Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

margarita gonzales law office CASE 2: Margarita Gonzales Law Office Margarita Gonzales Law office was established on January 1, 2X20, and the following events occurred

image text in transcribed

margarita gonzales law office

image text in transcribed
CASE 2: Margarita Gonzales Law Office Margarita Gonzales Law office was established on January 1, 2X20, and the following events occurred during the first month of operation: Margarita invested P100,000 cash as working capital to start her business Purchase of furniture's for P30,000, 50% paid in cash and 50% taken as a credit She signed two (2) service contracts: 1) with XYZ for services performed during the month in the amount of P4,000; and 2) with ABC for services that will be performed during the first week of next month for P5,000. Margarita received an advance of P20,000 with the signature of this contract. The furniture bought has a useful life of 30-month and should be depreciated straight line. Margarita agreed to pay her assistant P15,000 for the service performed of which she paid already P10,000 XYZ paid P20,000 Rent for the month of P10,000 was paid through a bank transfer An electricity bill for P3,000 was received by mail Requirement: Based on the given information, do the following (2 items x 5 points): 1. Necessary journal entries; and 2. Statement of financial position for the month ending January 31, 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

What are the big five personality traits? (p. 60)

Answered: 1 week ago

Question

2. Information that comes most readily to mind (availability).

Answered: 1 week ago

Question

3. An initial value (anchoring).

Answered: 1 week ago

Question

4. Similarity (representativeness).

Answered: 1 week ago