Requirements: A. Prepare the journal entries for the October Transactions on journal sheets. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment: Accounts Payable; Ruiz, Capital; Ruiz, Drawings; Accounting Service Revenues; Salaries Expense; Rent Expense B. Use separate journal sheets for your answers. Rerey Ruiz had just opened his business for Accounting Services. During the month of October 2020, the following are his transactions: Oct. 01 Rerey Ruiz obtained the funds to start the business by withdrawing P650,000 from his personal savings and deposited the money in the name of the firm, Ruiz Accounting Services. 03 Ruiz bought a computer, a copy machine, a fax machine, calculators and other necessary equipment from M. Mercado, Inc. at a cost of P100,000. M. Mercado Inc. on account. 05 Ruiz placed an order for various supplies that had a total cost P20,000. The entity that sold the items, Cavite Supplies, Inc. requires cash payments from business that are under 6 months old. Ruiz Accounting Services therefore included a check with its order. 09 Ruiz decided to pay P40,000 to M. Mercado, Inc. to reduce the firm’s debt to that business. 13 Ruiz Accounting Services earned P70,000 of revenue from charge account clients. These clients are allowed 30 days to pay. 18 The business hired an accounting staff on Oct. 1. The firm paid P15,000 in salaries for the employees. 23 Ruiz Services received P30,000 from clients who had previously bought services on account. His cash was applied to their accounts 27 Ruiz earned a total of P250,000 in revenue from clients who paid cash for accounting and bookkeeping services. 30 The business received a P45,000 bill for the utilities that it had used during the month. A check was issued immediately. 30 The business issued a check as payment for office rent for Oct. Monthly rent is P45,000 31 Ruiz withdrew P150,000 in cash from the business to pay for his personal expenses

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section21.1: Accruals

Problem 1WT

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Requirements: A. Prepare the journal entries for the October Transactions on journal sheets. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment: Accounts Payable; Ruiz, Capital; Ruiz, Drawings; Accounting Service Revenues; Salaries Expense; Rent Expense B. Use separate journal sheets for your answers. Rerey Ruiz had just opened his business for Accounting Services. During the month of October 2020, the following are his transactions: Oct. 01 Rerey Ruiz obtained the funds to start the business by withdrawing P650,000 from his personal savings and deposited the money in the name of the firm, Ruiz Accounting Services. 03 Ruiz bought a computer, a copy machine, a fax machine, calculators and other necessary equipment from M. Mercado, Inc. at a cost of P100,000. M. Mercado Inc. on account. 05 Ruiz placed an order for various supplies that had a total cost P20,000. The entity that sold the items, Cavite Supplies, Inc. requires cash payments from business that are under 6 months old. Ruiz Accounting Services therefore included a check with its order. 09 Ruiz decided to pay P40,000 to M. Mercado, Inc. to reduce the firm’s debt to that business. 13 Ruiz Accounting Services earned P70,000 of revenue from charge account clients. These clients are allowed 30 days to pay. 18 The business hired an accounting staff on Oct. 1. The firm paid P15,000 in salaries for the employees. 23 Ruiz Services received P30,000 from clients who had previously bought services on account. His cash was applied to their accounts 27 Ruiz earned a total of P250,000 in revenue from clients who paid cash for accounting and bookkeeping services. 30 The business received a P45,000 bill for the utilities that it had used during the month. A check was issued immediately. 30 The business issued a check as payment for office rent for Oct. Monthly rent is P45,000 31 Ruiz withdrew P150,000 in cash from the business to pay for his personal expenses

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