PREPARE BALANCE SHEET FOR THE FOLLOWING TRANSACTIONS
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4G
TM
6:41
BALANCE SHEET...
PREPARE BALANCE SHEET FOR THE FOLLOWING TRANSACTIONS
CASH
49,500
ACCOUNTS RECEIVABLE
125,000
SUPPLIES
1,500
PREPAID INSURANCE
12,000
EQUIPMENT
70,000
BUILDING
420,000
LAND
111,500
ACCOUNTS PAYABLE
80,000
NOTES PAYABLE
170,000
COMMON STOCK
410,000
RETAINED EARNINGS
65,000
DIVIDENDS
20,000
SERVICE REVENUE
174,000
INTEREST REVENUE
1,000
52,000
17,000
SALARIES EXPENSE
ADVERTISING EXPENSE
INSURANCE EXPENSE
5,000
UTILITIES EXPENSE
13,750
INTEREST EXPENSE
2,750
2. Don Pedro's Accounting Firm has the following account balances: Cash, P5,000; Accounts
Receivable, P2,000; Prepaid Rent P1,500; Supplies, P850; Equipment, P6,000; Trucks, P15,000;
Accounts Payable, P2,500; Common Stock, P20,000; Retained Earnings P7,850. Business
transactions during August are presented as follows:
1. Company received cash from clients for services, P4,500
2. Don Pedro paid to creditors P500,
3. Paid office rent for the month of December, P750,
4. Company billed client for accounting services on account, P5,200
5. Supplies were purchased on account, P650,
6. Company received cash from clients billed previously, P6,000
7. Don Pedro received an invoice for office equipment repair services from
Office Extra for December (the invoice will be paid next month), P850,
8. Don Pedro paid monthly salaries, P2,700,
9. Utilities expense were paid, P280
10. Miscellaneous expense were paid, P350,
11. Dividends were paid, P550."
Transcribed Image Text:N 50%
4G
TM
6:41
BALANCE SHEET...
PREPARE BALANCE SHEET FOR THE FOLLOWING TRANSACTIONS
CASH
49,500
ACCOUNTS RECEIVABLE
125,000
SUPPLIES
1,500
PREPAID INSURANCE
12,000
EQUIPMENT
70,000
BUILDING
420,000
LAND
111,500
ACCOUNTS PAYABLE
80,000
NOTES PAYABLE
170,000
COMMON STOCK
410,000
RETAINED EARNINGS
65,000
DIVIDENDS
20,000
SERVICE REVENUE
174,000
INTEREST REVENUE
1,000
52,000
17,000
SALARIES EXPENSE
ADVERTISING EXPENSE
INSURANCE EXPENSE
5,000
UTILITIES EXPENSE
13,750
INTEREST EXPENSE
2,750
2. Don Pedro's Accounting Firm has the following account balances: Cash, P5,000; Accounts
Receivable, P2,000; Prepaid Rent P1,500; Supplies, P850; Equipment, P6,000; Trucks, P15,000;
Accounts Payable, P2,500; Common Stock, P20,000; Retained Earnings P7,850. Business
transactions during August are presented as follows:
1. Company received cash from clients for services, P4,500
2. Don Pedro paid to creditors P500,
3. Paid office rent for the month of December, P750,
4. Company billed client for accounting services on account, P5,200
5. Supplies were purchased on account, P650,
6. Company received cash from clients billed previously, P6,000
7. Don Pedro received an invoice for office equipment repair services from
Office Extra for December (the invoice will be paid next month), P850,
8. Don Pedro paid monthly salaries, P2,700,
9. Utilities expense were paid, P280
10. Miscellaneous expense were paid, P350,
11. Dividends were paid, P550.
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