On August 1, Worthy invested P3, 000 cash and P15, 000 of equipment in Expressions. On August 2, Expressions paid P600 cash for furniture for the shop. On August 3, Expressions paid P500cash to rent space in a strip mall of August. On August 4, it purchased P1, 200 of equipment on credit for the shop (using a long-term note payable). On August 5, Expressions opened for business. Cash received from haircutting services in the first week and a half of business (ended August 15) was P825. On August 15, it provided P100 of haircutting service on account. On August 17,it received a P100check for services previously rendered on account. On August 17, it paid P125 to an assistant for hour worked during the grand opening. Cash received from services provided during the second half of August was P930. On August 31, it paid a P400 installment toward principal on the note payable entered into on August 4. On August 31, Worthy withdraw P900 cash for personal use. Required Open the following ledger account in T-Account format (account numbers are in parentheses); Cash (101); Accounts Receivable (102);Furniture (161); Store Equipment (165); Note Payable(240); J. Worthy, Capital (301);J. Worthy, Withdrawals (302); Haircutting Services Revenue (403); Wages Expenses (623); and Expense (640). Prepare general journal entries for the transactions. Post the journal entries (from requirement 1) to the ledger accounts. Prepare a trial balance as of August 31.

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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On August 1, Worthy invested P3, 000 cash and P15, 000 of equipment in Expressions.
On August 2, Expressions paid P600 cash for furniture for the shop.
On August 3, Expressions paid P500cash to rent space in a strip mall of August.
On August 4, it purchased P1, 200 of equipment on credit for the shop (using a long-term note payable).
On August 5, Expressions opened for business. Cash received from haircutting services in the first week and a half of business (ended August 15) was P825.
On August 15, it provided P100 of haircutting service on account.
On August 17,it received a P100check for services previously rendered on account.
On August 17, it paid P125 to an assistant for hour worked during the grand opening.
Cash received from services provided during the second half of August was P930.
On August 31, it paid a P400 installment toward principal on the note payable entered into on August 4.
On August 31, Worthy withdraw P900 cash for personal use.

Required

Open the following ledger account in T-Account format (account numbers are in parentheses); Cash (101); Accounts Receivable (102);Furniture (161); Store Equipment (165); Note Payable(240); J. Worthy, Capital (301);J. Worthy, Withdrawals (302); Haircutting Services Revenue (403); Wages Expenses (623); and Expense (640).

Prepare general journal entries for the transactions.
Post the journal entries (from requirement 1) to the ledger accounts.
Prepare a trial balance as of August 31.

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