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Accounting for Graphic Designers

1) Emerita Modesto established a sole proprietorship graphic design business called Modesto Graphics Design. 2) On March 11, 2020, Modesto deposited $350,000 into a bank account for Modesto Graphics Design to start the new business. 3) Accountants record business transactions that affect financial position and can be reliably measured in financial terms.

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Shoyo Hinata
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498 views1 page

Accounting for Graphic Designers

1) Emerita Modesto established a sole proprietorship graphic design business called Modesto Graphics Design. 2) On March 11, 2020, Modesto deposited $350,000 into a bank account for Modesto Graphics Design to start the new business. 3) Accountants record business transactions that affect financial position and can be reliably measured in financial terms.

Uploaded by

Shoyo Hinata
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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uITu t E

e
Entry
Entry System
m |79
Systen 79

ACCOUNTING FOR BUSINESS TRANSACTIONS


Accountants observe many events that
they
business transaction is the occurrence of an identify
and measure in financial terms. A
event or a coudition that affects
position and can bereliably recorded. financial
Financial Transaction Worksheet
Every financial transaction can be analyzed or
accounting equation. The financial transactions expressed
in terms of its effects on the
will be analyzed by means of a financial
transaction worksheet which is a form used to
assets, liabilities or owner's equity of a
analyze increases and decreases in the
business entity.
llustration. Emerita Modesto decided to establish a sole
named it as Modesto Graphics proprietorship business and
Design. Modesto is a graphic designer who has
extensive experience in drawing,
layout, typography, lettering,
photography. She possesses the talent to visually communicate to diagramming
and
a target audience
with the right combination of words,
images and ideas.
Modesto Graphics Design do the
can layout and production design of newspapers,
magazines, corporate reports, journals and other publications. The
entity can create
promotional displays; marketing brochures for services and products;
for products; and distinctive logos for businesses. She packaging design
also enters into agreements with
clients for the progressive development and maintenance of their
web sites. Her initial
revenue stream comes from web
designing.
The owner, Emerita Modesto, makes the business decisions. The
assets of the company
belong to Modesto and all obligations of the business are her
responsibility. Any
income that the entity earns belongs solely to Modesto.

When a specific asset, liability owner's


or
equity item is created by a financial
transaction, listed
it is in the financial transaction worksheet using the appropriate
accounts. The worksheet that follows shows the first transaction of the Modesto
oraphics Design. The dates are enclosed in parentheses.
During March 2020, the first month of operations, various financial transactions took
place. These transactions are described and
analyzed as follows:
Mar. 11 Modesto started her new business by
depositing P350,000 in a bank account
in the name of Modesto Graphics Design at BPI Poblacion Branch.

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