ACCOUNTING: Julius Ceasar organized Eternal Images, a photography and portrait studio, on Oct. 1, 2020. The studio completed the following transactions during the month: Oct. 1 Deposited P350,000 in a bank account in the name of the business Oct. 3 Paid two month's rent in advance, P30,000 Oct. 5 Acquired photography equipment valued at P129,000. Oct.12 Purchased photography supplies on credit, P21,000. Oct.13 Received cash for previously unbilled portraits, P11,400. Oct.17 Billed customers for portraits, P22,500. Oct.19 Paid fifty percent of the supplies purchased on Oct. 12, P10,500. Oct.25 Paid electricity bill for Oct., P3,600 Oct.26 Paid the telephone bill for Oct., P2,100. Oct.28 Received payments from the customers billed on Oct. 17, P7500. Oct.29 Paid salaries to personnel, P12,000. Oct.30 Received an advance payment from a customer, P1,500. Oct.31 Withdrew P16,000 from the business for a personal emergency. Required 1. Prepare the journal entries for the October transactions. 2. Establish the following T-accounts: Cash, Accounts Receivable, Prepaid Rent, Photography Equipment, Supplies, Accounts Payable, Unearned Revenue, Ceasar, Capital, Ceasar, Withdrawals, Portrait Revenue, Salaries Expense and Utilities Expense. 3. Prepare a trial balance.

Cornerstones of Financial Accounting

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ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

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ACCOUNTING: Julius Ceasar organized Eternal Images, a photography and portrait studio, on Oct. 1, 2020.

The studio completed the following transactions during the month:

Oct. 1	Deposited P350,000 in a bank account in the name of the business
Oct. 3	Paid two month's rent in advance, P30,000
Oct. 5	Acquired photography equipment valued at P129,000.
Oct.12	Purchased photography supplies on credit, P21,000.
Oct.13	Received cash for previously unbilled portraits, P11,400.
Oct.17	Billed customers for portraits, P22,500.
Oct.19	Paid fifty percent of the supplies purchased on Oct. 12, P10,500.
Oct.25	Paid electricity bill for Oct., P3,600
Oct.26	Paid the telephone bill for Oct., P2,100.
Oct.28	Received payments from the customers billed on Oct. 17, P7500.
Oct.29	Paid salaries to personnel, P12,000.
Oct.30	Received an advance payment from a customer, P1,500.
Oct.31	Withdrew P16,000 from the business for a personal emergency.

Required
1. Prepare the journal entries for the October transactions.
2. Establish the following T-accounts: Cash, Accounts Receivable, Prepaid Rent, Photography Equipment, Supplies, Accounts Payable, Unearned Revenue, Ceasar, Capital, Ceasar, Withdrawals, Portrait Revenue, Salaries Expense and Utilities Expense.
3. Prepare a trial balance.

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