Discussion

Exercise on ACCOUNTING EQUATION AND

FS PREPARATION

Recording Business Transactions Using a Table with

Accounts given.

The tour and travel agency of Dina Gala opened on December 1, 2020. It had the following
transactions in its first month of operations:
A. Dina Gala deposited Php 120,000 cash in the business bank account;
B. Paid office rent for the month, Php 15,000;
C. Purchased furniture and fixture for Php 80,000 paying Php 40,000 in cash and issuing a
notes payable for the balance;
D. Bought office supplies on credit, Php 10,000;
E. Rendered tour services for cash, Php 25,000;
F. Paid salaries expense, Php 12,000;
G. Received utility bills for the month, Php 6,000;
H. Billed clients for travel booking completed, Php 35,000;
I. Paid creditor on account, Php 6,000;
J. Received cash on accounts, Php 15,000;
K. Paid personal expenses from the business bank account, Php 16,000;
L. Received cash for tour services rendered, Php 10,000.

REQUIRED:

Use the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture & Fixture;
Accounts Payable; Notes Payable; D. Gala, Capital; D. Gala, Drawing; Service Revenue;
Salaries Expense; Rent Expense; Utilities Expense
1. Record the transactions in a table using the account titles above.
2. Total the accounts for the month of December.
3. Prepare the balance sheet, income statement, and the statement of changes in equity.