A.B. Mahusay decided to put up an aircon cleaning & repair services on January 1, 2020. In order to do so, he invested P300,000 for the establishment of his business. For the month of January, A.B. Mahusay also incurred the following transactions: January 2 Paid P3,000 municipal permit/license to operate business. January 3 Bought the necessary equipment for his business. The total purchase price was P150,000. P50,000 was paid in cash and the balance on account. January 5 Hired 2 aircon technicians with monthly salary of P5,000 each. January 20 Received P30,000 cash from various customers for services rendered. January 25 Paid office space rental for the month, P6,000. January 28 Received P12,000 cash for services rendered. January 31 Paid P10,000 salary of the 2 technicians. January 31 Billed customer, Mr. S. K. Na P5,000 for services rendered but verbally promised to pay on February 5. REQUIRED: Determine the effect of each day's transaction to the accounting equation Use the table below as guide. ASSETS Cash Receivable Equipment |=|LIABILITIES+ Payable +Capital Revenues Expenses EQUITY Date
A.B. Mahusay decided to put up an aircon cleaning & repair services on January 1, 2020. In order to do so, he invested P300,000 for the establishment of his business. For the month of January, A.B. Mahusay also incurred the following transactions: January 2 Paid P3,000 municipal permit/license to operate business. January 3 Bought the necessary equipment for his business. The total purchase price was P150,000. P50,000 was paid in cash and the balance on account. January 5 Hired 2 aircon technicians with monthly salary of P5,000 each. January 20 Received P30,000 cash from various customers for services rendered. January 25 Paid office space rental for the month, P6,000. January 28 Received P12,000 cash for services rendered. January 31 Paid P10,000 salary of the 2 technicians. January 31 Billed customer, Mr. S. K. Na P5,000 for services rendered but verbally promised to pay on February 5. REQUIRED: Determine the effect of each day's transaction to the accounting equation Use the table below as guide. ASSETS Cash Receivable Equipment |=|LIABILITIES+ Payable +Capital Revenues Expenses EQUITY Date
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 44P
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