Pita purchased a small roadside inn in April with inheritance money he received from his wealthy aunt. Help him prepare his T accounts for his first month of operations using the information provided. a.         Pita invested P5,000,000 cash in the inn.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pita purchased a small roadside inn in April with inheritance money he received from his wealthy aunt. Help him prepare his T accounts for his first month of operations using the information provided.

a.         Pita invested P5,000,000 cash in the inn.

Cash                                                     Owners’ Equity


b.         Pita purchased a P50,000 point of sale (POS) system with P5,000 cash and P45,000 notes payable.

Cash                 POS system                 Notes Payable


c.         Pita generated P75,000 in revenues with P52,000 cash and P23,000 accounts receivable.

Cash                Accounts Receivable   Revenues


d.         Pita paid utilities of P750 in cash.

Cash                                                   Utilities Expense

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