The company started business on June 6, 20x1) The business was started with P300,000. The transactions they engaged in during their first month of business are below: Date Transaction June 7 Collected P200,000 for services rendered to clients. June 8 An amount of P150,000 was paid for six months of rent. Equipment costing P80,000 was purchased using P40,000 cash. The remaining amount of P40,000 is a one year note with an interest rate of 3.4% June 9 June 10 Office supplies were purchased totaling P18,000 on account. June 16 Received P29,400 in cash for services rendered to clients. June 16 Paid the account for office supplies purchased June 10. P54,500 worth of services were given to clients. Received cash amount of P32,800. Clients promised to pay remaining amount. June 20
The company started business on June 6, 20x1) The business was started with P300,000. The transactions they engaged in during their first month of business are below: Date Transaction June 7 Collected P200,000 for services rendered to clients. June 8 An amount of P150,000 was paid for six months of rent. Equipment costing P80,000 was purchased using P40,000 cash. The remaining amount of P40,000 is a one year note with an interest rate of 3.4% June 9 June 10 Office supplies were purchased totaling P18,000 on account. June 16 Received P29,400 in cash for services rendered to clients. June 16 Paid the account for office supplies purchased June 10. P54,500 worth of services were given to clients. Received cash amount of P32,800. Clients promised to pay remaining amount. June 20
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter3: Processing Accounting Information
Section: Chapter Questions
Problem 3.9AMCP: Journal Entries Castle Consulting Agency began business in February. The transactions entered into...
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