FUNDAMENTALS OF ACCOUNTING

PREPARATION OF FINANCIAL STATEMENTS

The following are the ending balances of the accounts of the HAPPYPLUS SERVICES for the
fiscal year ended September 30, 2016
Instructions:
Account titles DEBIT CREDIT
Accounts Payable P 297000
Accounts Receivable P 650000
Accrued Interest Income 34000
Accrued Rent Expense 90756
Accumulated Depreciation- Equipment 130000
Accumulated Depreciation-Building 250000
Advances to Employees 75700
Allowance for Bad Debts 120000
Bad Debts Expense 22900
Building 650125
Cash 560123
Depreciation Expense- Building 123560
Depreciation Expense-Equipment 45600
Dividend Income 785694
Equipment 230000
JASON, Drawing 154000
JASON, Capital (October 1) 342858
Insurance Expense 28000
Interest Expense (Notes) 55800
Interest Expense (Bonds) 3800
Interest Income 35600
Investment in Trading Securities 380000
Land 500000
Loans Payable (due on 2020) 500000
Miscellaneous Expense 40000
Mortgage Payable (due in 2020 520000
Notes Payable 100000
Notes Receivable 170000
Prepaid Subscription 9000
Prepaid Supplies 15200
Rent Payable 87900
Repairs and Maintenance Expense 30000
Salaries Expense 225000
Service Income 898000
Supplies Expense 85000
Taxes and Licenses Expense 45000
Unearned Service Income 120000
Utilities Expense 145000
TOTAL P 4277808 P 4277808
Instructions:

Prepare the following:

a. Step 1 : On Worksheet #1 - Notes to Financial Statement ( Note 1-Other
Income, Note 2: Depreciation Expense; Notes 3: Finance Cost ;
Note 4: Trade and Other Receivables Note 5: Prepaid Expense, Note 6: Property,
Plant and Equipment, Note 7: Trade and Other Payable)
b. Step 2: On Worksheet #2 -left side - upper portion - Income Statement
c. Step 3: On Worksheet #2 - left side - lower portion - Statement of Changes in
Owner's Equity
d. Step 4 : On Worksheet #2- right side - Statement of Financial Position - Report
Form