Problem Solving

Jerome Garcia started a new business and completed these transactions during August:

Aug 1 : Garcia invested PHP48,000 cash in the business

Aug 1: Rented office space and paid PHP 800 cash for the August rent.

Aug 3: Purchased exploration equipment for PHP22,000 by paying PHP 12,000 cash agreeing to pay the balance in 3 months.

Aug 5: Purchased office supplies by payiong PHP 1,500 cash.

Aug 6: Completed exploration work immediately collected PHP 420 cash for the work.

Aug 8: Purchased PHP 1,350 of office equipment on credit.

Aug 15: Completed exploration work on credit in the amount of PHP 8,000.

Aug 18: Purchased PHP 700 of office supplies on credit.

Aug 20: Paid cash for the office equipment purchased on August 8.

Aug 24: Billed a client PHP 2,400 for work completed: the balance is due in 30 days.

Aug 28: Received PHP 5,000 cash for the work completed on August 15.

Aug 30: Paid the assistants salary of PHP 1,100 cash for this month.

Aug 30: Paid PHP 340 cash for this months utility bill.

Aug 30: Garcia Withdraw PHP 1,050 cash from the business for personal use.

Required

1. Arrange the following asset, liabilility , and equility titles in a table: Cash: Accounts Receivable: Office Supplies: Exploration Equipment: Accounts Payable: Jerome Garcia: Capital: Jerome Garcia: Withdrawals: Revenues: and Expenses.

2. Use additions and subtractions to show the effects of each transaction on the accounts in the accounting equation. Show new balances after each transaction.