Joel Feliciano has started his own business, Property Appraisals. He inspects property for buyers and sellers of real estate. Feliciano rents office space and has a part-time assistant to answer the phone and to help with inspections. The transactions for the month of September are as follows: a. Feliciano invested cash by making a deposit in a bank account for the business, P150,000. b. Paid rent for the month, P3,000. C. Bought a second-hand service vehicle for cash, P80,000. d. Bought service tools on account, P30,000. e. Paid electricity bill, P500. f. g. h. i. j. Paid a one-year insurance premium on the service vehicle, P6,000. Received cash from clients for service performed, P20,000. Paid salaries to assistant for first half of the month, P2,000. Performed appraisal services for clients on account, P10,000. Paid water bill, P350. k. Bought office supplies for cash, P1,000. 1. Received cash from clients for inspections performed on account in (i), P3,000. m. Paid salaries to assistant for last half of the month, P2,500. n. Made partial payment on service tools bought in (d), P10,000. O. Additional revenues earned amounted to P20,000: P14,000 for cash and P6,000 on account. p. Feliciano withdrew cash for personal expenses, P5,000. Required: Establish the following accounts in a financial transaction worksheet: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Service Tools; Service Vehicle; Accounts Payable; Feliciano, Capital; Feliciano, Withdrawals ; Revenues; Expenses
Joel Feliciano has started his own business, Property Appraisals. He inspects property for buyers and sellers of real estate. Feliciano rents office space and has a part-time assistant to answer the phone and to help with inspections. The transactions for the month of September are as follows: a. Feliciano invested cash by making a deposit in a bank account for the business, P150,000. b. Paid rent for the month, P3,000. C. Bought a second-hand service vehicle for cash, P80,000. d. Bought service tools on account, P30,000. e. Paid electricity bill, P500. f. g. h. i. j. Paid a one-year insurance premium on the service vehicle, P6,000. Received cash from clients for service performed, P20,000. Paid salaries to assistant for first half of the month, P2,000. Performed appraisal services for clients on account, P10,000. Paid water bill, P350. k. Bought office supplies for cash, P1,000. 1. Received cash from clients for inspections performed on account in (i), P3,000. m. Paid salaries to assistant for last half of the month, P2,500. n. Made partial payment on service tools bought in (d), P10,000. O. Additional revenues earned amounted to P20,000: P14,000 for cash and P6,000 on account. p. Feliciano withdrew cash for personal expenses, P5,000. Required: Establish the following accounts in a financial transaction worksheet: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Service Tools; Service Vehicle; Accounts Payable; Feliciano, Capital; Feliciano, Withdrawals ; Revenues; Expenses
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 51RSCQ: Ray, the owner of a small company, asked Holmes, CPA, to conduct an audit of the company’s records....
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Question
Transcribed Image Text:Joel Feliciano has started his own business, Property Appraisals. He inspects property
for buyers and sellers of real estate. Feliciano rents office space and has a part-time
assistant to answer the phone and to help with inspections. The transactions for the
month of September are as follows:
a.
Feliciano invested cash by making a deposit in a bank account for the business,
P150,000.
b.
Paid rent for the month, P3,000.
C. Bought a second-hand service vehicle for cash, P80,000.
d. Bought service tools on account, P30,000.
e.
Paid electricity bill, P500.
f.
g.
h.
i.
j.
Paid a one-year insurance premium on the service vehicle, P6,000.
Received cash from clients for service performed, P20,000.
Paid salaries to assistant for first half of the month, P2,000.
Performed appraisal services for clients on account, P10,000.
Paid water bill, P350.
k. Bought office supplies for cash, P1,000.
1.
Received cash from clients for inspections performed on account in (i), P3,000.
m. Paid salaries to assistant for last half of the month, P2,500.
n. Made partial payment on service tools bought in (d), P10,000.
O. Additional revenues earned amounted to P20,000: P14,000 for cash and P6,000 on
account.
p.
Feliciano withdrew cash for personal expenses, P5,000.
Required:
Establish the following accounts in a financial transaction worksheet:
Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Service Tools;
Service Vehicle; Accounts Payable; Feliciano, Capital; Feliciano, Withdrawals ;
Revenues; Expenses
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