Problem #7

Recording Transactions in a Financial Transaction Worksheet

Problem # 7

Required: Record the transactions for the month of December 2016 using a financial
transaction worksheet. Prepare the 3 basic financial statements.

On December 1, 2016, Ludivinia Victorino opened a videotape rental store, Cavite Video,
by investing P250,000 cash from her personal savings account. During the month of
December, the following transactions took place:
Dec. 1 – Victorino invests P250,000 cash.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment
Dec. 1 – Acquired supplies on account (utang), P67,000.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
Dec. 4 – Acquired videotapes costing P235,000, on
account.
Cash Accounts Supplies Videotapes Accounts Victorino,
Receivable Payable Capital
250,000 250,000 Investment

67,000 67, 000

235,000 235,000
Dec. 5 – Paid P85,000 to creditors.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
Dec. 8 – Received P78,000 cash from ACA Video for
rental fees.
Cash Accounts Supplies Videotapes Accounts Victorino,
Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned
Dec. 11 – Billed Video City for video rentals, P105,000.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned

105,000 105,000 Fees Earned

Dec. 16 – Paid salaries, P65,000.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned

105,000 105,000 Fees Earned

(65,000) (65,000) Salaries Expense

Dec. 17 – Collected P77,000 from Video City.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned

105,000 105,000 Fees Earned

(65,000) (65,000) Salaries Expense

77,000 (77,000)
Dec. 23 – Victorino withdrew P47,000 from the business.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned

105,000 105,000 Fees Earned

(65,000) (65,000) Salaries Expense

77,000 (77,000)
(47,000) (47,000) Withdrawal
Dec. 24 – Paid rent for the month, P41,500.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned

105,000 105,000 Fees Earned

(65,000) (65,000) Salaries Expense

77,000 (77,000)
(47,000) (47,000) Withdrawal

(41,500) (41,500) Rent Expense

Dec. 30 – Paid utilities bill for the month, P17,500.

Cash Accounts Supplies Videotapes Accounts Victorino,

Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned

105,000 105,000 Fees Earned

(65,000) (65,000) Salaries Expense

77,000 (77,000)
(47,000) (47,000) Withdrawal

(41,500) (41,500) Rent Expense

(17,500) (17,500) Utilities Expense

Cash Accounts Supplies Videotapes Accounts Victorino,
Receivable Payable Capital
250,000 250,000 Investment

67,000 67,000
235,000 235,000
(85,000) (85,000)
78,000 78,000 Fees Earned

105,000 105,000 Fees Earned

Salaries Expense
(65,000) (65,000)
77,000 (77,000)
(47,000) (47,000) Withdrawal

(41,500) (41,500) Rent Expense

(17,500) (17,500) Utilities Expense

149,000 28,000 67,000 235,000 217,000 262,000

 Income Statement

Cavite Video
Income Statement
Financial Transaction Worksheet For the month ended December 31, 2016
Fees Earned 183,000
Less: Operating Expenses
Salaries Expense 65,000
Rent Expense 41,500
Utilities Expense 17,500
Total Operating Expenses 124,000
Net Income 59,000
 Statement of Owner’s Equity

Cavite Video
Statement of Changes in Owner’s Equity
Financial Transaction Worksheet For the month ended December 31, 2016
Victorino, Capital, Dec. 1 -
Investment on Dec. 1 250,000

Net Income for December 59,000

Total 309,000

Less: Withdrawals 47,000

Increase in owner’s equity 262,000

Victorino, Capital, Dec. 31 262,000

 Balance Sheet
Cavite Video
Balance Sheet
December 31, 2016

Financial Transaction Worksheet Assets:

Cash 149,000
Accounts Receivable 28,000
Supplies 67,000
Videotapes 235,000
Total Assets 479,000
======
Liabilities & Owner’s Equity
Accounts Payable 217,000
Victorino, Capital 262,000
Total Liabilities & Owner’s 479,000
Equity ======