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 ======
