HAND OUT#1: PRINCIPLES OF ACCOUNTING (TRANSACTION ANALYSIS)

Below are the selected transactions during the first month of operation (September 2020) of CSB Catering
Services.

September 1 – Ms. Daniella Bartolome, an entrepreneur, invest P1,500,000 cash to start her business that provides
catering services to its clients.

September 3 – Invest office equipment for the use of business amounting to P80,000.

September 4 – Purchased furniture and fixtures and issued notes, P300,000.

September 5 – Purchased supplies for cash, P25,000.

September 7 – Purchased kitchen equipment for cash, P500,000.

September 9 – Provide one catering service in the wedding of a client for cash, P100,000.

September 10 – Provide services for the celebration of client’s 50 th wedding anniversary on account, P120,000.

September 11 – Paid 60% of the amount due to the supplier of furniture and fixtures purchased last September 4.

September 14 – Rendered catering services on a corporate event on account, P80,000

September 15 – Purchased additional supplies on account, P7,000.

September 16 – Paid 1/3 of the amount due to the supplier of furniture purchased last September 4.

September 17 – Collected half of the amount due from a customer for services rendered last September 10.

September 19 – Rendered services to a client who celebrated her 18 th birthday amounting to P90,000. The company
received partial payment of P30,000 and the balance is evidenced by a note.

September 21 – Rendered professional services to a wedding held in Tagaytay, P80,000. The client paid P55,000
and the balance is on account.

September 22 – Collected P30,500 from a customer for the service rendered last September 14.

September 23 – Paid advertising expenses of P35,000.

September 25 – The owner made additional investment of P50,000 cash and kitchen equipment worth P120,000.

September 27 – Paid the rent for the month, P105,000.

September 28 – Ms. Bartolome withdrew P96,500 for personal use.

September 29 – Paid the salaries of employees for the month, P95,250

September 30 – Received billing of utilities for the month, P45,780. Payment will be made on October.

Chart of Accounts
Cash Utilities Payable
Accounts Receivable Professional Fee
Notes Receivable Advertising Expense
Supplies Rent Expense
Furniture & Fixtures Salaries Expense
Equipment Utilities Expense
Accounts Payable D. Bartolome, Drawing
Notes Payable D. Bartolome, Capital