On October 1, 2015, Leo Chavez established Mighty Realty Services, which completed the following transactions during the month:1. On October 1, Leo Chavez transferred cash from a personal bank account to an account to be used for the business, P175,000.2. On October 2, purchased supplies on account, P10,000.3. On October 5, earned sales commissions, receiving cash, P122,500.4. On October 10, paid rent on office and equipment for the month, P38,000.5. On October 15, paid creditor on account, P6,000.6. On October 20, withdrew cash for personal use, P30,000.7. On October 25, paid automobile expenses for month, P15,000, and miscellaneous expenses, P4,000.8. On October 28, paid office salaries, P31,000.InstructionsA. Journalize entries for transactions (a) through (h), using the following account titles, omit the explanation:11 - Cash12 - Supplies21 - Accounts Payable31 - Leo Chavez, Capital32 - Leo Chavez, Drawing41 - Sales Commissions51 - Rent Expense52 - Office Salaries Expense53 - Automobile Expense54 - Supplies Expense55 - Miscellaneous Expense.

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Answered: On October 1, 2015, Leo Chavez…

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 November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business: Nov. 1 Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $50,000. 1 Paid rent for period of November 1 to end of month, $4,000. 6 Purchased office equipment on account, $15,000. 8 Purchased a truck for $38,500 paying $5,000 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $1,750. 12 Received cash for job completed, $11,500. 15 Paid annual premiums on property and casualty insurance, $2,400. 23 Recorded jobs completed on account and sent invoices to customers, $22,300. 24 Received an invoice for truck expenses, to be paid in November, $1,250. Enter the following transactions on Page 2 of the two-column journal: Nov. 29 Paid utilities expense, $4,500. 29…
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