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Anthony Agarin started his consulting firm SOLO Consulting on June 1. Over the month, he invested $200,000, received $40,000 from a client, and borrowed $100,000 from BPI Bank. Expenses included $7,000 for rent, $2,000 for advertising, $25,000 for salaries, $8,000 for supplies, and $24,800 for equipment. By month's end, Anthony had $393,000 cash and $28,000 in accounts receivable, with $100,000 owed to BPI Bank and $46,300 in accounts payable. Total assets were $449,800 and total liabilities and equity were $346,300 plus

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13K views3 pages

Name: Section: Score:: Activity

Anthony Agarin started his consulting firm SOLO Consulting on June 1. Over the month, he invested $200,000, received $40,000 from a client, and borrowed $100,000 from BPI Bank. Expenses included $7,000 for rent, $2,000 for advertising, $25,000 for salaries, $8,000 for supplies, and $24,800 for equipment. By month's end, Anthony had $393,000 cash and $28,000 in accounts receivable, with $100,000 owed to BPI Bank and $46,300 in accounts payable. Total assets were $449,800 and total liabilities and equity were $346,300 plus

Uploaded by

Rae Michael
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BMSH2003

NAME: SECTION: SCORE:

ACTIVITY

Anthony Agarin started his consulting firm, SOLO Consulting, on June 1, 201A. the following transactions
occurred during June:

June 1 Anthony invested 200,000 cash in the business.


2 Paid office rent for the month, P7,000.
3 Purchased on account P8,000 worth of office supplies
5 Paid P2,000 to advertise in the Bulletin Today.
9 Received P40,000 cash for services provided to a client.
12 Withdrew P7,000 cash for personal use.
15 Performed P16,000 of services on account.
17 Paid employees’ salaries, P25,000.
20 Paid for the supplies purchased on account on June 3.
23 Received a cash payment of P4,000 for services rendered on June 15
26 Borrowed P100,000 from BPI Bank. Issuing a promissory note for the same amount.
29 Purchased office equipment for P24,800 on account.
30 Paid P5,500 for utilities expense incurred.

Required:
a) Journalize the following transactions (13 items x 2 points).

DATE PARTICULARS DEBIT CREDIT


June 1 Cash 200,000
A. Agarin, Capital 200,000
Initial Investment

June 2 Rent Expense 7,0000


Cash 7,000
Paid Rent

June 3 Office Supplies 8,000


Accounts Payable 8,000
Purchased office supplies on account

June 5 Advertising Expense 2,000


Cash 2,000
Paid Bulletin Today for advertisement

June 9 Cash 40,000


Service Revenue 40,000
Completed work for a client

June 12 Cash 7,000


A. Agarin, withdrawal 7,000
Withdrew Cash for personal use

June 15 Accounts Receivable 16,000


Service revenue 16,000
Completed work for a client

June 17 Salaries Expense 25,000

01 Activity 1 *Property of STI


Page 1 of 2
DATE PARTICULARS DEBIT CREDIT
Cash 25,000
Paid workers salary

June 20 Accounts Payable 8,000


Cash 8,000
Paid for office supplies at June 3

June 23 Cash 4,000


Service Revenue 4,000
Accounts Receivable 12,000
Received service revenue

June 26 Cash 100,000


Notes Payable 100,000
Borrowed from BPI

June 29 Office Equipment 24,800


Accounts Payable 24,800
Purchased office equipment

June 30 Utilities Expense 5,500


Accounts Payable 5,500
Paid utilities expense incurred

b) Show the effects on the accounting equation using the following format. Compute for the total assets
and the total liabilities and equity. (2 items x 5 points):

ASSETS = LIABILITIES + OWNER’S EQUITY


Accounts Office Notes Accounts A. Agarin,
Date Cash Supplies
Receivable Equipment Payable Payable Capital
JUNE 1 200,000 200,000
JUNE 2
JUNE 3 8,000 8,000
JUNE 5
JUNE 9 40,000
JUNE 12 7,000
JUNE 15 16,000
JUNE 17
JUNE 20 8,000
JUNE 23 4,000
JUNE 26 100,000 100,000
JUNE 29 24,800 24,800
JUNE 30 5,500
Subtotal 393,000 28,000 8,000 24,800 100,000 46,300 200,000
Total 449,800 346,300

Rubric for problem-solving:


Performance Indicators Points
Correct accounts and amounts used 3
Computed final amounts are correct/balanced 2
Total 5

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