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Amper Accounting Activity2

This document contains an exercise providing accounting classification practice for income statement and balance sheet items. It also includes a comprehensive problem involving the preparation of financial statements from a trial balance for an art gallery. The financial statements include an income statement showing revenue and expenses, a classified balance sheet dividing assets and liabilities into current and non-current sections, and a statement of changes in owner's equity tracking the owner's initial investment and withdrawals over the period.

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Realle Rainne Cruz
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32 views5 pages

Amper Accounting Activity2

This document contains an exercise providing accounting classification practice for income statement and balance sheet items. It also includes a comprehensive problem involving the preparation of financial statements from a trial balance for an art gallery. The financial statements include an income statement showing revenue and expenses, a classified balance sheet dividing assets and liabilities into current and non-current sections, and a statement of changes in owner's equity tracking the owner's initial investment and withdrawals over the period.

Uploaded by

Realle Rainne Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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AMPER, EARL ARIANNE R.

DOMT – LOM 2-3


Accounting Principles
Activity 2
Exercise 6
For each of the following, write I if it is an Income Statement
item and B if it is a Balance Sheet Item.
I 1. Interest expense
B 2. Interest receivable
B 3. Mortgage payable
I 4. Interest Income
I 5. Miscellaneous Expense
B 6. Drawing Account
I 7. Supplies Expense
B 8. Supplies
B 9. Equipment
B 10. Building
I 11. Salaries Expense
B 12. Account Payable
B 13. Prepaid rent
I 14. Insurance Expense
B 15. Cash
Exercise 7

Below are the classifications commonly found on a classified balance sheet. On the
blank provided before each number, write the classification to where it belongs.

a. Current assets
b. Property, plant, and equipment
c. Current liabilities
d. Non-current liabilities
e. Owner’s equity
f. Not a balance sheet item

B. 1. Land
C. 2. Rent Expense
E. 3. L, Capital
A. 4. Account Receivable
F. 5. Unearned Rent
D. 6. Supplies Used
F. 7. Supplies on Hand
A. 8. Prepaid Insurance
E. 9. Account Payable
A. 10. Notes Receivable
D. 11. Mortgage Payable
C. 12. Taxes Payable
B. 13. Truck
B. 14. Equipment
E. 15. Commission Earned
Exercise 8 - Comprehensive Problem
Presented in the trial balance of Niko Ong Art Gallery. From the information
given, prepare the following by completing the incomplete statements and the
accompanying notes to financial statements.
1. Income Statement
2. Statement of Financial Position
3. Statement of changes in owner’s Equity
Niko Ong Art Gallery
Trial Balance
December 31, 2012
Cash ₱ 840,500
Account Receivable 50,000
Art Supplies 12,000
Prepaid Rent 30,000
Prepaid Insurance 18,000
Transportation Equipment 300,000
Office Equipment 50,000
Account Payable ₱ 37,000
Notes Payable 200,000
Utilities Payable 900
Unearned Painting revenue 250,000
Ong, Capital 500,000
Ong, Drawing 30,000
Painting Revenue 350,000
Salaries Expense 2,500
Utilities Expense 4,900
Total ₱ 1,337,900 ₱ 1,337,900
1. INCOME STATEMENT

PAINTING REVENUE 350,000

SALARIES EXPENSE 2,500

UTILITIES EXPENSE 4,900

NET INCOME 342,600

2. STATEMENT OF FINANCIAL POSITION


Assets
Current Assets
850,000
Cash
50,000
Account Receivable
12,000
Art Supplies
30,000
Prepaid Rent
18,000
Prepaid Insurance
300,000
Transportation Equipment
50,000
Office Equipment

Total Assets 1,300,500

Liabilities
Current Liabilities
37,000
Account Payable
200,000
Notes Payable
900
Utilities Payable
250,000
Unearned Painting Revenue

Total Liabilities: 487,900


Owner’s Equity

Ong’s Equity 500,000

Ong’s Drawing 30,000

Total Owner’s Equity: 470,000

Total Liabilities and Owner’s Equity: ₱ 957,000

3. STATEMENR OF CHANGES IN OWNER’S EQUITY

Beginning Capital 500,000

342,000
Net Income
30,000
Drawings

Ending Capital: ₱ 812,600

These statements summarize the financial position and performance of Niko Ong Art Gallery as of
December 31, 2012.

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