METRO BUSINESS COLLEGE

200 Dolores st., Arnaiz Ave., Pasay City

The Accounting Equation: Assets = Liabilities + Owner’s Equity

“Uy Law Office Chart of Accounts are as follows:

Cash, Accounts Receivable, Office Supplies, Office Equipment, Prepaid Rent,

Unearned Revenue, Notes Payable, Accounts Payable, Jan Uy, Capital.

On December 1, 2015. Atty. Jan. Uy established his legal practice under the name “Uy Law Office.” He employs as
the bookkeeper for the said entity. During the month. Uy Law Office had the following transactions;

Dec. 1. Atty. Jan Uy invests ₱500,000 cash..

Uy Law Office obtains a ₱100,000 loan from Mars Bank.
Uy Law Office pays ₱10,000 for the necessary permits and licenses for its operation.
Uy Law Office pays ₱120,000 for the annual rent of the office space. The lease contract
will expire on Dec. 1, 2016. And its renewable annually.

2. Uy Law Office renders a legal advise to Mercury Co. Uy Law Office bills Mercury Co. for
₱135,000.
Uy Law Office purchases supplies worth ₱5,000 on cash basis.

8. Uy Law Office renders legal advice to Venus Co. on cash.₱37,500.

Uy Law Office purchases a laptop for ₱36,000.

15. Mercury Co. pays Uy Law Office.

17. Atty. Uy withdraws ₱25,000 from the law office for his personal use.

20. Cygnus Catering bills Uy Law Office for ₱25,000 for services rendered for the company’s
Holiday luncheon for its clients and staff.

22. Uy Law Office receives ₱35,000 cash in advance from Jupiter Co. for legal services to be
Rendered in 2016.

23. Uy Law Office renders legal service to Vega Co. for ₱55,000, on account.

27. Uy Law Office renders taxation advice to a client. Uy Law Office bills the client for ₱20,000.

31. Uy Law Office pays ₱15,000 for the salary of its accounting and office staff.
Uy Law Office also spends ₱8,000 for utilities

ALPIE E. CATAMA, INSTRUCTOR – MBC 1