Kenneth Ang is a painting contractor. During the month of April, he completed the following transactions: Apr. 2 Invested in the business painting equipment valued at P12,300 and placed P71,000 in a business checking account. 3 Acquired a service vehicle costing P80,000. Paid P50,000 cash and signed a note for the balance. 4 Purchased painting supplies on account for P3,200. 5 Completed a painting job and billed the customer P4,800. 7 Received P1,500 cash for painting an apartment room. 10 Purchased painting supplies for P1,600 cash. 11 Received a P4,800 check from the customer billed on April 5. 12 Paid P4,000 for an insurance policy for a one-year coverage. 13 Billed a customer P6,200 for a painting job. 14 Paid the assistant P1,500 for twenty-five hours’ work. 15 Paid P400 for a tune-up of the service vehicle. 18 Paid for the painting supplies purchased on April 4. 20 Purchased a new ladder for P6,000 and painting supplies for P2,900, on account. 22 Received a telephone bill for P600, due next month. 23 Received P3,300 in cash from the customer billed on April 13. 24 Transferred P3,000 to a personal checking account. 25 Received P3,600 in cash for painting a two-room apartment. 27 Paid P2,000 on the note signed for the service vehicle. 29 Paid the assistant P1,800 for thirty hours’ work. Required: 1. Prepare the journal entries to record the April Transactions. Use the account titles provided in number 2. 2. Set-up the following ledger accounts and post all the journal entries: Cash; Accounts Receivable; Painting Supplies; Prepaid Insurance; Painting Equipment; Service Vehicle; Notes Payable; Accounts Payable; Ang, Capital; Ang Withdrawals; Painting Revenues; Wages Expense; Utilities Expense; and Maintenance Expense. 3. Prepare a trial balance.
Kenneth Ang is a painting contractor. During the month of April, he completed the
following transactions:
Apr. 2 Invested in the business painting equipment valued at P12,300
and placed P71,000 in a business checking account.
3 Acquired a service vehicle costing P80,000. Paid P50,000 cash and
signed a note for the balance.
4 Purchased painting supplies on account for P3,200.
5 Completed a painting job and billed the customer P4,800.
7 Received P1,500 cash for painting an apartment room.
10 Purchased painting supplies for P1,600 cash.
11 Received a P4,800 check from the customer billed on April 5.
12 Paid P4,000 for an insurance policy for a one-year coverage.
13 Billed a customer P6,200 for a painting job.
14 Paid the assistant P1,500 for twenty-five hours’ work.
15 Paid P400 for a tune-up of the service vehicle.
18 Paid for the painting supplies purchased on April 4.
20 Purchased a new ladder for P6,000 and painting supplies for
P2,900, on account.
22 Received a telephone bill for P600, due next month.
23 Received P3,300 in cash from the customer billed on April 13.
24 Transferred P3,000 to a personal checking account.
25 Received P3,600 in cash for painting a two-room apartment.
27 Paid P2,000 on the note signed for the service vehicle.
29 Paid the assistant P1,800 for thirty hours’ work.
Required:
1. Prepare the
provided in number 2.
2. Set-up the following ledger accounts and post all the journal entries: Cash; Accounts
Receivable; Painting Supplies; Prepaid Insurance; Painting Equipment; Service
Vehicle; Notes Payable; Accounts Payable; Ang, Capital; Ang Withdrawals;
Painting Revenues; Wages Expense; Utilities Expense; and Maintenance Expense.
3. Prepare a
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