Emerita Modesto established a. Deposited P120,000 in a bank account in the name of the business. b. Bought office equipment on account from PHINMA Company, P31,000 . her own business called Modesto's Self-storage. The account leadings are presented below. Transactions completed during the moth follow. c. Paid rent for the month, F24,00 . d. Bought supplies cash, P4,500 .. e. Paid salaries, P9,800. f. Received cash for storage services, P36,000. g. Received and paid the utility bill, P2, 520. h. Paid Errol Umerez Graphics for advertising, P4,28C . (The bill was not previously recorded.). 1. Paid for a one-year liability insurance policy, P8,350. 3. Billed customers for storage services an account, P33, 700. k. Received cash for storage services, P23,000. 1. Paid salaries, P9,900. m. Paid PHINMA Company P11,000 as part payment on the office equipment bought in transaction b. n. Modesto withdrew P12,000 for personal use. Required: 1. Record the transactions in columnar form, write plus and minus aigns, and show the balance after each transaction to be sure the equation remains in balance. 2. Write the proof of totals at the bottom to show that one side of the equations equals the other side.

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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Emerita Modesto established

a. Deposited P120,000 in a bank account in the name of the business.

b. Bought office equipment on account from PHINMA Company, P31,000 .

her own business called Modesto's Self-storage. The account leadings are presented below. Transactions completed during the moth follow.

c. Paid rent for the month, F24,00 .

d. Bought supplies cash, P4,500 ..

e. Paid salaries, P9,800.

f. Received cash for storage services, P36,000.

g. Received and paid the utility bill, P2, 520.

h. Paid Errol Umerez Graphics for advertising, P4,28C . (The bill was not previously recorded.).

1. Paid for a one-year liability insurance policy, P8,350. 3. Billed customers for storage services an account, P33, 700.

k. Received cash for storage services, P23,000. 1. Paid salaries, P9,900.

m. Paid PHINMA Company P11,000 as part payment on the office

equipment bought in transaction b.

n. Modesto withdrew P12,000 for personal use.

Required:

1. Record the transactions in columnar form, write plus and

minus aigns, and show the balance after each transaction to be sure the equation remains in balance.

2. Write the proof of totals at the bottom to show that one side of the equations equals the other side.

Lesson 2
Financial Transaction Worksheet and Use of T-Accounts
EXTEND
Name:
Time:
Emerita Modesto established
her
Own
business called Modesto's Self-storage.
The account leadings
are presented below.
Transactions campleted
during the moth follow.
a. Deposited P120,000 in a bank account in the name of the business.
b. Bought office equipment an account from PHINMA Company, P31,000.
c. Paid rent for the month, P24,000.
d. Bought supplies fo
e. Paid salaries, P9,800.
f. Received cash for storage services, P36,000.
g. Received and paid the utility bill, P2,520.
h. Paid Erral Umerez Graphics for advertising, P4,280. (The
bill was not previously recorded.)
i. Paid for a one-year liability insurance policy, P8,350.
j. Billed customers for storage services an account, P33, 700.
k. Received cash for storage services, P23,000.
1. Paid salaries, P9, 900.
m. Paid PHINMA Company P11,000 as part payment on the office
equipment bought in transaction b.
n. Modesto withdrew P12,000 for personal use.
cash, P4, 500.
Required:
1. Record the transactions in columnar form, write plus and
minus signs, and show the balance after each transaction
ta be sure the equation remains in balance.
2. Write the proof of totals at the bottom to show that one
side of the equations equals the other side.
- LIABILITIES
Accounts
OWNER'S EQUITY
ASSETS
Frepaid
Receivable |Insurance Equipment
office
Modesto,
Capital
120,000
120,000
Accounts
Cash
Payable
Revenue
Expenses
120,000
Bal. 120,000
a
Transcribed Image Text:Lesson 2 Financial Transaction Worksheet and Use of T-Accounts EXTEND Name: Time: Emerita Modesto established her Own business called Modesto's Self-storage. The account leadings are presented below. Transactions campleted during the moth follow. a. Deposited P120,000 in a bank account in the name of the business. b. Bought office equipment an account from PHINMA Company, P31,000. c. Paid rent for the month, P24,000. d. Bought supplies fo e. Paid salaries, P9,800. f. Received cash for storage services, P36,000. g. Received and paid the utility bill, P2,520. h. Paid Erral Umerez Graphics for advertising, P4,280. (The bill was not previously recorded.) i. Paid for a one-year liability insurance policy, P8,350. j. Billed customers for storage services an account, P33, 700. k. Received cash for storage services, P23,000. 1. Paid salaries, P9, 900. m. Paid PHINMA Company P11,000 as part payment on the office equipment bought in transaction b. n. Modesto withdrew P12,000 for personal use. cash, P4, 500. Required: 1. Record the transactions in columnar form, write plus and minus signs, and show the balance after each transaction ta be sure the equation remains in balance. 2. Write the proof of totals at the bottom to show that one side of the equations equals the other side. - LIABILITIES Accounts OWNER'S EQUITY ASSETS Frepaid Receivable |Insurance Equipment office Modesto, Capital 120,000 120,000 Accounts Cash Payable Revenue Expenses 120,000 Bal. 120,000 a
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