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
Exercise
Chano. 5
Exercise 7 ASSET
Accounts
Cash Receivable Medical Supplies
BEG BAL 54,200 3,850
A 40,000
B. -15,000
C. 10,000 10,000
D. -15,000
E. 8,025
F. 12,450
G. 13,000 -13,000
H. -850
-250
-400
I. -3,980
J. -10,000
75,700 5,025 12,320
Service income
Rent expense
Salaries expense
Repair expense
Utility expense
Owners equity
Less withrawals
Net income
Income statement
Recognize
Depreciation expense
Balance Sheet
Delivery Truck
Less accumulated depreciation
Net book value
31
= LIABILITIES + CAPITAL
Accounts Dr Galing
Medical Equipment Payable Capital
75,000 25,000 108,050
40,000 Service Income
-15,000
20,000 Service Income
-15,000 Rent expense
8,025 Service Income
12,450
168,045 168,045
1,500,000
150,000 1 year
12,500 12 months
75,000 July 1 -Dec 31; 6months
1,500,000
75,000
1,425,000
75,000
150,000
1,500,000
225,000
1,275,000
Revenue recognition
Boeing in time upon delivery
Nokia, overtime upon ownership or control, work can be measured progressively using input measure such as cost to cost me
ce upon full delivery
Work in progress cost method; cost to cost method
e such as cost to cost method.