The following transactions of Atty. Linag Law Firm were completed during the month of November 2018, second month of operation. Following are the balances of accounts as of October 31, 2018: Cash Accounts Payable ? 120,000 20,000 Accounts Receivable Owner's Equity 135,000 Supplies Computer Equipment 10,000 15,000 DATE November Bought office equipment amounting P12,120 Paid office rent for the month, P6,400 Paid the premium for one-year fire insurance policy on the equipment, P1860 Received professional fees for the services rendered, P22, 650 Received and paid utilities bill, P2,544 Rendered a service to client on account amounting, P12,500 Paid partial payment to Dianne Co. for the purchases last month, P8,200 Received partial payment from client for the services last Nov. 15., 11,500 Paid salaries of her secretary, P5,400. Atty. Linag rendered service to client on account, P15,000 At the end of the month determined that the supplies used were 2,655. Atty. Linag withdrew cash for personal use, 23,000. 2 3 7 10 15 19 20 25 29 31 31 Required: 1. Record the transactions for the month of November 2018 using the financial transaction worksheet. 2. Use the following accounts: CASH, ACCOUNTS RECEIVEBALE, SUPPLIES, PREPAID INSURANCE, COMPUTER EQUIPMENT, OFFICE EQUIPEMT, ACCOUNTS PAYABLE, OWNER'S EQUITY. If the owner's equity is affected by a transaction, identify it as revenue, expense, investment or withdrawal (under the particular column).
The following transactions of Atty. Linag Law Firm were completed during the month of November 2018, second month of operation. Following are the balances of accounts as of October 31, 2018: Cash Accounts Payable ? 120,000 20,000 Accounts Receivable Owner's Equity 135,000 Supplies Computer Equipment 10,000 15,000 DATE November Bought office equipment amounting P12,120 Paid office rent for the month, P6,400 Paid the premium for one-year fire insurance policy on the equipment, P1860 Received professional fees for the services rendered, P22, 650 Received and paid utilities bill, P2,544 Rendered a service to client on account amounting, P12,500 Paid partial payment to Dianne Co. for the purchases last month, P8,200 Received partial payment from client for the services last Nov. 15., 11,500 Paid salaries of her secretary, P5,400. Atty. Linag rendered service to client on account, P15,000 At the end of the month determined that the supplies used were 2,655. Atty. Linag withdrew cash for personal use, 23,000. 2 3 7 10 15 19 20 25 29 31 31 Required: 1. Record the transactions for the month of November 2018 using the financial transaction worksheet. 2. Use the following accounts: CASH, ACCOUNTS RECEIVEBALE, SUPPLIES, PREPAID INSURANCE, COMPUTER EQUIPMENT, OFFICE EQUIPEMT, ACCOUNTS PAYABLE, OWNER'S EQUITY. If the owner's equity is affected by a transaction, identify it as revenue, expense, investment or withdrawal (under the particular column).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following transactions of Atty. Linag Law Firm were completed during the
month of November 2018, second month of operation.
Following are the balances of accounts as of October 31, 2018:
Cash
Accounts Payable ?
120,000
20,000
Accounts Receivable
Owner's Equity
135,000
Supplies
Computer Equipment
10,000
15,000
DATE
November
Bought office equipment amounting P12,120
Paid office rent for the month, P6,400
3
Paid the premium for one-year fire insurance policy on the equipment, P1860
Received professional fees for the services rendered, P22, 650
Received and paid utilities bill, P2,544
Rendered a service to client on account amounting, P12,500
Paid partial payment to Dianne Co. for the purchases last month, P8,200
Received partial payment from client for the services last Nov. 15., 11,500
Paid salaries of her secretary, P5,400.
Atty. Linag rendered service to client on account, P15,000
At the end of the month determined that the supplies used were 2,655.
Atty. Linag withdrew cash for personal use, 23,000.
5
7
10
15
19
20
25
29
31
31
Required:
1. Record the transactions for the month of November 2018 using the
financial transaction worksheet.
2. Use the following accounts: CASH, ACCOUNTS RECEIVEBALE, SUPPLIES,
PREPAID INSURANCE, COMPUTER EQUIPMENT, OFFICE EQUIPEMT,
ACCOUNTS PAYABLE, OWNER’S EQUITY. If the owner's equity is affected
by a transaction, identify it as revenue, expense, investment or withdrawal
(under the particular column).
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