Angel De Jesus, a business graduate student who was working as a mere employee in a company called Think Computer, decided to become an entrepreneur and put up an internet shop. The following are the transactions for the start-up transactions for March: 1 Angel started an internet shop called "Playnet.com" by investing her savings of P50,000 and the proceeds from the sale of her car which amounted to P300,000. 5 Angel hired two workers to assist her in the shop for a monthly salary of P6,000 each worker. 10 Lessor (owner) of the shop required her to pay two months' rent deposit in cash, P10,000 15 She paid cash of P8,000 for furniture bought from Alexis Furniture Store. 18 She bought an aircon unit from Abbe Appliances for P45,000 promising to pay the account within three months. 20 She purchased supplies and paid cash of P1,500. 25 The shop was ready for the installation of the computer units. Angel purchased 12 units of computer hardware from Think PC She paid 50% in cash P125,000 and a note for the balance payable in 24 monthly installments starting April 25 Use the title notes payable Required a. Analyze the transactions using the following accounts and provide a money column for each one Cash, Supplies. Rent Deposit. Furniture and Fixtures. Equipment. Accounts Payable. Notes Payable. and De Jesus Capital and Prepare Journal Entries b. Prove the accounting equation c. Prepare a statement of financial position
Angel De Jesus, a business graduate student who was working as a mere employee in a company called Think Computer, decided to become an entrepreneur and put up an internet shop. The following are the transactions for the start-up transactions for March: 1 Angel started an internet shop called "Playnet.com" by investing her savings of P50,000 and the proceeds from the sale of her car which amounted to P300,000. 5 Angel hired two workers to assist her in the shop for a monthly salary of P6,000 each worker. 10 Lessor (owner) of the shop required her to pay two months' rent deposit in cash, P10,000 15 She paid cash of P8,000 for furniture bought from Alexis Furniture Store. 18 She bought an aircon unit from Abbe Appliances for P45,000 promising to pay the account within three months. 20 She purchased supplies and paid cash of P1,500. 25 The shop was ready for the installation of the computer units. Angel purchased 12 units of computer hardware from Think PC She paid 50% in cash P125,000 and a note for the balance payable in 24 monthly installments starting April 25 Use the title notes payable Required a. Analyze the transactions using the following accounts and provide a money column for each one Cash, Supplies. Rent Deposit. Furniture and Fixtures. Equipment. Accounts Payable. Notes Payable. and De Jesus Capital and Prepare Journal Entries b. Prove the accounting equation c. Prepare a statement of financial position
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Angel De Jesus, a business graduate student who was working as a mere employee in a company called
Think Computer, decided to become an entrepreneur and put up an internet shop. The following are the
transactions for the start-up transactions for March:
1 Angel started an internet shop called "Playnet.com" by investing her savings of P50,000 and the
proceeds from the sale of her car which amounted to P300,000.
5 Angel hired two workers to assist her in the shop for a monthly salary of P6,000 each worker.
10 Lessor (owner) of the shop required her to pay two months' rent deposit in cash, P10,000
15 She paid cash of P8,000 for furniture bought from Alexis Furniture Store.
18 She bought an aircon unit from Abbe Appliances for P45,000 promising to pay the account within
three months.
20 She purchased supplies and paid cash of P1,500.
25 The shop was ready for the installation of the computer units. Angel purchased 12 units of computer
hardware from Think PC She paid 50% in cash P125,000 and a note for the balance payable in 24
monthly installments starting April 25 Use the title notes payable
Required
a. Analyze the transactions using the following accounts and provide a money column for each one
Cash, Supplies. Rent Deposit. Furniture and Fixtures. Equipment. Accounts Payable. Notes
Payable. and De Jesus Capital and Prepare Journal Entries
b. Prove the accounting equation
c. Prepare a statement of financial position
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