ASI Chapter 14 Financial Statements PDF

Title	ASI Chapter 14 Financial Statements
Course	Advance Accounting
Institution	Romblon State University
Pages	13
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Chapter 14 Financial Statements

PROBLEM 14-1: TRUE OR FALSE 1. TRUE 2. TRUE 3. TRUE 4. FALSE 5. FALSE 6. FALSE – statement of profit or loss or income statement, not statement of comprehensive income 7. FALSE 8. TRUE 9. FALSE 10. TRUE

PROBLEM 14-2: MULTIPLE CHOICE 1. B 2. D 3. B 4. A 5. C 6. A 7. B 8. D 9. A 10. C

PROBLEM 14-3: FINANCIAL STATEMENT PRESENTATION Requirement (a): Comparative Statement of financial position

ENTITY A STATEMENT OF FINANCIAL POSITION (REGULAR AGENCY FUND) AS AT DECEMBER 31, 20X2 Note s ASSETS Current Assets Cash and Cash Equivalents Receivables

1

Inventories Total Current Assets

20x2

20x1

30,000 115,00 0 20,000 165,00 0

30,000

110,00 0

580,00 0 580,00 0

310,00 0 310,00 0

745,0 00

420,00 0

90,000 90,000

60,000 27,000 87,000

90,00 0

87,000

655,00 0

333,00 0

655,00 0 655,0 00

333,00 0 333,00 0

80,000

Noncurrent Assets Property, Plant and Equipment

2

Total Noncurrent Assets

TOTAL ASSETS Current Liabilities Financial Liabilities Inter-agency Payables Total Current Liabilities TOTAL LIABILITIES TOTAL ASSETS less TOTAL LIABILITIES

3

NET ASSETS/EQUITY Accumulated Surplus/(Deficit) TOTAL NET ASSETS/EQUITY

This statement should be read in conjunction with the accompanying notes.

Requirement (b): Comparative Statement of financial performance ENTITY A STATEMENT OF FINANCIAL PERFORMANCE (REGULAR AGENCY FUND) FOR THE YEAR ENDED DECEMBER 31, 20X2 Note s

20x2

20x1

50,000

40,000

240,000

192,000

290,000

232,000

REVENUE Tax revenue Service and Business Income TOTAL REVENUE

Less: CURRENT OPERATING EXPENSES Personnel Services Maintenance and Other Operating Expenses Non-cash Expenses TOTAL CURRENT OPERATING EXPENSES

SURPLUS/ (DEFICIT) FROM CURRENT OPERATIONS Net Financial Assistance/Subsidy

4

400,000

319,000

430,000 55,000

344,000

885,000

703,000

(595,00 0)

(471,00 0)

1,167,0 00

934,000

5 6

40,000

SURPLUS/ (DEFICIT) FOR THE PERIOD

572,00 0

463,00 0

This statement should be read in conjunction with the accompanying notes.

Requirement (c): Comparative Statement of changes in equity ENTITY A STATEMENT OF CHANGES IN NET ASSETS/EQUITY (REGULAR AGENCY FUND) FOR THE YEAR ENDED DECEMBER 31, 20X2 Accumulated Surplus/ (Deficit)

Balance at January 1

20x2 333,00 0

20x1 160,00 0

572,00 0 (250,0 00) 655,0 00

463,00 0 (290,0 00) 333,0 00

Add/ (Deduct): Changes in Net Assets/Equity for the Calendar Year Surplus/(Deficit) for the period Adjustment of net revenue recognized directly in net assets/equity Balance at December 31

This statement should be read in conjunction with the accompanying notes.

Requirement (d): Statement of cash flows ENTITY A STATEMENT OF CASH FLOWS (REGULAR AGENCY FUND) FOR THE YEAR ENDED DECEMBER 31, 20X2 Cash Flows from Operating Activities Receipt of Notice of Cash Allocation Collection of Income/Revenues Collection of receivables Total cash inflows Remittance to National Treasury Payment of Personnel Services Payment for Maintenance & Other Operating Expenses Purchases of Inventories Remittance of Personnel Benefit Contributions and Mandatory Deductions Reversion of unused NCA Total cash outflows Net Cash Provided by (Used in) Operating Activities Cash Flows from Investing Activities Purchase of Office Equipment

1,050,0 00 50,000 200,000 1,300,0 00 (250,00 0) (250,00 0) (280,00 0) (110,00 0) (67,000 ) (43,000 ) (1,000,0 00) 300,00 0

(300,00

0) (300,00 0)

Net Cash Provided by (Used in) Operating Activities Cash Flows from Financing Activities

-

Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Jan. 1 Cash and Cash Equivalents, Dec. 31

30,000 30,000

This statement should be read in conjunction with the accompanying notes.

Computations for Statement of cash flows:  Collection of receivables: Accounts receivable Dec. 31, 20x1

80,000

Waterworks System Fees

240,00 0

200,00 0 120,00 0

Collectio ns Dec. 31, 20x2

 Payment for Personnel Services: Personnel Services

400,000

Less: Withholding taxes Salary deductions for GSIS, PhilHealth & Pag-IBIG

(90,000)

Payment for Personnel Services

(60,000) 250,00 0

 Payment for Maintenance & Other Operating Expenses (other than purchases of inventories) 20 ,000 60 ,000 40 ,000 80 ,000 10 0,000 300,000

Water Expenses Electricity Expenses Telephone Expenses Janitorial Expenses Security Expenses Total Less: Withholding taxes Net cash payment

(20,000) 280,000

 Purchases of Inventories Office Supplies Inventory Dec. 31, 20x1 Purchases of inventory

150, 000

130,0 00 20,00 0

Office Supplies Expense Dec. 31, 20x2

Accounts Payable 60,00 0 Payments of accounts 120, 150,0 payable 000 00 90,00 Dec. 31, 20x2 0 Payments of accounts payable

Dec. 31, 20x1 Purchases

120,000 Less: Withholding taxes Cash outflow on Purchases of Inventories

(10,000) 110,000

 Remittance of Personnel Benefit Contributions and Mandatory Deductions Due to GSIS, PhilHealth & Pag-IBIG 7,000 Amount remitted Dec. 31, 20x2

67,000 -

60,000

Dec. 31, 20x1 Salary deductions in 20x2

 Purchase of Office Equipment

Dec. 31, 20x1 Purchases of equipment

Office Equipment 340,00 0 320,0 00 660,00 0

Dec. 31, 20x2

Purchases of equipment

320,000

Less: Withholding taxes Cash outflow on Purchases of Equipment

(20,000) 300,000

Requirement (e): Statement of comparison of budget and actual amounts

Requirement (f): Partial Notes to the financial statements Note 1: Receivable This account consists of the following:

Accounts Receivable Allowance for Impairment - A/R Net

20x2 120,000 (5,000) 115,00 0

20x1 80,000 80,00 0

Note 2: Property, Plant and Equipment This account consists of the following:

Buildings Office Equipment Total Cost

Accumulated Depreciation - Buildings Accumulated Depreciation Equipment Total Accumulated Depreciation

Property, Plant and Equipment, net

20x2 20x1 800,0 800,0 00 00 660,0 340,0 00 00 1,460,0 1,140,0 00 00 680,00 0 200,00 0 880,00 0

650,00 0 180,00 0 830,00 0

580,0 00

310,0 00

20x 2 -

20x1 20,000 4,000 2,000 1,000

Note 3: Inter-agency Payables This account consists of the following:

Due Due Due Due

to to to to

BIR GSIS Pag-IBIG PhilHealth

Inter-agency Payables

-

27,000

Note 4: Personnel Services This account consists of the following: 20x2 Salaries and Wages, Regular PERA Personnel Services

380,000 20,000 400,00 0

20x1 303,0 00 16,0 00 319,0 00

Note 5: Maintenance and Other Operating Expenses This account consists of the following:

Office Supplies Expense Water Expenses Electricity Expenses Telephone Expenses Janitorial Expenses Security Expenses Maintenance and Other Operating Expenses

20x2 130,0 00 20,00 0 60,00 0 40,00 0 80,00 0 100,0 00 430,0 00

20x1 104,0 00 16,00 0 48,00 0 32,00 0 64,00 0 80,00 0 344, 000

20x2 30,00 0 20,00

20x1 24,00 0 16,00

Note 6: Non-cash Expenses This account consists of the following:

Depreciation-Buildings & Other Structures Depreciation-Machinery and Equipment

0 Impairment Loss – Loans and Receivables Non-cash Expenses

5,000 55,00 0

0 40,0 00

PROBLEM 14-4: FOR CLASSROOM DISCUSSION 1. B 2. D 3. D 4. C 5. B 6. D – choice (c), a classified statement of financial position is one that shows distinctions between current and noncurrent assets and liabilities. 7. C 8. C 9. B 10. D...