Scribd Logo
Upload

Welcome to Scribd!

  • Sample Problem Accounting For Servicing

    Uploaded by

    Arnold Carlmar Silva
    13 views2 pages
    Mr. B opened B Salon on December 1, 2021, investing 200,000 cash. He obtained a 100,000 bank loan at 12% interest due in one year and paid 6 months rent of 60,000 in advance. Equipment costing 200,000 was purchased with a 5 year life and residual value of 20,000. Supplies of 50,000 and services of 220,000 were transacted in cash, while the owner withdrew 40,000. Unpaid bills were 3,000 and unused supplies will cost 20,000.

    Original Description:

    sample accounting for servicing

    Original Title

    Sample Problem Accounting for Servicing

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Mr. B opened B Salon on December 1, 2021, investing 200,000 cash. He obtained a 100,000 bank loan at 12% interest due in one year and paid 6 months rent of 60,000 in advance. Equipment costing 200,000 was purchased with a 5 year life and residual value of 20,000. Supplies of 50,000 and services of 220,000 were transacted in cash, while the owner withdrew 40,000. Unpaid bills were 3,000 and unused supplies will cost 20,000.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    13 views2 pages

    Sample Problem Accounting For Servicing

    Uploaded by

    Arnold Carlmar Silva
    Mr. B opened B Salon on December 1, 2021, investing 200,000 cash. He obtained a 100,000 bank loan at 12% interest due in one year and paid 6 months rent of 60,000 in advance. Equipment costing 200,000 was purchased with a 5 year life and residual value of 20,000. Supplies of 50,000 and services of 220,000 were transacted in cash, while the owner withdrew 40,000. Unpaid bills were 3,000 and unused supplies will cost 20,000.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    ACCOUNTING FOR SERVICE ENTITY

    • MR B OPENED UP A SALON CALLED B SALON ON DECEMBER 1, 2021. THE FOLLOWING WERE THE TRANSACTIONS
    DURING THE MONTH IN PESOS:
    • OWNER PROVIDED 200,000 CASH AS INITIAL INVESTMENT TO THE BUSINESS ON DECEMBER 1, 2021
    • OBTAINED A 12%, ONE-YEAR BANK LOAN FOR 100,000 ON DEC 1, 2021. PRINCIPAL AND INTEREST ARE DUE AT MATURITY
    DATE
    • PAID 6 MONTHS RENT IN ADVANCE OF 60,000 ON DECEMBER 1, 2021. RENT PER MONTH IS 10,000
    • ACQUIRED EQUIPMENT FOR CASH AMOUNTING TO 200,000 ON DECEMBER 1, 2021. EQUIPMENT HAS A USEFUL LIFE OF 5
    YEARS WITH A RESIDUAL VALUE OF 20,000
    • PURCHASED SUPPLIES FOR 50,000 CASH DURING THE PERIOD
    • RENDERED SERVICES WORTH 220,000 FOR CASH DURING THE PERIOD
    • OWNER WITHDREW A TOTAL OF 40,000 CASH FROM THE BUSINESS DURING THE PERIOD
    ACCOUNTING FOR SERVICE ENTITY

    • ADDITIONAL INFORMATION:
    • WATER AND ELECTRICITY BILLS AMOUNTING TO 3,000 FOR DECEMBER WAS NOT YET PAID
    • COST OF UNUSED SUPPLIES IS 20,000

    You might also like