EXPANDED FORM COMPUTE THE FOLLOWING PROBLEM

MAY 1
Mr. Tan obtained the funds to start the business by withdrawing P900,000 from his personal
savings. He deposited the money in a bank account he want a build a business "Tea Tan's
MAY 3
Mondie boughts a blender machine, refregirator and other necessary equipment from E.Nena
Inc., at a cost of P 50,000 E. Nena Inc., agreed to allow 60 days for the firm to pay the bill.
MAY 5
Mondie placed an order for electric etc, and other supplies that had a total cost of P 10,000. the
entity that sold the items. Cagayan Supplies Inc., requires cash payment form a businesses that
are under seven month old.
MAY 9
Mondie decided to pay P20,000 to E. Nena Inc. to reduce the firms debt to that business.
MAY 13
Tea Tan's earned P 60,000 of revenue from charge account clients. These clients are allowed
30 days to pay.
MAY 18
Tea Tan's hired a staff on MAY 1 to help in the business, the firm paid P10,000 in the salaries
for this employee and Mondie.
MAY 23
Tea Tan's received P20,000 from clients who had previously bought services on account
MAY 27
Tea Tan's earned a total of P110,000 in a revenue from the clients who paid cash for the
products of tea.
MAY 30
Tea Tan's received a P25,000 bill for the utilities that it had used during the month MAY 31 Tea
Tan's issued a check as payment for office rent for May the lease contract Tan's signed
specified a monthly rent of P35,000.
MAY 31
Mr. Tan withdrew P40,000 in cash from the business to pay for personal use.
Date Assets Liabilities Owner’s Equity
May 1 P900,000 - P900,000

3 P50,000 50,000 -

5 P10,000 P10,000 -

9 (P20,000) (P20,000) -

13 P60,000 - P60,000

18 (P10,000) - (P10,000)

23 P20,000 - -
(P20,000)
27 P110,000 - P110,000

30 (P25,000) - (P25,000)
(P35,000)
P35,000
31 (P40,000) - (P40,000)

Total P1,035,000 P40,000 P995,000

Date Assets Liabilities Owner’s Equity

May 1 Cash - Tan’s Capital

3 Equipments Accounts Payable -

5 Supplies Notes Payable -

9 (Cash) (Accounts Payable) -

13 Accounts Receivable - Service Revenue

18 (Cash) - (Salaries Expense)

23 Cash - -

(Accounts Receivable)
27 Cash - Service Revenue

30 (Cash) - (Utilities Expense)

(Cash)
Prepaid Rent
31 (Cash) - (Mr. Tan, Drawing)