June 2 Commenced business with a capital of 1,000,000 June 4 Purchased 2,000 vape at a cost of Php 250.00 per vape. June 5 Paid trucking firm Php 6,000.00 to ship the vapes purchased. June 7 Purchased 800 vapes at a cost of Php 250.00 per vape June 8 Paid trucking firm Php 5,000.00 to ship the vapes purchased. June 9 Sold 1,100 vapes purchased on June 4 June 10 Bought office supplies worth 50,000 June 12 Paid for the tires purchased on June 4 June 14 Purchased Office Supplies for cash, P 3,600 June 15 Sold 500 tires from those purchased on June 2. The selling price was Php 250.00 per tire. June 18 Bought furniture for the shop and paid cash 12,000 June 19 Received cash from sale of tires on June 7. June 22 withdrew P 8,000 cash for personal use June 25 Paid for vapes purchased on June 5. June 28 Purchased machinery for cash 15,000 Required: Post the journal enirues to the individual T accounts with corresponding account numbers.

June 2 Commenced business with a capital of 1,000,000 June 4 Purchased 2,000 vape at a cost of Php 250.00 per vape. June 5 Paid trucking firm Php 6,000.00 to ship the vapes purchased. June 7 Purchased 800 vapes at a cost of Php 250.00 per vape June 8 Paid trucking firm Php 5,000.00 to ship the vapes purchased. June 9 Sold 1,100 vapes purchased on June 4 June 10 Bought office supplies worth 50,000 June 12 Paid for the tires purchased on June 4 June 14 Purchased Office Supplies for cash, P 3,600 June 15 Sold 500 tires from those purchased on June 2. The selling price was Php 250.00 per tire. June 18 Bought furniture for the shop and paid cash 12,000 June 19 Received cash from sale of tires on June 7. June 22 withdrew P 8,000 cash for personal use June 25 Paid for vapes purchased on June 5. June 28 Purchased machinery for cash 15,000 Required: Post the journal enirues to the individual T accounts with corresponding account numbers.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

See similar textbooks

Similar questions

Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
1. The business is a trading business. For the period it purchased goods for sale valued of Php 100,000. The goods were all sold for a total price of Php 120,000. For the sale only 10% was received as down payment at the end of the year 30% are still collection. How much is the business income? 2. The business was put up from a cash of Php 200,000 the initial capital of the owner. Then, Php 40,000 of the cash was used to purchase an equipment to be used in business. The purchase of equipment resulted in a liability of Php 20,000. How much are the total assets of the business.
Journalized the following transactions. 1. Received a lot worth Php 300,000.00 from Mr. Mat. Tiaga as his initial investment in a Photo Shop. 2. Paid the license fee of Php 2,000.00 to the municipal treasurer. 3. Bought 3 units of camera for Php 25,000.00 each from SM payable in 3 months 4. Photo services was rendered to cash customers Php 15,500.00 5. Paid the utilities for the month -Php 5,000.00 6. Billed a customer Mr. Santos for Php 20,000.00 7. Signed a contract to St, Thomas Academy with a monthly payment of Php 3,000.00 for one year for Photo services 8. Paid SM Marketing for Php 60,000.00 only and issued a 30-day promissory note for the balance 9. Collected the payment of Mr. Santos 10. Received the first month fee from General Hospital
Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount ofPHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant’s salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month’s utility bill. 30 Garcia withdrew PHP1,050 cash from the business for…
Jerome Garcia started a new business and completed these transactions during August: Aug. 1 Garcia invested PHP48,000 cash in the business. 1 Rented office space and paid PHP800 cash for the August rent. 3 Purchased exploration equipment for PHP22,000 by paying PHP12,000 cash and agreeing to pay the balance in 3 months. 5 Purchased office supplies by paying PHP1,500 cash. 6 Completed exploration work and immediately collected PHP420 cash for the work. 8 Purchased PHP1,350 of office equipment on credit. 15 Completed exploration work on credit in the amount of PHP8,000. 18 Purchased PHP700 of office supplies on credit. 20 Paid cash for the office equipment purchased on August 8. 24 Billed a client PHP2,400 for work completed; the balance is due in 30 days. 28 Received PHP5,000 cash for the work completed on August 15. 30 Paid the assistant’s salary of PHP1,100 cash for this month. 30 Paid PHP340 cash for this month’s utility bill. 30 Garcia withdrew PHP1,050 cash from the…
Frontier Park was started on April 1 by C. J. Mendez. The following selected events andtransactions occurred during April. April 1 Mendez invested Tk. 40000 cash in the business. April 4 Purchased land costing Tk. 20000 for cash. April 8 incurred advertising expense of Tk. 1900 on account. April 11 Paid salaries to employees Tk. 3000 April 12 Hired park manager at a salary of Tk. 4000 per month, effective May 1. April 13 Paid Tk. 1500 cash for a one-year policy. April 17 Withdrew Tk. 1100 cash for personal use. April 25 Sold 100 coupon books for Tk. 25 each. April 30 Received Tk. 8500 in cash admission fees. April 30 Paid Tk. 900 on account for advertising incurred on April 8. Requirement: Journalize the April transactions.
Siargao company recently acquired two items of equipment. A. Acquired a press at an invoice price of Php3,000,000 net of 5% cash discount which was taken. Cost of freight and insurance during the shipment were Php50,000 and installation cost amounted to Php200,000 B. Acquired a welding machine at an invoice price of Php2,000,000 subject to a 10% cash discount which was not taken and a 5% rebate which was also not taken. Additional welding supplies were acquired at a cost of Php100,000. What is the total increase in the equipment account as a result of these transactions?
J.K. Builders was incorporated on July 1. Received $70,000 cash invested by owners and issued common stock. Bought an unused field from a local farmer by paying $60,000 cash. As a construction site for smaller projects, it is estimated to be worth $65,000 to J.K. Builders. A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $10,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $9,000 bill from the supplier. Borrowed $25,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. One of the owners sold $10,000 worth of his common stock to another shareholder for $11,000. Prepare journal entries for the above transactions from the first month of business. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Prepare journal entries to the following transactionsfor the year 2020.Sept. 1 Paul Barney invested Php 150, 000 in Barney repair ShopSept 3 Purchased equipment worth Php 80,000 on account.Sept. 12 Paid Php 25, 000 for the equipment purchased dated Sept. 3, 2020.Sept. 15 Rendered service amounting to Php 45,000.Sept. 17 Paid salaries to employees, Php16,000
Tristar Production Company began operations on September 1, 2016. Listed below are a number of transactions that occurred during its first four months of operations. 1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $100,000 in cash for the property. According to appraisals, the land had a fair value of $75,000 and the building had a fair value of $45,000. 2. On September 1, Tristar signed a $40,000 noninterest-bearing note to purchase equipment. The $40,000 payment is due on September 1, 2017. Assume that 8% is a reasonable interest rate. 3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $2,500. 4. On September 18, the company paid its lawyer $3,000 for organizing the corporation. 5. On October 10, Tristar purchased equipment for cash. The purchase price was $15,000 and $500 in freight charges also were paid. 6. On December 2, Tristar acquired various items of office…
Mr. Yiadom decided on 1 July, to invest his insurance compensation of GHȼ 4,000,000 in a retail business to buy and sell second hand shovels. The following transactions took place from that month to December. Date Purchases Quantity Cost Date Sales Quantity ValueJuly5 200 720,000 Aug 2 500 2,500,000Aug 1 400 1,520,000 Sept 3 600 2,400,000Oct 4 400 1,400,000 Oct 12 600 2,700,000Dec 7 500 1,400,000 Dec 12 400 1,500,000RequiredCalculate the cost of shovels issued during the period and the cost of shovels on hand on 31/12 using the following methods of pricing 1. Calculate and discuss the effect, each of the pricing methods will have on the reported profit of the business 2Examine critically the performance of the business during the period.
Company A was incorporated on January 1, 2010 with an initial capital Rs 1,000,000. During the first month of its operations, the company engaged in following transactions: Date Transaction Jan 2 An amount of Rs 36,000 was paid as advance rent for three months. Jan 3 Paid Rs 60,000 cash on the purchase of equipment costing Rs 80,000. Jan 4 Purchased office supplies costing Rs 17,600 on account. Jan 13 Provided services to its customers and received RS 28,500 in cash. Jan 13 Paid the accounts payable on the office supplies purchased on January 4. Jan 14 Paid wages to its employees for first two weeks of January, aggregating Rs 19,100. Jan 26 Purchased office supplies costing Rs 5,200 on account. Jan 28 Paid wages to its employees for the third and fourth week of January: Rs 19,100. Jan 31 Paid Rs 5,000 as dividends. Electricity bill of Rs 2,470, telephone bill of Rs 1,494. Required: You…