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Cathrina P. Mallari BSA 1-Y- Mabel Wong began a professional practice as system analyst on July 1. She plans to prepare as monthly financial statements. During July the owner completed these transactions: 1 Owner invested P50, 000 cash along with furniture and fixtures that had a P20, 000 market value two years ago but was now worth P10, 000 only. Cash 50, Furniture and Fixtures 10, Wong, Capital 60, 2 Paid P25, 000 cash for July rent (including P500 water bill) of a fully furnished office space at the Madrigal Building. Rent Expense 24, Utility Expense 500 Cash 25, 4 Purchased P120, 000 worth of state of the art equipment on credit for thirty monthly installment payments. Equipment 120, Accounts Payable 120, 6 Purchased office supplies for cash, P2, 500. Office supply 2, Cash 2, 8 Completed work for a client and immediately collected the P32, 000 cash earned. Cash 32, Service Income 32,
10 Completed work for a client and sent a bill for P27, 000 to be paid within thirty days. Account Receivable 27, Service Income 27, 15 Paid an assistant P6, 200 cash as wages for 15 days. Salaries Expense 6, Cash 6, 18 Collected P15, 000 cash on the amount owed by the client. Cash 15, Account Receivable 15, 25 Completed work for another client who paid only P40, 000 or 40% of the total computerized system. The client promised to pay the balance in thirty days. Cash 40, Account Receivable 60, Service Income 100, 28 Owner withdrew P5, 000 cash for personal use. Withdrawals 5, Cash 5, 28 Paid the first installment to settle the liability on the equipment purchased. Accounts Payable 4, Cash 4, 30 Paid salary of assistant. Salaries Expense 6, Cash 6, 31 Received PLDT bill, P1, 800 and Meralco bill, P3, 800. Utilities Expense 5, Utilities Payable 5,
Journal Page 1 Date Description Debit Credit Jul 1 Cash P50, 000 Furniture and Fixtures 10, 000 Capital P60, 000 Owner invested cash along with furniture and fixture. 2 Rent Expense 24, Utility Expense 500 Cash 25, 000 Paid cash for July rent and water bill of the office space. 4 Art Equipment 120, 000 Art Equipment Payable 120, 000 Purchased art equipment on credit for thirty monthly instalment payments. 6 Office Supplies 2, 500 Cash 2, 500 Purchased office supplies for cash. 8 Cash 32, 000 Revenue 32, 000 Completed work for a client and collected the cash earned. 10 Account Receivable 27, 000 Revenue 27, 000 Completed work for a client to be paid within thirty days. 15 Salary Expense 6, 200 Cash 6, 200 Paid an assistant cash as wage for 15 days.
Journal Page 2 Date Description Debit Credit 18 Cash 15, 000 Account Receivable 15, 000 Collected cash on the amount owed by the client. 25 Cash 40, 000 Account Receivable 60, 000 Revenue 100, 000 Completed work for another client who paid 40% of the total computerized system. The client promised to pay the balance in thirty days. 28 Withdrawal 5, 000 Cash 5, 000 Owner withdrew cash for personal use. 28 Art Equipment Payable 4, 000 Cash 4, 000 Paid the first instalment to settle the liability on equipment purchased. 30 Salaries Expense 6, 200 Cash 6, 200 Paid salary of assistant. 31 Utilities Expense 5, 600 Utilities Payable 5, 600 Received PLDT and Meralco bill. Supplies Expense 2, 000 Supplies 2, 000 Used the supplies. ___________ __________ Total: P410, 500 P410, 500
