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Arnina established a service business to be known as Arnina Photography on July 1, 2021. During the first month, the following transactions occurred: July 1: Arnina transferred cash of P300,000 from her personal bank account to an account to be used for her business. She also invested the following: digital camera, P45,000; manual camera, P25,000; desktop computer, P28,000; photo papers and ink, P14,000. July 4: paid six-month advance rent to Cyrene Commercial Complex, P30,000 July 6: Received a statement of account from Brian News for advertising this month, P5,500. July 8: Bought photo enhancing and editing equipment from Mirzi Outlet for P40,000. Arnina paid 30% down payment and the balances on account. July 12: Hired office assistant with a monthly salary of P6,000. The office assistant officially started on July 16, 2014. July 13: Photography services rendered totaled P180,000. Terms 25% cash and the balance settled on account. July 14: Purchased office sofa set from Renzo Designs for P30,000 on account. July 15: Paid various operating expenses during the month: Meeting potential clients, P4,000; Electricity, P23,000; Telephone expense, P6,000; and Repair and Maintenance expense, P2,500. July 18: Photography services rendered totaled P185,000, of which 25% was settled with an interest-bearing note and balance on account. July 20: Received photography advances from a couple for a prenuptial coverage to be rendered next month, P60,000 July 22: Collected 90% of the outstanding receivable from July 13 transaction. July 24: Paid in full statement of account received last July 6. July 26: Paid 80% of the outstanding obligation to Mirzi Outlet, she issued an interest-bearing note. July 28: Paid half of the outstanding obligation to Renzo Design. July 31: Paid salary of the office assistant for 16 days, P3,097.

Arnina established a service business to be known as Arnina Photography on July 1, 2021. During the first month, the following transactions occurred: July 1: Arnina transferred cash of P300,000 from her personal bank account to an account to be used for her business. She also invested the following: digital camera, P45,000; manual camera, P25,000; desktop computer, P28,000; photo papers and ink, P14,000. July 4: paid six-month advance rent to Cyrene Commercial Complex, P30,000 July 6: Received a statement of account from Brian News for advertising this month, P5,500. July 8: Bought photo enhancing and editing equipment from Mirzi Outlet for P40,000. Arnina paid 30% down payment and the balances on account. July 12: Hired office assistant with a monthly salary of P6,000. The office assistant officially started on July 16, 2014. July 13: Photography services rendered totaled P180,000. Terms 25% cash and the balance settled on account. July 14: Purchased office sofa set from Renzo Designs for P30,000 on account. July 15: Paid various operating expenses during the month: Meeting potential clients, P4,000; Electricity, P23,000; Telephone expense, P6,000; and Repair and Maintenance expense, P2,500. July 18: Photography services rendered totaled P185,000, of which 25% was settled with an interest-bearing note and balance on account. July 20: Received photography advances from a couple for a prenuptial coverage to be rendered next month, P60,000 July 22: Collected 90% of the outstanding receivable from July 13 transaction. July 24: Paid in full statement of account received last July 6. July 26: Paid 80% of the outstanding obligation to Mirzi Outlet, she issued an interest-bearing note. July 28: Paid half of the outstanding obligation to Renzo Design. July 31: Paid salary of the office assistant for 16 days, P3,097.

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter3: Journalizing Transactions
Section3.3: Transactions Affecting Owner’s Equity And Asset Accounts
Problem 1OYO
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Arnina established a service business to be known as Arnina Photography on July 1, 2021. During the first month, the following transactions occurred:

  1. July 1: Arnina transferred cash of P300,000 from her personal bank account to an account to be used for her business. She also invested the following: digital camera, P45,000; manual camera, P25,000; desktop computer, P28,000; photo papers and ink, P14,000.
  2. July 4: paid six-month advance rent to Cyrene Commercial Complex, P30,000
  3. July 6: Received a statement of account from Brian News for advertising this month, P5,500.
  4. July 8: Bought photo enhancing and editing equipment from Mirzi Outlet for P40,000. Arnina paid 30% down payment and the balances on account.
  5. July 12: Hired office assistant with a monthly salary of P6,000. The office assistant officially started on July 16, 2014.
  6. July 13: Photography services rendered totaled P180,000. Terms 25% cash and the balance settled on account.
  7. July 14: Purchased office sofa set from Renzo Designs for P30,000 on account.
  8. July 15: Paid various operating expenses during the month: Meeting potential clients, P4,000; Electricity, P23,000; Telephone expense, P6,000; and Repair and Maintenance expense, P2,500.
  9. July 18: Photography services rendered totaled P185,000, of which 25% was settled with an interest-bearing note and balance on account.
  10. July 20: Received photography advances from a couple for a prenuptial coverage to be rendered next month, P60,000
  11. July 22: Collected 90% of the outstanding receivable from July 13 transaction.
  12. July 24: Paid in full statement of account received last July 6.
  13. July 26: Paid 80% of the outstanding obligation to Mirzi Outlet, she issued an interest-bearing note.
  14. July 28: Paid half of the outstanding obligation to Renzo Design.
  15. July 31: Paid salary of the office assistant for 16 days, P3,097.

 

Required:

  1. Journalize the foregoing transaction
Arnina Photography Chart of Accounts ASSET Owner's Equity 301 Arnina, Capital 302 Arnina, Drawing 303 Income Summary 101 Cash 102 Accounts Receivable 103 Notes Receivable 104 Photography Supplies 105 Advances to Employees 106 Photography Equipment 107 Prepaid Rent Expense 108 Photography Equipment 109 Furniture and Fixtures Revenue 401 Photography Service Revenue 402 Interest Income 403 Other Income 110 Office Equipment 111 Delivery Vehicle Expenses 501 Salaries Expense 502 Rent Expense LIABILITIES 503 Advertising Expense 201 Accounts Payable 202 Notes Payable 504 Representation Expense 505 Utilities Expense 506 Communication Expense 203 Accrued Salaries 204 Accrued Rent 507 Repair and Maintenance 508 Other Expenses 205 Advances from Clients 206 Loan Payable
Transcribed Image Text:Arnina Photography Chart of Accounts ASSET Owner's Equity 301 Arnina, Capital 302 Arnina, Drawing 303 Income Summary 101 Cash 102 Accounts Receivable 103 Notes Receivable 104 Photography Supplies 105 Advances to Employees 106 Photography Equipment 107 Prepaid Rent Expense 108 Photography Equipment 109 Furniture and Fixtures Revenue 401 Photography Service Revenue 402 Interest Income 403 Other Income 110 Office Equipment 111 Delivery Vehicle Expenses 501 Salaries Expense 502 Rent Expense LIABILITIES 503 Advertising Expense 201 Accounts Payable 202 Notes Payable 504 Representation Expense 505 Utilities Expense 506 Communication Expense 203 Accrued Salaries 204 Accrued Rent 507 Repair and Maintenance 508 Other Expenses 205 Advances from Clients 206 Loan Payable
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