Balance Sheet Income Statement Assets Liabilities Owner's Equity Income Expenses Cash AR Office Supplies Drawing Capital Commission Income Rent Expense Misc. Expense Supplies Exp Salaries Exp Indicate the effect of each transaction on the elements of financial statement and its balances after each transaction: Jean Howard established an insurance agency on July 1 of the current year and completed the following transactions during July: a. Opened a business bank account with a deposit of P50,000 from personal funds. b. Purchased supplies on account, P1,600. c. Paid creditors on account, P500. d. Received cash from fees earned on insurance commissions, P9,250. e. Paid rent on office and equipment for the month, P2,500. f. Paid automobile expenses for month, P900, and miscellaneous expenses, P300. g. Paid office salaries, P1,900. h. Determined that the cost of supplies on hand was P550; therefore, the cost of supplies used was P1,050. i. Billed insurance companies for sales commissions earned, P11,150. j. Withdrew cash for personal use, P2,700. TOTAL
Balance Sheet Income Statement Assets Liabilities Owner's Equity Income Expenses Cash AR Office Supplies Drawing Capital Commission Income Rent Expense Misc. Expense Supplies Exp Salaries Exp Indicate the effect of each transaction on the elements of financial statement and its balances after each transaction: Jean Howard established an insurance agency on July 1 of the current year and completed the following transactions during July: a. Opened a business bank account with a deposit of P50,000 from personal funds. b. Purchased supplies on account, P1,600. c. Paid creditors on account, P500. d. Received cash from fees earned on insurance commissions, P9,250. e. Paid rent on office and equipment for the month, P2,500. f. Paid automobile expenses for month, P900, and miscellaneous expenses, P300. g. Paid office salaries, P1,900. h. Determined that the cost of supplies on hand was P550; therefore, the cost of supplies used was P1,050. i. Billed insurance companies for sales commissions earned, P11,150. j. Withdrew cash for personal use, P2,700. TOTAL
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter3: Processing Accounting Information
Section: Chapter Questions
Problem 3.6MCP
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Balance Sheet Income Statement
Assets Liabilities Owner's Equity Income Expenses
Cash AR Office Supplies Drawing Capital Commission Income Rent Expense Misc. Expense Supplies Exp Salaries Exp
Indicate the effect of each transaction on the elements of financial statement and its balances after each transaction:
Jean Howard established an insurance agency on July 1 of the current year and completed the following transactions during July:
a. Opened a business bank account with a deposit of P50,000 from personal funds.
b. Purchased supplies on account, P1,600.
c. Paid creditors on account, P500.
d. Received cash from fees earned on insurance commissions, P9,250.
e. Paid rent on office and equipment for the month, P2,500.
f. Paid automobile expenses for month, P900, and miscellaneous expenses, P300.
g. Paid office salaries, P1,900.
h. Determined that the cost of supplies on hand was P550; therefore, the cost of supplies used was P1,050.
i. Billed insurance companies for sales commissions earned, P11,150.
j. Withdrew cash for personal use, P2,700.
TOTAL
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