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Department of Accounting Education Bridging Program For Acc 111 Financial Accounting and Reporting

Mr. Velez started a service business in March 2018. He invested 700,000 and paid licensing fees of 10,000. He purchased supplies for 100,000 in cash and 20,000 on credit. He provided services for 60,000 in cash and 20,000 on credit. He paid salaries, utilities, and withdrew funds for personal use. As of March 31, his assets included cash, accounts receivable, notes receivable, and equipment, while his liabilities included accounts payable and notes payable, with the remaining balance as owner's equity.

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54 views

Department of Accounting Education Bridging Program For Acc 111 Financial Accounting and Reporting

Mr. Velez started a service business in March 2018. He invested 700,000 and paid licensing fees of 10,000. He purchased supplies for 100,000 in cash and 20,000 on credit. He provided services for 60,000 in cash and 20,000 on credit. He paid salaries, utilities, and withdrew funds for personal use. As of March 31, his assets included cash, accounts receivable, notes receivable, and equipment, while his liabilities included accounts payable and notes payable, with the remaining balance as owner's equity.

Uploaded by

Mae Namoc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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DEPARTMENT OF ACCOUNTING EDUCATION

BRIDGING PROGRAM FOR ACC 111 (Batch: 1stSemester, 2018 – 2019)


FINANCIAL ACCOUNTING AND REPORTING

Mr. Velez embarked into a service business in 2018, performing services. He, and his suppliers are exempt from the
VAT. The following were his transactions in March, his first month of operations.
March 1 Invested P700,000 in the business;
March 4 Registered with, and paid P10,000, for licenses of the business to the national government regulatory
agencies
March 5 Purchased supplies and paid cash of P100,000;
March 6 Purchased supplies of P20,000 on account;
March 11 Rendered services for P60,000, cash;
March 12 Rendered services on accountfor P20,000;
March 15 Paid the salary of a casual employee of P4,000;
March 16 Paid 10,000 on the transaction of March 6;
March 22 Received a promissory note from the client on the transaction of March 12 who was not able to pay
within the ten days from the date of transaction;
March 27 Received payment on the promissory note of March 22;
March 28 Purchased equipment of P 100,000 and issued a promissory note;
March 30 Paid the salary of casual employee of P4,000;
Paid P 5,000 for utilities of the month;
Withdraw P 12,000 for personal needs;

ASSET = LIABILITIES + Owner’s Equity


Cash Accounts Notes Equipment Accounts Notes
Receivable Receivable Payable Payable Velez ,Capital
1-Mar
4-Mar
5-Mar
6-Mar
11-Mar
12-Mar
15-Mar
16-Mar
22-Mar
27-Mar
28-Mar
30-Mar

TOTAL
Required:
a. Record the transactions using the financial transaction worksheet provided.
b. Determine the balances of the following as of March 31

Owner’s
ASSET = LIABILITIES + Equity

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