Ming Chen began a professional practice on June 1 and plans to prepare financial statements at

the end of each month. During June, Ming Chen (the owner) completed these transactions:

1 Owner invested $60,000 cash in the company along with equipment that had a $15,000
market value.

2 The company paid $1,500 cash for rent of office space for the month.

3 The company purchased $10,000 of additional equipment on credit (payment due within
30 days).

4 The company completed work for a client and immediately collected the $2,500 cash
earned.

5 The company completed work for a client and sent a bill for $8,000 to be received within
30 days.

6 The company purchased additional equipment for $6,000 cash.

7 The company paid an assistant $3,000 cash as wages for the month.

8 The company collected $5,000 cash as a partial payment for the amount owed by the
client in transaction 5.

9 The company paid $10,000 cash to settle the liability created in transaction 3.

10 Owner withdrew $1,000 cash from the company for personal use.

CASH ACCOUNTS EQUIPMENT ACCOUNTS CAPITAL WITHDRAWALS REVENUES EXPENSE

RECEIVABLE PAYABLE
1. 60 000 60 000
2. (1 500) (1 500)
3. 10 000 10 000
4. 2 500 2 500
5. 8 000 8 000
6. (6 000) 6 000
7. (3 000) (3 000)
8. 5 000 (5 000)
9. (10 000) (10 000)
10. (1 000) (1 000)
46 000 3 000 16 000 0 60 000 (1 000) 10 500 (4 500)

ASSETS = 65 000 LIABILITIES & EQUITY = 65 000

 Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co.
completed the following transactions during its first month of operations.

1 G. Gram invested $40,000 cash in the company.

2 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,890 of office equipment on credit.
4 The company paid $750 cash for this month’s cleaning services.
5 The company provided consulting services for a client and immediately collected $5,400
cash.
6 The company provided $2,500 of consulting services for a client on credit.
7 The company paid $750 cash for an assistant’s salary for the first half of this month.
8 The company received $2,500 cash payment for the services provided on 6.
9 The company provided $3,200 of consulting services on credit.
10 The company received $3,200 cash payment for the services provided on 9.
11 The company paid $1,890 cash for the office equipment purchased on 3.
12 The company purchased $80 of advertising in this month’s (May) local paper on credit;
cash payment is due June 1.
13 The company paid $750 cash for an assistant’s salary for the second half of this month.
14 The company paid $300 cash for this month’s telephone bill.
15 The company paid $280 cash for this month’s utilities.
16 G. Gram withdrew $1,400 cash from the company for personal use.

CASH ACCOUNTS EQUIPMENT ACCOUNTS CAPITAL WITHDRAWALS REVENUES EXPENSE

RECEIVABLE PAYABLE
1. 40 000 40 000
2. (2 200) (2 200)
3. 1 890 1 890
4. (750) (750)
5. 5 400 5 400
6. 2 500 2 500
7. (750) (750)
8. 2 500 (2 500)
9. 3 200 3 200
10. 3 200 (3 200)
11. (1 890) (1 890)
12. 80 (80)
13. (750) (750)
14. (300) (300)
15. (280) (280)
16. (1 400) (1 400)
42 780 0 1 890 80 40 000 (1 400) 11 100 (5 110)

ASSETS = 44 670 LIABILITIES & EQUITY = 44 670

 Lita Lopez started Biz Consulting, a new business, and completed the following transactions during
its first year of operations.

1 Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
2 The company purchased an office suite for $40,000 cash.
3 The company purchased office equipment for $15,000 cash.
4 The company purchased $1,200 of office supplies and $1,700 of office equipment on
credit.
5 The company paid a local newspaper $500 cash for printing an announcement of the
office’s opening.
6 The company completed a financial plan for a client and billed that client $2,800 for the
service.
7 The company designed a financial plan for another client and immediately collected a
$4,000 cash fee.
8 Lita Lopez withdrew $3,275 cash from the company for personal use.
9 The company received $1,800 cash as partial payment from the client described in
transaction 6.
10 The company made a partial payment of $700 cash on the equipment purchased in
transaction 4.
11 The company paid $1,800 cash for the office secretary’s wages for this period.

CASH ACCOUNTS OFFICE OFFICE OFFICE ACCOUNTS CAPITAL WITHDRAWALS REVENUES EXPENSE
RECEIVABLE SUPPLIES EQUIPMENT SUITE PAYABLE
1. 70 000 10 000 80 000

2. (40 000) 40 000

3. (15 000) 15 000

4. 1 200 1 700 2 900

5. (500) (500)

6. 2 800 2 800

7. 4 000 4 000

8. (3 275) (3 275)

9. 1 800 (1 800)

10. (700) (700)

11. (1 800) (1 800)

14 525 1 000 1 200 26 700 40 000 2 200 80 000 (3 275) 6 800 (2 300)

ASSETS = 83 425 LIABILITIES & EQUITY = 83 425

 Sanyu Sony started a new business and completed these transactions during December.

1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking
account in the name of Sony Electric.

2 The company rented office space and paid $1,000 cash for the December rent.

3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and
agreeing to pay the $8,200 balance in 30 days.

4 The company purchased office supplies by paying $800 cash.

5 The company completed electrical work and immediately collected $1,200 cash for these
services.

6 The company purchased $2,530 of office equipment on credit.

7 The company completed electrical work on credit in the amount of $5,000.

8 The company purchased $350 of office supplies on credit.

9 The company paid $2,530 cash for the office equipment purchased on 6.

10 The company billed a client $900 for electrical work completed; the balance is due in 30
days.

11 The company received $5,000 cash for the work completed on 7.

12 The company paid the assistant’s salary of $1,400 cash for this month.

13 The company paid $540 cash for this month’s utility bill.

14 Sanyu Sony withdrew $950 cash from the company for personal use.

CASH ACCOUNTS OFFICE OFFICE ELECTRICAL ACCOUNTS CAPITAL WITHDRAWALS REVENUES EXPENSE
RECEIVABLE SUPPLIES EQUIPMENT EQUIPMENT PAYABLE
1. 65 000 65 000

2. (1 000) (1 000)

3. (4 800) 13 000 8 200

4. (800) 800

5. 1 200 1 200

6. 2 530 2 530

7. 5 000 5 000

8. 350 350

9. (2 530) (2 530)

10. 900 900

11. 5 000 (5 000)

12. (1 400) (1 400)

13. (540) (540)

14. (950) (950)

59 180 900 1 150 2 530 13 000 8 550 65 000 (950) 7 100 (2 940)

ASSETS = 76 760 LIABILITIES & EQUITY = 76 760

 Nina Niko launched a new business, Niko’s Maintenance Co., that began operations on June 1.
The following transactions were completed by the company during that first month.

1. Nina Niko invested $130,000 cash in the company.

2. The company rented a furnished office and paid $6,000 cash for June’s rent.
3. The company purchased $2,400 of equipment on credit.
4. The company paid $1,150 cash for this month’s advertising of the opening of the
business.
5. The company completed maintenance services for a customer and immediately
collected $850 cash.
6. The company completed $7,500 of maintenance services for City Center on credit.
7. The company paid $800 cash for an assistant’s salary for the first half of the month.
8. The company received $7,500 cash payment for services completed for City Center on
6.
9. The company completed $7,900 of maintenance services for Paula’s Beauty Shop on
credit.
10. The company completed $675 of maintenance services for Build-It Coop on credit.
11. The company received $7,900 cash payment from Paula’s Beauty Shop for the work
completed on 9.
12. The company made payment of $2,400 cash for equipment purchased on 3.
13. The company paid $800 cash for an assistant’s salary for the second half of this month.
14. Nina Niko withdrew $4,000 cash from the company for personal use.
15. The company paid $150 cash for this month’s telephone bill.
16. The company paid $890 cash for this month’s utilities.

CASH ACCOUNTS EQUIPMENT ACCOUNTS CAPITAL WITHDRAWALS REVENUES EXPENSE

RECEIVABLE PAYABLE
1. 130 000 130 000
2. (6 000) (6 000)
3. 2 400 2 400
4. (1 150) (1 150)
5. 850 850
6. 7 500 7 500
7. (800) (800)
8. 7 500 (7 500)
9. 7 900 7 900
10. 675 675
11. 7 900 (7 900)
12. (2 400) (2 400)
13. (800) (800)
14. (4 000) (4 000)
15. (150) (150)
16. (890) (890)
130 060 675 2 400 0 130 000 (4 000) 16 925 (9 790)

ASSETS = 133 135 LIABILITIES & EQUITY = 133 135

 Neva Nadal started a new business, Nadal Computing, and completed the following transactions
during its first year of operations.

1. Neva Nadal invested $90,000 cash and office equipment valued at $10,000 in the
company.
2. The company purchased an office suite for $50,000 cash.
3. The company purchased office equipment for $25,000 cash.
4. The company purchased $1,200 of office supplies and $1,700 of office equipment on
credit.
5. The company paid a local newspaper $750 cash for printing an announcement of the
office’s opening.
6. The company completed a financial plan for a client and billed that client $2,800 for the
service.
7. The company designed a financial plan for another client and immediately collected a
$4,000 cash fee.
8. Neva Nadal withdrew $11,500 cash from the company for personal use.
9. The company received $1,800 cash from the client described in 6.
10. The company made a payment of $700 cash on the equipment purchased in transaction
4.
11. The company paid $2,500 cash for the office secretary’s wages.

CASH ACCOUNTS OFFICE OFFICE OFFICE ACCOUNTS CAPITAL WITHDRAWALS REVENUES EXPENSE
RECEIVABLE SUPPLIES EQUIPMENT SUITE PAYABLE
1. 90 000 10 000 100 000

2. (50 000) 50 000

3. (25 000) 25 000

4. 1 200 1 700 2 900

5. (750) (750)

6. 2 800 2 800

7. 4 000 4 000

8. (11 500) (11 500)

9. 1 800 (1 800)

10. (700) (700)

11. (2 500) (2 500)

5 350 1 000 1 200 36 700 50 000 2 200 100 000 (11 500) 2 800 (3 250)

ASSETS = 94 250 LIABILITIES & EQUITY = 94 250

 Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed
these transactions during that first month of operations.

1. Reyna Rivera invested $80,000 cash in the company.

2. The company rented office space and paid $700 cash for the July rent.
3. The company purchased roofing equipment for $5,000 by paying $1,000 cash and
agreeing to pay the $4,000 balance in 30 days.
4. The company purchased office supplies for $600 cash.
5. The company completed work for a customer and immediately collected $7,600 cash
for the work.
6. The company purchased $2,300 of office equipment on credit.
7. The company completed work for a customer on credit in the amount of $8,200.
8. The company purchased $3,100 of office supplies on credit.
9. The company paid $2,300 cash for the office equipment purchased on 6.
10. The company billed a customer $5,000 for work completed; the balance is due in 30
days.
11. The company received $8,200 cash for the work completed on 7.
12. The company paid an assistant’s salary of $1,560 cash for this month.
13. The company paid $295 cash for this month’s utility bill.
14. Reyna Rivera withdrew $1,800 cash from the company for personal use.

CASH ACCOUNTS OFFICE OFFICE ROOFING ACCOUNTS CAPITAL WITHDRAWALS REVENUES EXPENSE
RECEIVABLE SUPPLIES EQUIPMENT EQUIPMENT PAYABLE
1. 80 000 80 000

2. (700) (700)

3. (1 000) 5 000 4 000

4. (600) 600

5. 7 600 7 600

6. 2 300 2 300

7. 8 200 8 200

8. 3 100 3 100

9. (2 300) (2 300)

10. 5 000 5 000

11. 8 200 (8 200)

12. (1 560) (1 560)

13. (295) (295)

14. (1 800) (1 800)

87 545 5 000 3 700 2 300 5 000 7 100 80 000 (1 800) 20 800 (2 555)

ASSETS = 103 545 LIABILITIES & EQUITY = 103 545

 ASSETS LIABILITIES EQUITY
1. Invested furniture to the business increased increased
2. Purchased equipment on account increased increased
3. Rendered services to cash customers increased increased
4. Provided services to clients on account increased increased
5. Made additional cash investment increased increased
6. Received partial payment from clients on account increased increased
7. Withdrew cash for personal use decreased decreased
8. Paid cash to settle account decreased decreased
9. Paid rent for the month decreased decreased
10. Received an electric bill from Meralco increased decreased
11. Bought supplies, paying 50% and the balance to be paid after one increased increased
month supplies /
decreased
cash
12. Collected accounts receivable in full increased
cash /
decrease
accounts
receivable
13. Used supplies during the month decrease decrease
14. Purchased land on account increased increased

August 1: Placed 200 000 in the business to provide cash for set-up operations.

Cash 200 000

Capital 200 000

August 4: Purchased filing cabinets worth 50 000 from Ergonomics, paying 25% in cash, balance
to be paid next month.

Furniture 50 000

Cash 12 500

Accounts Payable 37 500

August 10: Charged customers 10 000 for services performed during the month.

Accounts Receivable 10 000

Service Revenue 10 000

August 12: Received a statement of account from Maynilad 720 and Meralco 1 250.

Utilities Expense 1 970

Utilities Payable 1 970

August 15: Received cash form customers for full payment of the account due.

Cash 10 000

Accounts Receivable 10 000

August 16: Paid for the semi-monthly wages of two workers at 2 500 each,

Salary Expense 5 000

Cash 5 000

August 18: Returned a defective piece of filing cabinet worth 5 000.

Accounts Receivable 5 000

Furniture 5 000

August 20: Paid the remaining account due to ergonomics.

Accounts Payable 37 500

Cash 37 500

August 25: Withdrew one filing cabinet for personal use 10 000.

Withdrawal 10 000

Cash 10 000

ASSETS:

CASH 145 000

ACCOUNTS RECEIVABLE 5 000

FURNITURE 45 000

TOTAL ASSETS 195 000

LIABILITIES AND OWNER’S EQUITY:

ACCOUNTS PAYABLE 0

UTILITIES PAYABLE 1 970

CAPITAL 200 000

PERSONAL (10 000)

SERVICE REVENUE 10 000

UTILITIES EXPENSE (1 970)

SALARIES EXPENSE (5 000)

TOTAL LIABILITIES AND EQUITY 195 000