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cdn.fbsbx.com Done Complete the Accounting Cycle of a Service Business Requirements: A. Prepare the journal entry to record the transactions. B. Post the journal entries in the appropriate subsidiary ledger and general ledger accounts. C. Summarize the ledger accounts and list the balances on the trial balance. D. Record the following adjusting entries. 1. 12% of the accounts receivable should be recognized as doubtful of collection. 2. The equipment acquired with an estimated useful life of 5 years and a scrap value of 75,000 3. The furniture and fixtures acquired with an estimated useful life of 5 years and scrap value of 15,000 4. Taxes payable amounting to 5,000 has not been recorded. E. Prepare the adjusted trial balance E. Prepare the financial statements such as Statement of Comprehensive Income and Statement of Financial Position FABM Company, a service firm rendering computerized accounting services has the following transactions for the month of June 2018: June 1 Owner invested his savings worth P10, 000, 000 into the business. He bought P1.5 M worth of equipment He also invested furniture and fixtures with 250 ,000 Rendered services to clients worth 150, 000 and received cash payment immediately Rendered services to clients worth 250, 000 on June 3 June 5 June 7 June 10 асcount June 12 Purchased computer supplies amounting to 30,000 and issued a promissory note Rendered services to clients worth 650, 000 with terms 50% down, balance on account Paid salaries of employees worth 45,000 June 14 June 15 June 18 Collected half of the amount due last June 10 June 20 Paid the total amount due for utilities amounting to 55, 000 June 22 Cash receipts amounting to 75,000 from cash sales services June 24 Paid the whole amount due on the note June 26 Paid Philhealth contribution of the employees amounting to 5,000 June 28 Borrowed P150,000 from Citibank payable in two years June 30 Owner withdrew 25, 000 cash for personal use

cdn.fbsbx.com Done Complete the Accounting Cycle of a Service Business Requirements: A. Prepare the journal entry to record the transactions. B. Post the journal entries in the appropriate subsidiary ledger and general ledger accounts. C. Summarize the ledger accounts and list the balances on the trial balance. D. Record the following adjusting entries. 1. 12% of the accounts receivable should be recognized as doubtful of collection. 2. The equipment acquired with an estimated useful life of 5 years and a scrap value of 75,000 3. The furniture and fixtures acquired with an estimated useful life of 5 years and scrap value of 15,000 4. Taxes payable amounting to 5,000 has not been recorded. E. Prepare the adjusted trial balance E. Prepare the financial statements such as Statement of Comprehensive Income and Statement of Financial Position FABM Company, a service firm rendering computerized accounting services has the following transactions for the month of June 2018: June 1 Owner invested his savings worth P10, 000, 000 into the business. He bought P1.5 M worth of equipment He also invested furniture and fixtures with 250 ,000 Rendered services to clients worth 150, 000 and received cash payment immediately Rendered services to clients worth 250, 000 on June 3 June 5 June 7 June 10 асcount June 12 Purchased computer supplies amounting to 30,000 and issued a promissory note Rendered services to clients worth 650, 000 with terms 50% down, balance on account Paid salaries of employees worth 45,000 June 14 June 15 June 18 Collected half of the amount due last June 10 June 20 Paid the total amount due for utilities amounting to 55, 000 June 22 Cash receipts amounting to 75,000 from cash sales services June 24 Paid the whole amount due on the note June 26 Paid Philhealth contribution of the employees amounting to 5,000 June 28 Borrowed P150,000 from Citibank payable in two years June 30 Owner withdrew 25, 000 cash for personal use

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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cdn.fbsbx.com Done Complete the Accounting Cycle of a Service Business Requirements: A. Prepare the journal entry to record the transactions. B. Post the journal entries in the appropriate subsidiary ledger and general ledger accounts. C. Summarize the ledger accounts and list the balances on the trial balance. D. Record the following adjusting entries. 1. 12% of the accounts receivable should be recognized as doubtful of collection. 2. The equipment acquired with an estimated useful life of 5 years and a scrap value of 75,000 3. The furniture and fixtures acquired with an estimated useful life of 5 years and scrap value of 15,000 4. Taxes payable amounting to 5,000 has not been recorded. E. Prepare the adjusted trial balance E. Prepare the financial statements such as Statement of Comprehensive Income and Statement of Financial Position FABM Company, a service firm rendering computerized accounting services has the following transactions for the month of June 2018: June 1 Owner invested his savings worth P10, 000, 000 into the business. He bought P1.5 M worth of equipment He also invested furniture and fixtures with 250 ,000 Rendered services to clients worth 150, 000 and received cash payment immediately Rendered services to clients worth 250, 000 on June 3 June 5 June 7 June 10 асcount June 12 Purchased computer supplies amounting to 30,000 and issued a promissory note Rendered services to clients worth 650, 000 with terms 50% down, balance on account Paid salaries of employees worth 45,000 June 14 June 15 June 18 Collected half of the amount due last June 10 June 20 Paid the total amount due for utilities amounting to 55, 000 June 22 Cash receipts amounting to 75,000 from cash sales services June 24 Paid the whole amount due on the note June 26 Paid Philhealth contribution of the employees amounting to 5,000 June 28 Borrowed P150,000 from Citibank payable in two years June 30 Owner withdrew 25, 000 cash for personal use
Transcribed Image Text:cdn.fbsbx.com Done Complete the Accounting Cycle of a Service Business Requirements: A. Prepare the journal entry to record the transactions. B. Post the journal entries in the appropriate subsidiary ledger and general ledger accounts. C. Summarize the ledger accounts and list the balances on the trial balance. D. Record the following adjusting entries. 1. 12% of the accounts receivable should be recognized as doubtful of collection. 2. The equipment acquired with an estimated useful life of 5 years and a scrap value of 75,000 3. The furniture and fixtures acquired with an estimated useful life of 5 years and scrap value of 15,000 4. Taxes payable amounting to 5,000 has not been recorded. E. Prepare the adjusted trial balance E. Prepare the financial statements such as Statement of Comprehensive Income and Statement of Financial Position FABM Company, a service firm rendering computerized accounting services has the following transactions for the month of June 2018: June 1 Owner invested his savings worth P10, 000, 000 into the business. He bought P1.5 M worth of equipment He also invested furniture and fixtures with 250 ,000 Rendered services to clients worth 150, 000 and received cash payment immediately Rendered services to clients worth 250, 000 on June 3 June 5 June 7 June 10 асcount June 12 Purchased computer supplies amounting to 30,000 and issued a promissory note Rendered services to clients worth 650, 000 with terms 50% down, balance on account Paid salaries of employees worth 45,000 June 14 June 15 June 18 Collected half of the amount due last June 10 June 20 Paid the total amount due for utilities amounting to 55, 000 June 22 Cash receipts amounting to 75,000 from cash sales services June 24 Paid the whole amount due on the note June 26 Paid Philhealth contribution of the employees amounting to 5,000 June 28 Borrowed P150,000 from Citibank payable in two years June 30 Owner withdrew 25, 000 cash for personal use
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