Make a general journal. Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested ₱48,000 cash in the business. Aug. 1 Rented office space and paid ₱800 cash for the August rent. Aug. 3 Purchased exploration equipment for ₱22,000 by paying ₱12,000 cash and agreeing to pay the balance in 3 months. Aug. 5 Purchased office supplies by paying ₱1,500 cash. Aug. 6 Completed exploration work and immediately collected ₱420 cash for the work. Aug. 8 Purchased ₱1,350 of office equipment on credit. Aug. 15 Completed exploration work on credit in the amount of ₱8,000. Aug. 18 Purchased ₱700 of office supplies on credit. Aug. 20 Paid cash for the office equipment purchased on August 8. Aug. 24 Billed a client ₱2,400 for work completed; the balance is due in 30 days. Aug. 28 Received ₱5,000 cash for the work completed on August 15. Aug. 30 Paid the assistant's salary of ₱1,100 cash for this month. Aug. 30 Paid ₱340 cash for this month's utility bill. Aug. 30 Garcia withdrew ₱1,050 cash from the business for personal use. Required 1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts Payable; Jerome Garcia, Capital; Jerome Garcia, Withdrawals; Revenues; and Expenses. 2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction.

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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Make a general journal. Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested ₱48,000 cash in the business. Aug. 1 Rented office space and paid ₱800 cash for the August rent. Aug. 3 Purchased exploration equipment for ₱22,000 by paying ₱12,000 cash and agreeing to pay the balance in 3 months. Aug. 5 Purchased office supplies by paying ₱1,500 cash. Aug. 6 Completed exploration work and immediately collected ₱420 cash for the work. Aug. 8 Purchased ₱1,350 of office equipment on credit. Aug. 15 Completed exploration work on credit in the amount of ₱8,000. Aug. 18 Purchased ₱700 of office supplies on credit. Aug. 20 Paid cash for the office equipment purchased on August 8. Aug. 24 Billed a client ₱2,400 for work completed; the balance is due in 30 days. Aug. 28 Received ₱5,000 cash for the work completed on August 15. Aug. 30 Paid the assistant's salary of ₱1,100 cash for this month. Aug. 30 Paid ₱340 cash for this month's utility bill. Aug. 30 Garcia withdrew ₱1,050 cash from the business for personal use. Required 1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts Payable; Jerome Garcia, Capital; Jerome Garcia, Withdrawals; Revenues; and Expenses. 2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction.

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