MANAGEMENT DEPARTMENT, FACULTY PROBLEM On January 1 of the current year, Juan David opened the " J.D Men's Wear Shop", and during the month, the following transactions were completed: Jan. 1 Juan David invested cash P 80,000 in the business. He bought two sewing machines amounting P 30,000 each from Patio Merchandising, the he gave P15,000 down and the balance is payable within 60 days. 1 1 Paid a three month rental of the shop, P30,000. This was charged to prepaid Rent account. 1 Paid a one year insurance policy, P 5,700. Bought sewing tools P 5,900 and sewing supplies P 2,700 from Jomar Trading on credit. Received P 1,200 from customer for a short delivered. Billed to Maricris Acosta, P 5,000 for two-pair of pants and polo barong 7 delivered. 10 Purchased clothing materials from Baclaran Market and paid P 15,000 cash. 13 Received P 12,500 from various customers for pants and barong made and delivered. 14 Gave Patio Merchandising P 15,000 and issued a 60-day, 6% note for the balance. 15 Paid the wages of the shop helper, P 2,500. Juan David withdrew P 5,000 for his personal use. 17 18 M. Acosta gave P 2,000 as partial payment of his account. Received P 14,750 from various customers pants and shirts delivered. Paid the wages of the shop helper, P 2,500. Billed Joevanie Garcia P 4,000 for barong and pants delivered t him. Paid the following monthly expenses: utility bills, P 1,500; telephone bill, P 20 22 23 27 2,500. At the end of accounting period, the following data were taken: 1. The sewing machines are estimated to have a 5-year useful life. 2. The actual count of sewing supplies revealed a balance of P 1,700. 3. The business is conservative to estimate a 5% of the receivables to be uncollected. 4. Balance of the clothing materials account is P 7,000. Required the following 1. Journal entries 2. Ledger entries 3. Trial Balance 4. Adjusting Journal Entries
MANAGEMENT DEPARTMENT, FACULTY PROBLEM On January 1 of the current year, Juan David opened the " J.D Men's Wear Shop", and during the month, the following transactions were completed: Jan. 1 Juan David invested cash P 80,000 in the business. He bought two sewing machines amounting P 30,000 each from Patio Merchandising, the he gave P15,000 down and the balance is payable within 60 days. 1 1 Paid a three month rental of the shop, P30,000. This was charged to prepaid Rent account. 1 Paid a one year insurance policy, P 5,700. Bought sewing tools P 5,900 and sewing supplies P 2,700 from Jomar Trading on credit. Received P 1,200 from customer for a short delivered. Billed to Maricris Acosta, P 5,000 for two-pair of pants and polo barong 7 delivered. 10 Purchased clothing materials from Baclaran Market and paid P 15,000 cash. 13 Received P 12,500 from various customers for pants and barong made and delivered. 14 Gave Patio Merchandising P 15,000 and issued a 60-day, 6% note for the balance. 15 Paid the wages of the shop helper, P 2,500. Juan David withdrew P 5,000 for his personal use. 17 18 M. Acosta gave P 2,000 as partial payment of his account. Received P 14,750 from various customers pants and shirts delivered. Paid the wages of the shop helper, P 2,500. Billed Joevanie Garcia P 4,000 for barong and pants delivered t him. Paid the following monthly expenses: utility bills, P 1,500; telephone bill, P 20 22 23 27 2,500. At the end of accounting period, the following data were taken: 1. The sewing machines are estimated to have a 5-year useful life. 2. The actual count of sewing supplies revealed a balance of P 1,700. 3. The business is conservative to estimate a 5% of the receivables to be uncollected. 4. Balance of the clothing materials account is P 7,000. Required the following 1. Journal entries 2. Ledger entries 3. Trial Balance 4. Adjusting Journal Entries
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Chart of Accounts
Assets
Owner's Equity
301 J. David, Capital
302 J. David, Drawing
101
Cash
102
Accounts Receivable
103a Allowance for Bad Debts
303 Income and Expenses Summary
Sewing Supplies
Clothing Materials
Prepaid Rent
Prepaid Insurance
Sewing Tools
Sewing Equipment
110a Accumulated Depreciation-
104
105
106
Income
107
401 Service Income
108
109
Expenses
501 Wages
502 Utility Expense
503 Insurance Expense
504 Telephone and Communication
Sewing Equipment
Expense
505 Sew
Supplies Used
Liabilities
Accounts Payable
Notes Payable
Accrued Interest Expense
506 Clothing Materials Used
507 Rent Expense
508 Interest Expense
509 Depreciation-Sewing Equiptment
510 Bad Debts
201
202
203
Transcribed Image Text:MANAGEMENT DEPARTMENT, FACULTY
PROBLEM
On January 1 of the current year, Juan David opened the “ J.D Men's Wear Shop", and
during the month, the following transactions were completed:
Jan.
1
Juan David invested cash P 80,000 in the business.
He bought two sewing machines amounting P 30,000 each from Patio
Merchandising, the he gave P15,000 down and the balance is payable within 60 days.
Paid a three month rental of the shop, P30,000. This was charged to
1
1
prepaid Rent account.
1
Paid a one year insurance policy, P 5,700.
Bought sewing tools P 5,900 and sewing supplies P 2,700 from Jomar
Trading on credit.
Received P 1,200 from customer for a short delivered.
Billed to Maricris Acosta, P 5,000 for two-pair of pants and polo barong
7
delivered.
10
Purchased clothing materials from Baclaran Market and paid P 15,000
cash.
13
Received P 12,500 from various customers for pants and barong made
and delivered.
14
Gave Patio Merchandising P 15,000 and issued a 60-day, 6% note for the
balance.
Paid the wages of the shop helper, P 2,500.
Juan David withdrew P 5,000 for his personal use.
15
17
18
M. Acosta gave P 2,000 as partial payment of his account.
Received P 14,750 from various customers pants and shirts delivered.
20
22
Paid the wages of the shop helper, P 2,500.
Billed Joevanie Garcia P 4,000 for barong and pants delivered t him.
Paid the following monthly expenses: utility bills, P 1,500; telephone bill, P
23
27
2,500.
At the end of accounting period, the following data were taken:
1. The sewing machines are estimated to have a 5-year useful life.
2. The actual count of sewing supplies revealed a balance of P 1,700.
3. The business is conservative to estimate a 5% of the receivables to be uncollected.
4. Balance of the clothing materials account is P 7,000.
Required the following
1. Journal entries
2. Ledger entries
3. Trial Balance
4. Adjusting Journal Entries
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