Transcribed Image Text:Haydee Carpio opened a beach resort called Blue Lagoon in Nasugbu, Batangas by
investing cash of P100,000, furniture and fixtures of P20,000 and office equipment of P50,000 on
April 1. She signed a contract of lease to use the property of her aunt for ten years promising to
pay a monthly rental of P25,000. The following are the additional transactions for April:
Paid cash for the purchase of advertising billboards, P15,000.
Paid P75,000 for the construction of 5 cottages, 10 huts and an office. Issued a note payable
for P50,000 within 30 days. (Use the title Leasehold Improvement)
Total cash receipts for the week, P150,000
Sublet part of the property for the operation of a small canteen at a monthly fee of P10,000.
Billed Fortune Company for use of resort, P28,000. A 50% down payment was required.
20 Paid P50,000 for the note.
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25 Summary of cash receipts totalled P130,000.
26 Utility bills paid amounted to P18,000.
Fortune Company paid its account in full.
Total cash receipts amounted to P122,500 including the rental fee for 15 days from the
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canteen.
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Paid for salaries of clerks and helpers, P82,000.
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Paid for the monthly rental of the property.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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