WRAY CONSTRUCTION
(Mr. Rey O. Lorilla - Proprietor)
STATEMENT OF FINANCIAL POSITION
ASWRAYLOR
OF DECEMBER 31, 2017
CONSTRUCTION
ASSETS
(Mr. Rey O. Lorilla - Proprietor)
CURRENT ASSETS
STATEMENT OF FINANCIAL PERFORMANCE
CashTHE
FOR and YEAR
Cash Equivalents
ENDED DECEMBER 31, 2017P 602,457
Contract Receivable 63,140
Total 665,597
NON CURRENT ASSETS
Property and Equipment
CONSTRUCTION INCOME P 2,517,811
Building 1,368,781
Land 750,000
COST OF SERVICES 2,008,635
Transportation and Service Vehicle 647,900
Office Supplies and Furniture and
Fixtures 74,777
Construction Equipment 367,380
GROSS INCOME 509,176
Total 3,208,838
Less: Accumulated depreciation 113,098
OPERATING Net EXPENSES 3,095,740
TOTAL ASSETS 3,761,337
Communication, light and Water 20,389
Taxes and Licenses LIABILITIES and OWNER'S EQUITY 2,748
Supplies 11,350
LIABILITIES
Depreciation 12,463
Miscellaneous
Accrued Expenses 7,1473,414
Taxes Payable
TOTAL EXPENSES 2,748
50,364
Total 9,895
NET INCOME P 458,812
OWNER'S EQUITY
Mr. Rey O. Lorilla J. capital, as of
January 1, 3,367,380
Add: Net Income 458,812
Total Invested Capital 3,826,192
Less: Drawings-cash 74,750
Mr. Rey O. Lorilla capital, as of
December 31, 3,751,442
TOTAL LIABILITIES and OWNER'S
EQUITY P 3,761,337
WRAY CONSTRUCTION
(MR. Rey O. Lorilla - Proprietor)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income P 458,812
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 113,098
Changes in assets and liabilities:
(Increase) decrease in:
Contract
Receivable (63,140)
Increase (decrease) in:
Accrued expenses 7,147
Taxes Payable 2,748
Net cash provided by operating activities 518,665
Property and Equipment (3,700,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Initial Capital 3,000,000
Additional Investment 858,542
Personal drawings (74,750)
Net increase in cash and cash equivalents 602,457
Cash and cash equivalents, beginning of year -
CASH AND CASH EQUIVALENTS, end of year P 602,457
WRAY CONSTRUCTION
(Mr. Rey O. Lorilla - Proprietor
NOTES TO FINANCIAL STATEMENTS
1 . The Entity
The Wray Construction is a single proprietorship construction owned by Mr. Rey O. Lorilla. It's principal office is
located at Brgy. Zone 7, Bulan Sorsogon.
2. Significant Accounting Policies
The significant accounting policies that have been used in the preparation of these financial statements are
summarized below. The policies have been consistently applied to all years presented, unless otherwise stated.
Basis of Preparation
The accompanying financial statements have been prepared on a historical cost basis and are presented in
Philippine peso, which is the proprietor’s functional currency. All the figures are rounded to the nearest peso.
The financial statements have been prepared in compliance with Philippine Financial Reporting Standards and
Philippine Accounting Standards.
Cash and Case Equivalents
Cash and Cash equivalents are stated at Face Value.
Receivables
Receivables are stated at net realizable value. An estimate for doubtful accounts is made when collection of the
full amount is no longer probable.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation, and any impairment in value.
The initial cost of property and equipment consists of its purchase price and any directly attributable costs of
bringing the assets to its working condition and location for its intended use. Expenditures incurred after the
property and equipment have been put into operation, such as repairs and maintenance costs, are normally
charged to income in the period the costs are incurred. In situations, where it can be clearly demonstrated that
the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the
use of an item of property and equipment beyond its originally assessed standard of performance, the
expenditures are capitalized as an additional cost of property and equipment.
Depreciation is computed using the straight-line method over the estimated useful lives of the properties.
The assets’ estimated useful lives and depreciation method are reviewed periodically to ensure that these are
consistent with the expected pattern of economic benefits from the items of property and equipment.
3. Significant Accounting Judgments and Estimates
The preparation of the financial statements requires owner to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes.
Estimation of useful lives of property and equipment
Useful lives of property and equipment are estimated based on the period over which these assets are expected
to be available for use. The estimated useful lives of property and equipment are reviewed periodically.
4. Cash and cash equivalents
Cash in banks P 560,000
Cash on hand 42,457
Total P 602,457
5. Property and Equipment
Transportation
Construction
December 31, 2017 Building and Service
Equipment
Vehicle
Cost
1,415, 682, 386,7
Balances at beginning of year 981 000 16
Additions ( Deductions)
1,415, 682, 386,7
Balances at end of year 981 000 16
Accumulated Depreciation
Balances at beginning of year - - -
47,199 34, 19,335.
Depreciation .36 100 78
47, 34, 19,3
Balances 199 100 36
Adjustments
47, 34, 19,3
Balances at end of year 199 100 36
1,368, 647, 367,3
Net Book Values 781 900 80
Office Supplies
December 31, 2014 and Furniture
Land
and Fixtures
Equipment
Cost
87, 750,0
Balances at beginning of year 240 00
Additions ( Deductions)
87, 750,0
Balances at end of year 240 00
Accumulated Depreciation
Balances at beginning of year
- -
12,46
Depreciation 2.82 -
12,
Balances 463 -
Adjustments
12,
Balances at end of year 463 -
74, 750,0
Net Book Values 777 00
5. Cost of Services
Cost of Services
Direct Charges- Salaries and Wages 1,800,0
00
Direct Charges- Fuel and Oil and Supplies 108,0
00
Direct Charges- Depreciation 100,6
35
Cost of Services 2,008,6
35
Prepared by:
MICHAEL B. BONGALONTA, CPA, DBA
PRC-CPA License No. – 125487
Attested:
MR. REY O. LORILLA
Proprietor
WRAYLOR CONSTRUCTION
(Mr. Rey O. Lorilla – Proprietor)
FINANCIAL STATEMENTS
DECEMBER 31, 2017
