12 Purchased supplies for P1,500 on account.15Received cash of P12,500 for services provided on June 5.17Purchased gasoline for P7,500 on account.20 Received P15,000 from customers of which P5,000 was for past accounts.Made a cash payment of P25,000 on the note payable.Received bills for utilities P5,000 but paid only P2,500.232629 Paid for the gasoline purchased on account on June 17.30 Paid P30,000 for employee salaries. A third of supplies remained on hand,Instructions:a. Show the effects of the above transactions on the accounting equation using thefollowing format.Date CashAccountsReceivableDeliveryVanNotes Accounts Fedor, Capital Revenues AccountPayable Payable (Drawings) (Expenses)TitleSuppliesb. Prepare an income statement for the month of July.c. Prepare a classified statement of financial position as at July 31did and analyze its movement prepare a working paper of cash flows.12. Fay Fedor started a delivery service, Fed Deliveries, on July 1, 2019. The followingtransactions occurred during the month of July.JulyShe contributed P100,000 cash.8412Purchased a used van for deliveries for P120,000 by paying P20,000 cash andsigned a two-year notes payable for the remaining balancePaid P15,000 for office rent for the month.35 Delivery services amounted to P44,000, half on account.Cash of P2,000 withdrawn by May.9

Accounting Equation - Accounting Equation is the horizontal way of recording balance sheet and…

Answered: 12 Purchased supplies for P1,500 on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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12 Purchased supplies for P1,500 on account.
15
Received cash of P12,500 for services provided on June 5.
17
Purchased gasoline for P7,500 on account.
20 Received P15,000 from customers of which P5,000 was for past accounts.
Made a cash payment of P25,000 on the note payable.
Received bills for utilities P5,000 but paid only P2,500.
23
26
29 Paid for the gasoline purchased on account on June 17.
30 Paid P30,000 for employee salaries. A third of supplies remained on hand,
Instructions:
a. Show the effects of the above transactions on the accounting equation using the
following format.
Date Cash
Accounts
Receivable
Delivery
Van
Notes Accounts Fedor, Capital Revenues Account
Payable Payable (Drawings) (Expenses)
Title
Supplies
b. Prepare an income statement for the month of July.
c. Prepare a classified statement of financial position as at July 31
did and analyze its movement

prepare a working paper of cash flows.
12. Fay Fedor started a delivery service, Fed Deliveries, on July 1, 2019. The following
transactions occurred during the month of July.
July
She contributed P100,000 cash.
84
1
2
Purchased a used van for deliveries for P120,000 by paying P20,000 cash and
signed a two-year notes payable for the remaining balance
Paid P15,000 for office rent for the month.
3
5 Delivery services amounted to P44,000, half on account.
Cash of P2,000 withdrawn by May.
9

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13. Refer to Exercise 12. Look for the cash on the format you did and analyze its movement (inflow or outflow) in a working paper. Did the cash increase? Explain by citing the net flow of cash in the operating, financing and investing activities of the business.

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