The document provides transaction details for a hair salon over its first month of operation including purchases, services rendered, cash receipts and payments. T-accounts are to be plotted for various expense, revenue and equity accounts for the salon business.
The document provides transaction details for a hair salon over its first month of operation including purchases, services rendered, cash receipts and payments. T-accounts are to be plotted for various expense, revenue and equity accounts for the salon business.
The document provides transaction details for a hair salon over its first month of operation including purchases, services rendered, cash receipts and payments. T-accounts are to be plotted for various expense, revenue and equity accounts for the salon business.
The document provides transaction details for a hair salon over its first month of operation including purchases, services rendered, cash receipts and payments. T-accounts are to be plotted for various expense, revenue and equity accounts for the salon business.
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Date Performed: ________________________ Instructor’s Signature: ________
Date Checked: __________________________ Date Returned: ______________
Score: ____________
Exercise 1
On July1 1, 2016, Mr. Jan Jacob C. Solon opened the Hubbies Hair and Beauty Salon. The following transactions took place during the first month of operation:
July 1 - Php 200,000.00 was invested by the owner.
- Paid installation of utilities, Php 7,200.00 2 - Paid business permits and licenses to the government, Php 3,500.00 - Paid advance rent for the salon space, Php 10,000.00 3 - Purchased equipment on account amounting to Php 85,000.00 - Purchases salon supplies in cash, Php 25,000.00 5 - Served various customers and received cash, Php 9,600.00 7 - Rendered services, Php 12,000.00 and only 9,000 cash was received. The rest was on account. 10 - Received cash, Php 8,200.00 from various customers. 13 - Received Php 23,500.00 cash from various customers while Php 2,400.00 worth of services were still receivables. 15 - Paid salaries of salon assistants, Php 7,600.00 18 - Received cash for services rendered, Php 14,100.00 21 - Received and paid bill on utilities, Php 2,200.00 23 - Received cash of Php 7,500.00 from various customers. 28 - Collected 50% of the account on July 7, 2016. 29 - Received cash for services rendered, Php 10,200.00 30 - Collected the account on July 13. 31 - Withdrew Php 10,000.00 cash for personal use. - Paid salaries of assistants, Php 7,600.00 Instructions: Plot the transactions in the t-accounts using the following account titles:
a. Cash on Hand b. Accounts Receivable c. Salon Supplies d. Prepaid Rent e. Salon Equipment f. Accounts Payable g. Solon, Capital h. Solon, Withdrawal i. Salon Services Revenue j. Permits and Licenses k. Utilities Expense l. Salaries Expense Cash on hand
