short-term obligations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    26 views6 pages

    Performance Task - Difuntorum, Jaryl B. (12 - St. Jacinta Marto)

    Uploaded by

    Jay-Ar Difuntorum
    1) The adjusted trial balance shows the company's revenues from auditing exceeded its expenses, generating a net income. 2) The income statement confirms the company was profitable after accounting for expenses like supplies, rent, salaries, and utilities. 3) The statement of financial position indicates the company has sufficient current assets to cover its current liabilities of accounts and salaries payable, demonstrating an ability to meet short-term obligations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    SARMIENTO AUDITING SERVICES

    ADJUSTED TRIAL BALANCE


    December 31, 2020

    Debit Credit
    Cash ₱118,500
    Accounts Receivable 198,000
    Notes Receivable 60,000
    Office Supplies 28,000
    Office Equipment 362,500
    Accumulated Depreciation- Office Equipment ₱ 120,000
    Building 750,000
    Accumulated Depreciation- Building 110,000
    Accounts Payable 63,500
    Salaries Payable 30,500
    Sarmiento, Capital, 01/01/2020 1,215,500
    Sarmiento, Drawings 165,000
    Auditing Revenues 1,361,500
    Depreciation Expense- Building 55,000
    Depreciation Expense- Office Equipment 60,000
    Land 75,000
    Office Supplies Expense 96,000
    Professional Development Expense 86,500
    Rent Expense 52,500
    Salaries Expense 735,000
    Travel Expense 41,000
    Utilities Expense 18,000
    Total ₱2,901,000 ₱2,901,000
    SARMIENTO AUDITING SERVICES
    INCOME STATEMENT
    For the year ended December 31, 2020

    Revenue: Auditing Revenues ₱1,361,500

    Less Expenses: Office Supplies Expense 96,000


    Professional Development Expense 86,500
    Rent Expense 52,500
    Salaries Expense 735,000
    Travel Expense 41,000
    Utilities Expense 18,000

    1,029,000
    Net Income ₱332,500

    Note 1 Depreciation Expense- Building 55,000


    Depreciation Expense- Office Equipment 60,000
    Total 115,000
    SARMIENTO AUDITING SERVICES
    STATEMENT OF CHANGES IN EQUITY
    For the year ended December 31, 2020

    Sarmiento, Capital, 01/01/2020 ₱ 1,193,500


    Add additional investment 22,000
    Profit 332,500
    Total ₱1,548,000
    Less withdrawals 165,000
    Sarmiento, Capital December 31 ₱1,383,000
    SARMIENTO AUDITING SERVICES
    STATEMENT OF FINANCIAL POSITION
    December 31,2020

    ASSETS
    Current Assets Cash ₱140,500
    Accounts Receivable 198,000
    Allowance for Bad Debts 60,000
    Office Equipment (Note 1) 28,000
    Office Supplies 362,500 ₱789,000
    Non- Current Assets
    Building (Note 2) ₱ 750,000
    Land 75,000
    ₱ 825,000
    Total Assets ₱1,614,000
    LIABILITIES AND OWNER'S EQUITY
    Current Liabilities Accounts Payable ₱63,500
    Salaries Payable 30,500

    Total Liabilities ₱94,000


    Owner's Equity
    Sarmiento, Capital December 31 ₱1,383,000
    Total Liabilities and Owner's Equity ₱1,477,000

    Note 1:
    Office Equipment 362,500
    Less Accumulated Depreciation- Office Equipment 120,000
    Office Equipment (net) ₱242,500

    Note 2
    Building ₱750,000
    Less Accumulated Depreciation- Building 110,000
    Building (net) ₱640,000
    1. After preparing the income statement, the entity is profitable. After decreasing the expenses used in the business operation
    the business is still able to generate a profit despite of the large amount of money alloted in expenses.

    2. Based on the statement of financial position, the entity has the ability to pay its current obligations.
    The company is only acountable to pay 2 two obligations: Accounts and Salaries Payable. Lessing the two payable still
    leaves the company a big profit.

    2
    used in the business operation,

    g the two payable still

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