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BUSINESS TRANSACTIONS FOR ACCOUNTING PROCESS In December of the current year, the following transactions took place. Mr. Ezekiel invested P70,000 to start his law practice. One-year insurance effective December 1 was paid, P7,000. Dec 2 4 Office furniture worth P15,000 was purchased on account from EZ ABC Furniture Company Office and computer supplies costing P2,500 was bought for cash. Received from City Bank P60,000 for Loan applied to be used in his law practice. 8 11 14 Purchased on credit a desktop computer and printer for office use worth P60,000 for Micro System Inc. 16 Received P12,500 cash for legal service rendered to Jose Lopez. 18 Paid P1,000 for Miscellaneous expenses incurred 20 Received P10,500cashfor legal services rendered to clients. 22 Advertising place on a local paper for three months effective December 1, was paid, P3,600. 24 Various clients were billed for professional services, P16,400. 25 Micro System Inc. was partially paid, P45,000. 26 Collected accounts from various clients, P7,500. Lights, water, and telephone use for the month December was Paid to property owner, P1,500. (Utilities Expense) 27 28 The salary of the legal secretary was paid, P5,500. Mr. Ezekiel withdrew P12,000 for personal use. Received P5,000 as advance fees for legal services to be rendered the next year. 29 30 Required: FINANCIAL STATEMENTS ACCOUNTING PROCESS to do... 1. Chart of Accounts 2. Journalization w/ explanation 3. Posting - T accounts and General Ledger 4. Trial Balance 5. Preparation of Financial Statement a. Statement of comprehensive Income/INCOME STATEMENT b. Statement of Changes in Equity c. Statement of Financial Position/BALANCE SHEET d. Statement of Cash Flow (from Cash Ledger)

BUSINESS TRANSACTIONS FOR ACCOUNTING PROCESS In December of the current year, the following transactions took place. Mr. Ezekiel invested P70,000 to start his law practice. One-year insurance effective December 1 was paid, P7,000. Dec 2 4 Office furniture worth P15,000 was purchased on account from EZ ABC Furniture Company Office and computer supplies costing P2,500 was bought for cash. Received from City Bank P60,000 for Loan applied to be used in his law practice. 8 11 14 Purchased on credit a desktop computer and printer for office use worth P60,000 for Micro System Inc. 16 Received P12,500 cash for legal service rendered to Jose Lopez. 18 Paid P1,000 for Miscellaneous expenses incurred 20 Received P10,500cashfor legal services rendered to clients. 22 Advertising place on a local paper for three months effective December 1, was paid, P3,600. 24 Various clients were billed for professional services, P16,400. 25 Micro System Inc. was partially paid, P45,000. 26 Collected accounts from various clients, P7,500. Lights, water, and telephone use for the month December was Paid to property owner, P1,500. (Utilities Expense) 27 28 The salary of the legal secretary was paid, P5,500. Mr. Ezekiel withdrew P12,000 for personal use. Received P5,000 as advance fees for legal services to be rendered the next year. 29 30 Required: FINANCIAL STATEMENTS ACCOUNTING PROCESS to do... 1. Chart of Accounts 2. Journalization w/ explanation 3. Posting - T accounts and General Ledger 4. Trial Balance 5. Preparation of Financial Statement a. Statement of comprehensive Income/INCOME STATEMENT b. Statement of Changes in Equity c. Statement of Financial Position/BALANCE SHEET d. Statement of Cash Flow (from Cash Ledger)

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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CHART OF ACCOUNTS 10 - ASSETS 11 - Cash 12 - Accounts Receivable 13 - prepaid insurance 14 - Office supplies 15 - Furniture and Equipment 20 - LIABILITIES 21 - Accounts Payable 22 - Bank Loan 30 - OWNER'S EQUITY 31 - mr. Ezekiel, Capital 32-mr. Ezekiel, Drawing 40- INCOME/REVENUE 41- Professional Fees 50 - EXPENSES 51- Miscellaneous Expense 52 - Advertising Expense 53 - Utilities Expense 54 - salary Expense
Transcribed Image Text:CHART OF ACCOUNTS 10 - ASSETS 11 - Cash 12 - Accounts Receivable 13 - prepaid insurance 14 - Office supplies 15 - Furniture and Equipment 20 - LIABILITIES 21 - Accounts Payable 22 - Bank Loan 30 - OWNER'S EQUITY 31 - mr. Ezekiel, Capital 32-mr. Ezekiel, Drawing 40- INCOME/REVENUE 41- Professional Fees 50 - EXPENSES 51- Miscellaneous Expense 52 - Advertising Expense 53 - Utilities Expense 54 - salary Expense
BUSINESS TRANSACTIONS FOR ACCOUNTING PROCESS In December of the current year, the following transactions took place. Dec 2 Mr. Ezekiel invested P70,000 to start his law practice. One-year insurance effective December 1 was paid, P7,000. Office furniture worth P15,000 was purchased on account from EZ ABC 4 6 Furniture Company 8 Office and computer supplies costing P2,500 was bought for cash. Received from City Bank P60,000 for Loan applied to be used in his law practice. 11 14 Purchased on credit a desktop computer and printer for office use worth P60,000 for Micro System Inc. 16 Received P12,500 cash for legal service rendered to Jose Lopez. 18 Paid P1,000 for Miscellaneous expenses incurred 20 Received P10,500cashfor legal services rendered to clients. 22 Advertising place on a local paper for three months effective December 1, was paid, P3,600. 24 Various clients were billed for professional services, P16,400. 25 Micro System Inc. was partially paid, P45,000. 26 Collected accounts from various clients, P7,500. 27 Lights, water, and telephone use for the month December was Paid to property owner, P1,500. (Utilities Expense) The salary of the legal secretary was paid, P5,500. Mr. Ezekiel withdrew P12,000 for personal use. 28 29 30 Received P5,000 as advance fees for legal services to be rendered the next year. Required: FINANCIAL STATEMENTS ACCOUNTING PROCESS to do... 1. Chart of Accounts 2. Journalization w/ explanation 3. Posting - T accounts and General Ledger 4. Trial Balance 5. Preparation of Financial Statement a. Statement of comprehensive Income/INCOME STATEMENT b. Statement of Changes in Equity c. Statement of Financial Position/BALANCE SHEET d. Statement of Cash Flow (from Cash Ledger)
Transcribed Image Text:BUSINESS TRANSACTIONS FOR ACCOUNTING PROCESS In December of the current year, the following transactions took place. Dec 2 Mr. Ezekiel invested P70,000 to start his law practice. One-year insurance effective December 1 was paid, P7,000. Office furniture worth P15,000 was purchased on account from EZ ABC 4 6 Furniture Company 8 Office and computer supplies costing P2,500 was bought for cash. Received from City Bank P60,000 for Loan applied to be used in his law practice. 11 14 Purchased on credit a desktop computer and printer for office use worth P60,000 for Micro System Inc. 16 Received P12,500 cash for legal service rendered to Jose Lopez. 18 Paid P1,000 for Miscellaneous expenses incurred 20 Received P10,500cashfor legal services rendered to clients. 22 Advertising place on a local paper for three months effective December 1, was paid, P3,600. 24 Various clients were billed for professional services, P16,400. 25 Micro System Inc. was partially paid, P45,000. 26 Collected accounts from various clients, P7,500. 27 Lights, water, and telephone use for the month December was Paid to property owner, P1,500. (Utilities Expense) The salary of the legal secretary was paid, P5,500. Mr. Ezekiel withdrew P12,000 for personal use. 28 29 30 Received P5,000 as advance fees for legal services to be rendered the next year. Required: FINANCIAL STATEMENTS ACCOUNTING PROCESS to do... 1. Chart of Accounts 2. Journalization w/ explanation 3. Posting - T accounts and General Ledger 4. Trial Balance 5. Preparation of Financial Statement a. Statement of comprehensive Income/INCOME STATEMENT b. Statement of Changes in Equity c. Statement of Financial Position/BALANCE SHEET d. Statement of Cash Flow (from Cash Ledger)
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