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CASE 1: PM Company Requirement: Compute For The Total Current Asset On Dec 31, 2X14

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JanineD.Meranio

The document provides journal entries and a statement of financial position for Margarita Gonzales Law Office for January 1, 2X21. The journal entries record cash invested, purchase of furniture partially with cash and credit, service revenue earned, advance payment received, depreciation expense, salary expenses paid partially in cash and owed, payment received from client, rent expense paid in cash, and unpaid utility bill. The statement of financial position shows total current assets of $121,000 including cash, furniture net of depreciation, and total current liabilities of $23,000 including accounts and salary payable, leaving owner's equity of $121,000.

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CASE 1: PM Company Requirement: Compute For The Total Current Asset On Dec 31, 2X14

Uploaded by

JanineD.Meranio
582 views3 pages
The document provides journal entries and a statement of financial position for Margarita Gonzales Law Office for January 1, 2X21. The journal entries record cash invested, purchase of furniture partially with cash and credit, service revenue earned, advance payment received, depreciation expense, salary expenses paid partially in cash and owed, payment received from client, rent expense paid in cash, and unpaid utility bill. The statement of financial position shows total current assets of $121,000 including cash, furniture net of depreciation, and total current liabilities of $23,000 including accounts and salary payable, leaving owner's equity of $121,000.

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The document provides journal entries and a statement of financial position for Margarita Gonzales Law Office for January 1, 2X21. The journal entries record cash invested, purchase of furniture partially with cash and credit, service revenue earned, advance payment received, depreciation expense, salary expenses paid partially in cash and owed, payment received from client, rent expense paid in cash, and unpaid utility bill. The statement of financial position shows total current assets of $121,000 including cash, furniture net of depreciation, and total current liabilities of $23,000 including accounts and salary payable, leaving owner's equity of $121,000.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
582 views3 pages

CASE 1: PM Company Requirement: Compute For The Total Current Asset On Dec 31, 2X14

Uploaded by

JanineD.Meranio
The document provides journal entries and a statement of financial position for Margarita Gonzales Law Office for January 1, 2X21. The journal entries record cash invested, purchase of furniture partially with cash and credit, service revenue earned, advance payment received, depreciation expense, salary expenses paid partially in cash and owed, payment received from client, rent expense paid in cash, and unpaid utility bill. The statement of financial position shows total current assets of $121,000 including cash, furniture net of depreciation, and total current liabilities of $23,000 including accounts and salary payable, leaving owner's equity of $121,000.

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CASE 1: PM Company

Requirement: Compute for the total Current Asset on Dec 31, 2X14

Cash 200,000
Accounts Receivable 350,000
Prepaid Rent 100,000
Inventory 800,000
Short term investment 300,000
Total Current Asset 1,750,000
Case 2: Margarita Gonzales Law office

1.Journal entry

ref Account Description Debit Credit


1 Cash 100,000  
  Capital   100,000
  invested cash to start the business    
       
2 Furniture 30,000  
  Cash & Bank   15,000
  Accounts Payable   15,000
  purchased of furniture- cash and credit mix deal    

3 Service revenue 4,000


Cash 4,000
  Services performed during the month    
4 Cash 20,000  
Unearned Revenue   20,000
  advance received in contract signing.    
       
5 Depreciation-Furniture 10,000  
  Accumulated Depreciation Furniture   10,000
  (Current month depreciation amounted)    
     
6 Salary expense 15,000  
  Cash   10,000
  Salary payable   5,000
  part salary paid to employees    
       
7 Cash 20,000  
  Service Revenue   20,000
  part payment received    
       
8 Rent expense 10,000  
  Cash   10,000
  Rent paid    
       
9 Utility Expense 3,000  
  Accounts payable   3,000

Bill unpaid
 
  Total  P 212,000
2.Financial Position

Margarita's Law Office  


January 1, 2X21  
Statement of Financial Position  
   
Current asset  
Cash P 101,000
Furniture 30,000
Accumulated depreciation-Furniture -10,000
Total Asset P 121,000
   
Current Liabilities  
Account Payable P 18,000
Salary payable 5,000
Total Liabilities P23,000
   
Owner's equity  
Depreciation expense P 10,000
Salary expense 15,000
Utility expense 3,000
Service Revenue 16,000
Capital 100,000
Total Liablities and Owner's equity P 121,000

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