In June 2021, Chan Lee opened a photography studio that provides services to public and privateschools. His firm's Chart of Accounts and financial activities for the first month of operationsappear below:Chan Lee Photography StudioChart of AccountsASSETSREVENUE101Cash404Service Fees111Accounts ReceivableEXPENSESRent ExpenseSalaries ExpenseTelephone ExpenseUtilities ExpenseMiscellaneous ExpenseSuppliesOffice Furniture121511141512Office EquipmentPhotographic EquipmentLIABILITIES142513151514531202Accounts PayableOWNER’S EQUITYChan Lee, CapitalChan Lee, Drawing301302DateTransactionsJune 1 Chan Lee invested P300,000 cash in the business.2 Issued Check # 1001 for P30,000 to pay the June rent.5 Purchased desks and other office furniture for P50,000 from Office Plus;received Invoice # 5312, payable in 60 days.6 Issued Check # 1002 for P150,000 to purchase photographic equipment.7 Purchased photography supplies for P40,000, paid with Check # 1003.10 Issued Check # 1004 for P5,000 for office cleaning service.12 Performed services to Bright Minds School for P130,000; received 30% cash,the balance on credit. (Use compound entry).15 Returned damaged photography supplies, received P3,000 cash refund.18 Purchased a computer for P60,000 from Micro Center; Invoice # 304;issued Check # 1005 for P15,000 as down payment, the balance is payable in 30 days.(Use compound entry).20 Issued Check # 1006 for P20,000 to Office Plus as partial payment for desksand other office furniture purchased on June 5 with Invoice # 5312.26 Performed services to ABC Learning School for 70,000 on credit.27 Paid P2,500 for monthly phone bill, issued Check # 1007.30 Received P91,000 from Bright Minds School as full payment for services renderedon June 12.30 Issued Check # 1008 to pay the monthly electricity bill of P17,000.30 Issued Check # 1009 for P25,000 for salaries. INSTRUCTIONS:Use a general journal.Alternatively, you may use MS Excel.Use Sheetl for this.Use a standard form general ledger.Alternatively, you may use MS Excel.Use Sheet2 for this.1.Journalize the transactions.Number the first journal page as 1.Describe each entry.Post to the ledger accounts.Before you start the posting process, open theaccounts by entering the names and numbersin the headings.Follow the order of the accounts2.in the Chart of Accounts.Prepare the Trial Balance for the month endedJune 30, 2021.Use a 2-column journal (or general journal)Alternatively, you may use MS Excel.Use Sheet3 for this.3.Adapted from:Price, J., Haddock, M., & Farina, M., (2021). College Accounting, 16th edition. McGraw-Hill Education.

Journal entries refers to the process of identifying and documenting all the transactions of a…

Answered: Chart of Accounts and financial activit…

Business

Accounting

Chart of Accounts and financial activit nan Lee Photography Studio Chart of Accounts REVENUE 404 Service Fees ne Feer

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5CP

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