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Accounting

Andrea Bonito started a photography business called AB Photo Arts. In October: 1) She invested cash and equipment worth P300,000 and P30,000. 2) She paid rent of P1,200 and purchased equipment worth P220,000 and supplies of P18,000 and P45,000. 3) She received P25,000 for services, withdrew P12,000 and paid expenses of P30,000, P12,000, P6,000 and P4,000. The document records transactions for Andrea Bonito's new photography business and provides the debit and credit amounts for each.

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Keith Pam Baranda Salamanca
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73 views3 pages

Accounting

Andrea Bonito started a photography business called AB Photo Arts. In October: 1) She invested cash and equipment worth P300,000 and P30,000. 2) She paid rent of P1,200 and purchased equipment worth P220,000 and supplies of P18,000 and P45,000. 3) She received P25,000 for services, withdrew P12,000 and paid expenses of P30,000, P12,000, P6,000 and P4,000. The document records transactions for Andrea Bonito's new photography business and provides the debit and credit amounts for each.

Uploaded by

Keith Pam Baranda Salamanca
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 PDF, TXT or read online on Scribd
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enela ke D

Sal a m a n a
Andrea Bonito has decided to go into business for herself as a professional photographer and the following
transactions transpired in October

a. She invested P300,000 to open the AB Photo Arts.


b. Paid rental for the month, P1,200.
c. Purchased for cash camera equipment worth P220,000.
d. Bought photo and developing supplies worth P18,000 on account.
e. Bought equipment worth P45,000 on credit from Burroughs Company.
f. Received P25,000 for photography services rendered.
g. Andrea Bonito invested a computer valued at P30,000 in the business.
h. Andrea Bonito withdrew P12,000 from the business for her personal use.
Paid Burroughs Company P30,000 as partial payment of account.
Took wedding pictures and agreed to accept payment fifteen days later, P12,000.
k. Pa salary of assistant for the month, P6,000.
I. Photo supplies used for the month, P4,000.

Required:
1. Record the peso amount under the appropriate heading below to show the effect of each transaction on
the accounting equation and determine the balances after every transaction. (see solution pattern
below)
ASSETS LIABILITY & CAPITAL
Accounts Accounts A.Bonito,
Cash Receivable Photo Supplies Equipment Payable Capital Revenues Expenses)
al 30, W

1220, WD 120, W
T13, W
4
2

h ,ww

k
4,w_ 4, w
SALAMANCA. PamELA KET B
2. ldentify the debit and credit using the account title above.

ARE RECORDED IN
BUSINESS TRANSACTIONS
CREDIT
TERMS OF DEBIT AND

DEBIT CREDIT
VALUES GIVEN UP
TRANSACTIONS JUNE 20CY VALUES RECEIVED (PARTED WITH)
(PAID FOR)
1. EX. She invested P300,000 to open the AB
Photo Arts bO W0
2. Paid rental for the month, P1,200 2
3. Purchased for cash camera equipment worth
P220,000.
4. Bought photo and developing supplies worth
P18,000 on account.worth credit
Bought equipment P45,000 on

form BurrOughs Company.


Received P25,000 for photography services
rendered.

7. Andrea Bonito invested a computer valued at


P30,000 in the business.
8. Andrea Bonito withdrew P12,000 from the R, w
business for her personal use.
9. Paid Burroughs Company P30,000 as partial 36, w w
paymenf ef aseoun
16. Taak weBding pietures and agreed ta aseept

payment fifteen days later, P12,000.


11. Paid salary of assistant for the month,
P6,000.

12. Photo supplies used for the month, P4,000.

3. Create a CHART OF ACCOUNTs.


Actom Acton ttle Na
Accon
Aed Acank

Lon

uilon beb
toro
Ace cep- bl ldia CHod
0
opice tmipment peb+
o9 Ace ctep- 0ice quipaent|
pebit
Whuole s
Ac de ec
(o 9
Debit
i te uts
040
Cra
cep - qurn pzhu|
Debit
Advetlco le
pebit
nhy

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