Exercise 5 Jerome Garcia started a new business and completed these transactions during August: 1 Garcia invested P48,000 cash in the business. 1 Rented office space and paid P800 cash for the August rent. 3 Purchased exploration equipment for P22,000 by paying P12,000 cash and agreeing to paythe balance in 3 months. 5 Purchased office supplies by paying P1,500 cash. 6 Completed exploration work and immediately collected P420 cash for the work. 8 Purchased P1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of P8,000. 18 Purchased P700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client P2,400 for work completed; the balance is due in 30 days. 28 Received P5,000 cash for the work completed on August 15. 30 Paid the assistant's salary of P1,100 cash for this month. 30 Paid P340 cash for this month's utility bill. 30 Garcia withdrew P1,050 cash from the business for personal use. Instruction: Complete the table. Exploration Receivable Supplies Equipment Equipment Accounts Office Office Асcounts Garcia, Сapital Date Cash Payable
Exercise 5 Jerome Garcia started a new business and completed these transactions during August: 1 Garcia invested P48,000 cash in the business. 1 Rented office space and paid P800 cash for the August rent. 3 Purchased exploration equipment for P22,000 by paying P12,000 cash and agreeing to paythe balance in 3 months. 5 Purchased office supplies by paying P1,500 cash. 6 Completed exploration work and immediately collected P420 cash for the work. 8 Purchased P1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of P8,000. 18 Purchased P700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client P2,400 for work completed; the balance is due in 30 days. 28 Received P5,000 cash for the work completed on August 15. 30 Paid the assistant's salary of P1,100 cash for this month. 30 Paid P340 cash for this month's utility bill. 30 Garcia withdrew P1,050 cash from the business for personal use. Instruction: Complete the table. Exploration Receivable Supplies Equipment Equipment Accounts Office Office Асcounts Garcia, Сapital Date Cash Payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 5
Jerome Garcia started a new business and completed these transactions during August:
1 Garcia invested P48,000 cash in the business.
1 Rented office space and paid P800 cash for the August rent.
3 Purchased exploration equipment for P22,000 by paying P12,000 cash and agreeing to pay the balance
in 3 months.
5 Purchased office supplies by paying P1,500 cash.
6 Completed exploration work and immediately collected P420 cash for the work.
8 Purchased P1,350 of office equipment on credit.
15 Completed exploration work on credit in the amount of P8,000.
18 Purchased P700 of office supplies on credit.
20 Paid cash for the office equipment purchased on August 8.
24 Billed a client P2,400 for work completed; the balance is due in 30 days.
28 Received P5,000 cash for the work completed on August 15.
30 Paid the assistant's salary of P1,100 cash for this month.
30 Paid P340 cash for this month's utility bill.
30 Garcia withdrew P1,050 cash from the business for personal use.
Instruction: Complete the table.
Office
Receivable Supplies Equipment Equipment
Office
Exploration
Garcia,
Сapital
Асcounts
Асcounts
Date
Cash
Payable
Total
Exercise 6
Identify the foregoing transactions by identifying each as either one of the following: owner's investment
(OI), owner's withdrawal (OW), income (I), expense (E) or not an owner's equity transaction (NO).
1. Received cash for rendering services
2. Withdrew cash for personal expenses.
3. Received cash from a customer who have been rendered service on account.
4. Transferred personal assets to the business.
5. Paid a service station for gasoline for a business service vehicle.
6. Performed a service and received a promise of payment.
7. Paid cash to acquire equipment.
8. Paid cash to an employee for services rendered.
9. Bought supplies for cash.
10. Paid loans to the bank.
6 of 6
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