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As at Dec 31, 2018, the accounting records Goma Cabano (GMA-CBN 5 Ads) contained the following balances: Liability and Owner's Equity Accounts Payable Assets Cash P34,000 P180,000 Accounts Receivable 110,000 90,000 380,000 Land Total Cabano, Capital Total 346,000 380,000 The following accounting events apply to 2019: Jan 1. Received P100,000 additional cash investment from the owner. Jan 1. Purchased a service vehicle that cost P80,000 for cash. The vehicle has an P8,000 salvage value and a 3-yr useful life. Feb 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-y: term. Feb 1 Paid P24,000 cash in advance for a 1-year rent for office space. Mar 1 Cabano withdrew P30,000 for emergency personal use. April 1 Acquired land that cost P70,000 cash

As at Dec 31, 2018, the accounting records Goma Cabano (GMA-CBN 5 Ads) contained the following balances: Liability and Owner's Equity Accounts Payable Assets Cash P34,000 P180,000 Accounts Receivable 110,000 90,000 380,000 Land Total Cabano, Capital Total 346,000 380,000 The following accounting events apply to 2019: Jan 1. Received P100,000 additional cash investment from the owner. Jan 1. Purchased a service vehicle that cost P80,000 for cash. The vehicle has an P8,000 salvage value and a 3-yr useful life. Feb 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-y: term. Feb 1 Paid P24,000 cash in advance for a 1-year rent for office space. Mar 1 Cabano withdrew P30,000 for emergency personal use. April 1 Acquired land that cost P70,000 cash

FINANCIAL ACCOUNTING
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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Prepare a journal entry.

• 1 ·1• j · 2• 1 • 3• 1 · 4. 1·5• 1 • 6. 7.1. 8. 1. 9:1 • 10. 1 11. 1 ·12. 1 13. 1 14: 1 15. 1· 16. 17. 1 18. As at Dec 31, 2018, the accounting records Goma Cabano (GMA-CBN 5 Ads) contained the following balances: Liability and Owner's Equity Accounts Payable Assets Cash P34,000 P180,000 Accounts Receivable 110,000 90,000 380,000 Land Cabano, Capital Total 346,000 380,000 Total The following accounting events apply to 2019: Jan 1. Received P100,000 additional cash investment from the owner. Jan 1. Purchased a service vehicle that cost P80,000 for cash. The vehicle has an P8,000 salvage value and a 3-yr useful life. Feb 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-yr term. Feb 1 Paid P24,000 cash in advance for a 1-year rent for office space. Mar 1 Cabano withdrew P30,000 for emergency personal use. April 1 Acquired land that cost P70,000 cash May 1 May a cash payment on accounts payable amounting to P15,000. July 1 Received P42,000 cash in advance as retainer for services to be performed monthly over the next 12 months. Oct 1 Purchased P20,000 of supplies on account. Dec 31 Total eaned service revenues (on account) for the year, P250,000 Dec 31 Total cash collections from accounts receivable amounted to P200,000. Dec 31 Incurred other operating expenses on account during the year that amounted to P80,000. Dec 31 Accrued salaries amounted to P32,000. Dec 31 P1,000 of supplies remained on hand at the end of the period.
Transcribed Image Text:• 1 ·1• j · 2• 1 • 3• 1 · 4. 1·5• 1 • 6. 7.1. 8. 1. 9:1 • 10. 1 11. 1 ·12. 1 13. 1 14: 1 15. 1· 16. 17. 1 18. As at Dec 31, 2018, the accounting records Goma Cabano (GMA-CBN 5 Ads) contained the following balances: Liability and Owner's Equity Accounts Payable Assets Cash P34,000 P180,000 Accounts Receivable 110,000 90,000 380,000 Land Cabano, Capital Total 346,000 380,000 Total The following accounting events apply to 2019: Jan 1. Received P100,000 additional cash investment from the owner. Jan 1. Purchased a service vehicle that cost P80,000 for cash. The vehicle has an P8,000 salvage value and a 3-yr useful life. Feb 1 Borrowed P100,000 by issuing a note that carried a 9% annual interest rate and a 1-yr term. Feb 1 Paid P24,000 cash in advance for a 1-year rent for office space. Mar 1 Cabano withdrew P30,000 for emergency personal use. April 1 Acquired land that cost P70,000 cash May 1 May a cash payment on accounts payable amounting to P15,000. July 1 Received P42,000 cash in advance as retainer for services to be performed monthly over the next 12 months. Oct 1 Purchased P20,000 of supplies on account. Dec 31 Total eaned service revenues (on account) for the year, P250,000 Dec 31 Total cash collections from accounts receivable amounted to P200,000. Dec 31 Incurred other operating expenses on account during the year that amounted to P80,000. Dec 31 Accrued salaries amounted to P32,000. Dec 31 P1,000 of supplies remained on hand at the end of the period.
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