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Journalizing Service Concern Transactions Mr. Henry labasan is engaged in a Rent-A-Car business to cater tourists who are visit Tagbilaran City. His investment consisted of the following: 2 units Toyota Van - P2,000,000 Cash which he deposited with RCBC, P50,000               Chart of Accounts Assets Cash in Bank Tires and Tubes Inventory Prepaid Insurance Transportation Equipment Liabilities Accounts Payable Unearned Rental Revenue Owner's Equity H. Labasan, Capital H. Labasan, Drawing Income Rental Revenue Expenses Gasoline and Oil Taxes and Licenses Commission Expense Repairs and Maintenance The following details are in the images:

Journalizing Service Concern Transactions Mr. Henry labasan is engaged in a Rent-A-Car business to cater tourists who are visit Tagbilaran City. His investment consisted of the following: 2 units Toyota Van - P2,000,000 Cash which he deposited with RCBC, P50,000               Chart of Accounts Assets Cash in Bank Tires and Tubes Inventory Prepaid Insurance Transportation Equipment Liabilities Accounts Payable Unearned Rental Revenue Owner's Equity H. Labasan, Capital H. Labasan, Drawing Income Rental Revenue Expenses Gasoline and Oil Taxes and Licenses Commission Expense Repairs and Maintenance The following details are in the images:

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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Journalizing Service Concern Transactions

Mr. Henry labasan is engaged in a Rent-A-Car business to cater tourists who are visit Tagbilaran City. His investment consisted of the following:

2 units Toyota Van - P2,000,000

Cash which he deposited with RCBC, P50,000

              Chart of Accounts


Assets

  • Cash in Bank
  • Tires and Tubes Inventory
  • Prepaid Insurance
  • Transportation Equipment

Liabilities

  • Accounts Payable
  • Unearned Rental Revenue

    Owner's Equity
  • H. Labasan, Capital
  • H. Labasan, Drawing

Income

  • Rental Revenue

Expenses

  • Gasoline and Oil
  • Taxes and Licenses
  • Commission Expense
  • Repairs and Maintenance

The following details are in the images:

Chapter 5 - Paid gasoline and oil for cash, P1,000. 27 - Refunded the amount of P15,000 to Cebu Lions Club re-May 22 transaction Trip was cancelled. 28 - Rental revenue for the week, P27,000 broken down as follows: Cash, P20,000 On account, P7,000 29- Paid the driver's commission, PS,600. 30- Bought gasoline on account from Caltex Philippines, P1,000. 31- Paid the account with Caltex Philippines, P1,000. Collected in full the customers account of May 28- P7,000 and May 22- P15,000. Received cash of P3,000 from Cebu Employees Union for services that has to be rendered yet. Minor repair of Toyota Van, P2,500.
Transcribed Image Text:Chapter 5 - Paid gasoline and oil for cash, P1,000. 27 - Refunded the amount of P15,000 to Cebu Lions Club re-May 22 transaction Trip was cancelled. 28 - Rental revenue for the week, P27,000 broken down as follows: Cash, P20,000 On account, P7,000 29- Paid the driver's commission, PS,600. 30- Bought gasoline on account from Caltex Philippines, P1,000. 31- Paid the account with Caltex Philippines, P1,000. Collected in full the customers account of May 28- P7,000 and May 22- P15,000. Received cash of P3,000 from Cebu Employees Union for services that has to be rendered yet. Minor repair of Toyota Van, P2,500.
1- Bought gasoline and oil for the 2 units Toyota Van, P3,500 endered transportation service to varlous tourists who roamed around the ty to watch the Sandugo Festival, P20.000 Sop Raid business permits and licenses including that of the Land Transportation Office,P15,000. ental revenue for the week from tourists for visiting Panglao Beach Resort, Loboc River and Chocolate Hills, P12.000 Receved a bill from Petron Service Center for gasoline withdrawn on account, P15,000. a Paid in advance car insurance (on damaged and third party liability) P7,00 10- Bought spare tire on account from Tagbilaran Dura-Trac, PS,500. 14 Rental revenue for the week: Cash, P25,000 On account, P10,000 - Payment of the Petron Service Center bill, P15,000. 15- Paid drivers' commission for the week, P7,000. 16- Check-up of Toyota Van and replacement of exploded tire and repair of side mirror, P3,500. 17- Received a bill from Petron Service Center tor gasoline withdrawn on account, P17,500. 22- Received cash of P15,000 from Cebu Lions Club for services that has not yet been rendered. Rental revenue for the week: Cash, P12,000 On account, P15,000 Paid driver's commission, P7,000. 23 - Collected the'customer's account of May 14, P10,000 ** Paid the account of May 10 with Tagbilaran Dura Trac in the amount of P8,500. 24- Partial payment of account with Petron Service Center, P12,000. 177
Transcribed Image Text:1- Bought gasoline and oil for the 2 units Toyota Van, P3,500 endered transportation service to varlous tourists who roamed around the ty to watch the Sandugo Festival, P20.000 Sop Raid business permits and licenses including that of the Land Transportation Office,P15,000. ental revenue for the week from tourists for visiting Panglao Beach Resort, Loboc River and Chocolate Hills, P12.000 Receved a bill from Petron Service Center for gasoline withdrawn on account, P15,000. a Paid in advance car insurance (on damaged and third party liability) P7,00 10- Bought spare tire on account from Tagbilaran Dura-Trac, PS,500. 14 Rental revenue for the week: Cash, P25,000 On account, P10,000 - Payment of the Petron Service Center bill, P15,000. 15- Paid drivers' commission for the week, P7,000. 16- Check-up of Toyota Van and replacement of exploded tire and repair of side mirror, P3,500. 17- Received a bill from Petron Service Center tor gasoline withdrawn on account, P17,500. 22- Received cash of P15,000 from Cebu Lions Club for services that has not yet been rendered. Rental revenue for the week: Cash, P12,000 On account, P15,000 Paid driver's commission, P7,000. 23 - Collected the'customer's account of May 14, P10,000 ** Paid the account of May 10 with Tagbilaran Dura Trac in the amount of P8,500. 24- Partial payment of account with Petron Service Center, P12,000. 177
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