Exercise # 6

EFFECT OF TRANSACTIONS ON THE ACCOUNTING EQUATION

Reynaldo San Mateo, after receiving a degree in computer science, started the
business, RSM Technologies. The entity completed the following transactions
during the month.

May 2 Deposited P900,000 in the bank and contributed a system library

valued at P390,000 to start the business.
3 Paid office rent for the month, P36,000.
9 Acquired computer equipment for cash, P700,000.
10 Purchased computer supplies on credit ,P60,000.
11 Received payment from a client for programming done, P280,000.
12 Billed a client for completion of programming project, P 71,000.
16 Paid salaries, P80,000.
23 Received a partial payment from a client billed on May 12,
P61,000.
27 Withdrew P25,000 for personal expenses.
30 Made a partial payment on the supplies purchased, P30,000.

Required:

1. Establish the following accounts in a financial transaction worksheet:

Cash; Accounts Receivable; Computer Supplies; Computer Equipment;
System Library; Accounts Payable; and San Mateo, Capital.
2. Record in the worksheet the transactions listed above.