Mr. John Vincent is a mechanical engineer waiting for the result of his board exam. Instead of applying for a job, his father suggested that he opens a car repair shop temporarily. This is to hire the repair mechanics that his father had to lay-off when he got sick and had to shut-down their car shop. The following are his transactions for the month.Prepare Trial Balance DateTransactionsJune1 Mr. Vincent invested P 500,000 in a car repair shop.2 Paid for rent P 40,0003 Bought P 30,000 worth of shop supplies4 Bought shop equipment from handyman amounting to P 100,0005 Received P 180,000 cash for services rendered to clients6 Received Statement of Account from L Printers for advertising materials costing P 40,5007 Paid salaries of employees P 50,000Sent a Statement of Account to Mr. Russel amounting to P 200,000 for repair and8maintenance services to his car.9 Received cash amounting to P 120,000 form Mr. Russel as initial payment of his account10 Mr. Russel issued a 15-day promissory note to settle the balance of his account11 Paid Maynilad for water used for the month P 10,00012 Secured a loan from MBank amounting to P 150,000 issuing a 30-day promissory note.13 Mr. Vincent withdrew cash amounting to P 50,000 from the business for his personal use.14 Issued a promissory note to handyman for equipment bought from them P 50,00015 Mr. Vincent made additional cash investment amounting to P 150,000

Trial balance is a statement with the list of Debit and credit balances taken from each ledger…

Answered: Mr. John Vincent is a mechanical…

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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Mr. John Vincent is a mechanical engineer waiting for the result of his board exam. Instead of applying for a job, his father suggested that he opens a car repair shop temporarily. This is to hire the repair mechanics that his father had to lay-off when he got sick and had to shut-down their car shop.

The following are his transactions for the month.

Prepare Trial Balance

Date
Transactions
June
1 Mr. Vincent invested P 500,000 in a car repair shop.
2 Paid for rent P 40,000
3 Bought P 30,000 worth of shop supplies
4 Bought shop equipment from handyman amounting to P 100,000
5 Received P 180,000 cash for services rendered to clients
6 Received Statement of Account from L Printers for advertising materials costing P 40,500
7 Paid salaries of employees P 50,000
Sent a Statement of Account to Mr. Russel amounting to P 200,000 for repair and
8
maintenance services to his car.
9 Received cash amounting to P 120,000 form Mr. Russel as initial payment of his account
10 Mr. Russel issued a 15-day promissory note to settle the balance of his account
11 Paid Maynilad for water used for the month P 10,000
12 Secured a loan from MBank amounting to P 150,000 issuing a 30-day promissory note.
13 Mr. Vincent withdrew cash amounting to P 50,000 from the business for his personal use.
14 Issued a promissory note to handyman for equipment bought from them P 50,000
15 Mr. Vincent made additional cash investment amounting to P 150,000

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