PROBLEM 1 - Transaction Analysis

Transactions:
a. Received P260,000 cash from clients for services rendered.
b. Paid P480,000 of salaries to employees.
c. Collected P120,000 from clients on account.
d. The owner, Virginia Ruben, withdrew P80,000 cash for personal use.
e. Purchased P140,000 of supplies on account.
f. Billed clients P180,000 for services rendered.
g. Paid P100,000 to suppliers on account.

For each of the transactions for Virginia Ruben Antique Restorer, a sole prop
the following questions:

1 What are the two accounts affected by the transaction?

2 What type of account is affected - asset, liability, owner's capital, own
3 Should the account be increased or decreased?
4 Should the account be debited or credited?

Account Titles:
Cash, Accounts receivable, Supplies, Accounts payable, Virginia Ruben, Drawing,

(1) (2) (3)

Accounts Type Increase
Affected of Account Decrease
Sample
a. 1 Accounts Receivable asset increase
2 service income income increase

TRANS
a. 1
2

b. 1
2
c. 1
2

d. 1
2

e. 1
2

f. 1
2

g. 1
2
personal use.

torer, a sole proprietorship, fill in the spaces to answer

ner's capital, owner's withdrawal, income, or expense account (EXPANDED EQUATION)?

a Ruben, Drawing, Service income, Salaries expense

(4)
Debit
Credit
or
debit DR
credit CR
ANDED EQUATION)?
PROBLEM
Dolores Aguilar started Aguilar Industrial Spray Service on April 1, 2020. During April,
Aguilar completed the following transactions.

DATE
April
1 Invested cash in the business, P60,000.
3 Bought a service vehicle from Toyota Motors for P 112,500, paying
P22,500 in cash, with the remainder due in thirty (30) days.
5 Bought spray equipment on account from Misamis Farm Suppliers, P18,000.
8 Paid rent for the month, P5,600.
10 Paid cash for insurance on service vehicle for the year, P5,760.
13 Received cash for spray services done on a building, P21,750.
15 Bought supplies for cash, P5,730.
18 Billed customers on account for services performed, P4,440.
22 Paid cash for utilities, P960.
24 Received bill for gasoline used by the service vehicle during the month, P3,270.
26 Receipts from cash customers, P16,420.
27 Aguilar withdrew cash for personal use, P10,500.
31 Paid salaries to employees, P20,400.

Use the following account titles:

BALANCE SHEET ACCOUNTS OR REAL ACCOUNTS:
Cash; Accounts Receivable; Supplies; Prepaid Insurance; Spray Equipment; Service Vehicle
Accounts Payable; Aguilar, Capital; and Aguilar, Drawing

INCOME STATEMENT ACCOUNTS OR NOMINAL ACCOUNTS:

Service Income, Rent Expense, Utilities ExpenseSalaries Expense

REQUIREMENTS:
1. Record the transactions for the month of April in a JOURNAL.
2. Set up the LEDGER and POST all the journal entries.
3. Prepare a TRIAL BALANCE.
 During April,

ers, P18,000.

e month, P3,270.

ment; Service Vehicle