Question

Recording Transactions USING A 2-COLUMN GENERAL JOURNAL, prepare JOURNAL ENTRIES for the following transactions including explanation. Use the following accounts: Cash; Accounts Receivable; Repair Supplies; Equipment; Accounts Payable; Accrued Expense; Buddy Bungal, Capital; Repair Services Revenue; Communications Expense; Utilities Expense. Buddy Bungal invested P210,000 in the business named Bud's Computer Repair Shop. The deposit slip was # 100 May 1 3 Purchased repair equipment from the Ocean Park for P30,000. Check # 4801 was issued in the amount of P18,000 with the balance being placed on account. The invoice number was A998. 8 Repaired a customer's computer billing him P5,000 on billing # 690. 10 Repaired a customer's computer for P8,800, of which 80% was collected, with the balance placed on account. The billing slip was #691. The deposit slip was # 398765. 12 Received and paid the telephone bill by issuing check # 4802 in the amount of P3,000. 13 Purchased repair supplies by issuing check # 4803 in the amount of P2,500. 14 Collected the amount due from the customer of billing slip # 690. The deposit was # 459086. 18 Issued check # 4804 in the amount of P9,000 to the Ocean Park as a partial payment for the equipment purchased on May 3. 20 Repaired a customer's computer and collected P6,000. The deposit slip was # 789190. The biling slip was #692. 21 Received electric bill for the month of May in the amount of P1,500 to be paid next month.

Answer 1

The entries will be recorded in the General Journal as follows:

General Journal
Date	Particulars	Post.ref.	Debit	Credit
May	1	Cash		P210,000
		Buddy Bungal, Capital	#100		P210,000
		Capital invested by Buddy Bungal vide deposit slip #100
	3	Equipment	A998	P30,000
		Cash	#4801		P18,000
		Accounts Payable			P12,000
		Repair equipment purchased partly vide check #4801 and party on account
	8	Accounts Receivable		P5,000
		Repair Services Revenue	#690		P5,000
		Services rendered on account vide bill #690
	10	Cash	#398765	P7,040
		Accounts Receivable		P1,760
		Repair Services Revenue	#691		P8,800
		Services rendered in cash and on account, vide bill #691
	12	Communications Expense		P3,000
		Cash	#4802		P3,000
		Telephone expense paid vide check #4802
	13	Repair Supplies		P2,500
		Cash	#4803		P2,500
		Repair supplies purchased vide check #4803
	14	Cash	#459086	P5,000
		Accounts Receivable	#690		P5,000
		Receivables vide bill #690 collected vide deposit slip #459086
	18	Accounts Payable		P9,000
		Cash	#4804		P9,000
		Accounts Payable for bill A998 paid partly vide check #4804
	20	Cash	#789190	P6,000
		Repair Services Revenue	#692		P6,000
		Repair services vide bill #692 collected in cash vide deposit slip #789190
	21	Utilities Expense		P1,500
		Accrued Expense			P1,500
		Electric bill for the month of May due to be paid

Working notes:

1. On May 1, capital is contributed, so cash is debited and capital is credited.

2. On May 3, equipment is purchased (so asset is debited), partly in cash (credited) and partly on account (so accounts payable credited).

3. On May 8, services provided on account. So, accounts receivable debited and services revenue credited.

4. On May 10, services rendered partly on cash and partly on account. So, cash and accounts receivable debited and revenue credited.

5. On May 12, expenses debited and cash credited.

6. On May 13, supplies bought (debited) and cash credited.

7. On May 14, previous accounts receivable settled. So, cash received (debited) and accounts receivable account credited.

8. On May 18, previous accounts payable settled. So, accounts payable debited and cash credited.

9. On May 20, services rendered in cash.

10. On May 21, electricity expenses accrued but not paid. So, expenses debited and accrued expenses (liability) credited.