On April 5, Timothy established an interior decorating business, Tim’s Design, with a cash investment of P200,000. Timothy completed the following transactions for April: 6 Paid rent for the month, P8,000. 7 Purchased from Delta Co. office equipment, P55,000 8 Purchased a used car for P180,000, paying P80,000 cash and taking a bank loan for the remainder. 10 Purchased supplies and materials for cash, P11,315. 12 Received cash from Miss Laura for job completed in her condo, P57,500. Supplies were used up amounting to P8,250. 20 Purchased materials and supplies on credit, P15,000. 23 Recorded job completed for Ms. Ferrer. Term: on account 10 days, P14,950. Supplies were used up amounting to P3,500. 24 Received an invoice for repairs on car and paid P4,500.
On April 5, Timothy established an interior decorating business, Tim’s Design, with a cash investment of
P200,000. Timothy completed the following transactions for April:
6 Paid rent for the month, P8,000.
7 Purchased from Delta Co. office equipment, P55,000
8 Purchased a used car for P180,000, paying P80,000 cash and taking a bank loan for the
remainder.
10 Purchased supplies and materials for cash, P11,315.
12 Received cash from Miss Laura for job completed in her condo, P57,500. Supplies were used up
amounting to P8,250.
20 Purchased materials and supplies on credit, P15,000.
23 Recorded job completed for Ms. Ferrer. Term: on account 10 days, P14,950. Supplies were used
up amounting to P3,500.
24 Received an invoice for repairs on car and paid P4,500.
25 Paid utilities expense, P1,750.
26 Paid P20,000 on the bank loan.
27 Received cash from Ms. Ferrer, P10,000.
28 Paid salary of worker, P5,000
29 Paid Delta a portion of the amount owed for equipment, P5,000.
30 Withdrew cash for personal use, P3,500.
Required:
a. Record each transaction in a journal. Refer to the following chart of accounts in selecting the accounts
to be debited and credited.
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