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Procedures: 1. Analyze the following business transactions below. For December, Mr. John Wick had the following transactions: Mr. John Wick invested P1,200,000 to start the business. The firm obtained a note from Mars Bank amounting to P300,000. The note bears a 6% annual interest payable every June 1 of the following year. The principal is payable in two (2) equal annual installments. 1 The firm paid P15,000 for the necessary permits and licenses for its operation. The firm paid P180,000 for the annual rent of the office space. The lease contract will expire on June 1 of the following year and will be renewed yearly. John Accounting Firm rendered service to Gatdula, Inc. worth P250,000 on credit. Purchased supplies worth P50,000. Rendered service to Caventa Company for P80,000. Purchased a laptop in cash, P50,000. The laptop has an estimated useful life of three (3) years, with no residual value. The company treats purchases during the first half of the month as a purchase at the start of the month. 14 Gatdula, Inc. paid the firm. 17 Mr. John Wick withdrew P80,000 for personal use. Ocampo Catering billed the firm for P40,000 for the services rendered to its holiday luncheon for 21 clients and staff. Received P75,000 cash in advance from Rivera, Inc. for the services that will be rendered next 24 year. 25 Rendered services to Gersaniva Company on credit, P120,000. 28 Rendered taxation services and billed the client, P45,000. 31 Paid P40,000 for the salary of its office staff and utilities worth P20,000. 3.

Procedures: 1. Analyze the following business transactions below. For December, Mr. John Wick had the following transactions: Mr. John Wick invested P1,200,000 to start the business. The firm obtained a note from Mars Bank amounting to P300,000. The note bears a 6% annual interest payable every June 1 of the following year. The principal is payable in two (2) equal annual installments. 1 The firm paid P15,000 for the necessary permits and licenses for its operation. The firm paid P180,000 for the annual rent of the office space. The lease contract will expire on June 1 of the following year and will be renewed yearly. John Accounting Firm rendered service to Gatdula, Inc. worth P250,000 on credit. Purchased supplies worth P50,000. Rendered service to Caventa Company for P80,000. Purchased a laptop in cash, P50,000. The laptop has an estimated useful life of three (3) years, with no residual value. The company treats purchases during the first half of the month as a purchase at the start of the month. 14 Gatdula, Inc. paid the firm. 17 Mr. John Wick withdrew P80,000 for personal use. Ocampo Catering billed the firm for P40,000 for the services rendered to its holiday luncheon for 21 clients and staff. Received P75,000 cash in advance from Rivera, Inc. for the services that will be rendered next 24 year. 25 Rendered services to Gersaniva Company on credit, P120,000. 28 Rendered taxation services and billed the client, P45,000. 31 Paid P40,000 for the salary of its office staff and utilities worth P20,000. 3.

FINANCIAL ACCOUNTING
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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Procedures: 1. Analyze the following business transactions below. For December, Mr. John Wick had the following transactions: Mr. John Wick invested P1,200,000 to start the business. The firm obtained a note from Mars Bank amounting to P300,000. The note bears a 6% annual interest payable every June 1 of the following year. The principal is payable in two (2) equal 1 The firm paid P15,000 for the necessary permits and licenses for its operation. The firm paid P180,000 for the annual rent of the office space. The lease contract will expire on June 1 of the following year and will be renewed yearly. John Accounting Firm rendered service to Gatdula, Inc. worth P250,000 on credit. annual installments. 3 Purchased supplies worth P50,000. Rendered service to Caventa Company for P80,000. Purchased a laptop in cash, P50,000. The laptop has an estimated useful life of three (3) years, with no residual value. The company treats purchases during the first half of the month as a purchase at the start of the month. Gatdula, Inc. paid the firm. 17 Mr. John Wick withdrew P80,000 for personal use. Ocampo Catering billed the firm for P40,000 for the services rendered to its holiday luncheon for 14 21 clients and staff. Received P75,000 cash in advance from Rivera, Inc. for the services that will be rendered next 24 year. 25 Rendered services to Gersaniva Company on credit, P120,000. 28 Rendered taxation services and billed the client, P45,000. 31 Paid P40,000 for the salary of its office staff and utilities worth P20,000.
Transcribed Image Text:Procedures: 1. Analyze the following business transactions below. For December, Mr. John Wick had the following transactions: Mr. John Wick invested P1,200,000 to start the business. The firm obtained a note from Mars Bank amounting to P300,000. The note bears a 6% annual interest payable every June 1 of the following year. The principal is payable in two (2) equal 1 The firm paid P15,000 for the necessary permits and licenses for its operation. The firm paid P180,000 for the annual rent of the office space. The lease contract will expire on June 1 of the following year and will be renewed yearly. John Accounting Firm rendered service to Gatdula, Inc. worth P250,000 on credit. annual installments. 3 Purchased supplies worth P50,000. Rendered service to Caventa Company for P80,000. Purchased a laptop in cash, P50,000. The laptop has an estimated useful life of three (3) years, with no residual value. The company treats purchases during the first half of the month as a purchase at the start of the month. Gatdula, Inc. paid the firm. 17 Mr. John Wick withdrew P80,000 for personal use. Ocampo Catering billed the firm for P40,000 for the services rendered to its holiday luncheon for 14 21 clients and staff. Received P75,000 cash in advance from Rivera, Inc. for the services that will be rendered next 24 year. 25 Rendered services to Gersaniva Company on credit, P120,000. 28 Rendered taxation services and billed the client, P45,000. 31 Paid P40,000 for the salary of its office staff and utilities worth P20,000.
Refer to the chart of accounts below as the amounts are posted in the ledger. CHART OF ACCOUNTS Account Number 201 202 203 Account Number 101 Account Number 401 501 503 Account Name Account Name Account Name Cash Accounts Receivable Office Supplies Accounts Payable Notes Payable Unearned Revenue Professional Fees Salaries Expense Utilities Expense Representation Expense Permits and Licenses Expense 102 103 104 Prepaid Rent 301 J. Wick, Capital 504 105 Office Equipment 302 J. Wick, Drawing 508 Required: a. Journalize the following transactions. No need to include the description. b. Post the journal entries to the ledger. c. Create a trial balance.
Transcribed Image Text:Refer to the chart of accounts below as the amounts are posted in the ledger. CHART OF ACCOUNTS Account Number 201 202 203 Account Number 101 Account Number 401 501 503 Account Name Account Name Account Name Cash Accounts Receivable Office Supplies Accounts Payable Notes Payable Unearned Revenue Professional Fees Salaries Expense Utilities Expense Representation Expense Permits and Licenses Expense 102 103 104 Prepaid Rent 301 J. Wick, Capital 504 105 Office Equipment 302 J. Wick, Drawing 508 Required: a. Journalize the following transactions. No need to include the description. b. Post the journal entries to the ledger. c. Create a trial balance.
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