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Exercise 1 – Elements of Financial Statements

Assets Liabilities
Owner’s Equity

1. 760,000 360,000 ?

2. 860,000 ?
592,000

3. ? 108,000
760,000

4. 626,600 376,240 ?

5. ? 800,000
100,000

Required:

Fill in the amount of the missing element of financial position.

Exercise 2

1. Jimmy Delgado Pest Control has assets of P600,000 and owner’s

equity of P450,000.

2. Margie Clavano Realtors has liabilities of P530,000 and owner’s

equity of P410,000.

3. Marco Fuentes Plumbing Contractor has assets of P473,000 and

liabilities of P153,700.

4. Ryan Morales Acting Studio has liabilities of P147,000 and

owner’s equity of P 236,500.

5. Fely Monarca Dance has assets of P624,000 and liabilities of P

237,000.
Required: Compute the amount of the missing elements of financial
position.

Exercise 3

1. At the beginning of the year, the assets of Cleofe Arib Services

were P360,000 and its owner’s equity was P200,000. During the
year, the asssets increased by P120,000 and liabilities increased by
P20,000. What was the owner’s equity at the end of the year?

2. At the beginning of the year, Cora Gabayan Calling Station had

liabilities of P100,000 and owner’s equity of P96,000. If asssets
increased by P 40,000 and liabilities decreased by P30,000, what
was the owner’s equity at the end of the year?

3. The liabilities of Lenore Loqueloque Stylist equal one-third of the

total assets, and the owner’s equity if P240,000. What is the amount
of the iabilities?

Required: Use the accounting equation to answer each of the

questions above.

Exercise 4

Income Expenses Profit

1. 840,000 ? 360,000

2. 2,400,000 ? 540,000

3. 1,300,000 860,000 ?

4. ? 2,000,000 720,000

5. ? 1,800,000 (400,000)

Required:

Supply the missing elements of performance.

Exercise 5

1. A small accounting firm has income of P325,000 and expenses

P237,000.

2. An advertising agency has expenses of P163,000 and profit of

P42,000.

3. A computer-training outfit has expenses of P153,000 and loss of

P27,500.

4. A medical practitioner has income of P737,000 and profit of

P168,000.

5. An environment consultant has income of P362,000 and loss of

P20,000.

Required:

In each of the preceding five situations, determine the amount of the

missing element of performance.

ANSWER
 Assets Liabilities Owner’s
Equity

1. 760,000 360,000
400,000

2. 860,000 268,000
592,000

3. 868,000 108,000
760,000

4. 626,600 376,240
250360

5. 900,000 800,000
100,000

Required:

Fill in the amount of the missing element of financial position.

Exercise 2

1. Jimmy Delgado Pest Control has assets of P600,000 and owner’s

equity of P450,000. Liabilities = P150,000

2. Margie Clavano Realtors has liabilities of P530,000 and owner’s

equity of P410,000. Assets = P940,000

3. Marco Fuentes Plumbing Contractor has assets of P473,000 and

liabilities of P153,700. Owner's Equity = P319,300

4. Ryan Morales Acting Studio has liabilities of P147,000 and

owner’s equity of P 236,500. Assets = P383,500

5. Fely Monarca Dance has assets of P624,000 and liabilities of P

237,000. Owner's Equity = P387,000

Required: Compute the amount of the missing elements of financial

position.
Exercise 3

1. At the beginning of the year, the assets of Cleofe Arib Services

were P360,000 and its owner’s equity was P200,000. During the
year, the asssets increased by P120,000 and liabilities increased by
P20,000. What was the owner’s equity at the end of the
year? Answer: 300,000

2. At the beginning of the year, Cora Gabayan Calling Station had

liabilities of P100,000 and owner’s equity of P96,000. If assets
increased by P 40,000 and liabilities decreased by P30,000, what
was the owner’s equity at the end of the year? Answer: 166,000

3. The liabilities of Lenore Loqueloque Stylist equal one-third of the

total assets, and the owner’s equity if P240,000. What is the amount
of the iabilities? Liabilities = 120,000

Required: Use the accounting equation to answer each of the

questions above.

Exercise 4

Income Expenses Profit

1. 840,000 480,000 360,000

2. 2,400,000 1,860,000 540,000

3. 1,300,000 860,000 440,000

4. 2,720,000 2,000,000 720,000

5. 1,400,000 1,800,000 (400,000)

Required:

Supply the missing elements of performance.

Exercise 5

1. A small accounting firm has income of P325,000 and expenses

P237,000. Profit= 88,000

2. An advertising agency has expenses of P163,000 and profit of

P42,000. Income= 205,000

3. A computer-training outfit has expenses of P153,000 and loss of

P27,500. Income = 125,500

4. A medical practitioner has income of P737,000 and profit of

P168,000. Expenses = 569,000

5. An environment consultant has income of P362,000 and loss of

P20,000. Expenses = 382,000

Required:

In each of the preceding five situations, determine the amount of the

missing element of performance.