Elisa Diaz is a social entrepreneur from the South. She is into a lot of interesting causes. Her fine taste is preeminent such that she is considered an authority in planning weddings. Upon the advice and prodding of an esteemed colleague, Maria Concepcion Manalo, Diaz decided to organize her wedding consultancy and named the business Weddings “R” Us. Date May 1       Elisa Diaz invested P250,000.                  Rented office space and paid two months’ rent in advance, P8,000. May 2       Elisa Diaz issued promissory note for a P210,000 loan from Metrobank. The note carries a 20% interest per annum. That arrangement with the bank is that both the interest and the principal are payable in full in one year. Hired an office assistant and an account executive each with a P7,800 monthly salary. Or, each is to receive P300 per day for the 26-day work month. May 4       Acquired service vehicle for P420,000. Paid Prudential Guarantee and Assurance, Inc. P14,400 for a one-year comprehensive insurance coverage on the service vehicle. May 5       Acquired office equipment from Fair and Square Emporium for P60,000; paying P15,000 in cash and the balance next month. May 8      Purchased supplies on credit for P18,000 from San Jose Merchandising. May 9      Paid San Jose Merchandising P10,000 of the amount owed. May 10    Coordinated and finalized simple bridal arrangements for three couples and collected fees of P8,800 per couple. May 13     Paid salaries P6,600. May 15     Received P10,000 cash as payment for service to be rendered later of the same month. May 19     Coordinated and finalized elaborate arrangements for three couples and billed fees of P12,000 per couple. May 25      Diaz withdrew P14,000 cash for personal use. May 27      Paid salaries, P7,200. May 30      Received the PLDT telephone bill, P1,400, but did not pay such amount.                  Received P24,000 from two clients for services billed last May 19. May 31      Settled the electricity bill of P3,000 for the month.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Elisa Diaz is a social entrepreneur from the South. She is into a lot of interesting causes. Her fine taste is preeminent such that she is considered an authority in planning weddings. Upon the advice and prodding of an esteemed colleague, Maria Concepcion Manalo, Diaz decided to organize her wedding consultancy and named the business Weddings “R” Us.

Date
May 1       Elisa Diaz invested P250,000.
                 Rented office space and paid two months’ rent in advance, P8,000.

May 2       Elisa Diaz issued promissory note for a P210,000 loan from Metrobank. The note carries a 20% interest per annum. That arrangement with the bank is that both the interest and the principal are payable in full in one year. Hired an office assistant and an account executive each with a P7,800 monthly salary. Or, each is to receive P300 per day for the 26-day work month.

May 4       Acquired service vehicle for P420,000. Paid Prudential Guarantee and Assurance, Inc. P14,400 for a one-year comprehensive insurance coverage on the service vehicle.

May 5       Acquired office equipment from Fair and Square Emporium for P60,000; paying P15,000 in cash and the balance next month.

May 8      Purchased supplies on credit for P18,000 from San Jose Merchandising.

May 9      Paid San Jose Merchandising P10,000 of the amount owed.

May 10    Coordinated and finalized simple bridal arrangements for three couples and collected fees of P8,800 per couple.

May 13     Paid salaries P6,600.

May 15     Received P10,000 cash as payment for service to be rendered later of the same month.

May 19     Coordinated and finalized elaborate arrangements for three couples and billed fees of P12,000 per couple.

May 25      Diaz withdrew P14,000 cash for personal use.

May 27      Paid salaries, P7,200.

May 30      Received the PLDT telephone bill, P1,400, but did not pay such amount.
                 Received P24,000 from two clients for services billed last May 19.

May 31      Settled the electricity bill of P3,000 for the month.

DATE
TOTAL
ASSETS
LIABILITIES
EQUITY
INVESTMENTS WITHDRAWAL INCOME EXPENSES
Required:
1.
Using the table above, record the transactions.
2. Compute for the following:
a. Total Assets
b. Total Liabilities
c. Total Equity
d. Profit/Loss
Transcribed Image Text:DATE TOTAL ASSETS LIABILITIES EQUITY INVESTMENTS WITHDRAWAL INCOME EXPENSES Required: 1. Using the table above, record the transactions. 2. Compute for the following: a. Total Assets b. Total Liabilities c. Total Equity d. Profit/Loss
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Pls explain why is assets is not balance with the liabilities and equity, asap.

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