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Required: a) Journalize the above transactions in the general journal. b) T-account c) Make a trial balance. Make Statement of Financial Position. eMake an Income Statement.

Required: a) Journalize the above transactions in the general journal. b) T-account c) Make a trial balance. Make Statement of Financial Position. eMake an Income Statement.

FINANCIAL ACCOUNTING
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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REQUIRED: • General Journal • T-account • Trial Balance • Financial Position • Income statement
Nestor Martel, a lawyer decided to open a law firm named Martel Law Firm. The chart of accounts listed below will be used for recording purposes. Statement of Financial Position accounts 100-Assets 101-Cash 102-Accounts Receivable 105-Prepaid Insurance 106-Office Supplies 108-Furniture and Equipment Income Statement accounts 400-Reveneus 401-Legal Fees Earned 200- Liabilities 201-Accounts Payable 204-Loan Payable 300-Owner's Equity 301-Martel, Capital 302-Martel, Drawing 30 Received P5 000 for legal services rendered. Paid the balance in Micro Systems, Inc. 500-Expenses 501-Salary Expense 503-Advertising Expense 504-Utilities Expense 509-Miscellaneous Expense In October of the current year, the following transactions took place: Oct 2 Nestor Martel invested P60 000 cash to put up his law firm. 4 A one-year insurance effective Oct 1 was paid, P6 000. 6 Office furniture costing P15 000 was purchased on account from EZ Furniture Company. 8 Office supplies costing P2 500 was bought for cash. 11 Received from City Bank P60 000 for a loan payable to be used in his law practice. 14 Purchased on credit a desktop computer and printer for office, P60 000 from Micro Systems, Inc. 16 Received P15 500 cash for legal services rendered to Jose Lopez. 18 Paid P1 000 for miscellaneous expense incurred. 20 Received P10 500 cash for legal serviced rendered to clients. 22 Advertising placed on a local paper, P3 600. 24 Various clients were billed for legal services rendered, P16 400. 25 Micro Systems, Inc. was partially paid, P45 000. 26 Collected the accounts from various clients, P10 500. 27 Light, water, and telephone expenses for the month of Oct was paid to the owner, P1 500. 28 The salary of the secretary was paid, P5 500. 29 Nestor Martel withdrew P12 000 for personal use. Required: a) Journalize the above transactions in the general journal. b) T-account c) Make a trial balance. Make Statement of Financial Position. Make an Income Statement. a- PETA 1 b-c PETA 2 d-e PETA 3
Transcribed Image Text:Nestor Martel, a lawyer decided to open a law firm named Martel Law Firm. The chart of accounts listed below will be used for recording purposes. Statement of Financial Position accounts 100-Assets 101-Cash 102-Accounts Receivable 105-Prepaid Insurance 106-Office Supplies 108-Furniture and Equipment Income Statement accounts 400-Reveneus 401-Legal Fees Earned 200- Liabilities 201-Accounts Payable 204-Loan Payable 300-Owner's Equity 301-Martel, Capital 302-Martel, Drawing 30 Received P5 000 for legal services rendered. Paid the balance in Micro Systems, Inc. 500-Expenses 501-Salary Expense 503-Advertising Expense 504-Utilities Expense 509-Miscellaneous Expense In October of the current year, the following transactions took place: Oct 2 Nestor Martel invested P60 000 cash to put up his law firm. 4 A one-year insurance effective Oct 1 was paid, P6 000. 6 Office furniture costing P15 000 was purchased on account from EZ Furniture Company. 8 Office supplies costing P2 500 was bought for cash. 11 Received from City Bank P60 000 for a loan payable to be used in his law practice. 14 Purchased on credit a desktop computer and printer for office, P60 000 from Micro Systems, Inc. 16 Received P15 500 cash for legal services rendered to Jose Lopez. 18 Paid P1 000 for miscellaneous expense incurred. 20 Received P10 500 cash for legal serviced rendered to clients. 22 Advertising placed on a local paper, P3 600. 24 Various clients were billed for legal services rendered, P16 400. 25 Micro Systems, Inc. was partially paid, P45 000. 26 Collected the accounts from various clients, P10 500. 27 Light, water, and telephone expenses for the month of Oct was paid to the owner, P1 500. 28 The salary of the secretary was paid, P5 500. 29 Nestor Martel withdrew P12 000 for personal use. Required: a) Journalize the above transactions in the general journal. b) T-account c) Make a trial balance. Make Statement of Financial Position. Make an Income Statement. a- PETA 1 b-c PETA 2 d-e PETA 3
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