ISMAEL MATHAY SR.

HIGH SCHOOL
Senior High School Department
Fourth Quarter, SY 2020-2021

FUNDAMENTALS OF ACCOUNTING, BUSINESS AND MANAGEMENT 1

Desiree Clark is a licensed CPA. During the first month of operations, May, of her business, the
following events and transactions occurred. Identify the accounts to be debited and the accounts to
be credited. (20 points)

DATE TRANSACTIONS DEBIT CREDIT

Clark invested ₱20,000 cash in her
1
business.
Hired a secretary-receptionist at a salary of
2
₱2,000 per month.
Purchased supplies worth of ₱900 paying
2
half in cash and half on account.
Purchased additional ₱2,500 of supplies on
3
account from Read Supply Company.
7 Paid office rent of ₱900 cash for the month.
Completed a tax assignment and billed
11
client ₱3,200 for services provided.
Received ₱3,500 advance on a
12
management consulting engagement.
Received cash of ₱1,200 for services
17
completed for C. Desmond Co.
Paid secretary-receptionist ₱2,000 salary
31
for the month.
Paid 60% of balance due Read Supply
31
Company.

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