Mc Cufad Trucking In its first year of operation, the Mc Cufad Trucking has the following summarized business transactions for the year, 202x: 1. Mr. Macmac Cufad invested P800,000 cash in a trucking business. DEBIT CREDIT 800,000 Cash Cufad, Capital 2. Bought an Isuzu Elf truck for P500,000. Terms: 50% cash down payment and the balance on six months non-interest bearing promissory note. Trucking Equipment Cash Cash 50% Notes payable 3. Borrowed P100,000 from PNB and issued a 10%, two year, promissory note with its truck as collateral. Cash Accounts receivable Cash Trucking income 500,000 Mortgage payable - PNB 4. Total trucking services for the year is P1,600,000 out of which P600,000 is cash service income and the balance on account. Accounts receivable 5Total collection of accounts receivable, P850,000. 100,000 Tasks: Using 4 column journals, 600,000 1,000,000 850,000 7Paid interest expense for the year to PNB, P10,000. Interest expense Cash Cash Accounts receivable Prepaid operating expenses Trucking equipment Accounts payable Notes payable Accrued operating expenses Mortgage payable (with collateral) 800,000 250,000 250,000 10,000 100,000 6. Total operating expenses is P800,000 out of which P50,000 is still not paid or accrued. Operating expenses 800,000 Cash Accrued operating expense 1,600,000 a. Prepare the journal entries for each transaction; b. Post the journal entries to a T - account; c. Compute the balance of each account; and d. Prepare the trial balance as of the end of 202x. 850,000 750,000 50,000 10,000 The Chart of Accounts of Mc Cufad Trucking Use the following account titles in the preparation of journal entries Cufad, capital Cufad, withdrawal Trucking income Operating expenses Interest expense
Mc Cufad Trucking In its first year of operation, the Mc Cufad Trucking has the following summarized business transactions for the year, 202x: 1. Mr. Macmac Cufad invested P800,000 cash in a trucking business. DEBIT CREDIT 800,000 Cash Cufad, Capital 2. Bought an Isuzu Elf truck for P500,000. Terms: 50% cash down payment and the balance on six months non-interest bearing promissory note. Trucking Equipment Cash Cash 50% Notes payable 3. Borrowed P100,000 from PNB and issued a 10%, two year, promissory note with its truck as collateral. Cash Accounts receivable Cash Trucking income 500,000 Mortgage payable - PNB 4. Total trucking services for the year is P1,600,000 out of which P600,000 is cash service income and the balance on account. Accounts receivable 5Total collection of accounts receivable, P850,000. 100,000 Tasks: Using 4 column journals, 600,000 1,000,000 850,000 7Paid interest expense for the year to PNB, P10,000. Interest expense Cash Cash Accounts receivable Prepaid operating expenses Trucking equipment Accounts payable Notes payable Accrued operating expenses Mortgage payable (with collateral) 800,000 250,000 250,000 10,000 100,000 6. Total operating expenses is P800,000 out of which P50,000 is still not paid or accrued. Operating expenses 800,000 Cash Accrued operating expense 1,600,000 a. Prepare the journal entries for each transaction; b. Post the journal entries to a T - account; c. Compute the balance of each account; and d. Prepare the trial balance as of the end of 202x. 850,000 750,000 50,000 10,000 The Chart of Accounts of Mc Cufad Trucking Use the following account titles in the preparation of journal entries Cufad, capital Cufad, withdrawal Trucking income Operating expenses Interest expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mc Cufad Trucking
In its first year of operation, the Mc Cufad Trucking has the following summarized business transactions
for the year, 202x:
1. Mr. Macmac Cufad invested P800,000 cash in a trucking business.
DEBIT
CREDIT
800,000
Cash
Cufad, Capital
2. Bought an Isuzu Elf truck for P500,000.
Terms: 50% cash down payment and the balance on six months non-interest bearing
promissory note.
Trucking Equipment
Cash 50%
Notes payable
Cash
3. Borrowed P100,000 from PNB and issued a 10%, two year, promissory note with its
truck as collateral.
Cash
Accounts receivable
Trucking income
Cash
Mortgage payable - PNB
4. Total trucking services for the year is P1,600,000 out of which P600,000 is cash service
income and the balance on account.
500,000
Accounts receivable
5Total collection of accounts receivable, P850,000.
100,000
Tasks: Using 4 column journals,
600,000
1,000,000
850,000
7Paid interest expense for the year to PNB, P10,000.
Interest expense
Cash
Notes payable
Accrued operating expenses
Mortgage payable (with collateral)
800,000
250,000
250,000
10,000
6. Total operating expenses is P800,000 out of which P50,000 is still not paid or accrued.
Operating expenses
800,000
Cash
Accrued operating expense
100,000
1,600,000
a. Prepare the journal entries for each transaction;
b. Post the journal entries to a T - account;
c. Compute the balance of each account; and
d. Prepare the trial balance as of the end of 202x.
850,000
750,000
50,000
10,000
The Chart of Accounts of Mc Cufad Trucking
Use the following account titles in the preparation of journal entries
Cash
Cufad, capital
Accounts receivable
Cufad, withdrawal
Prepaid operating expenses
Trucking equipment
Accounts payable
Trucking income
Operating expenses
Interest expense
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