Virgie Litton, a CPA put up an accounting firm on December 1, 200E.

The following transactions were completed during the month.

Dec. 1 V. Litton invested P200,000 as initial capital for her accounting firm.
1 Paid office rent for the month P16,400.
1 Bought office supplies for cash P15,500.
1 Bought computer from Mabuhay Equipment Corporation P80,000. Paying 50% down and the balance is payable in 90 days.
2 Office tables and chairs were purchased for cash, P12,500.
2 Received cash from client for accounting services rendered P5,600.
3 Paid Meralco, P4,000.
4 Billed several clients for services rendered P38,000.
8 Borrowed money from Metrobank, P20,000.
10 Received a 60-day note from a client for services rendered, P12,000.
15 Paid salaries of the employees, P16,500.
15 Litton withdrew P10,000 cash for his personal use.
18 Bought filing cabinets from Leeman Trading P15,000, terms 30 days (credit term)
20 Issued a promissory note to Cortez Trading P32,000 for a Copying machine bought.
31 Paid municipal license, P3,000
31 Paid salaries of the employees, P14,250.
31 Paid Leeman Trading Corporation partially, P4,000
31 Partial collection of the accounts of clients P12,800.

CHART OF ACCOUNTS

Assets Owner's Equity

101 Cash 301 V. Litton, Capital increase=credit
102 Accounts Receivable 302 V. Litton, Drawing increase=debit
103 Note Receivable
104 Furniture and Fixtures Income increase=credit
105 Office Equipment 401 Professional Fees

Liabilities Expenses increase=debit

201 Accounts Payable 501 Rent Expense
202 Note Payable 502 Office Supplies Expense
203 Loan Payable 503 Light and Water Expense
504 Salaries Expense
505 Taxes and Licenses Expense
 GENERAL JOURNAL

Particulars PR Debit Credit

Dec. 1 Cash 2 0 0 0 0 0 -
V. Litton, capital 2 0 0 0 0 0 -
Initial capital

1 Rent expense 1 6 4 0 0 -
Cash 1 6 4 0 0 -
Paid rent for the month

1 Office supplies expense 1 5 5 0 0 -

Cash 1 5 5 0 0 -
Office supplies bought

1 Office equipment 8 0 0 0 0 -
Cash 4 0 0 0 0 -
Accounts payable 4 0 0 0 0 -
Computer bought

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-
8
 GENERAL JOURNAL

Particulars PR Debit Credit

Dec. 1 Cash 2 0 0 0 0 0 -
V. Litton, capital 2 0 0 0 0 0 -
Initial capital

1 Rent expense 1 6 4 0 0 -
Cash 1 6 4 0 0 -
Paid rent for the month

1 Office supplies expense 1 5 5 0 0 -

Cash 1 5 5 0 0 -
Office supplies bought

1 Office equipment 8 0 0 0 0 -
Cash 4 0 0 0 0 -
Accounts payable 4 0 0 0 0 -
Computer bought

2 Professional Fees 1 2 5 0 0 -
Cash 1 2 5 0 0 -
Purchased office tables and chairs

2 Accounts Recievable 5 6 0 0 -
Cash 5 6 0 0 -
Received Cash

3 Cash 4 0 0 0 -
Light And Water Expense 4 0 0 0 -
Paid Bills

4 Accounts Recievable 3 8 0 0 0 -
Professional Fees 3 8 0 0 0 -
Services Rendered

8 Cash 2 0 0 0 0 -
Loan Payable 2 0 0 0 0 -
Borrowed Money

10 Note Payable 1 2 0 0 0 -
Cash 1 2 0 0 0 -
Services Rendered

15 Salaries Expense 1 6 5 0 0 -
Cash 1 6 5 0 0 -
Paid Salaries

15 V. Litton, Drawing 1 0 0 0 0 -
Cash 1 0 0 0 0 -
Personal Use

18 Furnitures and Fixtures 1 5 0 0 0 -

Capital 1 5 0 0 0 -
Bought Filing

20 Cash 3 2 0 0 0 -
Note Payable 3 2 0 0 0 -
Copying Machine Bought

31 Taxes And License Expense 3 0 0 0 -

Cash 3 0 0 0 -
Paid of License

31 Salaries Expense 1 4 2 5 0 -
Cash 1 4 2 5 0 -
 Salaries of Employees

31 Accounts Recievable 4 0 0 0 -
Cash 4 0 0 0 -
Paid of Leeman

31 Professional Fees 1 2 8 0 0 -
Accounts payable 1 2 8 0 0 -
Partial Collection