Mr Ventura engaged in a Milling business to serve the needs of farmers in the rural areas of Tacloban City. Below are given the charts of accounts for the first month of operations on June 2020;

 

 

VENTURA MILLING COMPANY

Chart of Accounts

 

ASSETS                                                         OWNER"S EQUITY

Cash in bank                                                   Mr. Ventura, Capital

Accounts Receivable                                      MR. Ventura, Drawing

Diesoline Inventory

Machinery-Nasuki Rice Mill                           INCOME

                       Furniture and Fixtures                                                Milling Income

 

LIABILITIES                                          EXPENSES

Accounts payable                                            Salaries and Wages

SSS Premium Payable                         Taxes and Licenses

Philhelath premium payable                            SSS Contribution

Philhealth Contribution

 

 

Transaction for the month;

 

June     1;         Mr. Ventura purchased Machinery from Japan and invest it in his business worth 

P1,000,000.  He also invest cash of P100,000 and furniture and fixtures worth 

P50,000.

            2;         Purchased diesoline worth P20,000 on account from Shell Company.

            5:         Paid licenses and business permits to the City Government P2,800.

            10;       Received cash for milling services P20,000.

            18:       Withdrew P10,000 cash for personal use.

            20;       Rendered milling services to Catiklan Traders on Account P28,000.

            23;       Paid in full the account with Shell Company P20,000.

            27;       Collected partially the account of Catiklan Traders P20,000.

            30:       Paid salaries and wages for the month:

 

                        Salaries and wages                                                                  P17,500.00

                        Less; Deductions;

                                    SSS Premium              583.50

                                    Philhealth Premium     187.50                                           771.00

                        Net Payroll                                                                              P16,729.00

                                                                                                                        =========

            30: Employer share;  SSS P936.50     and Philhealth P187.50.

Requirements;

1. Prepare journal entries.
2. Make the T-account and prepare Trial balance

Answer rating: 100% (QA)

Journal Entries Date Account Debit Credit June 1 MachineryNasuki Rice Mill 1000000 Cash at Bank 1000... View the full answer