Problem
• On January 1, 2022, Juan David began business by depositing P200,000 in the name of Juan Services.
• He borrowed P100,000 more from BPI for business use. He issued a 180-day, 12% promissory note as owner-manager of Juan Services.
• He paid P180,000 for equipment which will be used for 5 years, no scrap value.
• He paid P18,000 for 3-month rent effective January 1, 2022.
• He bought supplies worth P50,000 and paid 50% with the balance on account.
• He received P125,000 cash for services rendered; paid workers and operating expenses of P80,000 for the month of January.
• At month end, he owes utility companies of P15,250 and has remaining P20,000 of supplies unused.
• Some customers owe him P15,000 for services rendered not yet recorded.
• Adjustments were made for depreciation, prepaid rent, accrued expenses and others if required.
Task
1) How much is the net income (loss) for the month ended January 2022?
2) How much is the total Adjusted Assets as of Month end January 2022?
3) Calculate the total balance of Liabilities to be presented on Statement of Financial Position as of Month end January 2022.