Reference no: EM132725474
Question - E. Detoya, tax consultant, began his practice on Dec 1, 2020. The transaction of the firm are as follows:
Dec 1 - Invested P150,000 cash in the firm.
Dec 2 - Paid rent for December to Recoletos Realty, P8,000.
Dec 2 - Purchased supplies on account, P7,200.
Dec 3 - Acquired P75,000 office equipment, paying P37,000 down with the balance due in 30 days.
Dec 8 - Paid P7,200 on account for supplies purchased.
Dec 14 - Paid assistant's salaries for 2 weeks, P6,000
Dec 20 - Performed consulting services for cash, P20,000
Dec 28 - Paid assistants salaries for 2 weeks, P6,000
Dec 30 - Billed clients for December consulting services - P48,000
Dec 31 - Detoya withdrew P12,000 from the business.
Dec 31- Supplies on Hand at Dec 31 amounted to P4,700.
Dec 31 - Salaries of P1,800 have accrued at month-end.
Dec 31- Depreciation of P800 for December.
Dec 31 - Detoya spent 20 hours on a tax fraud case during December. His work will be billed at P500 per hour.
Required -
1. What is the carrying or net book value of Equipment appearing on the Statement of Financial Position?
2. What is the balance of supplies appearing on the Statement of Financial Position?
3. What is the balance of salaries payable appearing on the Statement of Financial Position?
4. What is the balance of the adjusted trial balance?
5. What is the balance of salaries expense after the posting of closing entries?