Journalizing Transactions
The chart of accounts for Callista Delivery Service is as
follows
PR Assets
110 Cash
120 AccountsReceivable
130 Prepaid Insurance
140 Service Vehicle
150 Office Equipment
Liabilities
210 Accounts Payable
Owner's Equity
310 Callista, Capital
320 Callista,Withdrawals
Income
410 Delivery Revenues
Expenses
510 Salaries Expense
520 Gas and Oil Expense
530 Repair Expense
540 Advertising Expense
550 Supplies Expense
590 Miscellaneous Expense
The entity completed the following transactions in May
2020:
May 1 Callista started the business by investing P500,000
cash
3 Placed four week-end advertisements in the Sun Daily
Central Luzon for P18,500; the amount is due in 30 days.
6 Bought supplies on account from Supplies, Inc.,
P8,800.
15 Callista invested in the business own office equipment
with a fair market value of P52,500.
16 Billed the customer P100,000 for services performed
17 Received P61,800 from charge customers to apply on
their accounts.
22 Received a bill front Park Trucking for repair services
performed, P8,500.
26 Paid Supplies, Inc., P8,800 in full payment of account.
29 Paid salaries to employees, P21,000.
30 Received P39,000 for services performed.
31 Received and paid gasoline and oil bill relating to the
service vehicle, P12,500.
31 Billed South China Bank for services performed,
P45,000.
31 Callista withdrew cash for personal use, P14,500.
Required:
Prepare the journal entries for the May transactions.
DATE
Account Title and Description
P.R. Debit
Credit
Aerys Targaryen, a dentist, established Aerys Clinic, The
following transactions occurred during June of this year
a. Aerys deposited P280,000 in a bank account in the
name of the business.
b. Bought a 3-in-1 office equipment from Pitular
Equipment for P4,950, paying P1,000 in cash and the
balance on account.
c. Bought waiting room chairs and a table, paying cash,
P12,300.
d. Bought office intercom from NE Office Supply, P2,750.
e. Received and paid the telephone bill, P1,080.
f. Performed professional services on account, P12,940.
g. Received the electric bill, P1,850.
h. Received and paid the bill for the Regional Dental
Convention, P3,500.
i. Paid the electric bill
j. Performed professional services for cash, P17,650.
k. Partially settled accounts with NE Office Supply,
P1,000.
l. Paid rent for the month, P8,400.
m.
Paid salaries of the part-time receptionist, P3,500.
n. Dalangin withdrew cash for personal use, P8,500.
o. Received P5,500 on account from patients who were
previously billed.
Required:
Prepare the journal entry using the following chart of
accounts: Cash; Accounts Receivable; Office Equipment;
Office Furniture; Accounts Payable; Aerys, Capital; Aerys,
Withdrawals; Professional Fees; Salaries Expense; Rent
Expense; Utilities Expense and Miscellaneous Expense.
DATE
Account Title and Description
P.R. Debit
Credit
Java Review School entered into the following transactions
during October 2019:
1
Java made additional investments of P50,000 in the
business. I
2
bought liability insurance for one year, P14,500.
3
Received a bill for advertising from South Min News,
P3,200.
4
Paid rent for the month, P8,900,
7
Received a bill for equipment repair from E. Hipolito,
P2,880.
10 Received and deposited tuition from students,
P62,500.
11 Received and paid the telephone bill, P2,300.
15 Bought chairs from E. Awayan Furniture, P18,800,
paying P8,800 in cash and the balance on account.
18 Paid accounts to South Min News, P3,200.
21 Java withdrew P8,000 for personal use.
24 Received a bill for gas and oil from Mindanao Oil Corp.,
P1,800.
25 Received and deposited tuition from students, P61,400.
27 Paid salaries of the office assistants, P12,000. 28
Bought a photocopier on account from Dadiangas Office
Machines, P7,500.
29 Received P7,000 tuition from a student who had
charged the tuition on account last month.
30 Received and paid the water utilities bill, P3,600.
31 Paid for flower arrangements for front office, P620.
31 Java invested personal computer, with a fair market
value of P12,300, in the business.
Required: Prepare the journal entries for the October
transactions.
Use the following accounts: Cash; Accounts Receivable;
Prepaid Insurance; Equipment; Furniture; Accounts Payable;
Java, Capital; Java, Withdrawals; School Fees; Salaries
Expense; Rent Expense; Gas and Oil expense; Advertising
Expense; Repair Expense; Supplies Expense; Utilities
Expense; Telecommunications Expense and Miscellaneous
Expense.
DATE
Account Title and Description
P.R. Debit
Credit