Problem on Effects of Transactions on the Accounting Equation

Lovely F. Eusebio, after receiving a degree in computer science, started the business, LFE Technologies. The entity completed the following transactions during the month of May 2020:

May 2 Deposited P900,000 in the bank and contributed a systems library valued at P390,000 to start the business.

3 Paid office rent for the month, P36,000.

9 Acquired computer equipment for cash, P700,000.

10 Purchased computer supplies on credit, P60,000.

11 Received payment from a client for programming done, P280,000.

12 Billed a client on completion of a programming project, P71,000.

16 Paid salaries, P80,000.

23 Received a partial payment from the client billed on May 12, P61,000.

27 Withdrew P25,000 for personal expenses.

30 Made a partial payment on the supplies purchased, P30,000.

Required:

Part I

1. Established the following accounts in a financial transaction worksheet: Cash: Accounts Receivable; Computer Supplies; Computer Equipment: Systems Library: Accounts Payable, and LFE, Capital.

2. Record in the worksheet the transactions listed above. Be able to identify each owner's equity transaction by type: Initial Capital, Revenue, Expense, Withdrawals

Part II

1. Journalize the transactions using the following accounts as applicable: Cash: Accounts Receivable; Computer Supplies; Computer Equipment: Systems Library: Accounts Payable, LFE, Capital, LFE Withdrawals, Programming Fees, Rent Expense, and Salaries Expense

2. Post in T-accounts and determine the balance ending balance of the accounts.

3. Prepare a Trial Balance as of May 31, 2020.