ACTIVITY-2.docx - ACTIVITY 2 Problem 1. (SFP) You were...

ACTIVITY 2
Problem 1. (SFP)
You were hired by MM to prepare his sari-sari store’s Statement of Financial
Position. In order to prepare the statement, you identified the following assets and
liabilities of MM:
a. His sari-sari store has cash deposited in a bank account amounting to
P500,000
Cash 500,000
b. His sari-sari store had a lot of uncollected sales from customers amounting to
P750,000
Accounts Receivable 750,000
Cash 750,000
c. The total amount of merchandise left inside the store is P300,000
d. He already paid one year’s rent in advance amounting to P120,000
e. The value of all the company’s furniture amounted to P1,000,000
Furniture 1,000,000
f. He bought merchandise from his supplier amounting to P250,000 and the
supplier agreed that payment can be made 2 months after year-end
g. SSS, Philhealth and Pag-ibig Payables for his one employee totaled P50,000

Insurance Expense 50,000
h. The sari-sari store had outstanding liabilities to utility companies amounting to
P30,000
Utility payable 30,000
i. He had a loan from the bank amounting to P500,000 to be paid in 3 years
prepare a Statement of Financial Position.
Current Port of Loan Payable 13,888.89
Loan Payable 486,111.11