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
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
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
Required: Prepare the entries to record the above transactions
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