PREPARING FINANCIAL STATEMENTS
Problem 1:
Mr. John Stewart started his own service business on December 1, 2018.
Herewith is a summary of his transactions for the month of December 2018.
December 1. Started his business by investing cash of P100,000 and new office
equipment amounting P250,000.
December 1. Paid the following:
Rent of his business P24,000
Advertising 12,000
He recorded it using asset method.
December 5. Purchased supplies P15,000 on account and debited it to Supplies
Expense.
December 10. Received P60,000 from various clients for services rendered.
December 15. Paid the following:
30 days salary of the helper P10,000
Operating expenses 40,000
Miscellaneous expenses 3,000
December 20. Billed various clients for services rendered P90,000 of which 1/3 was
immediately collected.
December 25. Secured a Long Term loan from PNB by signing a promissory note
without interest amounting P25,000.
December 31. Withdrew P10,000 for personal use.
Required:
1. Journalize the above transactions.
2. Post the Journal entries to :"T" accounts
3. Prepare a 10-column worksheet on December 31, 2018
Data for adjustments:
A. The Office Equipment has an estimated useful life of 4 years and a salvage
value of P10,000
Problem 1:
Mr. John Stewart started his own service business on December 1, 2018.
Herewith is a summary of his transactions for the month of December 2018.
December 1. Started his business by investing cash of P100,000 and new office
equipment amounting P250,000.
December 1. Paid the following:
Rent of his business P24,000
Advertising 12,000
He recorded it using asset method.
December 5. Purchased supplies P15,000 on account and debited it to Supplies
Expense.
December 10. Received P60,000 from various clients for services rendered.
December 15. Paid the following:
30 days salary of the helper P10,000
Operating expenses 40,000
Miscellaneous expenses 3,000
December 20. Billed various clients for services rendered P90,000 of which 1/3 was
immediately collected.
December 25. Secured a Long Term loan from PNB by signing a promissory note
without interest amounting P25,000.
December 31. Withdrew P10,000 for personal use.
Required:
1. Journalize the above transactions.
2. Post the Journal entries to :"T" accounts
3. Prepare a 10-column worksheet on December 31, 2018
Data for adjustments:
A. The Office Equipment has an estimated useful life of 4 years and a salvage
value of P10,000
