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A. Invested Cash in The Business, P 60,000

Neil Saletrero started his industrial spray service business in April 2012, during which he invested cash, purchased equipment and a vehicle, received payment for services, paid expenses like rent and salaries, and withdrew cash for personal use. The document provides details of the various cash receipts and payments as well as non-cash transactions undertaken by Saletrero's new business during its first month of operations.

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Mark Domingo Mendoza
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2K views

A. Invested Cash in The Business, P 60,000

Neil Saletrero started his industrial spray service business in April 2012, during which he invested cash, purchased equipment and a vehicle, received payment for services, paid expenses like rent and salaries, and withdrew cash for personal use. The document provides details of the various cash receipts and payments as well as non-cash transactions undertaken by Saletrero's new business during its first month of operations.

Uploaded by

Mark Domingo Mendoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Neil Saletrero started Salterero Industrial Spray Service on April 1, 2012.

During April, salterero completed the


following transactions:

a. Invested cash in the business, P 60,000.


b. Bought a service vehicle from Cebu Motors for 112,500, paying 22,500 in a.
cash, with remainder due in thirty days.
c. Bought spray equipment on account from San Jose Company, 18,000.
d. Paid rent for the month, 5,000. b.
e. Paid cash for insurance on service vehicle for the year, 5,760.
f. Received cash for spray services done on a building, 21,750.
g. Bought supplies for cash, 5,730.
h. Billed customers on account for services performed, 4,440. c.
j. Received bill for gasoline used by the service vehicle during the month, 3,270.
k. Receipts from cash customers, 16,420.
l. Saletrero withdrew cash for personal use, 10,500. d.
m. Paid salaries to employees, 20,400.

e.

f.

g.

h.

j.

k.

l.

m.
NORMAL SIDE NORMAL SIDE
ASSETS DEBIT EXPENSES DEBIT
LIABILITIES CREDIT INCOME CREDIT
CAPITAL CREDIT

Dr Cr Debit Credit ASSETS


Cash 60,000.00 Cash
Saltrero, Capital 60,000.00 Accounts Receivable
Notes Receivable
Service Vehicle 112,500.00 Inventory
Cash 22,500.00 Prepaid assets
Accounts Payable 90,000.00 Land
Building
Spray Equipment 18,000.00 Machinery
Accounts Payable 18,000.00 Furnitures and Fixtures
Equipment
Saltrero, Capital 5,000.00
Cash 5,000.00

Prepaid Insurance 5,760.00


Cash 5,760.00

Cash 21,750.00
Saltrero, Capital 21,750.00

Supplies 5,730.00
Cash 5,730.00

Accounts Receivable 4,440.00


Saltrero, Capital 4,440.00

Saltrero, Capital 3,270.00


Accounts Payable 3,270.00

Cash 16,420.00
Saltrero, Capital 16,420.00

Saltrero, Capital 10,500.00


Cash 10,500.00

Saltrero, Capital 20,400.00


Cash 20,400.00
LIABILITIES EXPENSES
Accounts PayableUtilities expense
Notes Payable Rent expense
Loans Payable Transportion expense
Mortgage PayableSalaries
Accruals Wages
Insurance expense
OWNER'S EQUITY/CAPITAL
Owner's Capital INCOME
Service Revenue
Service Income
Sales

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