You opened a novelty store called "The Awesome Shop" on January 1, 20x1. The following were the transactions during the year: 1. Provided P100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpetual inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales is- P20,000. 6. Sold goods on account for P300,000. The cost of sales is P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000, 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable. 12. Made total drawings of P25,000.
You opened a novelty store called "The Awesome Shop" on January 1, 20x1. The following were the transactions during the year: 1. Provided P100,000 cash as initial investment. 2. Obtained a P50,000 loan. 3. Acquired furniture and fixtures for P80,000 cash. 4. Acquired inventory on account for P60,000. (Use perpetual inventory system) 5. Sold goods on cash basis for P200,000. The cost of sales is- P20,000. 6. Sold goods on account for P300,000. The cost of sales is P30,000. 7. Paid supplies expense for P20,000 cash. 8. Paid rent expense of P180,000, 9. Paid utilities expense of P40,000. 10. Collected P240,000 accounts receivable. 11. Paid P30,000 accounts payable. 12. Made total drawings of P25,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Required: Prepare a journal entry for each transactions.
Transcribed Image Text:Illustration:
You opened a novelty store called "The Awesome Shop" on
January 1, 20x1. The following were the transactions during the
year:
1. ProvidedP100,000 cash as initial investment.
2. Obtained a P50,000 loan.
3. Acquired furniture and fixtures for P80,000 cash.
4. Acquired inventory on account for P60,000. (Use perpetual
inventory system)
5. Sold goods on cash basis for P200,000. The cost of sales is
P20,000.
6. Sold goods on account for P300,000. The cost of sales is
P30,000.
7. Paid supplies expense for P20,000 cash.
8. Paid rent expense of P180,000.
9. Paid utilities expense of P40,000.
10. Collected P240,000 accounts receivable.
11. Paid P30,000 accounts payable.
12. Made total drawings of P25,000.
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