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Requirements: 1. Journalizing  2. T-accounts 3. Trial Balance and Adjusted Trial Balance

Requirements: 1. Journalizing  2. T-accounts 3. Trial Balance and Adjusted Trial Balance

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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Good day tutors! Please help me answer this. It will also serve as my reviewer. Thanks

 

Requirements:

1. Journalizing 

2. T-accounts

3. Trial Balance and Adjusted Trial Balance

Problem: Armina established a service business to be known as Armina Photography on July 1, 2015. During the first month, the following transactions occurred: • July 1: Armina transferred cash of P300, 000 from her personal bank account to an account to be used for business. She also invested the following: digital camera', P45, 000; manual camera, P25, 000, desktop computer, P28, 000; photo papers and ink, p14, 000; and personal debt evidenced by a note which would be assumed by the business, P12, 000. • July 4: Paid six – month advance rent to Cyrene Commercial Complex, P30, 000. • July 6: Received a statement of account from Brian News for advertising this month, P5, 500. • July 8: Bought photo enhancing and editing equipment from Mimi Outlet for P40, 000. Armina paid 30% down payment and the balance on account. • July 12: Hired office assistant with a monthly salary of P6, 000. The office assistant officially started July 16, 2015. • July 13: Photography service rendered totaled P180, 000. Terms: 25% cash and the balance settled on account. • July 14: Purchased office sofa set from Renzo Designs for P30, 000 on account. • July 15: Paid various operating expenses during the month: meeting with potential clients, P4, 000; electricity, P23, 000; telephone expense, P6, 000; and repairs expense, P2, 500. • July 18: Photography services rendered totaled P180, 000, of which 25% was settled with an interest-bearing note and the balance on account. • July 20: Received photography advances from a couple for a prenuptial coverage to be rendered next month, P60, 00. • July 22: Collected 90% of the outstanding receivable from July 13 transaction. • July 24: Paid in full the statement of account received last July 6. • July 26: Paid 80% of the outstanding obligation to Mimi Outlet and for the remaining balance, she issued an interest- bearing note. • July 28: Paid half of the outstanding obligation to Renzo Designs. • July 31: Paid salary of the assistant for 15 days, P3,097
Transcribed Image Text:Problem: Armina established a service business to be known as Armina Photography on July 1, 2015. During the first month, the following transactions occurred: • July 1: Armina transferred cash of P300, 000 from her personal bank account to an account to be used for business. She also invested the following: digital camera', P45, 000; manual camera, P25, 000, desktop computer, P28, 000; photo papers and ink, p14, 000; and personal debt evidenced by a note which would be assumed by the business, P12, 000. • July 4: Paid six – month advance rent to Cyrene Commercial Complex, P30, 000. • July 6: Received a statement of account from Brian News for advertising this month, P5, 500. • July 8: Bought photo enhancing and editing equipment from Mimi Outlet for P40, 000. Armina paid 30% down payment and the balance on account. • July 12: Hired office assistant with a monthly salary of P6, 000. The office assistant officially started July 16, 2015. • July 13: Photography service rendered totaled P180, 000. Terms: 25% cash and the balance settled on account. • July 14: Purchased office sofa set from Renzo Designs for P30, 000 on account. • July 15: Paid various operating expenses during the month: meeting with potential clients, P4, 000; electricity, P23, 000; telephone expense, P6, 000; and repairs expense, P2, 500. • July 18: Photography services rendered totaled P180, 000, of which 25% was settled with an interest-bearing note and the balance on account. • July 20: Received photography advances from a couple for a prenuptial coverage to be rendered next month, P60, 00. • July 22: Collected 90% of the outstanding receivable from July 13 transaction. • July 24: Paid in full the statement of account received last July 6. • July 26: Paid 80% of the outstanding obligation to Mimi Outlet and for the remaining balance, she issued an interest- bearing note. • July 28: Paid half of the outstanding obligation to Renzo Designs. • July 31: Paid salary of the assistant for 15 days, P3,097
Additional Information: Adjusting Entries 1. The accounts receivable are estimated to be realizable at 98% 2. The photography equipment are to be depreciated at 10% per annum; office equipment and the furniture and fixtures are to be depreciated at 20% per annum. 3. Unused photography supplies as of July 31 amounts to P4, 800. 4. Rent expense for the month should be recognized. 5. 1% interest earned for notes receivable from customer should be recorded this month. 6. Accrued interest on notes payable assumed by the business amounts to P500. 7. Assuming the part of the prenuptial coverage is done this month, P20, 000 of the amount received as advance from customer is earned.
Transcribed Image Text:Additional Information: Adjusting Entries 1. The accounts receivable are estimated to be realizable at 98% 2. The photography equipment are to be depreciated at 10% per annum; office equipment and the furniture and fixtures are to be depreciated at 20% per annum. 3. Unused photography supplies as of July 31 amounts to P4, 800. 4. Rent expense for the month should be recognized. 5. 1% interest earned for notes receivable from customer should be recorded this month. 6. Accrued interest on notes payable assumed by the business amounts to P500. 7. Assuming the part of the prenuptial coverage is done this month, P20, 000 of the amount received as advance from customer is earned.
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