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Performance Task II

Liz Perez opened a law office on September 3rd, transferring 350,000 cash into a business account. Over the month, transactions included purchasing supplies and furniture on account, prepaying rent, receiving cash from clients for legal services, acquiring land, billing and receiving partial payments from clients, paying salaries, utilities, and withdrawing cash for personal use. The document provides accounts and transactions to journalize in accounting entries, post to ledgers, and prepare a trial balance for the law office over its first month of operations.

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Jomar Villena
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2K views

Performance Task II

Liz Perez opened a law office on September 3rd, transferring 350,000 cash into a business account. Over the month, transactions included purchasing supplies and furniture on account, prepaying rent, receiving cash from clients for legal services, acquiring land, billing and receiving partial payments from clients, paying salaries, utilities, and withdrawing cash for personal use. The document provides accounts and transactions to journalize in accounting entries, post to ledgers, and prepare a trial balance for the law office over its first month of operations.

Uploaded by

Jomar Villena
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BALIWAG POLYTECHNIC COLLEGE

ELECTIVE: FUNDAMENTALS OF ABM 1


MR. JOMAR V. VILLENA, CPA

PERFORMANCE TASK II
NOTE FOR ANALYSING BUSINESS TRANSACTIONS:

TRANSACTION CORRESPONDING ACCOUNT TITLE


1. Paid / Collected Cash
2. On Account / On Credit (Customer) / Accounts Receivable
Billed
3. On Account / On Credit (Supplier) Accounts Payable
4. Service Rendered / Billed Service Income or Any Revenue Account

Liz Perez opened a law office on September 3 of the current year. During the first month of operations,
the business completed the following transactions:

September 3 Perez transferred 350,000 cash from her personal bank account to a business
Account entitled Liz Perez, Attorney.
4 Purchased supplies 2,000 and furniture 18,000 on account.
5 Paid one-year rent in advance 12,000.
6 Performed legal services for a client and received 10,000 cash.
7 Paid 150,000 cash to acquire land for future office site.
10 Defended a client in court, billed the client for 6,000.
14 Paid for the furniture purchased September 4 on account.
15 Paid secretary salaries 6,000
16 Paid the telephone bill 1,200
17 Received partial payment from a client on account 5,000
18 Prepared legal documents for a client on account 8,000.
24 Paid the water and electricity bills 1,100
28 Received 15,000 cash for helping a client to defend drug case.
30 Paid secretary salaries 6,000
30 Withdrew 24,000 for personal use.

Use the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Rent, Furniture, Land,
Accounts Payable, Liz Capital, Liz Drawings, Service Revenue, Salary expense and Utilities Expense.

1. Journalizing the business transaction


DATE ACCOUNT DEBIT CREDIT

Page 1 of 3
BALIWAG POLYTECHNIC COLLEGE
ELECTIVE: FUNDAMENTALS OF ABM 1
MR. JOMAR V. VILLENA, CPA

2. Posting to the Ledger

Page 2 of 3
BALIWAG POLYTECHNIC COLLEGE
ELECTIVE: FUNDAMENTALS OF ABM 1
MR. JOMAR V. VILLENA, CPA

3. Preparation of Trial Balance

Account Debit Credit

Total

Page 3 of 3

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