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Business Transactions

The document summarizes business transactions conducted by Pedro Matapang's new computer repair shop, Matapang Computer Repairs, from its opening on February 14, 2016 through February 25, 2016. It records capital invested, purchases of equipment and supplies, repairs completed and billed, salaries paid, and amounts receivable. Adjusting entries are also presented for depreciation, unused supplies, unearned revenue, accrued expenses, and additional work billed.

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Kuen Jianne Dayao
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8K views4 pages

Business Transactions

The document summarizes business transactions conducted by Pedro Matapang's new computer repair shop, Matapang Computer Repairs, from its opening on February 14, 2016 through February 25, 2016. It records capital invested, purchases of equipment and supplies, repairs completed and billed, salaries paid, and amounts receivable. Adjusting entries are also presented for depreciation, unused supplies, unearned revenue, accrued expenses, and additional work billed.

Uploaded by

Kuen Jianne Dayao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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BUSINESS TRANSACTIONS

Pedro Matapang, a computer technician. Pedro decided to open his computer repair shop on February
14, 2016, naming it Matapang Computer Repairs. Pedro knows that business transactions should be
separated from personal finances. Thus, he decided to invest PHP 200,000 in this business. He
deposited the amount with Nation Bank.

Entry:
02/14/16 Cash 200,000
Matapang, Capital 200,000

February 15, 2016 - Pedro purchased one computer unit from XY Computer Store to be used for the
business. He issued check number 001 amounting to PHP 25,000.

Entry:
02/15/16 Office Equipment 25,000
Cash 25,000

February 17, 2016 – Repaired the computer of Jean and collected PHP 10,000

Entry:
02/15/16 Cash 10,000
Service Revenue 10,000

February 18, 2016 – Repaired Mike’s computer. However, Mike will pay PHP 15,000 on March 18, 2016

Entry:
02/15/16 Accounts Receivable 15,000
Service Revenue 15,000

February 19, 2016 – Pedro purchased Office Supplies from MM Merchandise amounting to PHP 5,000 on
account. Pedro will pay this on March 30, 2016.

Entry:
02/15/16 Office Supplies 5,000
Accounts Payable 5,000

February 25, 2016 – Paid the salary of Juana amounting to PHP 4,000

Entry:
02/15/16 Salaries Expense 4,000
Cash 4,000

Cash Accounts Office Office


200,000 25000 Receivable Equipment Supplies
10000 4000 15,000 25,000 5,000
210,000 29000 Matapang, Capital Service Revenue
-29000 200,000 15,000 Salaries Expense
181,000 10,000 4,000
Accounts 25,000
Payable
5,000
Matapang Computer Repairs Unadjusted Trial Adjustments Adjusted Trial Statement of Statement of
Balance Balance Comprehensive Financial Position
Income
Account Title DR CR DR CR DR CR DR CR DR CR
CASH 181,000
ACCOUNTS RECEIVABLE 15,000
OFFICE EQUIPMENT 25,000
Accumulated Depreciation
OFFICE SUPPLIES 5,000
ACCOUNTS PAYABLE 5,000
Unearned Service Revenue
MATAPANG, CAPITAL 200,000

SERVICE REVENUE 25,000


Supplies Expense
SALARIES EXPENSE 4,000
Depreciation expense
Utilities Expense
TOTAL 230,000 230000
ADJUSTING TRANSACTIONS:

1. It was estimated that the estimated useful life of the equipment is five years. After 5 years, the
equipment can be sold at a scrap value of Php 1,000. The company uses the straight line
depreciation.

2. Worth of Php 2,000 on supplies is unused.

3. On February 15, 2016 Matapang entered into a contract with Makisig to maintain the computers of
Makisig for two months starting on February 15, 2016 up to April 15, 2016. On the same date,
Makisig paid the total contract amount of PHP 40,000 in full.

4. On February 29, 2016, Matapang received the electric bill for the month of February amounting to
PHP 3,800. Matapang will pay this bill on March 2016.

5. On February 28, 2016, Matapang repaired the computer of Pedro for PHP15,000. Pedro was on an
out of- town trip so he could not pay Matapang . He told Matapang that he will pay for their services
on March 1, 2016.

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