Professional Documents
Culture Documents
Business Transaction
Service Business:
1 Putting capital into the business, either cash & non-cash assets
June Makabayan put-up a men salon shop by investing the
following into his business:
Cash - P50,000
Equipments - P170,000
Furnitures - P60,000
4 Recording of expenses
June recorded rent expense P6,000 to be paid at the end of the month.
June paid salaries amounting to P7,000.
5 Collection of receivables
June collected full amount from the wedding event.
6 Payment of payables
June paid 50% of supplies purchased on account.
Principles
Asset = Liabilities + Capital
308,000 6,000
308,000 308,000
302,000
Chap 3 Ex 5
Business Transaction
Service Business: AMOUNT
Account Title
Balances Cash
Cash 60k; ap 100k
Accounts receivable 10,000 Accounts receivable
Car 120,000 Car
Equipment & Car from Notes P. 500,000 Equpment
Payment of Notes 250,000 Cash
Cash
Accounts Receivable
Car
Equipment
ASSET = LIABILITIES + CAPITAL
(Owned) Account Title (owe) Account Title (net worth)
200,000 Capital 200,000
Accounts P. 100,000
10,000
120,000
380,000 Notes Payable 500,000
-250,000 Notes Payable -250,000
Account
Chapter 4 ex 8 Cash Receivable Supplies Rent Deposit
March 31 120,500 1,500 10,000
April 2 -300
5 -2,815
8 -500
12 -5,750
18 -1,500
20
25 -5,000
30 18,500 500
30 -10,000
30 -750
113,135 500 750 10,000
Net
Fr Operation Financing Investing
Income
Utilities -800 -
-6915
Operating -6,615
Investment 350,000
Drawings -1,500
Rent deposit -10,000
Leasehold
-15,000
Improvement
Furniture &
-8,000
Fixtures
Supplies -750
Equipment -195,000
Total -7,365 348,500 -228,000
0
Leasehold
Furniture and Fixture Equipment Improvement Notes payable
300,000 150,000
8,000 345,000 15,000 0 150,000
500,000 500,000
Leasehold Accounts
Furniture and Fixture Equipment Improvement Notes payable Payable
8,000 345,000 15,000 0 150,000
800
492,385 492,385
0
Playnet Com
Income Statement
Playnet Com
Playnet Com
Balance Sheet
As of April 30
ASSETS LIABILITIES AND OWNER'S EQUITY
Cash 113,135 Current Liabilities:
Account Receivable 500 Notes payable
350,000
Explanation of
De Dios Capital Changes
350,000 in Equity
-300 Taxes & Licenses Expenses
-2,815 Taxes & Licenses Expenses Internet, On-line and Lan Games Fees
-500 Taxes & Licenses Expenses Less Expenses:
-5,750 Communication Expenses Salaries Expense
-1,500 De Dios, Withrawals Taxes & Licenses Expenses
-800 Utility Expenses Communication Expenses
-5,000 Rent Expense Rent Expense
19,000 Internet, On-line and Lan Games Fees Utility Expenses
-10,000 Salaries Expense Supplies Expenses
-750 Supplies Expense Net Income (loss)
341,585
Cash 113,135
Supplies 750
150,000
800
150,800
341,585
492,385
0
19,000
10,000
3,615
5,750
5,000
800
750 25,915
-6,915
492,385