Activities Concept Application

From the account balances given for Surf Corporation prepare the statement of financial position. Please observe proper classification.The amount given are in thousand pesos.

Account Receivable	P 400
Advances to officers not currently collection	100
Sinking Fund	400
Building	5,000
Long-term refundable deposit	50
Cash and Cash equivalent	500
Equipment	1,000
Lease rights	100
Accrued interest income	10
inventories	1,300
Land	1,500
Land held for speculation	500
Notes Receivable	250
Computer Software	3,250
Prepaid Expense	70
Trading Securities	280
Unearned rent income	40
Retained Earning (deficit )	(1,800)
Shared premium preferred Shares	500
Premium on bonds payable	1,000
Reference share capital	2,000
Shared premium - ordinary	200
Notes payable	300
SSS Payable	10
Accounts Payable	400
Accrued salaries	100
Accumulated Depreciation - building	2,000
Accumulated Depreciation - equipment	200
Allowance for doubtful accounts	20
Bonds Payable	5,000
Dividends payable	120
Ordinary share capital	5,000
Witholding tax payable	30
Preference share redemption fund	350

1. From the 2015 account balances given below for Karla Corporation, prepare income statement ( functional approach ). Observe proper classification.

Freight - In	P 1,000,000
Income tax	500,000
Purchases	10,500,000
Purcahse return	150,000
Purchase allowance	150,000
Rent income	500,000
Freight - out	350,000
Salesmen's commission	1,300,000
Depreciation expense - store equipment	250,000
Inventory ( January 1 )	2,000,000
Inventory ( December 31 )	3,000,000
Sales	15,700,000
Sales returns	250,000
Sales Allowances	30,000
Sales discounts	20,000
Officer's salaries	1,000,000
Depreciation expense - office equipment	600,000
Purchase Discounts	200,000
Dividend Income	300,000
Loss on sale of equipment	100,000
Loss of sale of investment	100,000