ENTREP MODULE 8

EXPLORE – Applying Basic Accounting

Equation
FUTURE ACHIEVER'S ACADEMY

ASSETS
DEBIT CREDIT
CURRENT ASSETS
CASH 280,000
ACCOUNTS RECEIVABLE 60,000
OFFICE SUPPLIES 35,000
  TOTAL CURRENT ASSETS 375,000    
TOTAL ASSETS 375,000
LIABILITIES
CURRENT LIABILITES
ACCOUNTS PAYABLE 25,000
LOAN PAYABLE 300,000
  TOTAL CURRENT LIABILITIES 325,000  
TOTAL LIABILITES 325,000

OWNER'S EQUITY
FUTURE ACHIEVER'S ACADEMY, CAPITAL 50,000
TOTAL LIABILITES AND CAPITAL 700,000

DEEPEN
FUTURE ACHIEVERS ACADEMY
JUNE, 2018
 
GENERAL JOURNAL
PAGE  
  BALANCES
DATE PARTICULARS POLIO DEBIT CREDIT
MONTH DAY        
JUNE 3 SUPPLIES      
    CASH   50,000  
 To record the amount paid for the
    office supplies purchased.      
           
  4 EQUIPMENT   32,000  
    ACCOUNTS PAYABLE      

To record the amount payable for

    the office equipment purchased.      
           
  5 TUITION FEES     250,000
    cash      

To record the amount received for

    the tuition fees of the students      
           
  6 TABLES AND CHAIRS   250,000  
    cash      

To record the amount purchased for

    the tables and chairs      
           
  10 SALARIES   30,000  
    cash      

To record the amount of salaries for

    teachers      

GAUGE 12. D
13. C
1. C
14. B
2. B
15. D
3. B
4. C
5. A
6. B
7. A
8. D
9. B
10. B
11. A
MODULE 9
Deepen – Complete Me

A.
ACTIVITY 1
1. 2,695,800
Items 2. 11,149,105
Revenu 3. 2,012,100
no. e Expenses 4. 9,137,005
1 Salaries/Wages x 5. 9,260,805
6. 9,237,305
2 Amortization x
7. 0.76
3 Net service sales x 8. 1.081
4 Provision for Loan Losses x 9. 1.093
5 Depreciation x 10. Profit
6 Interest paid on Debt x
B.
7 Utilities x
8 Rent x Interpretation:
9 Loan fees earned x  The gross profit of Educator’s
10 Bank Charges x Training Assessment Center is
11 Employers Benefits x 0.76 or 76% is left after paying
12 Interest on Investments x all cost of the sale. While the
13 Net Product Sales x company has operating margin
14 Equipment x of 108% which means, for
every Php.1 of sale, the
15 Advertisement x
company earns 1.08 peso for
before taxes and interest for
its sales value. Higher
CHANGE X to Check!!!! operating profit margin is
favorable for a business. This
Activity 2 signifies that more part of the
1. What year has higher expenses? By how revenue can converted to
much? operating income. On the
 2019 has the higher expense by other hand, the company has
P11,500,000 compared to the year 109% net margin. This means
2018. that every Php. 1 sale
2. What is the percentage profit or loss of contributes 1.08 peso to the
revenue from operations in the succeeding net profit of the business.
years? Overall result of the Profit and
 In 2018, the percentage of profit is Loss Statement of Educator’s
39.78% while in 2019 is 37.3%. Training Assessment Center
3. What is the net profit for each year: has a positive net income. This
a. 2018 - 17,500,000 means that the company still
b. 2019 - 20,700,000 has the capability to earn and
4. What year yields a higher profit? Why pay its debts and operating
expenses.
 2019 have the higher profit
because it gains 18.29%
(3,200,000) more than the year
2018.
GAUGE
1. A
2. A
3. B
4. B
5. C
6. C
7. C
8. C
9. C
10. C
MODULE 10
EXPLORE ACTIVITY 1

TAGUDTOD BAKESHOP
Balance Sheet
Dec. 31, 2019
ASSETS
Current Asssets
Savings Account 1750
Bank Account 1000
Checking Account 1250
Cash Refund 1000
Cash in 75
Rent 450
Total current assets 5525
Fixed Assets  
Computer 500
House 60000
Jewelry 300
Furniture 1000
Automobile 5000
Television 500
Total Fixed Assets 67300
LIABILITIES  
Short Term Liabilities  
Credit Card 300
Medical Debt 400
Electrical Bill 500
Long-Term Liabilities  
Student Loan 2000
Home Mortgage 45000
Furniture Loan 400
Automobile Loan 1500
Total Long-Term Liabilities 48900
Total Assets 72825
Total Liabilities 50100
SHAREHOLDER'S EQUITY 22,725
 EXPLORE ACTIVITY 2

CASH FLOW STATEMENT

Cash at beginning of Year P20,000.0
Operating Expenses
Cost of goods sold 400000
Cash Paid For:  
Car Payment 15000
Rent 15000
Car Insurance 500
Paid to suppliers 150500
Gasoline Expenses 7500
Family living Expenses 50000
State Tax 500
Social Security Tax 250
Net cash flow from Operation 160750
Investing Expenses
Cash Paid For:  
Equipment 50000
Additional Equipment 20000
Savings 1000
Net cash flow from Operation from Investing Activities 71000
Financing Expenses
Cash Paid For:  
Cash Dividends 5000
Net Cash flow from Financing Activities 5000
Net Increase in Cash 74,750
Cash at the end of the Year 94,750
 EXPLORE ACTIVITY 3

Income Statement
For the year ending December 31, 2018
Revenues  
Net Sales 350,000
Cost of goods sold 185,000
Gross profit 165,000
   
Expenses  
Salaries and Wages 50,000
Rental 20,000
Insurance 5,000
Total Operating Expenses 75,000
Taxes and Licences 15,000
Income Before Tax 90,000
Net Income 75,000

Deepen
Assesment 1.
1. Owner’s Equity = Assets - Liability

Therefore, 250,000 (Worth of Real State) + 180,000 (loan for the Real State) is equals to
70,000.

Owner’s Equity is P70,000.

2. Net income = Expenses – Sales

Therefore, 260,000 (sales) minus 15,000 (rent), 100,000 (COGS), 50,000 (repairs) and 35,000
(advertising) is equals to 60,000.
Net income is 60,000.
3. Gross profit = Sales – COGS
Therefore, 260,000 (sales) minus 100,000 (COGS) is equals to 160,000.
Gross profit is 160,000.
4. Operating Income = Gross Profit – Expenses
Therefore, 160,000 (gross profit) minus 15,000 (rent), 50,000 (repairs) and 35,000
(advertising) is equals to 60,000.
Operating Income is 60,000
5. Total Revenues – Total Expenses = Net income
50,000 – 3,000 – 20,000 – 5,000 – 6,000 = 16,000
Net income is 16,000.
6.
CASH FLOW STATEMENT
Cash at beginning of Year P20,000.0
Operating Expenses
Cash sales 10,000
Cash Paid For:  
Wage 5,000
Rent 3,000
Inventory Purchased 6,000
Cash received from prior credit sales 8,000
Net cash flow for operation 4,000

7. Cash flow statement

8. Financing
9. Financing
10. Operating
11. Operating
12. Investing
13. Gross margin
14. B. Gross Profit
15. B. Financing Activity

Gauge

1. C
2. B
3. B
4. C
5. D
6. C
7. C
8. C
9. C
10. B
11. B
12. C
13. B
14. D
15. C