Donato Menorca was a service advisor in a car dealership. He supervised a team of mechanics that keeps and restores the customers’ cars to good operating condition. Tired of being an employee, he decided to put up Express Repair Shop. During the month of January 2020, Menorca completed the following transactions: Started his business by transferring Php 90,000 of his personal money to the business bank account; Paid rent for the month, Php 12,000; Purchased several equipment for Php 40,000; made a down payment of Php 20,000 and arranged to pay the balance the following month; Bought supplies for cash amounting to Php 6,000; Performed services amounting to Php 70,000 of which Php 40,000 was received in cash; Paid the following cash expenses: wages, Php 20,000; utilities, Php 6,000. REQUIRED: Use the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; D. Menorca, Capital; Service Revenue; Wages Expense; Rent Expense; Utilities Expense Record the transactions in a journal using the account titles above. Post the transactions to its individual ledger accounts. Prepare the unadjusted trial balance as of January 31, 2020.
Donato Menorca was a service advisor in a car dealership. He supervised a team of mechanics that keeps and restores the customers’ cars to good operating condition. Tired of being an employee, he decided to put up Express Repair Shop. During the month of January 2020, Menorca completed the following transactions: Started his business by transferring Php 90,000 of his personal money to the business bank account; Paid rent for the month, Php 12,000; Purchased several equipment for Php 40,000; made a down payment of Php 20,000 and arranged to pay the balance the following month; Bought supplies for cash amounting to Php 6,000; Performed services amounting to Php 70,000 of which Php 40,000 was received in cash; Paid the following cash expenses: wages, Php 20,000; utilities, Php 6,000. REQUIRED: Use the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; D. Menorca, Capital; Service Revenue; Wages Expense; Rent Expense; Utilities Expense Record the transactions in a journal using the account titles above. Post the transactions to its individual ledger accounts. Prepare the unadjusted trial balance as of January 31, 2020.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 33P
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Donato Menorca was a service advisor in a car dealership. He supervised a team of mechanics that keeps and restores the customers’ cars to good operating condition. Tired of being an employee, he decided to put up Express Repair Shop. During the month of January 2020, Menorca completed the following transactions:
- Started his business by transferring Php 90,000 of his personal money to the business bank account;
- Paid rent for the month, Php 12,000;
- Purchased several equipment for Php 40,000; made a down payment of Php 20,000 and arranged to pay the balance the following month;
- Bought supplies for cash amounting to Php 6,000;
- Performed services amounting to Php 70,000 of which Php 40,000 was received in cash;
- Paid the following cash expenses: wages, Php 20,000; utilities, Php 6,000.
REQUIRED:
Use the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; D. Menorca, Capital; Service Revenue; Wages Expense; Rent Expense; Utilities Expense
- Record the transactions in a journal using the account titles above.
Post the transactions to its individual ledger accounts.- Prepare the unadjusted
trial balance as of January 31, 2020.
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