CASE STUDIES

1 Miss Grace Rivera owns and operates the Bata Learning Center. No bookkeeper was
hired until you were called to determine the financial position of the business on
December 31, 2009. You found out that proper accounting records were not maintained
and discovered the following facts about the business:

a. Cash in bank amounting to P58,500 of which P50,000 was in the personal savings
account of the proprietress.
b. That furniture and fixtures amounted to P75,000 less accumulated depreciation of
P25,000 and equipment amounted to P82,000 less accumulated depreciation of
P30,000. Both are being used in the business.
c. The furniture in the house of the proprietress amounted to P125,000 less accumulated
depreciation of P50,000.
d. School bus amounted to P375,00 less accumulated depreciation of P175,000.
e. School lot and building worth P5,000,000 were leased from Ms. Aurora Colayco for a monthly
rental of P50,000. The monthly rentals were paid religiously for the whole year. Leasehold am
improvements for the nursery amounted to P100,000 with accumulated depreciation of
P20,000. (Leasehold improvement is a property, plant and equipment account).
f. Residential house and lot of Miss Rivera amounted to P2,700,000 less accumulated depreciati
of P500,000.
g. Student bills due for collection amounted to P8,500.
h. Unpaid bills for the following creditors:
Alpha Publishing House P5,250 for brochure of the school to be distributed to parents;
Puyat Furniture, P4,500 for furniture in Miss Bato's home; Pacific Office Machines for
office machines purchased for the school, P2,000. Note Payable to the bank, P28,750,
representing unpaid balance on bus bought; unpaid household bills, P1,990.
i. Unused supplies like chalk, eraser, bond paper etc. for the school's use amounted to P800.

Required:

Determine the omner's equity in the school and prepare a properly classified
report form showing financial position of the business.
 eeper was

not maintained

onal savings

preciation of
eciation of

ess accumulated

a Colayco for a monthly

hole year. Leasehold amounted to P100,000 with accumulated
ed depreciation of
account).
accumulated depreciation

buted to parents;
e Machines for
e bank, P28,750,

e amounted to P800.
 Bata Learning Center
Miss Grace Rivera - Proprietress

BALANCE SHEET
As of December 31, 2009

ASSETS

Current Assets

Cash P
Accounts Receivables
Unused Supplies

Total

Fixed Assets

Furniture & Fixtures P 75,000.00

Less: Accumulated Depreciation 25,000.00

Total P 50,000.00

Equipment P 82,000.00
Less: Accumulated Depreciation 30,000.00

Total P 52,000.00

Furniture P 125,000.00
Less: Accumulated Depreciation 50,000.00

Total P 75,000.00

School Bus P 375,000.00

Less: Accumulated Depreciation 175,000.00

Total P 200,000.00

Leashoold Improvements P 100,000.00

Less: Accumulated Depreciation 20,000.00

Total P 80,000.00

Residential House & Lot P 2,700,000.00

Less: Accumulated Depreciation 500,000.00
 Total P 2,200,000.00

Total Fixed Assets P

Total Assets P

Liabilities & Owner's Equity

Current Liablities

Accounts Payables

Alpha Pubishing P 5,250.00

Puyat Furniture 4,500.00
Pacipic office Machine 2,000.00 P

Unpaid Household Bills

Notes Payable

Total Current Liabilities P

Owner's Equity

Miss Grace Rivera Capital P

Total Liabilities & Owner's Equity P

 -
58,500.00 50,000.00 8,500.00
8,500.00
800.00

67,800.00

50,000.00

52,000.00

75,000.00

200,000.00

80,000.00
 2,200,000.00

2,657,000.00 2,657,000.00

2,724,800.00 -

11,750.00

1,990.00
28,750.00

42,490.00

2,682,310.00

2,724,800.00 -
 Bata Learning Center
Miss Grace Rivera - Proprietress

BALANCE SHEET
As of December 31, 2009

ASSETS

Current Assets

Cash P
Accounts Receivables
Unused Supplies

Total

Fixed Assets

Furniture & Fixtures P 75,000.00

Less: Accumulated Depreciation 25,000.00

Total P 50,000.00

Equipment P 82,000.00
Less: Accumulated Depreciation 30,000.00

Total P 52,000.00

School Bus P 375,000.00

Less: Accumulated Depreciation 175,000.00

Total P 200,000.00

Leashoold Improvements P 100,000.00

Less: Accumulated Depreciation 20,000.00

Total P 80,000.00

Total Fixed Assets P

Total Assets P

Liabilities & Owner's Equity

Current Liablities
 Accounts Payable

Alpha Pubishing P 5,250.00

Puyat Furniture 4,500.00
Pacipic office Machine 2,000.00 P

Notes Payable

Total Current Liabilities P

Owner's Equity

Miss Grace Rivera Capital P

Total Liabilities & Owner's Equity P

 -
8,500.00 50,000.00
8,500.00
800.00

17,800.00

50,000.00

52,000.00

200,000.00

80,000.00

382,000.00 382,000.00 -

399,800.00 -
 11,750.00

28,750.00 -

40,500.00

359,300.00

399,800.00 -