Question

Direction: Design your own financial transaction worksheet and indicate the effect of each transaction below using the balance sheet equation. After each transaction is properly recorded, compute new subtotals for the Assets, Liabilities, and Owner’s Equity.
Studio Co

Nikkita Co, a veteran photographer, opened a studio for her professional practice on July 1 Transactions completed during the month follows:

July

1

-

Deposited P146, 200 in a bank account in the name of the business, Studio Co



2

-

Bought new photography equipment on account from Canon, Equipment, P71, 210



3

-

Invested personal photography equipment into business, P51,620.



7

-

Paid office rent for the month, P5,500



8

-

Bought photography supplies for cash, P7, 960.



15

-

Paid premium for insurance cover on photography equipment, P1, 240



16

-

Received P8,960 as professional fees for services rendered.



20

-

Paid salary of part-time assistant, P6,000



21

-

Received and paid bill for telephone service, P640



24

-

Paid Canon Equipment part of the amount owed on the purchase of photography equipment, P4,200



26

-

Received P15,480 as professional fees for service rendered



29

-

Paid for minor repairs to photography equipment, P760



31

-

Co withdrew cash for personal use, P9,600

Answer 1

Answer: What's going on.

What accounts are affected.

How are they affected

Does the balance sheet balance.

Does the analysis make sense

Explanation: