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Question: Prepare: Statement of Financial Position-report form -Free Course Hero Question Answer.

Question Description: Prepare: Statement of Financial Position-report form

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Financial Statement Preparation – II. The following accounts were taken from the adjusted trial balance of Mariel’s Beauty Salon, a Calendar – year business, as of December 31, 2019 (disregarding effect of income taxes): Debit Credit Debit Credit Accounts Payable P54,000 Interest Income 15,000 Accounts Receivable P96,000 Interest Receivable 15,000 Accumulated 20,000 Investment Income 3,500 Depreciation- Beauty Machine Accumulated 10,000 Investment in 70,000 Depreciation – Trading Securities Fumiture and Fixture Accumulated 6,500 Notes Receivable – 150,000 Depreciation – Office due in two years Equipment Allowance for 15,000 Office Equipment 70,000 Doubtful Accounts Mariell, Capital ? Office Supplies 8,000 Mariell, Drawing 40,000 Salon Revenues 980.000 Beauty Machine 220,000 Rent Expense 144,000 Cash 120,000 Salaries Expense 312,000 Depreciation 36,500 Salaries Payable 12,000 Expense Doubtful Accounts 15,000 Utilities Expense 77.500 Expense Furniture and Fixture 120,000 Totals P1.494,000 P1/404,000

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Mariell Beauty Salon Mariell Beauty Salon Statement of Financial Position Income statement As at 31 December 2019 For the year ended 31 December 2019 Assets P P Revenue P P Non-current assets Salon revenue 980,000 Property, plant & equipment (Net) Note 1 373,500 Other income Notes receivable -due in 2 years 150,000 Interest income 15,000 Total non-current assets 523,500 Investment income 3,500 Current assets Expenses Office supplies 8,000 Depreciation expense (36,500) Accounts receivable 96,000 Doubtful accounts expense (15,000) (-) Allowance for doubtful accounts (15,000) Rent expense (144,000) Net accounts receivable 81,000 Salaries expense (312,000) Interest receivable 15,000 Total expenses (507,500) Investment in trading securities 70,000 Profit for the year 491,000 Cash 120,000 Total current assets 294,000 Note 1 Property, plant & equipment (Net) Total assets 817,500 Beauty Furniture & Office machine Fixtures equipment Total Equity and liabilities p P Cost 220,000 120,000 70,000 410,000 Equity (-) Accumulated depreciation (20,000) (10,000) (6,500) (36,500) Mariell Capital h = f- g 300,500 Net book value 200,000 110,000 63,500 373,500 Profit for the year 491,000 f =d+e 791,500

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f =d+e 791,500 (-) Drawings e 40,000 Mariell Capital 31/12/2019 d =b- c 751,500 Current liabilities Accounts payable 54,000 Salaries payable 12,000 Total current liabilities C 66,000 Total capital and liablities b = a 817,500

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