Julius Caesar, tax consultant, began his practice, on Dec. 1, 2020. The transactions of the firm are as follows: Dec. 1 Caesar invested P150,000 in the firm. Paid rent for December to Brutus Realty, P8,000. Purchased supplies on account, P7,200. Acquired P75,000 of office equipment, paying P37,000 down with the balance due in 30 days. Paid P7,200 on account for supplies purchased. Paid assistant's salaries for two weeks, P6,000. Performed consulting services for cash, P20,000. Paid assistant's salaries for two weeks, P6,000. Billed clients for December consulting services, P48,000. Caesar withdrew P12,000 from the business. 2 2 3 14 20 28 30 31 Required: 1. Open the following general ledger accounts, using the account numbers shown: Cash (110); Accounts Receivable (120); Fees Receivable (130); Supplies (140); Office Equipment (150); Accumulated Depreciation (155); Accounts Payable (210); Salaries Payable (220); Caesar, Capital (310); Caesar, Withdrawals (320); Income Summary (330); Consulting Revenues (410); Salaries Expense (510); Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540). 2. Post the transactions in the December ledger. 3. Prepare and complete the worksheet using the following information: a. Supplies on hand at Dec. 31 amounted to P4,700. b. Salaries of P1,800 have accrued at month-end. c. Depreciation is P800 for December. d. Caesar has spent 20 hours on a tax fraud case during December. When completed in January, his work will be billed P500 per hour. Note: the firm uses the account Fees Receivable to reflect the amounts earned but not yet billed. 4. Prepare adjusting entries and closing entries. 5. Prepare a post-closing trial balance. Questions: 1. How much is the profit? 2. Ending balance of the owner's equity. 3. Ending balance of total current assets. 4. Ending balance of total assets.
Julius Caesar, tax consultant, began his practice, on Dec. 1, 2020. The transactions of the firm are as follows: Dec. 1 Caesar invested P150,000 in the firm. Paid rent for December to Brutus Realty, P8,000. Purchased supplies on account, P7,200. Acquired P75,000 of office equipment, paying P37,000 down with the balance due in 30 days. Paid P7,200 on account for supplies purchased. Paid assistant's salaries for two weeks, P6,000. Performed consulting services for cash, P20,000. Paid assistant's salaries for two weeks, P6,000. Billed clients for December consulting services, P48,000. Caesar withdrew P12,000 from the business. 2 2 3 14 20 28 30 31 Required: 1. Open the following general ledger accounts, using the account numbers shown: Cash (110); Accounts Receivable (120); Fees Receivable (130); Supplies (140); Office Equipment (150); Accumulated Depreciation (155); Accounts Payable (210); Salaries Payable (220); Caesar, Capital (310); Caesar, Withdrawals (320); Income Summary (330); Consulting Revenues (410); Salaries Expense (510); Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540). 2. Post the transactions in the December ledger. 3. Prepare and complete the worksheet using the following information: a. Supplies on hand at Dec. 31 amounted to P4,700. b. Salaries of P1,800 have accrued at month-end. c. Depreciation is P800 for December. d. Caesar has spent 20 hours on a tax fraud case during December. When completed in January, his work will be billed P500 per hour. Note: the firm uses the account Fees Receivable to reflect the amounts earned but not yet billed. 4. Prepare adjusting entries and closing entries. 5. Prepare a post-closing trial balance. Questions: 1. How much is the profit? 2. Ending balance of the owner's equity. 3. Ending balance of total current assets. 4. Ending balance of total assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Julius Caesar, tax consultant, began his practice, on Dec. 1, 2020. The transactions
of the firm are as follows:
Dec. 1
Caesar invested P150,000 in the firm.
Paid rent for December to Brutus Realty, P8,000.
Purchased supplies on account, P7,200.
Acquired P75,000 of office equipment, paying P37,000 down with the
balance due in 30 days.
Paid P7,200 on account for supplies purchased.
Paid assistant's salaries for two weeks, P6,000.
Performed consulting services for cash, P20,000.
Paid assistant's salaries for two weeks, P6,000.
Billed clients for December consulting services, P48,000.
Caesar withdrew P12,000 from the business.
2
2
3
8
14
20
28
30
31
Required:
1. Open the following general ledger accounts, using the account numbers shown:
Cash (110); Accounts Receivable (120); Fees Receivable (130); Supplies (140);
Office Equipment (150); Accumulated Depreciation (155); Accounts Payable
(210); Salaries Payable (220); Caesar, Capital (310); Caesar, Withdrawals (320);
Income Summary (330); Consulting Revenues (410); Salaries Expense (510);
Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540).
2. Post the transactions in the December ledger.
3. Prepare and complete the worksheet using the following information:
a. Supplies on hand at Dec. 31 amounted to P4,700.
b. Salaries of P1,800 have accrued at month-end.
c. Depreciation is P800 for December.
d. Caesar has spent 20 hours on a tax fraud case during December. When
completed in January, his work will be billed P500 per hour. Note: the firm
uses the account Fees Receivable to reflect the amounts earned but not yet
billed.
4. Prepare adjusting entries and closing entries.
5. Prepare a post-closing trial balance.
Questions:
1. How much is the profit?
2. Ending balance of the owner's equity.
3. Ending balance of total current assets.
4. Ending balance of total assets.
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