Argem loved everything that involves computers so she decided to open a small Internet caf upon...

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Argem loved everything that involves computers so she decided to open a small Internet café upon the encouragement of her family and friends. After a year's operations she wanted to know how much she earned and what is the financial status of the business. The following are the summarized data based on the various receipts and records she meticulously kept: Account Titles Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Cash Depreciation Expense Equipment (includes all computers in the Internet café) Interest Income (interest earned from cash deposited in the bank) Miscellaneous Expense (disbursements too small to be classified as independent expense account) Notes Payable Notes Receivable Office Supplies Prepaid Rent Amount P12,250 8,000 5.000 33,000 5.000 90,000 2,000 5,000 12,000 10,000 4,300 5.000 Rent Expense Repairs and Maintenance Expense Salaries Expense Service Income (total revenues earned by the Internet café) Supplies Expense 10,000 4,000 20,000 88,000 7,000 1. Using the following perspective charts, classify the given accounts above into Income, Expense, Assets, Liabilities, and Owner's Equity. 2. Fill in the space in the given form to complete the income statement, owner's equity, and statement of financial position of Argem Internet Café. 3. Will you advise Argem to continue his business operations or not? Why? 4. Was the business profitable? Support your answer with figures from the statement. 5. What do you suggest to improve revenues? 6. What expenses will you monitor and what actions do you suggest to minimize them? 7. Did Argem's capital increase or decrease after a year? Explain. Argem loved everything that involves computers so she decided to open a small Internet café upon the encouragement of her family and friends. After a year's operations she wanted to know how much she earned and what is the financial status of the business. The following are the summarized data based on the various receipts and records she meticulously kept: Account Titles Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Cash Depreciation Expense Equipment (includes all computers in the Internet café) Interest Income (interest earned from cash deposited in the bank) Miscellaneous Expense (disbursements too small to be classified as independent expense account) Notes Payable Notes Receivable Office Supplies Prepaid Rent Amount P12,250 8,000 5.000 33,000 5.000 90,000 2,000 5,000 12,000 10,000 4,300 5.000 Rent Expense Repairs and Maintenance Expense Salaries Expense Service Income (total revenues earned by the Internet café) Supplies Expense 10,000 4,000 20,000 88,000 7,000 1. Using the following perspective charts, classify the given accounts above into Income, Expense, Assets, Liabilities, and Owner's Equity. 2. Fill in the space in the given form to complete the income statement, owner's equity, and statement of financial position of Argem Internet Café. 3. Will you advise Argem to continue his business operations or not? Why? 4. Was the business profitable? Support your answer with figures from the statement. 5. What do you suggest to improve revenues? 6. What expenses will you monitor and what actions do you suggest to minimize them? 7. Did Argem's capital increase or decrease after a year? Explain.

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1 Using the following perspective charts classify the given accounts above into Income Expense Assets Liabilities and Owners Equity Income Service Income total revenues earned by the Internet caf 8800... View the full answer