Grading Sheet:
Chapter 2
Default Transactions 10
Trial Balance 10
Income Statement 15
Cash Flow Statement 15
Statement of Retained Earnings 15
Balance Sheet 15
Financial Ratios 10
Overall Presentation 10
1. Enumerate 15 business transactions for your new enterprise. The following are default and should be included:
o Equity
o Revenues. Use cash for some, account receivable for some.
o Expenses. Use cash for some, account payable for some. Include the amount of supplies used. Moreover, allow
for some of the insurance to expire.
o Dividends. Pay out dividends to stockholder/s.
o Accounts Payable. Pay out some of your payables.
o Accounts Receivable. Receive some cash for your receivables.
2. Prepare all the financial statements for the period July 1 to 31, 2016.
Students of Mapua Institute of Technology established a small business that serves hand-crafted beverage and
named it Cafet Malu at the beginning of December. The following business transactions are completed for the
remaining month of December:
Invest Php 150,000 cash to start the business.
Sold Products:
Coffee (Cappucino, Mocha, Caramel Macchiato, Brewed Coffee, Espresso, Café Latte): Php 59080
Cakes & Pastries (Red Velvet Cake, Chocolate Chip Cookies, BLT Sandwich, Banana Caramel Loaf): Php
41100
TRIAL BALANCE
Cafet Malu
Cafet Malu
Insurance (10,000)
Supplies (50,000)
Utilities (15,000)
Sales 70,000
Sales 59080
Sales 41100
Sales 23500
Rent (30,000)
Wages (72,150)
Creditor (15000)
Dividends (10000)
(8470)
NET CASH 141530
INCOME STATEMENT
Cafet Malu
REVENUE
Sales 70,000
59080
41100
23500
193680
EXPENSES
Utilities 15,000
Rent 30,000
Wages 72,150
Insurance 15000
122150
NET INCOME 81530
Cuplete Co.
Initial RE 0
Net income 81,530
Dividends (10000)
FINAL RE 71530
BALANCE SHEET
Cafet Malu
ASSETS
Current Assets:
Cash 141,530
A. Receivable 10,000
Supplies 50000
Insurance 10000
(5000)
206530
Fixed Assets:
Equipment 65000
65000
TOTAL ASSETS 271530
Financial Ratios:
Liquidity Ratios:
Solvency/Leverage Ratios:
Sales 193683
Assets Turnover Ratio 0.7133
Total Assets 271530
Total Equity 221530
Equity Ratio 0.8159
Total Assets 271530