ASSETS Date Cash Accounts Receivable Supplies Prepaid Insurance Furniture & Fixtures Office Equipment

LIABILITIES Accounts Payable

OWNERS EQUITY L.Tersena, Capital Type of Owners Equity Transaction

1 2 5 7 8 9 12 13 15 16 17 18 19 20 21 24 25 26 31

26,350

14,145

8,000

36,200

22,155 5,000

62,540

Sole Proprietorship

22,600 3,700 2,400 4,500 3,400 10,500 24,750

2,400 8,300 25,000 2,900 22, 500 800 30, 000

Leticia Tersena is the owner of a sole proprietorship called LETERS Typing & Stenographic Services. As of July 1, 2011, Leticia owned the following property related to the business: Cash P 26,350 Office Equipment P 36,200 Accounts Receivables 14,145 Accounts Payable 22,155 Furniture & Fixtures 8,000 L.Tersena, Capital 62,540 The following transactions were completed by the business during the month of July:

July

2 5 7 8 9 12 13 15 16 18 19 20 21 24 25 26 31

Paid rent for March, P5,000 Received P22,600 from various customers for typing services rendered Purchased supplies on account, P3,700 Ordered additional typewriter tables, P2,400 Paid part-time assistants for their services for 2 weeks, P4,500 Made a payment on account, P3,400 Received payments from customers on account, P10,500 Billed customers who had not yet paid for this months services, P24,750 Paid supplies purchased on July 7 Paid the typewriter tables ordered for cash, P2,400 Purchased a cell phone for her husband, P8,300 Contributed a computer as additional office equipment, P25,000 Paid the electric bill for the month, P2,900 Paid part-time assistants for their services for 2 weeks, P4,500 Received payment for a months service from customers previously billed, P22,500 Received a bill from a radio station for advertising, P800 Paid a half-year insurance policy effective August 1, 2011, P30,000

a. State the assets, liabilities, and capital as of July 31 in equation form as shown below b. Record, in tabular form below the equation, the increases and decreases resulting from each transaction. Explain the nature of each increase and decrease in capital by an appropriate notation at the right of the amount c. Prepare an income statement, a balance sheet, a statement of changes in owners equity and a statement of cash flows