transaction worksheet Example: Owner invested P5,000,000 cash in a new business.a. Acquired for P4,000,000 cash a commercial area to be used as business space.b. Received P100,000 for services still to be rendered next month.c. Paid P7,500 to an advertising agency for a newspaper ad.d. Purchased P30,000 of supplies inventory on account.e. Paid P12,000 to the supplier for inventory purchased in (d) and gave a note for theremaining P18,000.f. Loaned P35,000 to the owner and accepted his 45-day note.B. Bought P5,000 of supplies for cash.h. The entity agreed to buy two service vehicles six months from now for P600,000.5,000,000

Journal- A journal is a thorough account that documents all of a company's financial activities. It…

a. Acquired for P4,000,000 cash a commercial area to be used as business spa b. Received P100,000 for services still to be rendered next month. c. Paid P7,500 to an advertising agency for a newspaper ad d. Purchased 20

a. Acquired for P4,000,000 cash a commercial area to be used as business spa b. Received P100,000 for services still to be rendered next month. c. Paid P7,500 to an advertising agency for a newspaper ad d. Purchased 20

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 32P

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
An entity purchases office equipment for 525,000 on account. Select the appropriate journal entry to record this transaction. A. Office expense= 525,000 Accounts payable= 525,000 B. Office equipment= 525,000 Accounts payable= 525,000 C. Accounts Payable = 525,000 Office expense= 525,000 D. Accounts payable= 525,000 Office equipment = 525,000
Transaction Analysis Transaction: a. Received P260,000 cash from clients for service rendered. b. Paid P480,000 salaries of employees.' c. Collected P120,000 from clients on account. d. The owner, Winston Apalisoc, withdrew P80,000 cash for personal use. e. Purchased P140,000 supplies on account. f. Billed clients P180,000 for services rendered. g. Paid P100,000 to suppliers on account. For each transactions from Winston ApalisOR Company, a sole proprietorship, fill in the spaces to answer the following questions: 1. What are the two accounts affected by the transaction? 2. What type of account is affected – asset, liability, owner's capital, owner's withdrawal, income or expense account? 3. Should the account be increased or decreased? 4. Should the account be debited or credited? Trans. Accounts Affected Type of Account Increase or Decrease Increase Increase Debit or Credit a. 1.Cash Asset Debit 2.Service Revenue Income Credit b. 1. 2. C. 1. 2. 1. d. 2. 1. 2. e. f. 1. 2. 1. 2. g.
Illustration: You opened a novelty store called "The Awesome Shop" on January 1, 20x1. The following were the transactions during the year: Provided P100,000 cash as initial investment. Obtained a P50,000 loan .. Acquired furniture and fixtures for P80,000 cash. Acquired inventory on account for P60,000. (Use perpetual inventory system) Sold goods on cash basis for P200,000. The cost of sales is ?20,000. Sold goods on account for P300,000. The cost of sales is ?30,000. Paid supplies expense for P20,000 cash. Paid rent expense of P180,000. Paid utilities expense of P40,000. Collected P240,000 accounts receivable. Paid P30,000 accounts payable. Made total drawings of P25,000.
Sea Co. has the following transactions in the month of April 2021: 10th April : Commenced business with a capital of 100,000. 14th April : Purchased Goods for cash 15,000. 16th April : Bought Goods on credit 12,000. 21st April : Sold goods on credit 17,000. 22th April : Bought Land for 50,000. 24th April : Purchased machinery for cash 45,000. 25th April : Paid 2,000 for goods purchased. 26th April : Use a cash for personal use 2,000. 27th April : Received 3,000 from the customer. 28th April : Purchased Goods for cash 5,000. Write (1) Journal Entries, (2) ledgers and (3) Trial balance for the transactions.
PLEASE SHOW SOLUTIONS IN GOOD ACCOUNTING FORM. 6. On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books?
You opened a novelty store called "The Awesome Shop" on January 2, 2018. The following were the transactions during the year: 1. Provided P100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. 5. Sold goods on cash basis for P200,000. The cost of sales is P20,000. 6. Sold goods on account for P300,000. The cost of sales is P30,000. 7. Paid supplies expense for P20,00o cash. 8. Paid rent expense of P180,00o. 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable. 12. Made total drawings of P25,000. REQUIREMENTS: a. Record the transactions in the journal. b. Post the transactions in the ledger. c. Prepare the unadjusted trial balance on December 31, 2018.
Entity A started operations during the period. The following were the transactions: a. Mr A, the sole owner of Entity A invested 1,000,000 to the business b. Equipment costing 250,000 was acquired for cash . c. Inventory costing P180,000 was acquired on credit, Entity A uses the perpetual inventory system . d. Inventory costing 120.000 was sold for P400,000 credit e. Accounts payable of P160,000 was settled . f. Accounts receivable of 340, 000 was collected g. Utilities expense of P60,000 was paid. h. Salaries expense of 280,000 was paid . i. Owner's drawings during the period totaled 70,000j. Depreciation expense on the equipment for the period was 25,000Requirement: Prepare Unadjusted Trial Balance
Mr. Steve Persian hired Elizabeth to prepare the Statement of Financial Position of his business. To prepare the statement, Elizabeth identified the following assets and liabilities of Mr. Persian: a. Cash deposited in YKY Bank amounting to P100, 000 b. He has uncollected sales from customers amounting to P50, 000 c. The total amount of merchandise left inside the warehouse is P35, 000 d. Steve paid in advance the rent amounting to P15, 000 for one year. e. The machineries and equipment amounted to P150, 000 f. He bought the materials from his suppliers amounting to P30, 000 and promised to pay the said amount one month after the end of the year. g. He paid the contributions of his employees such as SSS, Philhealth and Pag ibig amounting to P6, 500 h. Outstanding balance to Meralco is amounting to P3, 500 i. He acquired a 2 year loan from YKY Bank amounting to P45, 000.
Illustration: You opened a novelty store called "The Awesome Shop" on January 1, 20x1. The following were the transactions during the year: 1. ProvidedP100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpetual inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales is P20,000. 6. Sold goods on account for P300,000. The cost of sales is P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000. 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable. 12. Made total drawings of P25,000.
a. Received $60,000 cash from the investors who organized Down, Incorporated b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $9,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (c), paid for half of it, and put the rest on account. 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero. Current Assets Cash Total Current Assets Equipment Total Assets Assets DOWN.INCORPORATED Balance Sheet At May 31 $ 70,000 70,000 25,000 Liabilities Current Liabilities Common Stock Notes Payable (long-term) $ 95,000 $ $ 60,000 20,000 80,000 80,000 0 80,000
The following transactions were extracted from the books of Kwabeng enterprise for February 2020 February Commenced business with a capital of GHC15,000 cash 05 03 Purchased good GHC6,000 Purchased goods on credit from S & Co. GHC3,000 07 10 Purchased furniture GHC2,400 Returned goods to S & Co. GHC600. Sold goods GHC3,900 10 11 12 Received an invoice from Smith GHC5,000 15 Sold goods on credit to DD GHC2,250 Paid salaries GHC960 20 22 Purchased a van GH€50,000 on credit from Silver Star Auto Ltd. 24 Received commission GHC75 25 Goods returned by DD GHC450 25 Received cash from DD GH€1,500 26 Paid to S & Co. GH€1,800 Withdrew from business GHC900 for personal use Borrowed from KK GHC1,500 27 28 Required: 1. Record the above transactions in the appropriate journals 2. Post entries to relevant ledger accounts 3. Prepare a trial balance.