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Introduction to Accounting Information System and Me Accounting Cyde ,1-35C

Test Material No. 6-1 Rating _____________
Name Date
Year and Section Professor
You have just been hired to prepare, if possible, an income statement for
the year ended December 31, 2009, for Mi10's Carwash Company. The
problem is that Milo Santos kept only the following records (on the back
of a piece of cardboard):
Pesos in:
My investment
Car washing
Loan from brother-in-law
P 12,000
113, 760
40, 000
Pesos out:
P50, 800
62,000
14,000
Salaries
Withdrawals
Supplies expense
What Iowe or they owe me
A. People who work for me but I still owe salaries to P18,000
B. Owe bank interest 0fP3,000
C. Work done but clients still owe me P29,000
D. Advertising bill due but not paid P950
Assume that Milos Carwash Company records all revenues when earned
and all expenses when incurred.
You feel that it is part of your job to tell Milo how to organize his records
better. What would you tell him?