The following transactions took place in May 2021. May 1-5C's began the business by investing P 100,000 in cash. 1- Purchased Word Processing Equipment from ABC Co. for P60,000, paying P10,000 and promising to pay the balance within 30 days. 1-Rented office space paying P12,000 in advance for the first three months. 3- Purchased office supplies from Office Depot Co. on account, P6,000. 7-Completed sales promotion flyers for a client and immediately collected P30,000. 13- paid Office salaries, P6,500. 18 - Advertising bill from Balita Co. comes in but is not paid, P2,500. 20-5C's wrote a check on the bank account of the business as personal withdrawal of cash to pay his home mortgage of P6,250. 22- Billed Luzonian Co for a special word processing job, P 50,000 28- Paid Half of the amount owed for Word Processing Equipment purchased on May 1 from ABC Co., P25,000. 29 Received and paid telephone bill, P2,200. 30-On this date, the accountant: (a) Found out that company had only P1,000 worth supplies on hand. (b) Realized that the company has two months prepaid rent (c) Determined that the computer equipment should be depreciated over its 5-year useful life with estimated residual salvage value of P12,000 (d) Determined that unpaid salary of P3,500 has not recorded. Requirements: 1. Analyze and journalize the transactions for the May, 2021 of 5C's Computer Center. 2. Post journal entries to the ledger 3. Prepare Unadjusted Trial Balance as of May 31, 2021.
The following transactions took place in May 2021. May 1-5C's began the business by investing P 100,000 in cash. 1- Purchased Word Processing Equipment from ABC Co. for P60,000, paying P10,000 and promising to pay the balance within 30 days. 1-Rented office space paying P12,000 in advance for the first three months. 3- Purchased office supplies from Office Depot Co. on account, P6,000. 7-Completed sales promotion flyers for a client and immediately collected P30,000. 13- paid Office salaries, P6,500. 18 - Advertising bill from Balita Co. comes in but is not paid, P2,500. 20-5C's wrote a check on the bank account of the business as personal withdrawal of cash to pay his home mortgage of P6,250. 22- Billed Luzonian Co for a special word processing job, P 50,000 28- Paid Half of the amount owed for Word Processing Equipment purchased on May 1 from ABC Co., P25,000. 29 Received and paid telephone bill, P2,200. 30-On this date, the accountant: (a) Found out that company had only P1,000 worth supplies on hand. (b) Realized that the company has two months prepaid rent (c) Determined that the computer equipment should be depreciated over its 5-year useful life with estimated residual salvage value of P12,000 (d) Determined that unpaid salary of P3,500 has not recorded. Requirements: 1. Analyze and journalize the transactions for the May, 2021 of 5C's Computer Center. 2. Post journal entries to the ledger 3. Prepare Unadjusted Trial Balance as of May 31, 2021.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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