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.
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.
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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