1. The following are selected transactions of BSAIS Company, an accounting firm: June 1 Andy Alarcon invested P200,000 cash to establish the business of which P150,000 was deposited to its UnionBank current account. June 2 He also invested a computer acquired a few months ago at a cost of P55,000 but there is still an outstanding liability of P25,000 due to ACER Electronic Equipment. This liability is to be assumed by the business. June 5 He also invested furniture and fixtures which were acquired a year ago for P20,000 but with a current market value of P10,000. Dec. 8 Withdrew a piece of furniture which was invested last June 5 and listed in the books as P2,500. It has an accumulated depreciation of P250. Required: Prepare the entries to record the above transactions.
1. The following are selected transactions of BSAIS Company, an accounting firm: June 1 Andy Alarcon invested P200,000 cash to establish the business of which P150,000 was deposited to its UnionBank current account. June 2 He also invested a computer acquired a few months ago at a cost of P55,000 but there is still an outstanding liability of P25,000 due to ACER Electronic Equipment. This liability is to be assumed by the business. June 5 He also invested furniture and fixtures which were acquired a year ago for P20,000 but with a current market value of P10,000. Dec. 8 Withdrew a piece of furniture which was invested last June 5 and listed in the books as P2,500. It has an accumulated depreciation of P250. Required: Prepare the entries to record the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the answer of the following selected transaction?
Transcribed Image Text:Activity 5 - Other Selected Transactions
1. The following are selected transactions of BSAIS Company, an accounting firm:
June 1 Andy Alarcon invested P200,000 cash to establish the business of which P150,000 was
deposited to its UnionBank current account.
June 2 He also invested a computer acquired a few months ago at a cost of P55,000 but there is
still an outstanding liability of P25,000 due to ACER Electronic Equipment. This liability is
to be assumed by the business.
June 5 He also invested furniture and fixtures which were acquired a year ago for P20,000 but
with a current market value of P10,000.
Dec. 8 Withdrew a piece of furniture which was invested last June 5 and listed in the books as
P2,500. It has an accumulated depreciation of P250.
Required: Prepare the entries to record the above transactions.
2. Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido
is interested to buy it but can only afford to pay P350,000. The following are the assets of
Adriano's business:
Book Value
Market Value
Equipment (net of accumulated
depreciation of P25,000)
Furniture and Fixtures (net of
accumulated depreciation of
P5,000)
P350,000
P300,000
75,000
50,000
Raw Materials
35,000
25,000
Franchise Right
150,000
100,000
Total
P610,000
P475,000
a. How much is the net worth assuming there is a mortgage note of P150,000 attached to
the equipment?
b. Will Benita Solido be able to afford to buy the business?
c. Make the entry in the books of Benita.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education