Required:• Statement of Equity• Statement of Performance • Statement of financial position Practical Exercise # 5On January 1, 2017, Cristina Palacios invested P 50,000 cash to open up a service business,CP Cleaning Agency, which completed the following transactions:-Jan 2 Purchased on account cleaning equipment for business use, P 46,800.3 Rendered services worth P 7,600 to a customer on account.5 Received P 25,000 cash loan from a local bank covered by a promissory note.8Bought office furniture worth P 32,000, giving a down payment of P9,000, and thebalance charged on account.10Received advance payment of P 9,600 from a customer for services to be provided inthe future.12 Paid in cash cleaning supplies worth P 8,400.15 Paid one-third (1/3) of the amount due to the cleaning equipment bought on Jan 2.17 Collected P 5,700 cash from a customer on account.19Rendered services worth P 10,500 to a customer who gave a partial payment of 40%the amount, and issued a promissory note for the balance.22 Paid one half of the account due to office furniture bought on Jan 8.25 C. Palacios withdrew 4,000 for personal use.27 Billed a customer P 6,830 for services rendered.28 Paid one-fourth (1/4) of the loan obtained from the local bank.29 Provided services worth P 3,200 to the customer who paid in advance on Jan 10.30 Paid the salary of cleaning staff, P 7,500, and office rent for the month, P 5,000.CHART OF ACCOUNTSAcct #101105110115120Account TitleCashAccounts ReceivableNotes ReceivableCleaning SuppliesFurnitureCleaning EquipmentAccounts PayableNotes Payable125201205210 Unearned Revenue301302401501505 Rent ExpenseC. Palacios, CapitalC. Palacios, DrawingService IncomeSalaries Expense

Statement of performance is sort of income statement which shows all incomes and all expenses and at…

Answered: Required: • Statement of Equity •…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required: • Statement of Equity • Statement of Performance • Statement of financial position

Practical Exercise # 5
On January 1, 2017, Cristina Palacios invested P 50,000 cash to open up a service business,
CP Cleaning Agency, which completed the following transactions:-
Jan 2 Purchased on account cleaning equipment for business use, P 46,800.
3 Rendered services worth P 7,600 to a customer on account.
5 Received P 25,000 cash loan from a local bank covered by a promissory note.
8
Bought office furniture worth P 32,000, giving a down payment of P9,000, and the
balance charged on account.
10
Received advance payment of P 9,600 from a customer for services to be provided in
the future.
12 Paid in cash cleaning supplies worth P 8,400.
15 Paid one-third (1/3) of the amount due to the cleaning equipment bought on Jan 2.
17 Collected P 5,700 cash from a customer on account.
19
Rendered services worth P 10,500 to a customer who gave a partial payment of 40%
the amount, and issued a promissory note for the balance.
22 Paid one half of the account due to office furniture bought on Jan 8.
25 C. Palacios withdrew 4,000 for personal use.
27 Billed a customer P 6,830 for services rendered.
28 Paid one-fourth (1/4) of the loan obtained from the local bank.
29 Provided services worth P 3,200 to the customer who paid in advance on Jan 10.
30 Paid the salary of cleaning staff, P 7,500, and office rent for the month, P 5,000.
CHART OF ACCOUNTS
Acct #
101
105
110
115
120
Account Title
Cash
Accounts Receivable
Notes Receivable
Cleaning Supplies
Furniture
Cleaning Equipment
Accounts Payable
Notes Payable
125
201
205
210 Unearned Revenue
301
302
401
501
505 Rent Expense
C. Palacios, Capital
C. Palacios, Drawing
Service Income
Salaries Expense

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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