In June 20X1. Fred Placement Agency had the following transactions: June 1 Fred invested P60,000 in the new placement agency. Bought equipment for cash, P3,500. Earned placement fee commission of P21,000 but payment from Aaron Co. will not be received until July. 2 3 5 Paid wages expense, P4,000. 7 Fred paid his home utility bill from the company checkbook, P690. 9 Placed Joe Diaz on a national TV show, receiving P9,000 cash. 15 Paid cash for supplies, P3,500. 28 Telephone bill received but not paid, P1,850. 29 Advertising bill received but not paid, P2,000. The chart of accounts includes Cash, 111; Accounts Receivable, 112; Supplies, 131; Equipment, 141; Accounts Payable, 211; A. Fred, Capital, 311; A. Fred, Withdrawals, 312; Placement Fees Earned, 411; Wage Expense, 511; Telephone Expense, 521; and Advertising Expense, 531. Required: 1. Record the above transactions in the general journal. 2. Set up the general ledger based on the chart of accounts and post the entries from the general journal. Determine the ending balance of each account. 3. Prepare the trial balance as of June 30, 20X1.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In June 20X1. Fred Placement Agency had the following transactions:
June 1 Fred invested P60,000 in the new placement agency.
Bought equipment for cash, P3,500.
Earned placement fee commission of P21,000 but payment
from Aaron Co. will not be received until July.
2
3
Paid wages expense, P4,000.
7
Fred paid his home utility bill from the company checkbook,
P690.
5
9 Placed Joe Diaz on a national TV show, receiving P9,000
cash.
15
Paid cash for supplies, P3,500.
28 Telephone bill received but not paid, P1,850.
29 Advertising bill received but not paid, P2,000.
The chart of accounts includes Cash, 111; Accounts Receivable, 112;
Supplies, 131; Equipment, 141; Accounts Payable, 211; A. Fred,
Capital, 311; A. Fred, Withdrawals, 312; Placement Fees Earned, 411;
Wage Expense, 511; Telephone Expense, 521; and Advertising
Expense, 531.
Required:
1. Record the above transactions in the general journal.
2.
Set up the general ledger based on the chart of accounts and
post the entries from the general journal. Determine the ending
balance of each account.
3. Prepare the trial balance as of June 30, 20X1.
Transcribed Image Text:In June 20X1. Fred Placement Agency had the following transactions: June 1 Fred invested P60,000 in the new placement agency. Bought equipment for cash, P3,500. Earned placement fee commission of P21,000 but payment from Aaron Co. will not be received until July. 2 3 Paid wages expense, P4,000. 7 Fred paid his home utility bill from the company checkbook, P690. 5 9 Placed Joe Diaz on a national TV show, receiving P9,000 cash. 15 Paid cash for supplies, P3,500. 28 Telephone bill received but not paid, P1,850. 29 Advertising bill received but not paid, P2,000. The chart of accounts includes Cash, 111; Accounts Receivable, 112; Supplies, 131; Equipment, 141; Accounts Payable, 211; A. Fred, Capital, 311; A. Fred, Withdrawals, 312; Placement Fees Earned, 411; Wage Expense, 511; Telephone Expense, 521; and Advertising Expense, 531. Required: 1. Record the above transactions in the general journal. 2. Set up the general ledger based on the chart of accounts and post the entries from the general journal. Determine the ending balance of each account. 3. Prepare the trial balance as of June 30, 20X1.
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