Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Read the transactions below. Comply with what's required. | On November 1, 2020, Aleli Gomuna purchased a pest control company from its previous owner.
Read the transactions below. Comply with what's required. | On November 1, 2020, Aleli Gomuna purchased a pest control company from its previous owner. Aleli paid $220,000 from her personal checking account for assets consisting of pesticides supplies, P75,000 and spraying equipment, P145,000. The company is to operate under the name of Lily Gomuna Pest Control. The following transactions occurred during the month of November: Nov. 3 Aleli invested additional P230,000 in the business. 5 6 Pest control service for customers was done on account, #42,000. Pesticide supplies were acquired on account, P39,500. 9 10 Spraying equipment costing $67,000 was acquired on account. Pest control service was rendered for cash, P87,000. 11 12 Repairs were made to the equipment; P28,500 was paid in cash. Paid $17,000 for pesticide supplies recently acquired 14 Rendered pest control service for customers on account, P63,000. 15 Purchase pesticide supplies on account, P54,500 18 19 22 Withdrew P60,000 for personal use. 23 Paid for utilities, P20,500. Paid $56,500 for the salaries of personnel. Collected $22,000 from the customer's account. 26 Settle some obligations amounting to $75,000 29 Received cash, $85,000 as advanced payment of customer for the service to be rendered next month. ASSUMPTIONS: at the end of November 30, 2020, Aleli has to prepare the FINANCIAL STATEMENTS and take the following as an adjustments a. The equipment has a useful life of 5 years with $20,000 salvage value. Assume that the acquisition qualifies 1 month as of reporting date b. On November 30, 1/2 of the cash advanced received from clients has been rendered instead of next month as agreed, due to the urgency of clients. c. Aleli found out that the P5,000 of her receivables deemed to doubtful for collection. d. The P56,500 salaries paid on November 19 covers only from Nov. 1-15 employees payroll. Ms. Aleli pays salaries of her staff every 5th and 20th day of the month or a day before the schedule. e. After final physical count of supplies inventory, it appears that Aleli has 25,000 worth of supplies as of November 30. Required: Record the adjustments
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started