Listed below are ten business transactions for Puring Company during its first month of operations: a. Owner invested cash in the business amounting to P300 000 b. Purchased equipment for cash amounting to P50 000 c. Purchased inventories through credit amounting to P35 000 d. Purchased furniture amounting to P30 000. Made partial payment with cash (P10 000) and incurred an accounts payable for the balance (P20 000) e. Paid cash to the local government for business permit (P9 000) f. Made sales of P17 000 - P12 000 cash sales, P5 000 credit sales. g. The cost of the sales made in (f) amounted to P8 500. h. Paid the accounts payable in (d) i. Collected P2 500 out of the P5 000 credit sales in (f) j. Paid employee P12 000 Indicate the effects of the given transactions on each of the financial statement elements in the table shown below. The answer for transaction (a) is given as an example:

Listed below are ten business transactions for Puring Company during its first month of operations: a. Owner invested cash in the business amounting to P300 000 b. Purchased equipment for cash amounting to P50 000 c. Purchased inventories through credit amounting to P35 000 d. Purchased furniture amounting to P30 000. Made partial payment with cash (P10 000) and incurred an accounts payable for the balance (P20 000) e. Paid cash to the local government for business permit (P9 000) f. Made sales of P17 000 - P12 000 cash sales, P5 000 credit sales. g. The cost of the sales made in (f) amounted to P8 500. h. Paid the accounts payable in (d) i. Collected P2 500 out of the P5 000 credit sales in (f) j. Paid employee P12 000 Indicate the effects of the given transactions on each of the financial statement elements in the table shown below. The answer for transaction (a) is given as an example:

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Description: Listed below are ten business transactions for Puring Company during its first month of operations:a. Owner invested cash in the business amounting to P300 000b. Purchased equipment for cash amounting to P50 000c. Purchased inventories through credi

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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