Ms. P put up an accounting firm on November 1, 2011.  The registered name of the business is “P Accounting Firm.”  The following were the transactions during the months of November and December 2011: The owner provided P30,000 cash as initial investment to the business on November 1, 2011. Obtained a 12%, one year, bank loan for P50,000 on November 1, 2011. Principal and interest are due at maturity date. Purchased office supplies worth P60,000 for cash during the period. Rendered services worth P280,000 for cash during the period. Paid utilities expense of P4,000. The owner withdrew a total of P100,000 cash from the business during the period.         Additional information: a. Unused office supplies on December 31, 2011 amounted to P5,000 With the given information: 1. Prepare the closing the entries.  2. Prepare the balance sheet and income statement.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Ms. P put up an accounting firm on November 1, 2011.  The registered name of the business is “P Accounting Firm.”  The following were the transactions during the months of November and December 2011:

  1. The owner provided P30,000 cash as initial investment to the business on November 1, 2011.
  2. Obtained a 12%, one year, bank loan for P50,000 on November 1, 2011. Principal and interest are due at maturity date.
  3. Purchased office supplies worth P60,000 for cash during the period.
  4. Rendered services worth P280,000 for cash during the period.
  5. Paid utilities expense of P4,000.
  6. The owner withdrew a total of P100,000 cash from the business during the period.

        Additional information:

a. Unused office supplies on December 31, 2011 amounted to P5,000

With the given information:

1. Prepare the closing the entries. 

2. Prepare the balance sheet and income statement.

Expert Solution
steps

Step by step

Solved in 6 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education