The following transactions took place in May 2021. May 1-5C's began the business by investing P 100,000 in cash. 1- Purchased Word Processing Equipment from ABC Co. for P60,000, paying P10,000 and promising to pay the balance within 30 days. 1-Rented office space paying P12,000 in advance for the first three months. 3- Purchased office supplies from Office Depot Co. on account, P6,000. 7-Completed sales promotion flyers for a client and immediately collected P30,000. 13- paid Office salaries, P6,500. 18 - Advertising bill from Balita Co. comes in but is not paid, P2,500. 20-5C's wrote a check on the bank account of the business as personal withdrawal of cash to pay his home mortgage of P6,250. 22- Billed Luzonian Co for a special word processing job, P 50,000 28- Paid Half of the amount owed for Word Processing Equipment purchased on May 1 from ABC Co., P25,000. 29 Received and paid telephone bill, P2,200. 30-On this date, the accountant: (a) Found out that company had only P1,000 worth supplies on hand. (b) Realized that the company has two months prepaid rent (c) Determined that the computer equipment should be depreciated over its 5-year useful life with estimated residual salvage value of P12,000 (d) Determined that unpaid salary of P3,500 has not recorded. Requirements: 1. Analyze and journalize the transactions for the May, 2021 of 5C's Computer Center. 2. Post journal entries to the ledger 3. Prepare Unadjusted Trial Balance as of May 31, 2021.
The following transactions took place in May 2021. May 1-5C's began the business by investing P 100,000 in cash. 1- Purchased Word Processing Equipment from ABC Co. for P60,000, paying P10,000 and promising to pay the balance within 30 days. 1-Rented office space paying P12,000 in advance for the first three months. 3- Purchased office supplies from Office Depot Co. on account, P6,000. 7-Completed sales promotion flyers for a client and immediately collected P30,000. 13- paid Office salaries, P6,500. 18 - Advertising bill from Balita Co. comes in but is not paid, P2,500. 20-5C's wrote a check on the bank account of the business as personal withdrawal of cash to pay his home mortgage of P6,250. 22- Billed Luzonian Co for a special word processing job, P 50,000 28- Paid Half of the amount owed for Word Processing Equipment purchased on May 1 from ABC Co., P25,000. 29 Received and paid telephone bill, P2,200. 30-On this date, the accountant: (a) Found out that company had only P1,000 worth supplies on hand. (b) Realized that the company has two months prepaid rent (c) Determined that the computer equipment should be depreciated over its 5-year useful life with estimated residual salvage value of P12,000 (d) Determined that unpaid salary of P3,500 has not recorded. Requirements: 1. Analyze and journalize the transactions for the May, 2021 of 5C's Computer Center. 2. Post journal entries to the ledger 3. Prepare Unadjusted Trial Balance as of May 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare the necessary requirements and use journal, ledger
Owner's Equity (300-399)
311 5C's, Capital
312 5C's, Drawing
313 Income Summary
Revenue (400-499)
411 Word Process
Fees
Expenses (500-599)
511 Office Salaries Expense
512 Advertising Expense
513 Telephone Expense
514 Office Supplies Expense
515 Rent Expense
516 Depreciation Expense - Word
The Chart of Accounts for 5C's Computer Center appears below:
5C's Computer Center
Chart of Accounts
Assets (100- 199)
111 Cash
112 Accounts Receivable
114 Office Supplies
115 Prepaid Rent
121 Word Processing Equipment
122 Accumulated Depreciation- Word Processing
Equipment
Liabilities (200 - 299)
211 Accounts Payable
212 Salaries Payable
Processing Equipment
The following transactions took place in May 2021.
May 1-5C's began the business by investing P 100,000 in cash.
1- Purchased Word Processing Equipment from ABC Co. for P60,000, paying P10,000 and
promising to pay the balance within 30 days.
1 - Rented office space paying P12,000 in advance for the first three months.
3- Purchased office supplies from Office Depot Co. on account, P6,000.
7- Completed sales promotion flyers for a client and immediately collected P30,000.
13- paid Office salaries, P6,500.
18 - Advertising bill from Balita Co. comes in but is not paid, P2,500.
20-5C's wrote a check on the bank account of the business as personal withdrawal of cash to
pay his home mortgage of P6,250.
22 - Billed Luzonian Co for a special word processing job, P 50,000
28- Paid Half of the amount owed for Word Processing Equipment purchased on May 1 from
ABC Co., P25,000.
29- Received and paid telephone bill, P2,200.
30 On this date, the accountant:
(a) Found out that company had only P1,000 worth supplies on hand.
(b) Realized that the company has two months prepaid rent
(c) Determined that the computer equipment should be depreciated over its 5-year useful
life with estimated residual salvage value of P12,000
(d) Determined that unpaid salary of P3,500 has not recorded.
Requirements:
1. Analyze and journalize the transactions for the May, 2021 of 5C's Computer Center.
2. Post journal entries to the ledger
3. Prepare Unadjusted Trial Balance as of May 31, 2021.
4. Journalize the necessary adjusting entries.
5. Prepare Worksheet
6. Prepare the financial statements:
a) Income Statement
b) Statement of Changes in Owner's Equity
c) Balance Sheet
7. Prepare Closing entries
8. Prepare the Post-closing Trial Balance
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