Wernan Peralta, Attorney-at-Law, opened his office on September 1, 2018. The following transactions were completed during the month: A. Deposited P210,000 in the bank in the name of the business. B. Bought office equipment on account from Laguna Corp. P147,000. C. Invested his personal law library into the business, P57,000. D. Paid office rent for the month, P7,600. E. Bought office supplies for cash, P8,850. F. Paid the premium for a one-year fire insurance policy on the equipment and the library, P1,860. G. Received professional fees for services rendered, P24,600. H. Received and paid bill for the use of a landline, P2,280. I. Paid salaries of two part-time legal researches, P9,600. J. Paid car central expense, P2,880. K. Received professional fees for services rendered P21,200. L. Paid Laguna Corp. A portion of the amount owed for the acquisition of the office equipment recorded earlier, P15,000. M. Peralta withdrew cash for personal use, P20,750. Required: Record the transactions for the month of September 2018 using a financial transaction worksheet. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Office Equipment; Professional Library; Accounts Payable; and Peralta, Capital. If the owner's equity account is affected by a transaction, identify it as revenue, expense, investment or withdrawal.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 3PB: P. Schwartz, Attorney at Law, opened his office on October 1. The account headings are presented...

See similar textbooks

Related questions

Question

Wernan Peralta, Attorney-at-Law, opened his office on September 1, 2018. The following transactions were completed during the month:

A.     Deposited P210,000 in the bank in the name of the business.

B.     Bought office equipment on account from Laguna Corp. P147,000.

C.     Invested his personal law library into the business, P57,000.

D.     Paid office rent for the month, P7,600.

E.     Bought office supplies for cash, P8,850.

F.      Paid the premium for a one-year fire insurance policy on the equipment and the library, P1,860.

G.    Received professional fees for services rendered, P24,600.

H.    Received and paid bill for the use of a landline, P2,280.

I.       Paid salaries of two part-time legal researches, P9,600.

J.      Paid car central expense, P2,880.

K.     Received professional fees for services rendered P21,200.

L.      Paid Laguna Corp. A portion of the amount owed for the acquisition of the office equipment recorded earlier, P15,000.

M.   Peralta withdrew cash for personal use, P20,750.

Required:

Record the transactions for the month of September 2018 using a financial transaction worksheet. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Office Equipment; Professional Library; Accounts Payable; and Peralta, Capital. If the owner's equity account is affected by a transaction, identify it as revenue, expense, investment or withdrawal.