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    Income Statement, Oener's Equity, Position

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    MaDine 19
    Carla Auto Repair Shop generated $108,900 in profit for the year ended December 31, 2018 according to its income statement. Its assets included $149,750 in current assets and $165,250 in property and equipment. For the year, the statement of cash flows showed $41,150 cash from operating activities, -$149,000 from investing activities from equipment purchases, and $77,850 from financing activities including an owner investment and loan.

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    Income Statement, Oener's Equity, Position

    Uploaded by

    MaDine 19
    1K views4 pages
    Carla Auto Repair Shop generated $108,900 in profit for the year ended December 31, 2018 according to its income statement. Its assets included $149,750 in current assets and $165,250 in property and equipment. For the year, the statement of cash flows showed $41,150 cash from operating activities, -$149,000 from investing activities from equipment purchases, and $77,850 from financing activities including an owner investment and loan.

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    Carla Auto Repair Shop generated $108,900 in profit for the year ended December 31, 2018 according to its income statement. Its assets included $149,750 in current assets and $165,250 in property and equipment. For the year, the statement of cash flows showed $41,150 cash from operating activities, -$149,000 from investing activities from equipment purchases, and $77,850 from financing activities including an owner investment and loan.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views4 pages

    Income Statement, Oener's Equity, Position

    Uploaded by

    MaDine 19
    Carla Auto Repair Shop generated $108,900 in profit for the year ended December 31, 2018 according to its income statement. Its assets included $149,750 in current assets and $165,250 in property and equipment. For the year, the statement of cash flows showed $41,150 cash from operating activities, -$149,000 from investing activities from equipment purchases, and $77,850 from financing activities including an owner investment and loan.

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    © All Rights Reserved
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    of 4

    INCOME STATEMENT

    CARLA AUTO REPAIR SHOP


    INCOME STATEMENT
    For the year ended December 31, 2018

    Revenue:
    Repair Income P275,000
    Other Operating Income (note 1) 15,450
    Expenses:
    Rent Expense P55,000
    Utilities Expense 46,750
    Salaries Expense 45,000
    Depreciation Expense (note 2) 9,750
    Other Expenses (note 3) 24,050 (180,550)
    Interest Expense (1,000)
    Profit for the year P108,900

    Note 1: Other Income


    Referral Income P 15,000
    Interest Income 450
    Total P 15,450

    Note 2: Depreciation Expense


    Depreciation – Machinery & Equipment P 7,500
    Depreciation – Furniture & Fixtures 2,250
    Total P 9,750

    Note 3: Other Expenses


    Insurance expense P 10,000
    Taxes & Licenses 8,750
    Bad Debts Expense 4,900
    Supplies Expense 400
    Total P 24,050

    STATEMENT OF CHANGES IN OWNER’S EQUITY

    CARLA AUTO REPAIR SHOP


    STATEMENT OF CHANGES IN OWNER’S EQUITY
    For the year ended December 31, 2018

    Carla, Capital, January 1 P100,000


    Additional Investment 32,850
    Add Profit 108,900
    Total P241,750
    Less: Withdrawals 5,000
    Carla, Capital December 31 P236,750
    STATEMENT OF FINANCIAL POSITION
    CARLA AUTO REPAIR SHOP
    STATEMENT OF FINANCIAL POSITION
    December 31, 2018

    ASSETS
    Current Assets:
    Cash (Note 1) P 70,000
    Trade and Other Receivable (Note 2) 74,550
    Prepaid Expenses (Note 3) 5,200
    Total 149,750
    Non-Currents Assets:
    Property & Equipment (Note 4) 165,250
    Total Assets P 315,000

    LIABILITIES AND OWNER’S EQUITY


    Current Liabilities:
    Trade and Other Payables (Note 5) P 28,250
    Owner’s Equity:
    Carla, Capital 238,750
    Total Liabilities & Owner’s Equity P 315,000

    Note 1: Cash
    Cash on Hand P25,000
    Cash in Bank 45,000
    Total P70,000

    Note 2: Trade and Other Receivable


    Accounts Receivable P49,000
    Less: Allowance for Bad Debts 4,900 44,100
    Notes Receivable 30,000
    Interest Receivable 450
    Total P74,550

    Note 3: Prepaid Expenses


    Prepaid Insurance P5,000
    Prepaid Supplies 200
    Total P5,200

    Note 4: Property & Equipment


    Machinery & Equipment P150,000
    Less: Accumulated Depreciation 7,500 P142,500
    Furniture & Fixtures P25,000
    Less: Accumulated Depreciation 2,250 22,750
    Total P165,250

    Note 5: Trade and Other Payables


    Accounts Payable P26,000
    Notes Payable 50,000
    Interest Payable 750
    Taxes Payable 1,500
    Total P78,250
    STATEMENT OF CASH FLOWS
    CARLA AUTO REPAIR SHOP
    STATEMENT OF CASH FLOWS
    For the year ended December 31, 2018

    Cash flows from operating activities:


    Collections from customers (schedule 1) P196,000
    Collections from referrals made 15,000
    Payment for rent (55,000)
    Payment for utilities (46,750)
    Payment for salaries (45,000)
    Payment for insurance (schedule 2) (15,000)
    Payment for taxes (schedule 3) (7,250)
    Payment for supplies (schedule 4) (600)
    Payment for interest expense (schedule 5) (250)
    Net cash inflows from operating activities P41,150
    Cash flows from investing activities:
    Purchase of machinery and equipment (schedule 6) P(124,000)
    Acquisition of furniture (25,000)
    Net cash outflows from investing activities (149,000)
    Cash flows from financing activities:
    Investment by the owner P32,850
    Cash withdrawals (5,000)
    Loan from Republic Finance 50,000 77,850
    Decrease in cash (30,000)
    Cash, January 1 100,000
    Cash, December 31 P70,000

    Schedule 1: Repair Income P275,000


    Accounts Receivable, Dec. 31 (49,000)
    Notes Receivable, Dec. 31 (30,000)
    Collections from customers P196,000

    Schedule 2: Insurance Expense P10,000


    Prepaid Insurance, Dec. 31 5,000
    Payment for insurance P15,000

    Schedule 3: Taxes and Licenses Expense P8,750


    Taxes Payable (1,500)
    Payment for Taxes P7,250

    Schedule 4: Supplies Expense P400


    Prepaid Supplies 200
    Payment for supplies P600

    Schedule 5: Interest Expense P1,000


    Interest Payable (750)
    Payment for interest expense 250

    Schedule 6: Machinery and Equipment P150,000


    Accounts Payable (26,000)
    Payment for machinery P124,000

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