Introduction to AccountingAtty. Jayson P. Lopez, CPA

Assignment No. 3

The following are transactions of Ms. Jelai Ong, an interior decorator in her first month of business operation.

September 1 Invested P1,000,000 cash in business 3 Bought a used car for P250,000 in cash to be used in business 9 Purchased supplies on account, P7,000

11 Billed customers for services rendered, P75,00012 Received a check from a customer for services rendered for cash, P10,50015 Paid P2,500 cash for advertisement16 Invested additional P100,000 cash in the business.17 Purchased equipment worth P50,000 by issuing a promissory note18 Issued check in payment for supplies purchased on September 9.20 Received P15,000 cash for customers billed on September 11.21 Purchased additional office supplies on account, P5,000.22 Issued check in payment of the promissory note issued on September 1723 Paid creditor on account, P3,50028 Withdrew P5,200 cash for personal use.30 Paid salaries of assistant, P12,000, rent of P15,000 and utilities amounting to P8,000

Required:

Prepare in good form the following:

a. Expanded accounting equation recording the transactionsb. Income statement for the month of September, 2015c. Statement of changes in owner’s equity for the month of September, 2015d. Balance sheet as of September 30, 2015

Reference: Basic Accounting for Non-Accountants (c) 2014 1