Exercise 1. Financial Transaction WorksheetCarol Gaston opens her own law office on July 1, 2019. During the first month of operations, thefollowing transactions occurred.1. Invested P100,000 in cash in the law practice.2. Paid P8,000 for July rent on office space.3. Purchased office equipment on account, P30,000.4. Rendered legal services to clients for cash, P15,000.5. Borrowed P7,000 cash from a bank on a note payable.6. Rendered legal services to client on account, P20,000.7. Paid monthly expenses, salaries, P5,000, utilities, P1,000 and telephone, P800.8. Withdrew cash for personal use, P4,000.Instruction: Prepare a Financial Transaction Worksheet. If the Owner's Equity is affected, indicate if it isdue to Revenue, Expense, Investment or Withdrawals.Financial Transaction WorksheetAssetsLiabilitiesOwner's EquityCashAccountsEquipmentNotesAccountsGaston,PayableCapital100,000(8,000)ReceivablePayable1.100,000(8,000)ВаInvestment2.Expenses92,00092,0003.Ва4.Ва5.Ва6.ba7.Ва8Ba

Name: Exercise 1. Financial Transaction WorksheetCarol Gaston opens her own
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Description: Exercise 1. Financial Transaction WorksheetCarol Gaston opens her own law office on July 1, 2019. During the first month of operations, thefollowing transactions occurred.1. Invested P100,000 in cash in the law practice.2. Paid P8,000 for July rent

Solution Concept Accounting equation is given as Asset = liabilities + equity If we further…

Answered: Instruction: Prepare a Financial…

Business

Accounting

Instruction: Prepare a Financial Transaction Worksheet. If the Owner's Equity is affected, indicate if it is due to Revenue, Expense, Investment or Withdrawals.

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Exercise 1. Financial Transaction Worksheet
Carol Gaston opens her own law office on July 1, 2019. During the first month of operations, the
following transactions occurred.
1. Invested P100,000 in cash in the law practice.
2. Paid P8,000 for July rent on office space.
3. Purchased office equipment on account, P30,000.
4. Rendered legal services to clients for cash, P15,000.
5. Borrowed P7,000 cash from a bank on a note payable.
6. Rendered legal services to client on account, P20,000.
7. Paid monthly expenses, salaries, P5,000, utilities, P1,000 and telephone, P800.
8. Withdrew cash for personal use, P4,000.
Instruction: Prepare a Financial Transaction Worksheet. If the Owner's Equity is affected, indicate if it is
due to Revenue, Expense, Investment or Withdrawals.
Financial Transaction Worksheet
Assets
Liabilities
Owner's Equity
Cash
Accounts
Equipment
Notes
Accounts
Gaston,
Payable
Capital
100,000
(8,000)
Receivable
Payable
1.
100,000
(8,000)
Ва
Investment
2.
Expenses
92,000
92,000
3.
Ва
4.
Ва
5.
Ва
6.
ba
7.
Ва
8
Ba

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