Analysis of Common Business Transactions

DATE TRANSACTIONS

1/2/20 Invested PHP500,000 to his business. The trade name of the business was “MR. L

1/3/20 Hired Allan and Allie who will manage his business

1/4/20 Collections from various customers for the day - PHP3,000

1/5/20 Purchase store supplies from Labada Store - PHP10,000

1/7/20 Collections from various customers for the day - PHP8,000

1/8/20 MR. LABANDERO entered into an exclusive contract with Sikat Hotel where the
business will do all the laundry of the hotel.

1/9/20 Sikat Hotel availed the services of MR. LABANDERO amounting to PHP15,000
Payment will be made on January 20, 2016.

1/10/20 Collections from various customers for the day - PHP12,000

1/12/20 Purchase a washing machine amounting to PHP50,000

1/15/20 Collections from various customers for the day - PHP20,000

1/19/20 Paid electricity bill for the month amounting to PHP18,000

1/20/20 Received payment from Sikat Hotel amounting to PHP15,000

1/21/20 Paid salaries of Allan and Allie - PHP15,000

1/22/20 Mr. Labandero needed money for the hospitalization of his son. He withdrew
PHP18,000 from the business.

1/25/20 Paid airfare ticket of PHP1,500 for the travel of Mr. Labandero to Manila to neg
 a contract with Sosyal Hotel

1/26/20 Paid taxes to the City of Iloilo, PHP4,000

1/27/20 Purchased office supplies amounting to PHP12,500

1/28/20 Collections from various customer for the day - PHP5,000

1/29/20 Sosyal Hotel availed the services of MR. LABANDERO amounting to PHP15,0
payable on Feb 25, 2016
business was “MR. LABANDERO”

Sikat Hotel where the

unting to PHP15,000.

son. He withdrew

dero to Manila to negotiate

mounting to PHP15,000
Analysis of Common Business Transactions
January 2, 2020 Invested PHP500,000 to his business. The trad
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Cash 500,000 Increase
Labandero, Capital 500,000

Explanation: Investment by Mr. Labandero

January 3, 2020 Hired Allan and Allie who will manage his busi
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets

January 4, 2020 Collections from various customers for the day

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Cash 3,000 Increase
Service Revenue 3,000

Explanation: Collections from various customers

January 5, 2020 Purchase store supplies from Labada Store - PH

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Store Supplies 10,000 Increase
Cash 10,000 Decrease

Explanation: Purchased store supplies

January 7, 2020 Collections from various customers for the day
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Cash 8,000 Increase
Service Revenue 8,000

Explanation: Collections from various customers

January 8, 2020 MR. LABANDERO entered into an exclusive contra

where the business will do all the laundry of the hotel.
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets

January 9, 2020 Sikat Hotel availed the services of MR. LABANDERO

Payment will be made on January 20, 2020.
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Account Receivables 15,000 Increase
Service Revenue 15,000

Explanation: Availed services of Sikat Hotel from Mr. Labandero to be paid on January 20, 2020

January 10, 2020 Collections from various customers for the da

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Cash 12,000 Increase
Service Revenue 12,000

Explanation: Collections from various customers

January 12, 2020 Purchase a washing machine amounting to PH
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Equipment 50,000 Increase
Cash 50,000 Decrease

Explanation: Purchased equipment

January 15, 2020 Collections from various customers for the da

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Cash 20,000 Increase
Service Revenue 20,000

Explanation: Collections from various customers

January 19, 2020 Paid electricity bill for the month amounting t
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Utilities Expense 18,000
Cash 18,000 Decrease

Explanation: Payment for electricity bill

January 20, 2020 Received payment from Sikat Hotel amounti

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Cash 15,000 Increase
Account Receivables 15,000

Explanation: Received payment from Sikat Hotel

January 21, 2020 Paid salaries of Allan and Allie - PHP15,000

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Salaries Expense 15,000
Cash 15,000 Decrease

Explanation: Payment for salaries expense

January 22, 2020 Mr. Labandero needed money for the hospitaliza
PHP18,000 from the business.
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Labandero's Drawing 18,000
Cash 18,000 Decrease

Explanation: Labandero's Drawing

January 25, 2020 Paid airfare ticket of PHP1,500 for the travel o
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Travel Expense 1,500
Cash 1,500 Decrease

Explanation: Payment for Salaries Expense

January 26, 2020 Paid taxes to the City of Iloilo, PHP4,000

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Taxes 4,000
Cash 4,000 Decrease

Explanation: Payment for taxes to the City of Iloilo

January 27, 2020 Purchased office supplies amounting to PHP1

Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Office Supplies 12,500 Increase
Cash 12,500 Decrease

Explanation: Purchased office supplies

January 28, 2020 Collections from various customer for the day
Effects on specific Accounts Effects on the Ac
Account Title Amount Assets
Cash 5,000 Increase
Service Revenue 5,000

Explanation: Collections from various customer

January 29, 2020 Sosyal Hotel availed the services of MR. LABA
Effects on specific Accounts Effects on the A
Account Title Amount Assets
Accounts Receivable 15,000 Increase
Service Revenue 15,000

Explanation: Availed services of Sosyal Hotel from Mr. Labandero

business. The trade name of the business was “MR. LABANDERO”
Effects on the Accounting Equations
Liabilities Capital

Increase

ll manage his business

Effects on the Accounting Equations
Liabilities Capital

omers for the day - PHP3,000

Effects on the Accounting Equations
Liabilities Capital

Increase

Labada Store - PHP10,000

Effects on the Accounting Equations
Liabilities Capital
omers for the day - PHP8,000
Effects on the Accounting Equations
Liabilities Capital

Increase

an exclusive contract with Sikat Hotel

hotel.
Effects on the Accounting Equations
Liabilities Capital

of MR. LABANDERO amounting to PHP15,000.

Effects on the Accounting Equations

Liabilities Capital

Increase

paid on January 20, 2020

tomers for the day - PHP12,000

Effects on the Accounting Equations
Liabilities Capital

Increase
e amounting to PHP50,000
Effects on the Accounting Equations
Liabilities Capital

stomers for the day - PHP20,000

Effects on the Accounting Equations
Liabilities Capital

Increase

onth amounting to PHP18,000

Effects on the Accounting Equations
Liabilities Capital
Decrease

kat Hotel amounting to PHP15,000

Effects on the Accounting Equations
Liabilities Capital

Increase

ie - PHP15,000
Effects on the Accounting Equations
 Liabilities Capital
Decrease

for the hospitalization of his son. He withdrew

Effects on the Accounting Equations

Liabilities Capital
Decrease

00 for the travel of Mr. Labandero to Manila to negotiate

Effects on the Accounting Equations
Liabilities Capital
Decrease

lo, PHP4,000
Effects on the Accounting Equations
Liabilities Capital
Decrease

mounting to PHP12,500
Effects on the Accounting Equations
Liabilities Capital
stomer for the day - PHP5,000
Effects on the Accounting Equations
Liabilities Capital

Increase

vices of MR. LABANDERO amounting to PHP15,000 payable on Feb 25

Effects on the Accounting Equation
Liabilities Capital

Increase
BANDERO”
yable on Feb 25, 2020
 Journalizing of Transaction
2020 Jan Account Titles Debit Credit
2 Cash 500,000
Capital 500,000

3 No Entry

4 Cash 3,000
Service Revenue 3,000

5 Store Supplies 10,000

Cash 10,000

7 Cash 8,000
Service Revenue 8,000

8 No Entry

9 Accounts Receivable 15,000

Service Revenue 15,000

10 Cash 12,000
Service Revenue 12,000

12 Equipment 50,000
Cash 50,000

15 Cash 20,000
Service Revenue 20,000

19 Utilities Expense 18,000

Cash 18,000

20 Cash 15,000
Accounts Receivable 15,000

21 Salaries Expense 15,000

Cash 15,000

22 Owner's Withdrawal 18,000

Cash 18,000

25 Travel Expense 1,500

 Cash 1,500

26 Taxes 4,000
Cash 4,000

27 Office Supplies 12,500

Cash 12,500

28 Cash 5,000
Service Revenue 5,000

29 Accounts Receivable 15,000

Service Revenue 15,000