JANE ADVERTISING

COMPANY

Financial
Statements

VALERIE ANNE D. CAPINPIN, CPA

Accountant
 Jane Advertising Company
Statement of Income
For the Year Ended December 31, 2018
Notes
Service Revenue 106,000
Less: Operating Expenses
Rent Expense 10 9,000
Insurance Expense 10 6,000
Salaries Expense 9 40,000
Advertising Supplies 9 25,000
Expense
Interest Expense 11 246,500
Depreciation Expense 10 4,800 331,300
Net Loss (225,300)
 Jane Advertising Company
Statement of Changes in Equity
For the Year Ended December 31, 2018
Jane, Capital – January 1 700,000
Add: Investment 100,000
Less: Net Loss 225,300
TOTAL 574,700
Less: Withdrawals 5,000
Jane, Capital - December 31 569,700
 Jane Advertising Company
Statement of Cash Flow
For the Year Ended December 31, 2018
Cash flow from Operating Activities
Cash received from customers 112,000
Cash paid for rent (9,000)
Cash paid for insurance (6,000)
Cash paid for salaries (40,00)
Net Cash from Operating Activities 57,000

Cash flow from Investing Activities

Cash flow from Financing Activities

Investment of the owner 100,000
Withdrawals by the owner (5,000)
Net Cash from Financing Activities 95,000
Add: Cash balance - January 1 101,000
Cash balance – December 31 253,000
Notes 4 – Cash
Cash on hand 253,000

Notes 5 – Accounts Receivable

Accounts Receivable 102,000

Notes 6 – Other Current Assets

Advertising Supplies 30,000
Prepaid Insurance 6,000
36,000
Notes 7 – Property, Plant and Equipment
Land 1,000,000
Building 4,000,000
Office Equipment 750,000
Accumulated Depreciation – Office Equipment (4,800)
5,745,000

Notes 8 – Trade and Other Payables

Accounts Payable 50,000
Notes Payable 150,000
Interest Payable 20,000
Unearned Revenue 246,500
Loans Payable 1,100,000
Bonds Payable 4,000,000
5,566,500

Notes 9 – Distribution Expense

Salaries Expense 40,000
Advertising Supplies Expense 25,000
65,000
Notes 10 – General and Administrative Expense Rent Expense
9,000
Depreciation Expense 4,800
Insurance Expense 6,000
19,800

Notes 11 – Finance Cost

Interest Expense 246,500
 Jane Advertising Company
Statement of Financial Position
As of December 31, 2018
ASSETS
Current Assets
Cash 253,000
Accounts Receivable 102,000
Other Current Assets 36,000
Noncurrent Assets
Property, Plant and Equipment 5,745,200
TOTAL ASSETS
LIABILITIES 6,136,200
Current Liabilities
Trade and Other Payables 466,500
Noncurrent Liabilities
Loans Payable 1,100,000
Bonds Payable 4,000,000
OWNER’S EQUITY
Jane’s Capital 569,700
TOTAL LIABILITIES AND EQUITY 6,136,200