Reference no: EM133038996

Question: Recording Transactions in a Financial Transaction Worksheet

On Mar. 1, 2019, 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.
I. 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 2019 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.