Mhay Faraan started a delivery service, Mhay Deliveries, on July 1, 2020. The following transactions occurred during the month of July. July 1 Mhay contributed P150,000 cash. After which, she then purchased office desks and chairs amounting to P10,000 to be used in the business. Purchased a used van for deliveries for P120,000 by paying P20,000 cash and signed a two-year notes payable for the remaining balance Bought two sets of computer for 10,000 pesos each using the business' money. After buying the computers, Ms. Mhay brought one set to their home for her son's personal use. (Use the business entity concept in interpreting this 2 3 transaction) 3 Paid P15,000 for office rent for the month 4 Paid Phasign P2,500 for banners in promoting the business.
Mhay Faraan started a delivery service, Mhay Deliveries, on July 1, 2020. The following transactions occurred during the month of July. July 1 Mhay contributed P150,000 cash. After which, she then purchased office desks and chairs amounting to P10,000 to be used in the business. Purchased a used van for deliveries for P120,000 by paying P20,000 cash and signed a two-year notes payable for the remaining balance Bought two sets of computer for 10,000 pesos each using the business' money. After buying the computers, Ms. Mhay brought one set to their home for her son's personal use. (Use the business entity concept in interpreting this 2 3 transaction) 3 Paid P15,000 for office rent for the month 4 Paid Phasign P2,500 for banners in promoting the business.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Mhay Faraan started a delivery service, Mhay Deliveries, on July 1, 2020. The following
transactions occurred during the month of July.
July 1
Mhay contributed P150,000 cash. After which, she then purchased office desks
and chairs amounting to P10,000 to be used in the business.
Purchased a used van for deliveries for P120,000 by paying P20,000 cash and
signed a two-year notes payable for the remaining balance
Bought two sets of computer for 10,000 pesos each using the business' money.
After buying the computers, Ms. Mhay brought one set to their home for her
son's personal use. (Use the business entity concept in interpreting this
2
3
transaction)
3
Paid P15,000 for office rent for the month
4
Paid Phasign P2,500 for banners in promoting the business.
Delivery services amounted to P44,000, half on account.
Cash of P2,000 withdrawn by Mhay
9
12
Purchased supplies for P1,500 on account
Received cash of P12,500 for services provided on June 5.
Purchased gasoline for P7,500 on account.
Received P15,000 from customers for delivery services rendered.
Made a cash payment of P25,000 on notes payable
15
17
20
23
26
Paid P2,500 for utilities
29
Paid partial payment of P2,500 for the gasoline purchased on account July 17.
Paid P30,000 for employee salaries.
30
Requirement 1. Journalize the transactions occurred for the month of July 2020 for Mhay
Deliveries. Use the chart of accounts at the next page. (Be mindful of the indentation and
alignment.)
Transcribed Image Text:ASSETS
REVENUE
Cash
101
Delivery Services
401
Accounts Receivable
102
Office Supplies
103
Office Equipment
104
EXPENSES
Furniture and Fixtures
105
Gasoline Expense
501
Motor Vehicle
106
Advertising Expense
502
Utilities Expense
503
LIABILITIES
Rent Expense
504
Accounts Payable
201
Salaries Expense
505
Notes Payable
202
Utilities Payable
203
OWNER'S EQUITY
M. Faraan, Capital
301
M. Faraan, Withdrawals
302
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