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• Indicate the effectof each transaction and the balances after each transaction, in a tabular form. The following accounts will b needed: Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Cleaning Equipment Service Vehicle Notes Payable Mitas, Capital Mitas, Withdrawals Cleaning Revenues Salaries Expenses Rent Expense Advertising Expense

• Indicate the effectof each transaction and the balances after each transaction, in a tabular form. The following accounts will b needed: Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Cleaning Equipment Service Vehicle Notes Payable Mitas, Capital Mitas, Withdrawals Cleaning Revenues Salaries Expenses Rent Expense Advertising Expense

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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Mita Arenas recently established a business that will operate as Mitas Cleaning Service. The Transactions for February 2015 are presented below: Feb Deposited P62, 000 cash in a bank accountin the name of the new entity 3 Acquired cleaning supplies on account, P21, 400. acquired cleaning equipment on account, P15, 600. Acquired an old service vehicle costing P47,000 for the business, paying P10,000 cash, and financing the remaining P37,000 by issuing a note payable. 7 Paid renton office space for the month, P7, 300. Received P31,800 cash for cleaning services rendered 9 1 Paid for a newspaper advertisement, P1, 700. Paid for insurance for the nextsix months by recording prepared insurance, P4, 800. 1 Paid P9, 000 on account 1 Paid miscellaneous expenses, P2, 200 1 Billed customers P18, 600 for cleaning services rendered 1 Paid salaries, P8, 400. 2 Received P9, 800 from customers billed on Feb 15. Paid Amount Due on the Note Payable, P2, 400 2 Paid Telephone expenses, P900 2 Paid salaries, P7, 900 2 Billed customers for cleaning services rendered, P22, 500. 2 Withdrew P10, 000 from the business
Transcribed Image Text:Mita Arenas recently established a business that will operate as Mitas Cleaning Service. The Transactions for February 2015 are presented below: Feb Deposited P62, 000 cash in a bank accountin the name of the new entity 3 Acquired cleaning supplies on account, P21, 400. acquired cleaning equipment on account, P15, 600. Acquired an old service vehicle costing P47,000 for the business, paying P10,000 cash, and financing the remaining P37,000 by issuing a note payable. 7 Paid renton office space for the month, P7, 300. Received P31,800 cash for cleaning services rendered 9 1 Paid for a newspaper advertisement, P1, 700. Paid for insurance for the nextsix months by recording prepared insurance, P4, 800. 1 Paid P9, 000 on account 1 Paid miscellaneous expenses, P2, 200 1 Billed customers P18, 600 for cleaning services rendered 1 Paid salaries, P8, 400. 2 Received P9, 800 from customers billed on Feb 15. Paid Amount Due on the Note Payable, P2, 400 2 Paid Telephone expenses, P900 2 Paid salaries, P7, 900 2 Billed customers for cleaning services rendered, P22, 500. 2 Withdrew P10, 000 from the business
Required: • Indicate the effect of each transaction and the balances after each transaction, in a tabular form. The following accounts will be needed: Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Cleaning Equipment Service Vehicle Notes Payable Mitas, Capital Mitas, Withdrawals Cleaning Revenues Salaries Expenses Rent Expense Advertising Expense Telephone Expense Miscellaneous Prepare an income statement, a statement of changes in owner's equity and a balance sheet.
Transcribed Image Text:Required: • Indicate the effect of each transaction and the balances after each transaction, in a tabular form. The following accounts will be needed: Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Cleaning Equipment Service Vehicle Notes Payable Mitas, Capital Mitas, Withdrawals Cleaning Revenues Salaries Expenses Rent Expense Advertising Expense Telephone Expense Miscellaneous Prepare an income statement, a statement of changes in owner's equity and a balance sheet.
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