A Closer Look on Fundamentals Accounting 191 Problem 6: Michelle Co. its operation in 2030. The following transactions and events occurred during the year: 1. Michelle invested P1,500,000 cash to the business. 2. Borrowed 12%, one year loan amounting to P1,000,000 on September 1, 2030. The principal received and interest are due upon maturity. 3. Purchased supplies amounting to P14,000 on account. 4. Purchased equipment on February 1, 2030 for P500,000 cash. 5. Rendered services on account, P260,000 6. Paid utilities amounting to P32,000 7. Paid salaries of employees, P82,000 8. Rendered services for cash P110,000 9. Michelle withdrew P40,000 cash for personal use. 10. Paid P8,000 supplies previously acquired on account. 11. Collected P140,000 accounts receivable Additional information: a. Unpaid salaries P16,000 b. The equipment has a useful life of 8 years c. Unused supplied at year end per physical count amounted to P400. Required: Prepare the following: a. Journal entries b. Posting to ledger c. Unadjusted trial balance

A Closer Look on Fundamentals Accounting 191 Problem 6: Michelle Co. its operation in 2030. The following transactions and events occurred during the year: 1. Michelle invested P1,500,000 cash to the business. 2. Borrowed 12%, one year loan amounting to P1,000,000 on September 1, 2030. The principal received and interest are due upon maturity. 3. Purchased supplies amounting to P14,000 on account. 4. Purchased equipment on February 1, 2030 for P500,000 cash. 5. Rendered services on account, P260,000 6. Paid utilities amounting to P32,000 7. Paid salaries of employees, P82,000 8. Rendered services for cash P110,000 9. Michelle withdrew P40,000 cash for personal use. 10. Paid P8,000 supplies previously acquired on account. 11. Collected P140,000 accounts receivable Additional information: a. Unpaid salaries P16,000 b. The equipment has a useful life of 8 years c. Unused supplied at year end per physical count amounted to P400. Required: Prepare the following: a. Journal entries b. Posting to ledger c. Unadjusted trial balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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