Problem:

Rachelle has started her own business, Property Appraisals. She inspects property for buyers and
sellers of real estate. Rachelle rents office space and has a part-time assistant to answer the phone
and to help with inspections. The transactions for the month of September are as follows:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.

Rachelle invested cash by making a deposit in a bank account for the business, P 150,000.
Paid rent for the month, P 3,000.
Bought a second-hand service vehicle for cash, P 80,000.
Bought service tools on account, P 30,000.
Paid electricity bill, P 500.
Paid a one-year insurance premium on the service vehicle, P 6,000.
Received cash from clients for service performed, P 20,000.
Paid salaries to assistant for first half of the month, P 2,000.
Performed appraisal services for clients on account, P 10,000.
Paid water bill, P 350.
Bought office supplies for cash, P 1,000.
Received cash from clients for inspections performed on account in (i), P 3,000.
Paid salaries to assistant for last half month, P 2,500.
Made partial payment on service tools bought in (d), P 10,000.
Additional revenues earned amounted to P 20,000: P 14,000 for cash and P 6,000 on
account.
p. Rachelle withdrew cash for personal expenses, P 5,000.
Required:
1. Establish the following accounts in a financial transaction worksheet:
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Service Tools
Service Vehicle

Accounts, Payable
Rachelle, Capital
Rachelle, Withdrawals
Revenues
Expenses

2. Compute the ending balances for all accounts.