Reference no: EM132833905

Question 1 - On Mar. 1, 2020, Froilan Labausa established Labausa Catering Service.

Transactions completed during the month are as follows:

a. Labausa deposited P165,000 in a bank account in the name of the business.

b. Bought a service vehicle from Elpidio Motors for P194,900, paying P25,000 in cash and placing the balance on account.

c. Bought catering equipment on account from Quirino Equipment, P28,500.

d. Paid rent for the month, P6,200.

e. Rendered catering services for cash for the first half of the month, P24,200.

f. Bought supplies for cash, P1,800.

g. Bought insurance for the service vehicle for one year, P4,000.

h. Received and paid the utilities bill, P6,040.

i. Received a bill from Manila Gas for gas and oil used by the service vehicle for the month, P6,080. j. Rendered catering services on account, P28,240.

k. Performed catering services for cash for the remainder of the month, P25,200.

l. Paid salaries of the part-time assistants, P11,200.

m. Labausa withdrew cash for personal use, P15,500.

Required - Record the transactions for the month of March 2020 using a financial transaction worksheet. Use the following accounts: Cash; Accounts Receivable; Prepaid Insurance; Service Vehicle; Equipment; Accounts Payable; and Labausa, Capital. If the owner's equity account is affected by a transaction, identify it as revenue, expense, investment or withdrawal.

Question 2 - Remedios Palaganas is an experienced events planner. The transactions and accounts for the business are as follows:

a. Invested P100,000 in cash to start her own business.

b. Paid P5,000 for one month's rent.

c. Bought office furniture for P15,000 in cash.

d. Received delivery of laptop computer, P54,000. Paid 50% down, balance due in 30 days. e. Performed services for P12,000 in cash.

f. Acquired a fax machine for P7,500; paid P3,000 in cash, balance due in 10 days. g. Received P5,400 from clients on account.

h. Paid P10,000 for salaries.

i. Settled in full the P4,500 balance for the fax machine.

j. Received P7,000 in cash for services performed.

k. Performed services for P12,000 on credit.

l. Paid P1,350 for the monthly telephone bill.

m. Paid P2,400 for the electric and water bills.

n. Collected P2,000 from clients on account.

o. Palaganas withdrew P7,000 in cash for personal expenses.

Required -

1. With the aid of T-accounts, record the transactions listed above. Use the following accounts: Cash; Accounts Receivable; Office Furniture; Office Equipment; Accounts Payable; Palaganas, Capital; Palaganas, Withdrawals; Consulting Revenues; Salaries Expense; Rent Expense; Utilities Expenses and Miscellaneous Expense.

2. Determine the balances of the T-accounts.