Problem #4

Problem #4 Journalizing, Posting, and Preparing a Trial Balance King Leon won a concession to rent out bicycles in the Burnham Park during the summer. During the month of April, Leon completed the following transactions for his bicycle rental business: Apr. 2 Began business by placing P120,000 in a business checking account. 3 Purchased supplies on account for P1,500. 4 Purchased 10 bicycles for P25,000 paying P12,000 down and agreed to pay the balance in 30 days. 5 Paid 29,000 in cash for a furnished container to store the bicycles and use for other operations. 6 Received P4,700 in cash for rentals during the first week of operation. 8 Paid P4,000 in cash for shipping and installation costs (considered an addition to the cost of the container) to place the container at the park entrance. 9 |Hired a part-time assistant to help on weekends. 10 Paid a maintenance person P750 to clean the grounds. 13 Received P5,000 in cash for rentals during the second week of operation. 16 Paid the assistant P480 for a weekend's work. 17 Paid for the supplies purchased on April 3. 18 Paid a P550 repair bill on bicycles. 20 Received P5,500 in cash for rentals during the 3d week of operation. 22 Paid the assistant P480 for a weekend's work. 23 Billed an entity P1,100 for bicycle rentals for employees' outing. 25 Paid P3m000 fee for April to the Park Administration for the right to the bicycle concession. 27 Received P4,100 in cash for rentals during the week. 29 Paid the assistant P480 for a weekend's work. 30 Transferred P5,000 to personal checking account. Required: 1. Prepare the journal entries for the transactions. 2. Set up the following ledger accounts and post all the journal entries: Cash, Accounts Receivable; Supplies; Container; Bicycles; Accounts Payable; Leon, Capital; Leon, Withdrawals; Rental Revenues; Wages Expense; Maintenance Expense; Repair Expense; and Concession Fee Expense. 3. Prepare a Trial Balance