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Activity No. 3 - Principles of Accounting: Answers

The K. Reyes Company had 9 financial transactions in October: 1) It received $7,000 cash 2) It purchased $5,000 of supplies for cash 3) It purchased $25,000 of office equipment on account 4) It billed a customer $24,500 for services 5) The owner withdrew $16,000 on account and will pay it 6) It paid $6,500 of accounts payable in cash 7) It purchased $3,700 of office equipment on account 8) The owner withdrew $2,500 cash from the business 9) The owner withdrew another $5,000 cash from the business.

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675 views2 pages

Activity No. 3 - Principles of Accounting: Answers

The K. Reyes Company had 9 financial transactions in October: 1) It received $7,000 cash 2) It purchased $5,000 of supplies for cash 3) It purchased $25,000 of office equipment on account 4) It billed a customer $24,500 for services 5) The owner withdrew $16,000 on account and will pay it 6) It paid $6,500 of accounts payable in cash 7) It purchased $3,700 of office equipment on account 8) The owner withdrew $2,500 cash from the business 9) The owner withdrew another $5,000 cash from the business.

Uploaded by

Lagasca Iris
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NAME: Score:

ACTIVITY NO. 3 – PRINCIPLES OF ACCOUNTING


Nine transactions are reflected in the October transaction worksheet of the K. Reyes Company presented
below. Describe each of the following transactions. The last transaction is the only transaction affecting the
capital account that does not affect the net income. Prepare the balance sheet for the month of October, 20XX.
Use the space provided below for your descriptions and at the back of the paper for the balance sheet.

K. Reyes Company
Financial Transaction Worksheet
October 31, 20XX

OWNER’S
ASSETS = LIABILITIES +
EQUITY

Cash + Accounts + Supplies + Office = Accounts + Reyes,

Receivable Equipment Payable Capital

B/ =
P 15,000 17,500 4,500 153,000 60,000 130,000
b

1 7,000 (7,000) =

2 (5,000) 5,000 =

3 25,000 = 25,000

4 24,500 = 24,500

5 = 16,000 (16,000)

6 (6,500) = (6,500)

7 3,700 = 3,700

8 (2,500) = (2,500)

9 (5,000) = (5,000)

P 3,000 35,000 13,200 178,000 = 98,200 131,000

Answers:

1. K. Reyes Company received 7,000 cash.


2. Purchased Supplies for Php 5,000 cash.
3. Purchased Office Equipment on account for Php 25,000.
4. Billed a customer 24,500 for services.
5. Withdraw on account for Php 16,000 and will pay.
6. Paid Php 6,500 cash
7. Purchased Office Equipment on account for 3,700.
8. Withdraw Php 2,500 from the business.
9. Withdraw Php 5,000 from the business.

BALANCE SHEET
K. Reyes Company
Balance Sheet
As of 30, 20XX

ASSETS LIABILITIES AND OWNER’S EQUITY


Cash Php 3,000 Account Payable Php 98,200
Account Receivable 35,000
Office Supplies 13,200 Young’s Capital 131,000
Office Equipment 178,000

______________ ______________

TOTAL Php 229,200 TOTAL Php 229,200

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