Question
Directions: Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Notes Payable; F. Otanes,
Directions: Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Notes Payable; F. Otanes, Capital.
Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation.
May 1 - Atty. Felicitas O. Otanes, a lawyer opened the Otanes Law Firm on May 1, 2021, with a cash investment of P 250,000 and supplies worth P 50,000.
May 2 - Atty. Otanes, purchased additional supplies amounting to P 12,500 from Checa Office Supplies.
May 5 - Purchased P 137,500 worth of equipment on account from DOD, Incorporated.
May 6 - Rendered services to clients and received cash amounting to P 33,750.
May 8 - Paid MERALCO and MAYNILAD bills received worth P 21,975.
May 9 - Issued check payable to Manila Bulletin for an advertisement amounting to P 5,250.
May 12 - Defective supplies amounting to P 2,050 were returned to Checa Office Supplies
May 14 - Billed customers amounting to P 80,250 for professional services rendered on account.
May 15 - Paid salaries of employees amounting to P 38,000.
May 16 - The owner withdrew P 8,750 for his personal use.
May 19 - Paid the P 1,300 worth of miscellaneous expense.
May 21 - Paid half of the equipment purchased from DOD, Incorporated.
May 23 - Purchased additional equipment from Shekinah, Inc. worth P 262,500 with a down payment of P 50,000 and the balance on account with a written promise to pay.
May 26 - Rendered various legal services to clients on account, P 52,500. May 27 - Collected cash from customers on account for May 14 transactions.
May 28 - Returned some defective equipment purchased from Shekinah, Inc. amounting to P 7,500.
May 29 - Paid office rent for the month amounting to P 17,750.
May 29 - Paid Shekinah, Inc. the amount of P 66, 250.
May 30 - The supplies used during the period amount to P 35,000.
May 30 - Collected P 20,000 from customers on account for May 26 transactions. May 30 - Paid salaries of employees amounting to P 38,000.
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
9780357438480
