Dyle Lagomo, Attorney-at-Law, opened his office on September 1, 2019. The following transactions were completed during the month: a. Deposited P210,000 in the bank in the name of the business. b. Bought office equipment on account from Daraga Corp., P147,000. c. Invested his personal law library into the business, P57,000. d. Paid office rent for the month, P7,600. e. Bought office supplies for cash, P8,850. f. Paid the premium for a one-year fire insurance policy on the equipment and the library, P1,860. g. Received professional fees for services rendered, P24,600. h. Received and paid bill for the use of a landline, P2,280. i. Paid salaries of two part-time legal researchers, P9,600. j. Paid car rental expense, P2,880. k. Received professional fees for services rendered, P21,200. l. Paid Daraga Corp. a portion of the amount owed for the acquisition of the office equipment recorded earlier, P15,000. m. Lagomo withdrew cash for personal use, P20,750. Required: Record the transactions for the month of September 2019 using a financial transaction worksheet. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Office Equipment; Professional Library; Accounts Payable; and Lagomo, Capital. If the owner’s equity is affected by a transaction, identify it as revenue, expense, investment or withdrawal.
Dyle Lagomo, Attorney-at-Law, opened his office on
September 1, 2019. The following transactions were completed during the
month:
a. Deposited P210,000 in the bank in the name of the business.
b. Bought office equipment on account from Daraga Corp., P147,000.
c. Invested his personal law library into the business, P57,000.
d. Paid office rent for the month, P7,600.
e. Bought office supplies for cash, P8,850.
f. Paid the premium for a one-year fire insurance policy on the
equipment and the library, P1,860.
g. Received professional fees for services rendered, P24,600.
h. Received and paid bill for the use of a landline, P2,280.
i. Paid salaries of two part-time legal researchers, P9,600.
j. Paid car rental expense, P2,880.
k. Received professional fees for services rendered, P21,200.
l. Paid Daraga Corp. a portion of the amount owed for the acquisition
of the office equipment recorded earlier, P15,000.
m. Lagomo withdrew cash for personal use, P20,750.
Required: Record the transactions for the month of September 2019 using
a financial transaction worksheet. Use the following accounts: Cash;
Accounts Receivable; Office Supplies; Prepaid Insurance; Office
Equipment; Professional Library; Accounts Payable; and Lagomo, Capital.
If the owner’s equity is affected by a transaction, identify it as revenue,
expense, investment or withdrawal.
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