Asuncion Alcala, to be able to guide the accountancy students in their pursuits for CPA glory,...

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Asuncion Alcala, to be able to guide the accountancy students in their pursuits for CPA glory, established the AA Tutorial Services. On May 1, 2020, she contributed P70,000 as investment to start the business. During the month, she entered into several transactions. Note that she made no withdrawals during the month. The following is the transaction worksheet prepared by her student-assistant: Cash 1. 2. 3. 4. 5. 6. 7. 8. 9. +70,000 -45,000 -5,000 +7,000 -10,000 +15,000 -7,000 + Accounts + Receivable +18,000 -15,000 Office Equipment +45,000 +30,000 = Accounts + Payable +10,000 -10,000 Notes Payable +20,000 + Alcala, Capital +70,000 +18,000 -5,000 +7,000 -7,000 Required: 1. Describe each of the above transactions 2. If these transactions represent the operations of AA Tutorial Services during the month of May, what was the amount of profit or loss before depreciation? Asuncion Alcala, to be able to guide the accountancy students in their pursuits for CPA glory, established the AA Tutorial Services. On May 1, 2020, she contributed P70,000 as investment to start the business. During the month, she entered into several transactions. Note that she made no withdrawals during the month. The following is the transaction worksheet prepared by her student-assistant: Cash 1. 2. 3. 4. 5. 6. 7. 8. 9. +70,000 -45,000 -5,000 +7,000 -10,000 +15,000 -7,000 + Accounts + Receivable +18,000 -15,000 Office Equipment +45,000 +30,000 = Accounts + Payable +10,000 -10,000 Notes Payable +20,000 + Alcala, Capital +70,000 +18,000 -5,000 +7,000 -7,000 Required: 1. Describe each of the above transactions 2. If these transactions represent the operations of AA Tutorial Services during the month of May, what was the amount of profit or loss before depreciation?

Answer rating: 100% (QA)

1 Description of each transaction 1 Asuncion Alcala contributed P70000 as an investment to start AA ... View the full answer