Activity 1.1 Friendly TruckingOn April 1, 2019, Nels Ferrer organized a business callèd Friendly Trucking.During April, the company entered into the following ransactions:Apr 1 Nels Ferrer deposited Php500,000 cash in a bank account in the name ofthe business.Apr 1 Purchased for Php250,000 a transportation equipment tobe use in the business. Nels páid 50% as down payment while thebalance will be paid on May5, 2019Apr 1Paid rental for the month of April, Php 5,000Apr 5Earned and collected trucking income from Ryan, Php8,000Apr 8 Earned trucking income from Jesper, Php 30,000 on account. Jesper willpay on May 8, 2019Apr 10Paid salaries ofdrivers, Php10,000Apr 15 Rented the vehicle to Joshua for Php35,000, Joshua paid Php20,000 on thatdate and the balance on April 20Paid electric bills for the month, Php2,000Apr 18Apr 20Collected from Joshua the balance of his April 15 accountApr 25Purchased office supplies, Php2,300Apr 29Earned and collected trucking income from Jay, Php18,000Instructions:a. Journalize the above transactionsb. Post to ledger using the T-account formatc. Prepare the unadjusted trial balance, as of April 30, 2019

Journals, Ledgers and Unadjusted trial Balance are important for a company's accountingFriendly Trucking Journal Entries Date Particulars Debit Credit 1-Apr Bank A/c Dr To Capital A/c (Being business started with bank deposit) 500,000 500,000 1-Apr Vehicle A/c Dr To Bank A/c To Creditor's A/c (Bought a vehicle for 50% down payment & rest for credit) 250,000 125,000125,000 1-Apr Rent A/c Dr To Bank A/c (Being rent paid) 5,000 5,000 5-Apr Bank A/c Dr To Income A/c (Income earned) 8,000 8,000 8-Apr Debtor A/c Dr To Income A/c (Service given for credit) 30,000 30,000 10-Apr Salary expense A/c Dr To Bank A/c (Being salary expenses paid) 10,000 10,000 15-Apr Bank A/c DrDebtor A/c Dr To Vehicle rental income (Rental income from vehicle earned) 20,00015,000 35,000 18-Apr Electricity expenses Dr To Bank A/c (Being electricity expenses paid) 2,000 2,000 20-Apr Bank A/c Dr To Debtors A/c (Debtors cleared their credits) 5,000 15,000 25-Apr Office supplies expenses A/c Dr To Bank A/c (being office supplies bought) 2,300 2,300 29-Apr Bank A/c Dr To Income A/c (Being income earned) 18,000 18,000Friendly Trucking Ledger Bank A/c Date Particulars Debit Date Particulars credit 1-Apr To Capital A/c 500,000 1-Apr By Vehicle A/c 125,000 5-Apr To Income A/c 8,000 1-Apr By Rent A/c 5,000 15-Apr To Vehicle rental income 20,000 10-Apr By Salary expense A/c 10,000 20-Apr To Debtors A/c 15,000 18-Apr By Electricity expenses 2,000 29-Apr To Income A/c 18,000 25-Apr By Office supplies expense 2,300 30-Apr By Balance C/d 416,700 561,000 561,000 Capital A/c Date Particulars Debit Date Particulars credit 30-Apr To Balance c/d 500,000 1-Apr By Bank A/c 500,000 500,000 500,000 Vehicle A/c Date Particulars Debit Date Particulars credit 1-Apr To Bank A/c 125,000 30-Apr By Balance C/d 250,000 1-Apr To Creditor's A/c 125,000 250,000 250,000 Creditor's A/c Date Particulars Debit Date Particulars credit 30-Apr To Balance c/d 125,000 1-Apr By Vehicle A/c 125,000 125,000 125,000 Rent A/c Date Particulars Debit Date Particulars credit 1-Apr To Bank A/c 5,000 30-Apr By Balance C/d 5,000 5,000 5,000 Income A/c Date Particulars Debit Date Particulars credit 30-Apr To Balance c/d 56,000 5-Apr By Bank A/c 8,000 8-Apr By Debtor A/c 30,000 29-Apr By Bank A/c 18,000 56,000 56,000 Debtor A/c Date Particulars Debit Date Particulars credit 8-Apr To Income A/c 30,000 20-Apr By Bank A/c 15,000 15-Apr To Vehicle rental income 15,000 30-Apr By Balance C/d 30,000 45,000 45,000 Salary Expense A/c Date Particulars Debit Date Particulars credit 10-Apr To Bank A/c 10,000 30-Apr By Balance C/d 10,000 10,000 10,000 Vehicle rental income Date Particulars Debit Date Particulars credit 30-Apr To Balance c/d 35,000 15-Apr By Bank A/c 20,000 15-Apr By Debtor A/c 15,000 35,000 35,000 Electricity Expense A/c Date Particulars Debit Date Particulars credit 18-Apr To Bank A/c 2,000 30-Apr By Balance C/d 2,000 2,000 2,000 Office supplies Expenses A/c Date Particulars Debit Date Particulars credit 25-Apr To Bank A/c 2,300 30-Apr By Balance C/d 2,300 2,300 2,300 Friendly Trucking Unadjusted Trial Balance as on April 30,2019 Trial Balance Particulars Debit Credit Bank A/c 416,700.00 Capital A/c 500,000.00 Vehicle A/c 250,000.00 Creditor's A/c 125,000.00 Rent A/c 5,000.00 Income A/c 56,000.00 Debtor A/c 30,000.00 Salary Expense A/c 10,000.00 Vehicle rental income 35,000.00 Electricity Expense A/c 2,000.00 Office supplies Expenses A/c 2,300.00 716,000.00 716,000.00

Answered: Instructions: a. Journalize the above…

Business

Accounting

Instructions: a. Journalize the above transactions b. Post to ledger using the T-account format c. Prepare the unadjusted trial balance, as of April 30, 2019

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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