Mr. George opened a janitorial services business called "George Johnny" on November 1, 20x1 and uses a calendar year. The following were the transactions during the year. 1. Mr. George made an investment of P100,000 to the business. 2. The total business permit and other licenses amounted to P4,800. 3. The business acquired janitorial equipment for P30,000 on account on November 1, 20x1. The equipment has a useful life of 5 years. 4. The business purchased supplies worth P60,000. The business uses the asset method in recording prepayments. 5. The business obtained a 12%, one-year, bank loan for P50,000 on November 1, 20x1. Principal and interest are due at maturity date. 6. The business paid six months' rent in advance amounting to P9,000 on November 1, 20x1. 7. The business took one-year insurance for P6,000 on December 1, 20x1. 8. Total service fees billed to clients, on account, amounted to P400,000. 9. Total collections on accounts receivable amounted to P270,000. 10. Mr. George took P30,000 cash from the business. 11. Total salaries paid amounted to P180,000. Additional information: a. One of the debtors of Mr. George with an account balance of P50,000 is undergoing financial difficulties. Mr. George estimated that only P40,000 of the account will be collected. b. Unused supplies at the end of the period amounted to P20,000. c. Unpaid employee salaries amounted to P30,000 NIVER
Mr. George opened a janitorial services business called "George Johnny" on November 1, 20x1 and uses a calendar year. The following were the transactions during the year. 1. Mr. George made an investment of P100,000 to the business. 2. The total business permit and other licenses amounted to P4,800. 3. The business acquired janitorial equipment for P30,000 on account on November 1, 20x1. The equipment has a useful life of 5 years. 4. The business purchased supplies worth P60,000. The business uses the asset method in recording prepayments. 5. The business obtained a 12%, one-year, bank loan for P50,000 on November 1, 20x1. Principal and interest are due at maturity date. 6. The business paid six months' rent in advance amounting to P9,000 on November 1, 20x1. 7. The business took one-year insurance for P6,000 on December 1, 20x1. 8. Total service fees billed to clients, on account, amounted to P400,000. 9. Total collections on accounts receivable amounted to P270,000. 10. Mr. George took P30,000 cash from the business. 11. Total salaries paid amounted to P180,000. Additional information: a. One of the debtors of Mr. George with an account balance of P50,000 is undergoing financial difficulties. Mr. George estimated that only P40,000 of the account will be collected. b. Unused supplies at the end of the period amounted to P20,000. c. Unpaid employee salaries amounted to P30,000 NIVER
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts
Section: Chapter Questions
Problem 1PB: In July of this year, M. Wallace established a business called Wallace Realty. The account headings...
Related questions
Question
Make a
Transcribed Image Text:Mr. George opened a janitorial services business called "George Johnny" on November 1, 20x1 and uses a
calendar year. The following were the transactions during the year.
1. Mr. George made an investment of P100,000 to the business.
2. The total business permit and other licenses amounted to P4,800.
3. The business acquired janitorial equipment for P30,000 on account on November 1, 20x1. The
equipment has a useful life of 5 years.
4. The business purchased supplies worth P60,000. The business uses the asset method in recording
prepayments.
5. The business obtained a 12%, one-year, bank loan for P50,000 on November 1, 20x1. Principal and
interest are due at maturity date.
6. The business paid six months' rent in advance amounting to P9,000 on November 1, 20x1.
7. The business took one-year insurance for P6,000 on December 1, 20x1.
8. Total service fees billed to clients, on account, amounted to P400,000.
9. Total collections on accounts receivable amounted to P270,000.
10. Mr. George took P30,000 cash from the business.
11. Total salaries paid amounted to P180,000.
Additional information:
a. One of the debtors of Mr. George with an account balance of P50,000 is undergoing financial difficulties.
Mr. George estimated that only P40,000 of the account will be collected.
b. Unused supplies at the end of the period amounted to P20,000.
c. Unpaid employee salaries amounted to P30,000
NIVER
VICE
SIT
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning