Reference no: EM132674910
Beta , tax consultant, began his practice don December 1, 2019. The transactions of the firm are as follows:
Dec. 1 Beta invested P 150,000 in the firm
2 Paid rent for December to Magdalen Realty, P 8,000.
2 Purchased supplies on account, P 7,200
3 Acquired P 75,000 of office equipment, paying P 37,000 down with the balance due in 30 days.
8 Paid P 7,200 on account for supplies purchased.
14 Paid assistant's salaries for two weeks, P 6,000
20 Performed consulting services for cash, P 20,000
28 Paid assistant's salaries for two weeks, P 6,000
30 Billed clients for December consulting services, P 48,000
31 Beta withdrew P 12,000 from the business.
Requirements:
Problem 1: Journalize the December transactions and post to the ledger.
Problem 2: Prepare and complete the worksheet using the following information:
a. Supplies on hand at December 31 amounted to P 4,700
b. Salaries of P 1,800 have accrued at month-end
c. Depreciation is P 800 for December.
d. Beta has spent 20 hours on a tax fraud case during December. When completed in January, his work will be billed at P 500 per hour.
Problem 3: Prepare a income statement, a statement of changes in equity, a balance sheet and a statement of cash flows.