Instructions: Given the Chart of Accounts and Transactions of ABC Repair Services, prepare the following; General Journal
Question:
Instructions: Given the Chart of Accounts and Transactions of ABC Repair Services, prepare the following;
General Journal - using format given
General Ledger- using format given
Transactions:
On December 1, 2021, MrCedric Andrew Espino started ABC Repair Services by investing P400,000.
On December 5, ABC Repair Services paid registration and licensing fees for the business, P25,000.
On December 6, the company acquired tables, chairs, shelves, and other fixtures for a total of P35,000.
On December 7, the company acquired service equipment for P160,000. The company paid a 50% down payment and the balance will be paid after 60 days.
Also, on December 7, ABC Repair Services purchased service supplies on account amounting to P27,500.
On December 9, the company received P29,500 for services rendered.
On December 12, the company rendered services on account, P42,500. As per agreement with the customer, the amount is to be collected after 10 days.
On December 14, received 50,000 cash from a customer for repair services to be performed on December 30.
Rendered services to a big corporation. on December 15. As per the agreement, the P64,000 amount due will be collected after 30 days.
On December 22, the company collected from the customer on December 12.
On December 23, the company paid some of its liability on December 7 by issuing a check. The company paid P15,000 of the P27,500 payable.
On December 25, the owner withdrew cash due to an emergency need. Mr. Espino withdrew P70,000 from the company.
On December 29, the company paid rent for December, P20,000.
On December 30, the company acquired a P300,000 short-term bank loan; the entire amount plus a 10% interest is payable after 1 year.
Also, on December 30, performed services for the customer on December 14.
On December 31, the company paid salaries to its employees, P70,000.
On December 31, the company paid electricity and water bills, P10,000
Expert Answer:
To prepare the General Journal and General Ledger for ABC Repair Services we will use the given format Here are the transactions recorded in the General Journal General Journal Date Account Debit P Cr... View the full answer
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
