Peter Joshua established an advertising and marketing company registered with the DTI under the name: PJ Advertising in July and accomplished the following transactions: 1- Peter Joshua deposited P600,000 cash in the bank account of the company 5 - Acquired a tarpaulin printing equipment and various office furniture for cash at P80,000 and P50,000, respectively. 9 - Paid P400,000 cash purchase for land for an office site 10 - Purchased supplies on account, P12,000. 19 - Loaned P500,000 from the bank. PJ Advertising signed a note payable to the bank. 30 - Revenues earned during the month - P60,000 cash and P50,000 on account 30 - Paid employees salaries - P24,000; office rent - P15,000; utilities - P4,000; telephone - P2,000. 30 - Withdrew P40,000 from the business for personal use. REQUIRED: Journalize each transaction. Use the following account titles: Cash; Accounts receivable, Supplies; Land; Equipment; Furniture; Accounts payable; Notes payable; Peter Joshua, Capital; Peter Joshua, Withdrawals; Service Revenue; Salary expense; Communications expense Rent expense; Utilities expense;

Peter Joshua established an advertising and marketing company registered with the DTI under the name: PJ Advertising in July and accomplished the following transactions: 1- Peter Joshua deposited P600,000 cash in the bank account of the company 5 - Acquired a tarpaulin printing equipment and various office furniture for cash at P80,000 and P50,000, respectively. 9 - Paid P400,000 cash purchase for land for an office site 10 - Purchased supplies on account, P12,000. 19 - Loaned P500,000 from the bank. PJ Advertising signed a note payable to the bank. 30 - Revenues earned during the month - P60,000 cash and P50,000 on account 30 - Paid employees salaries - P24,000; office rent - P15,000; utilities - P4,000; telephone - P2,000. 30 - Withdrew P40,000 from the business for personal use. REQUIRED: Journalize each transaction. Use the following account titles: Cash; Accounts receivable, Supplies; Land; Equipment; Furniture; Accounts payable; Notes payable; Peter Joshua, Capital; Peter Joshua, Withdrawals; Service Revenue; Salary expense; Communications expense Rent expense; Utilities expense;

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1AP

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Use T-account, show the effect of the transactions on the account titles provided on the "REQUIRED:" portion.
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[The following information applies to the questions displayed below.] Sanyu Sony started a new business and completed these transactions during December. 1 Sanyu Sony transferred $65,300 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. 2 The company paid $1,800 cash for the December rent. 3 The company purchased $14,200 of electrical equipment by paying $6,000 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased supplies by paying $1,000 cash. 6 The company completed electrical work and immediately collected $1,800 cash for these services. 8 The company purchased $2,820 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $5,500. 18 The company purchased $450 of supplies on credit. 20 The company paid $2,820 cash for the office equipment purchased on December 8. 24 The company billed a client $900 for electrical work completed; the balance is…
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Make Journal Entries and General Ledger April 1- Deposited the cash investment of Jelo (the Proprietor) amounting to P 200, 000 in Cebu City Savings Bank in the name of Jetsetter Travel Agency. 4- Paid P 4,000 cash for April office rent. 8- Purchased office equipment for P25, 000 cash. 12- Incurred P 3, 000 of advertising costs in Cebu Daily News, on account. 14- Paid P6, 000 cash for office supplies. 15- Earned P 9,000 for services rendered: Received a check for P1, 000 from a customer, and the balance billed to that customer’s account. 17- Withdrew P 2, 000 cash for personal use. 18- Billed the customer for services rendered totalling P 1, 500. 20- Paid Cebu Daily News the amount due in full. 22- Partial collection of customer’s accounts P 1, 000. 24- Issued a check to an employee for cash advances amounting to P 5, 000.…