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The following transactions you gathered from the not so organized records of Mr. Ave Tor:

The following transactions you gathered from the not so organized records of Mr. Ave Tor:

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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Mr. Ave Tor opened a laundry business named AVETOR Laundromat. During the first month of operation, he recorded all the events that took place in his business but the records were disorganized. He doesn't even know the result of his business operation if well or not because he does not have knowledge in any of the accounting process. You were hired by Mr. Ave Tor as a bookkeeper to keep track of his economic activities in the first month of operation. You were also tasked to make an analysis paper to show the results and the financial condition of his You need to present to Mr. Ave Tor the organized records and accurate results in less than a week. business. The following transactions you gathered from the not so organized records of Mr. Ave Tor: August 7 Bought furniture on credit P45,000. 1 Opened an account with Metrobank under AVE TOR Laundromat business name in the amount of P1,500,000. Invested in a computer worth P100,000 with a fair market value of P90,000, 2 Paid municipal taxes of P5,500 including license to operate. 13 Additional investment of P500,000 and equipment worth P60,000 with an unpaid balance of P10,000, 15 Withdrew P75,000 and office supplies worth P500 for personal use. 5 Bought P900,000 condominium for his office paying P500,000 down payment and signing a mortgage with BDO payable in 10 years for the balance. 19 Rendered laundry services on account, P45,000. 30 Collected P30,000 from laundry services rendered last August 19. 20 Paid utilities for the month, P37,000. 8 Returned P7,000 worth of furniture bought due to wrong specifications. 9 Bought cash register, P24,000 paid in cash. 18 Collected laundry services from various customers amounting to P200,000. 12 Bought a P600,000 van from Toyota Motors for use in the business. Terms: 25% cash, 40% thru a 30 day note, and the balance on account. 10 Bought P5,600 office supplies paid in cash. 16 Paid the salary of the office secretary P7,600. 11 Paid furniture and fixtures purchased on account. 17 Paid the note issued to Toyota Motors. 14 Returned damaged supplies worth P880.
Transcribed Image Text:Mr. Ave Tor opened a laundry business named AVETOR Laundromat. During the first month of operation, he recorded all the events that took place in his business but the records were disorganized. He doesn't even know the result of his business operation if well or not because he does not have knowledge in any of the accounting process. You were hired by Mr. Ave Tor as a bookkeeper to keep track of his economic activities in the first month of operation. You were also tasked to make an analysis paper to show the results and the financial condition of his You need to present to Mr. Ave Tor the organized records and accurate results in less than a week. business. The following transactions you gathered from the not so organized records of Mr. Ave Tor: August 7 Bought furniture on credit P45,000. 1 Opened an account with Metrobank under AVE TOR Laundromat business name in the amount of P1,500,000. Invested in a computer worth P100,000 with a fair market value of P90,000, 2 Paid municipal taxes of P5,500 including license to operate. 13 Additional investment of P500,000 and equipment worth P60,000 with an unpaid balance of P10,000, 15 Withdrew P75,000 and office supplies worth P500 for personal use. 5 Bought P900,000 condominium for his office paying P500,000 down payment and signing a mortgage with BDO payable in 10 years for the balance. 19 Rendered laundry services on account, P45,000. 30 Collected P30,000 from laundry services rendered last August 19. 20 Paid utilities for the month, P37,000. 8 Returned P7,000 worth of furniture bought due to wrong specifications. 9 Bought cash register, P24,000 paid in cash. 18 Collected laundry services from various customers amounting to P200,000. 12 Bought a P600,000 van from Toyota Motors for use in the business. Terms: 25% cash, 40% thru a 30 day note, and the balance on account. 10 Bought P5,600 office supplies paid in cash. 16 Paid the salary of the office secretary P7,600. 11 Paid furniture and fixtures purchased on account. 17 Paid the note issued to Toyota Motors. 14 Returned damaged supplies worth P880.
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