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Accounting-Lab.-1

The document outlines a series of business transactions for a computer programming business named Softbyte during its first month of operations. It details various transactions including owner investment, purchases, service revenue, expenses, and owner withdrawals, emphasizing their effects on the basic accounting equation (Assets = Liabilities + Equity). Each transaction is dated and specifies the amounts involved, providing a comprehensive overview of the company's financial activities.

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4 views

Accounting-Lab.-1

The document outlines a series of business transactions for a computer programming business named Softbyte during its first month of operations. It details various transactions including owner investment, purchases, service revenue, expenses, and owner withdrawals, emphasizing their effects on the basic accounting equation (Assets = Liabilities + Equity). Each transaction is dated and specifies the amounts involved, providing a comprehensive overview of the company's financial activities.

Uploaded by

joyceannesarsale
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Republic of the Philippines

Laguna State Polytechnic University


Province of Laguna

ACCOUNTING 1
Principles of Accounting
Laboratory No.1

Name: _____________________________ Date: ________


Instructor: __________________________ Section: ______

TRANSACTION ANALYSIS
The following are business transactions for a computer programming business during its
first month of operations. Following the basic accounting equation (Assets =
Liabilities + Equity), Identify what type of accounts and the effect of the following
transaction on the basic accounting equation.

Transaction (1). September 1, 2010 Investment By Owner.


Ray Neal decides to open a computer programming service which he names Softbyte.
On September 1, 2010, he invests Php15,000 cash in the business.
Transaction (2). September 3, 2010 Purchase of Equipment for Cash.
Softbyte purchases computer equipment for Php7,000 cash.
Transaction (3). September 6, 2010 Purchase of Supplies on Credit.
Softbyte purchases for Php1,600 from Acme Supply Company computer paper and
other supplies expected to last several months. Acme agrees to allow Softbyte to pay
this bill in October.
Transaction (4). September 9, 2010 Services Provided for Cash.
Softbyte receives Php1,200 cash from customers for programming services it has
provided. This transaction represents Softbyte’s principal revenue-producing activity.
Transaction (5). September 11, 2010 Purchase of Advertising on Credit.
Softbyte receives a bill for Php250 from the Daily News for advertising but postpones
payment until a later date.
Transaction (6). September 14, 2010 Services Provided for Cash and Credit.
Softbyte provides Php3,500 of programming services for customers. The company
receives cash of Php1,500 from customers, and it bills the balance of Php2,000 on
account.
Transaction (7). September 16, 2010 Payment of Expenses.
Softbyte pays the following Expenses in cash for September: store rent Php600, salaries
of employees Php900, and utilities Php200.
Transaction (8). September 19, 2010 Payment of Accounts Payable.
Softbyte pays its 250 Daily News bill in cash. [in Transaction (5)]
Transaction (9). September 22, 2010 Receipt of Cash on Account.
Softbyte receives Php600 in cash from customers who had been billed for services
[in Transaction (6)].
Transaction (10). September 30,2010 Withdrawal of Cash by Owner.
Ray Neal withdraws Php1,300 in cash from the business for his personal use.

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