BALIWAG POLYTECHNIC COLLEGE

ELECTIVE: FUNDAMENTALS OF ABM 1

MR. JOMAR V. VILLENA, CPA

PERFORMANCE TASK II
NOTE FOR ANALYSING BUSINESS TRANSACTIONS:

TRANSACTION CORRESPONDING ACCOUNT TITLE

1. Paid / Collected Cash
2. On Account / On Credit (Customer) / Accounts Receivable
Billed
3. On Account / On Credit (Supplier) Accounts Payable
4. Service Rendered / Billed Service Income or Any Revenue Account

Liz Perez opened a law office on September 3 of the current year. During the first month of operations,
the business completed the following transactions:

September 3 Perez transferred 350,000 cash from her personal bank account to a business
Account entitled Liz Perez, Attorney.
4 Purchased supplies 2,000 and furniture 18,000 on account.
5 Paid one-year rent in advance 12,000.
6 Performed legal services for a client and received 10,000 cash.
7 Paid 150,000 cash to acquire land for future office site.
10 Defended a client in court, billed the client for 6,000.
14 Paid for the furniture purchased September 4 on account.
15 Paid secretary salaries 6,000
16 Paid the telephone bill 1,200
17 Received partial payment from a client on account 5,000
18 Prepared legal documents for a client on account 8,000.
24 Paid the water and electricity bills 1,100
28 Received 15,000 cash for helping a client to defend drug case.
30 Paid secretary salaries 6,000
30 Withdrew 24,000 for personal use.

Use the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Rent, Furniture, Land,
Accounts Payable, Liz Capital, Liz Drawings, Service Revenue, Salary expense and Utilities Expense.

1. Journalizing the business transaction

DATE ACCOUNT DEBIT CREDIT

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BALIWAG POLYTECHNIC COLLEGE
ELECTIVE: FUNDAMENTALS OF ABM 1
MR. JOMAR V. VILLENA, CPA

2. Posting to the Ledger

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BALIWAG POLYTECHNIC COLLEGE
ELECTIVE: FUNDAMENTALS OF ABM 1
MR. JOMAR V. VILLENA, CPA

3. Preparation of Trial Balance

Account Debit Credit

Total

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