The following transactions relate to Mommy's Delivery Service, a business owned and operated by Margaret "Mommy" Lee: P4-9 2010 Feb Invested P1,400,000 in the business. Various furniture and fixtures costing P30,000 were purchased for cash. Purchased 4 2 units of second-hand vans from Recon Incorporated at P80,000 each. Bought office supplies for cash, P3,000. Bought computer equipment, P40,000. Paid the insurance premium on the vans, P10,000. Purchased supplies on account from GHI Company, P5,000, payable February 23. Paid P12,000 on office improvements and repairs. Received P25,000 from customers. Rendered delivery services to XYZ Corp. for P12,000, due on February 20. Paid half-month salaries of employees, P18,000. Collected in full the amount billed to XYZ Corp. last February 11. Paid GHI Company for the purchases made on February 8. Received cash for delivery services rendered to various customers, P46,000. Paid employees' salaries for the second half of the month, P15,000. Paid the monthly rent, P8,000, and utility bills, P6,000. 6. 10 11 14 20 23 24 27 28 QUIRED: a. Journalize the transactions and post to T-accounts. b. Prepare a trial balance as of month-end. 13 5678

The following transactions relate to Mommy's Delivery Service, a business owned and operated by Margaret "Mommy" Lee: P4-9 2010 Feb Invested P1,400,000 in the business. Various furniture and fixtures costing P30,000 were purchased for cash. Purchased 4 2 units of second-hand vans from Recon Incorporated at P80,000 each. Bought office supplies for cash, P3,000. Bought computer equipment, P40,000. Paid the insurance premium on the vans, P10,000. Purchased supplies on account from GHI Company, P5,000, payable February 23. Paid P12,000 on office improvements and repairs. Received P25,000 from customers. Rendered delivery services to XYZ Corp. for P12,000, due on February 20. Paid half-month salaries of employees, P18,000. Collected in full the amount billed to XYZ Corp. last February 11. Paid GHI Company for the purchases made on February 8. Received cash for delivery services rendered to various customers, P46,000. Paid employees' salaries for the second half of the month, P15,000. Paid the monthly rent, P8,000, and utility bills, P6,000. 6. 10 11 14 20 23 24 27 28 QUIRED: a. Journalize the transactions and post to T-accounts. b. Prepare a trial balance as of month-end. 13 5678

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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Question

The following transactions relate to Mommy's Delivery Service, a
business owned and operated by Margaret "Mommy" Lee:
P4-9
2010
Feb
Invested P1,400,000 in the business.
Various furniture and fixtures costing P30,000 were purchased
for cash.
4
Purchased
2 units
of
second-hand
vans
from
Recon
Incorporated at P80,000 each.
Bought office supplies for cash, P3,000.
Bought computer equipment, P40,000.
Paid the insurance premium on the vans, P10,000.
Purchased supplies on account from GHI Company, P5,000,
payable February 23.
Paid P12,000 on office improvements and repairs.
Received P25,000 from customers.
Rendered delivery services to XYZ Corp. for P12,000, due on
February 20.
Paid half-month salaries of employees, P18,000.
Collected in full the amount billed to XYZ Corp. last February 11.
Paid GHI Company for the purchases made on February 8.
Received cash for delivery services rendered to various
customers, P46,000.
Paid employees' salaries for the second half of the month,
P15,000.
Paid the monthly rent, P8,000, and utility bills, P6,000.
6.
10
11
14
20
23
24
27
28
REQUIRED:
a. Journalize the transactions and post to T-accounts.
b. Prepare a trial balance as of month-end.
13
5678

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