Reference no: EM132708766

Question - 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

Dec. 2 Paid rent for December to Magdalen Realty, P 8,000.

Dec. 2 Purchased supplies on account, P 7,200

Dec. 3 Acquired P 75,000 of office equipment, paying P 37,000 down with the balance due in 30 days.

Dec. 8 Paid P 7,200 on account for supplies purchased.

Dec. 14 Paid assistant's salaries for two weeks, P 6,000

Dec. 20 Performed consulting services for cash, P 20,000

Dec. 28 Paid assistant's salaries for two weeks, P 6,000

Dec. 30 Billed clients for December consulting services, P 48,000

Dec. 31 Beta withdrew P 12,000 from the business.

Requirements -

1. Journalize the December transactions and post to the ledger.

2. Help me 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.

Note - Prepare an income statement, a statement of changes in equity, a balance sheet and a statement of cash flows.