Scribd Logo
Upload

Welcome to Scribd!

  • 14 views

    Sole Proprietor Basic

    Uploaded by

    resuellobarbyjelaica
    good

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Sole Proprietor Basic

    Uploaded by

    resuellobarbyjelaica
    14 views2 pages
    good

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    good

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views2 pages

    Sole Proprietor Basic

    Uploaded by

    resuellobarbyjelaica
    good

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    On December 1, Mark Rivera began an AUTO REPAIR SHOP, Rivera’s Quality Automotive.

    The
    following transactions occurred during December:
    December 1 Rivera contributed PHP 200,000.00 cash to the business in exchange of shares of
    common stocks.
    December 1 Purchased PHP 12,000.00 of computer equipment paid thru cash.
    December 1 Paid a 3 months insurance policy starting December 1,2020, PHP 9,000.00
    December 5 Purchased Office Supplies on account, PHP 5,800.00
    December 8 Borrowed PHP 80,000.00 from the bank for business use. Rivera prepared and
    signed promissory notes payable to bank under the name of his business.

    December 9 Paid advertising expenses for only PHP 1,580.00


    December 10 Paid half of the supplies on account
    December 13 Rivera’s Quality Automotive paid registration and licensing fees for the business,
    PHP 10,800.00

    December 16 The company acquired tables, chairs, shelves, and other fixtures for a total of
    PHP 30,000.00 The entire amount was paid in cash.

    December 17 The company acquired service equipment for PHP 16,000.00 The company paid a
    50% down payment and the balance will be paid after 60 days.

    December 17 The company received PHP 10,900.00 for services rendered.


    December 17 Rendered services on account, PHP 78,000.00. As per agreement with the Rapid
    Automotive, the amount is to be collected after 10 days

    December 19 Mr. Rivera invested an additional PHP 53,200.00 into the business
    December 20 Rendered services to a big corporation on December 20. As per agreement, the
    PHP 33,400.00 amount due will be collected after 30 days

    December 21 Paid in full the supplies on account


    December 21 The owner withdrew cash due to an emergency need. Mr. Rivera withdrew PHP
    60,000.00 from the company.

    December 22 Paid rent for December, PHP 1,500.00


    December 23 Paid salaries to its employees, PHP 3,500.00
    December 27 Collected from the Rapid Automotive full amount.
    December 28 Paid the bank 30% of loan payable
    Rivera's Quality Automotive
    Chart of Accounts
    101 Cash
    102 Accounts Receivable
    103 Office Supplies
    104 Prepaid Insurance
    105 Computer Equipment
    106 Accumulated Depreciation - Equipment
    107 Furniture and Fixtures
    108 Service Equipment
    109 Accumulated Depreciation - Service Equipment
    201 Accounts Payable
    202 Notes Payable
    203 Interest Payable
    204 Loan Payable
    205 Unearned Revenue
    301 Capital
    302 Withdrawal
    303 Income Summary Account
    401 Service Revenue
    601 Salaries Expense
    602 Rent Expense
    603 Utilities Expense
    604 Supplies Expense
    605 Insurance Expense
    606 Taxes and Licenses
    607 Advertising Expenses
    608 Depreciation Expense – Computer Equipment
    609 Depreciation Expense – Service Equipment

    ADJUSTMENT DATA:
    A. Office Supplies used during the month, PHP 3,800.00
    B. Depreciation of the computer for the month, PHP 2,400.00
    C. Depreciation of the service equipment for the month, PHP 3,200.00
    D. One-month insurance was expired.

    You might also like