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Jan 1

The document outlines a series of financial transactions for a business from March to December, including owner investments, expenses, revenue from services, and sales of goods. Key transactions include the owner's initial investment, payment for rent and salaries, and sales with accounts receivable. It also records cash received for future services, indicating liabilities for unearned revenue.

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4 views4 pages

Jan 1

The document outlines a series of financial transactions for a business from March to December, including owner investments, expenses, revenue from services, and sales of goods. Key transactions include the owner's initial investment, payment for rent and salaries, and sales with accounts receivable. It also records cash received for future services, indicating liabilities for unearned revenue.

Uploaded by

bacalsomarishka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. Mar.

1 – The owner invested ₱80,000 cash and ₱20,000 worth of equipment to start the
business.

2. Mar. 3 – Paid ₱6,000 cash for 3 months’ prepaid rent.

3. Mar. 5 – Purchased merchandise inventory for ₱15,000 cash.

4. Mar. 8 – Rendered services to a client and billed ₱12,000 on account.

5. Mar. 10 – Paid ₱4,000 for office salaries.

6. Mar. 12 – Client paid ₱8,000 of the account previously billed.

7. Mar. 15 – Paid ₱2,500 for utilities expense.

8. Mar. 18 – Owner withdrew ₱3,000 cash for personal use.


Date Account Debit (₱) Credit (₱)

Mar 1 Cash 80,000

Equipment 20,000

Owner’s Capital 100,000

(Owner’s investment in business)

Mar 3 Prepaid Rent 6,000

Cash 6,000

(Paid prepaid rent)

Mar 5 Merchandise Inventory 15,000

Cash 15,000

(Purchased merchandise)

Mar 8 Accounts Receivable 12,000

Service Revenue 12,000

(Rendered services on account)

Mar 10 Salaries Expense 4,000

Cash 4,000

(Paid salaries)

Mar 12 Cash 8,000

Accounts Receivable 8,000

(Collected partial payment from client)

Mar 15 Utilities Expense 2,500

Cash 2,500

(Paid utilities)

Mar 18 Owner’s Drawings 3,000

Cash 3,000

(Owner withdrawal)
Dec.8 - Sold goods to a customer for
₱65,000. The customer paid ₱20,000 cash
and promised to pay the balance later. The
cost of the goods sold was ₱40,000.

1. To record the sale

Date Account Debit Credit


Dec. 8 Cash 20,000
Accounts Receivable 45,000
Sales Revenue 65,000

2. To record the cost of goods sold

Date Account Debit Credit


Dec. 8 Cost of Goods Sold 40,000
Inventory 40,000
Dec. 28 - Received ₱15,000 cash for services
yet to be performed next month.

Date Account Debit Credit


Dec. 28 Cash 15,000
Unearned Revenue 15,000

(Received ₱20,000 cash for services to be performed next month —


liability.)

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