REQUIRED:

1. Compute for the capital balance at the start of the period.

2. Prepare the closing entries at the end of the period.

3. Prepare in good form the Statement of Comprehensive Income for the period.

4. Prepare the report form Statement of Financial Position as of the end of the period.

The post-closing trial balance of the business for the prior period is as follows:

Cash 50,000

Accounts receivable 150,000

Accounts payable 120,000

Rica Parejo, Capital ?

The following is the summary of the business transactions' for the current period:

a. Total services rendered to clients amounted to 480,000. 20% of the services rendered are on cash basis and the balance is on open account.

b. Total collections of accounts for the period amounted to 424,000.

c. Total cash payments for the period are:

Salaries 240,000

Supplies 20,000

Accounts payable 80,000