Leocarpio Smith started operating its financial services at December 1, 2020 and had the following transactions:

Dec 1

Smith Financial Services started by investing Php 20,000 cash and office equipment by having a Php 8,000 value.

3

Purchased Php 1,500 equipment on credit by issuing a 2-year note.

4

Purchased Php 300 office supplies on credit.

8

Completed work for Santos Trading and immediately received a payment of Php 1,000 cash.

10

Completed work for Costsavers Inc. on credit, Php 1,800.

15

Paid for the supplies purchased on credit on December 4.

17

Received a payment in full from Costsavers Inc. for the work completed on December 10.

23

Leocarpio withdrew Php 750 cash from the business to pay personal expenses.

30

Unpaid utilities for December amount to Php 250.

30

Received Php 1,800 from Jolie Co. for financial services to be rendered next year.

Instructions:

Journalize the above transactions Post journal entries to T-accounts and prepare trial balance. Prepare income statement for the month of December. Prepare statement of financial position for the month of December.