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Matthew Joseph O. PaderonACCTBA1 C33

PREPARATION OF FINANCIAL STATEMENTS

The following are taken from the ledger of CHARLES KOICHI MUSIC SCHOOL for the yearended December 31, 2013

Account titles Amount MARKS

Cash 158,500 *Accounts Payable 41,500 +

Accounts Receivable 66,000 *

Accrued Interest Income 4,000 *

Accrued Salaries Expense 8,000 +

Accumulated Depreciation- Equipment 48,000 #

Accumulated Depreciation-Furniture and Fixtures 26,500 #

Advances to Employees 3,900 *

Allowance for Bad Debts 5,800 *

Bad Debts Expense 3,200 O

Bonds Payable 100,000 X

Depreciation Expense

Equipment 29,000 ODepreciation Expense Furniture and Fixtures 1,500 O

Dividend Income 4,580 $

C. Koichi, Drawing 20,000 @

C. Koichi, Capital 197,780 @

Equipment 270,000 #

Furniture and Fixtures 108,100 #

Interest Expense Mortgage Payable 1,250 O

Interest Expense Notes Payable 2,000 O

Interest Income 3,700 $

Miscellaneous Expense 11,500 O

Mortgage Payable 100,000 XNotes Receivable 41,400 *

Notes Payable 38,500 +

Prepaid Rent 15,000 *

Prepaid Taxes and Licenses 9,000 *

Rent Expense 28,000 O

Repairs and Maintenance Expense 12,750 O

Salaries Expense 46,200 O

Salaries Payable 7,500 +

Service Income 280,140 $

Supplies Expense 5,300 O

Supplies Inventory 14,500 *Utilities Expense 18,900 O

Unearned Service Income 8,000 +

8/11/2019 Charles Koichi Transactions

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Matthew Joseph O. PaderonACCTBA1 C33

Instructions:(1) On the space provided on the paper, put appropriate marks on the Marks Columns.

Use GREEN pen for Assets, RED pen for Liabilities, VIOLET pen for Revenue/Expenses,BLUE pen for Capital/DrawingMarks are as follows:( * ) SFP- current assets, ( # ) SFP - non-current assets , ( + ) SFP-current liabilities( X) SFP -non-current liabilities, ( $ ) IS-Revenue , ( O ) IS-Expenses ,( @ ) SCOE - Capital/Drawing

(2) Prepare the following:a. Step 1 : On Worksheet #1 - Notes to Financial Statement ( Note 1-Other

Income, Note 2: Depreciation Expense, Note 3:Finance Cost , Note 4: Trade and OtherReceivables, Note 5: Prepaid Expense, Note 6: Property, Plant and Equipment, Note 7: TradeAnd Other Payable)

b. Step 2: On Worksheet #2 -left side- upper portion - Income Statementc. Step 3: On Worksheet #2 - left side - lower portion- Statement of Changes in

Owner's Equityd. Step 4 : On Worksheet #2-Right side- Statement of Financial Position (Report Form)