Maribeth Paz owns and operates an interior design studio called Aesthetic Designs. The following events occurred during September 2022. A. Paz inherited P40,000 and deposited the cash in the business bank account. B. Performed services for a client and received cash of P14,000. C. Paid off the beginning balance of accounts payable. D. Purchased supplies on account, P5,000 E. Collected cash from a customer on account, P2,000. F. Paid salaries of employees, P8,400. G. Consulted on the interior design of a major office building and billed the clients for service rendered, P48,000. H. Recorded the following business expenses for the month: Paid office rent, P9,000 Paid advertising, P2,000 I. Sold supplies to another business for P1,500 cash, which was the cost of the supplies. J. Withdrew cash of P10,000 for personal use Instructions: a) Write the appropriate debits and credit on each of the given dates of the preceding transactions on the accounting equation of Aesthetic Designs. Consider the balances of her business on September 1, 2022. Determine new balances after each transaction. b) Prepare an income statement and statement of owner’s equity for the month ended September 30, 2022. c) Prepare a balance sheet at September 30, 2022. Assets Assets Assets Assets Liabilities Owner's Equity Cash Accounts Receivable Supplies Land Accounts Payable M. Paz Capital Bal.. 4,500 3,000 24,000 16,000 15,500
Maribeth Paz owns and operates an interior design studio called Aesthetic Designs. The following events occurred during September 2022.
A. Paz inherited P40,000 and deposited the cash in the business bank account.
B. Performed services for a client and received cash of P14,000.
C. Paid off the beginning balance of accounts payable.
D. Purchased supplies on account, P5,000
E. Collected cash from a customer on account, P2,000.
F. Paid salaries of employees, P8,400.
G. Consulted on the interior design of a major office building and billed the clients for service rendered, P48,000.
H. Recorded the following business expenses for the month:
- Paid office rent, P9,000
- Paid advertising, P2,000
I. Sold supplies to another business for P1,500 cash, which was the cost of the supplies.
J. Withdrew cash of P10,000 for personal use
Instructions:
a) Write the appropriate debits and credit on each of the given dates of the preceding transactions on the
b) Prepare an income statement and statement of owner’s equity for the month ended September 30, 2022.
c) Prepare a
| Assets | Assets | Assets | Assets | Liabilities | Owner's Equity | |
| Cash | Supplies | Land | Accounts Payable | M. Paz Capital | ||
| Bal.. | 4,500 | 3,000 | 24,000 | 16,000 | 15,500 |
Step by step
Solved in 3 steps
