FDNACCT 03 · Financial Statements
Conventions
Amounts are Philippine pesos (₱). Enter numeric answers without a currency symbol; commas are optional. Use accrual accounting, periodic inventory, prepaid expenses under the asset method, unearned revenue under the liability method, straight-line depreciation, and the allowance method unless a question states otherwise. Interest uses a 360-day year or months/12. Follow the course cash-flow convention: interest/dividends received are investing, interest/dividends paid are financing. Each Practice Lab table has one highlighted blank. Questions are independent; use only the facts given in that question.
Questions
01Complete the missing equity balance.
Problem
All amounts are Philippine pesos (₱). The complete asset list and total liabilities at the reporting date are below.
| Item | Amount |
|---|---|
| Cash | 200,000 |
| Accounts receivable | 60,000 |
| Equipment | 240,000 |
| Total liabilities | 180,000 |
| Owner’s equity | ? |
02Complete ending capital.
Problem
All amounts are Philippine pesos (₱). The following are the complete equity movements for the year.
| Item | Amount |
|---|---|
| Beginning capital | 100,000 |
| Additional owner investment | 20,000 |
| Net profit | 30,000 |
| Personal drawings | 10,000 |
| Ending capital | ? |
03Find the missing beginning capital.
Problem
All amounts are Philippine pesos (₱). The following are the complete equity movements; the owner contributed massage chairs during the period.
| Item | Amount |
|---|---|
| Ending capital | 740,000 |
| Additional owner investment: massage chairs | 150,000 |
| Net profit | 180,000 |
| Personal drawings | 10,000 |
| Beginning capital | ? |
04Enter total current assets.
Problem
All amounts are Philippine pesos (₱). Unused supplies and prepaid rent will be consumed within the next twelve months. Land and equipment are held for use in the business over several years.
| Account | Balance |
|---|---|
| Cash | 30,000 |
| Accounts receivable | 20,000 |
| Supplies | 40,000 |
| Prepaid rent | 35,000 |
| Equipment | 60,000 |
| Land | 50,000 |
| Accrued interest payable | 7,700 |
| Total current assets | ? |
05Enter the missing net profit.
Problem
All amounts are Philippine pesos (₱). These are final adjusted balances at the reporting date; all earned revenue is included in the Service revenue balance.
| Account | Balance |
|---|---|
| Earned service revenue | 120,000 |
| Unearned revenue liability | 12,000 |
| Accrued revenue receivable | 28,000 |
| Rent expense | 20,000 |
| Salaries expense | 35,000 |
| Utilities expense | 5,000 |
| Supplies expense | 3,000 |
| Net profit | ? |
06Classify the unearned-fee balance as asset, liability, equity, income, or expense.
Problem
All amounts are Philippine pesos (₱). A customer pays the business for work that will be performed next month. The work has not yet started. Identify the financial-statement element for the resulting unearned-fee balance.
07Which statement connects net profit to ending capital?
Problem
A business first calculates net profit in Profit or loss. It then combines that result with contributions and drawings before reporting ending capital in Financial position. Identify the intermediate statement.
08What is Aim High’s net profit?
Problem
All amounts are Philippine pesos (₱). Aim High Services · year ended December 31, 2025. No other item follows operating profit in this exercise.
| Item | Amount |
|---|---|
| Operating profit before financing | 31,900 |
| Interest expense | 1,000 |
| Net profit | ? |
09An owner withdraws cash of ₱10,000. Enter the decrease in owner’s equity as a positive amount.
Problem
All amounts are Philippine pesos (₱). A sole proprietor takes 10,000 of the business’s cash for personal use. It is a drawing, with no other asset, liability, income, or expense change. Report the magnitude of the equity reduction as a positive number.