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Construct the statement of cash flow: Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations: January 1. The owner, Link, invested P1,000,000 cash to start the business. January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash. January 1. Bought furniture and fixtures using cash, P400,000. January 1. Bought machineries totaling P500,000 on account. January 3. Bought office supplies amounting 50,000 cash. January 7. Rendered services amounting to P800,000, on account. January 8. Rendered services amounting to P200,000 cash. January 13. Paid 300,000 for the machineries bought on January 1. January 27. Received P400,000 cash as payment for the services rendered on January 31. January 31. Paid P100,000 for the month’s utilities.

Construct the statement of cash flow: Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations: January 1. The owner, Link, invested P1,000,000 cash to start the business. January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash. January 1. Bought furniture and fixtures using cash, P400,000. January 1. Bought machineries totaling P500,000 on account. January 3. Bought office supplies amounting 50,000 cash. January 7. Rendered services amounting to P800,000, on account. January 8. Rendered services amounting to P200,000 cash. January 13. Paid 300,000 for the machineries bought on January 1. January 27. Received P400,000 cash as payment for the services rendered on January 31. January 31. Paid P100,000 for the month’s utilities.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 12P
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Construct the statement of cash flow:

Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations:

  • January 1. The owner, Link, invested P1,000,000 cash to start the business.
  • January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash.
  • January 1. Bought furniture and fixtures using cash, P400,000.
  • January 1. Bought machineries totaling P500,000 on account.
  • January 3. Bought office supplies amounting 50,000 cash.
  • January 7. Rendered services amounting to P800,000, on account.
  • January 8. Rendered services amounting to P200,000 cash.
  • January 13. Paid 300,000 for the machineries bought on January 1.
  • January 27. Received P400,000 cash as payment for the services rendered on January 31.
  • January 31. Paid P100,000 for the month’s utilities.

 

QUESTION: Construct the statement of cash flow: Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations: January 1. The owner, Link, invested P1,000,000 cash to start the business. January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash. January 1. Bought furniture and fixtures using cash, P400,000. January 1. Bought machineries totaling P500,000 on account. January 3. Bought office supplies amounting 50,000 cash. January 7. Rendered services amounting to P800,000, on account. January 8. Rendered services amounting to P200.000 cash. January 13. Paid 300,000 for the machineries bought on January 1. January 27. Received P400,000 cash as payment for the services rendered on January 31. January 31. Paid P100,000 for the month's utilities. Hyrule Motors Worksheet For the Year Ended December 31, 2020 Adjustments Adjusted Trial Balance Debit P240,000 425,000 50,000 90,000 500,000 240,000 400,000 Income Statement Credit Balance Sheet Credit Trial Balance Debit P240.000 400,000 50,000 360,000 500,000 240,000 400,000 No. Account Title Credit Debit Credit Credit Debit Debit P240,000 425,000 50,000 90,000 500.000 240,000 400,000 110 Cash 120 Accounts Receivable P25,000 130 Office Supplies 140 Prepaid Rent P270,000 140 150 Machineries 160 Computer Equipment |170 210 | Accounts Payable 220 Utilities Payable Furniture and Fixtures P200,000 P200,000 50,000 45,000 1,000,000 1,070,000 P200,000 50,000 45,000 1,000,000 50,000 230 Unearned Revenue 90,000 1,000,000 1,000,000 45,000 310 Link, Capital 410 70,000 P1,070,000 Service Revenue Utilities Expense Rent Expense 150,000 270.000 P390,000 P2,365,000 P2,365,000 100,000 50,000 270,000 P390,000 P150,000 270.000 P420,000 P1,070,000 P1,945,000 P1,295,000 650.000 P1,070,000 P1,070,000 P1,945,000 P1,945,000 510 520 | P2,290,000 P2,290,000 Profit 650,000
Transcribed Image Text:QUESTION: Construct the statement of cash flow: Hyrule Motors, a motorcycle repairs and maintenance services provider, had the following transaction during 2020, its first month of operations: January 1. The owner, Link, invested P1,000,000 cash to start the business. January 1. Hyrule Motors bought computer equipment totaling P240,000 using cash. January 1. Bought furniture and fixtures using cash, P400,000. January 1. Bought machineries totaling P500,000 on account. January 3. Bought office supplies amounting 50,000 cash. January 7. Rendered services amounting to P800,000, on account. January 8. Rendered services amounting to P200.000 cash. January 13. Paid 300,000 for the machineries bought on January 1. January 27. Received P400,000 cash as payment for the services rendered on January 31. January 31. Paid P100,000 for the month's utilities. Hyrule Motors Worksheet For the Year Ended December 31, 2020 Adjustments Adjusted Trial Balance Debit P240,000 425,000 50,000 90,000 500,000 240,000 400,000 Income Statement Credit Balance Sheet Credit Trial Balance Debit P240.000 400,000 50,000 360,000 500,000 240,000 400,000 No. Account Title Credit Debit Credit Credit Debit Debit P240,000 425,000 50,000 90,000 500.000 240,000 400,000 110 Cash 120 Accounts Receivable P25,000 130 Office Supplies 140 Prepaid Rent P270,000 140 150 Machineries 160 Computer Equipment |170 210 | Accounts Payable 220 Utilities Payable Furniture and Fixtures P200,000 P200,000 50,000 45,000 1,000,000 1,070,000 P200,000 50,000 45,000 1,000,000 50,000 230 Unearned Revenue 90,000 1,000,000 1,000,000 45,000 310 Link, Capital 410 70,000 P1,070,000 Service Revenue Utilities Expense Rent Expense 150,000 270.000 P390,000 P2,365,000 P2,365,000 100,000 50,000 270,000 P390,000 P150,000 270.000 P420,000 P1,070,000 P1,945,000 P1,295,000 650.000 P1,070,000 P1,070,000 P1,945,000 P1,945,000 510 520 | P2,290,000 P2,290,000 Profit 650,000
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