E.

Mortiz, Law Firm

Chart of Accounts

Assets income
10 40
1 Cash 1 Professional Fees
10
2 Accounts Receivabe-United Bank
10
3 Library Expenses
10 50
4 Office Equipment 1 Insurance Expense
10 50
5 Office Supplies 2 Salaries
50
3 Interest Expense
50
Liabilities 4 Utilities
20
1 Notes Payable
20
2 Accounts Payable-Office Supply Trading

Owner's Equity
30
1 E. Mortiz, Capital
30
2 E.Mortiz, Drawing
Transactions:

E. Mortiz, a young lawyer, completed the following transactions during

March of the current year:

March 1 – Began the practice of law by investing P30, 000 in cash and a law
library having a fair value of P150,000.
March 2 – Purchased P42, 000 of office equipment, paying P12, 000 down
payment and giving a Promissory note for the balance.
March 3 – Purchased P2, 500 office supplies and P15, 000 office equipment
from Office Supply Trading on credit.
March 6 – Completed legal work for R. Moore and collected P12, 000 in full
payment.
March 10 – Paid insurance premium P550.
March 15 – Completed legal work for United Bank on credit and billed it
P12, 000 for the work done.
March 15 – Paid the salary of the secretary P6, 000.
March 18 – Paid Office Supply Trading for the items purchased on the third of
the month.
March 25 - Received a check from United Bank as full payment of its account.
March 28 – E. Mortiz withdrew P8, 000 from the business for his personal use.
March 30 – Paid the salary of the secretary, P6, 000.
March 31 – paid P60 interest expense and P1, 000 installment due on the note
payable.
March 31 – Paid the monthly utility bills, P2, 500

***Requirements: Analyze transaction and prepare journal entry for the month
of March.