PROBLEM 1. Joumalizing Business Transactions Jums Carrean, the owner of Blue Space Mountain Resort, established a propri

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Problem 1 Joumalizing Business Transactions Jums Carrean The Owner Of Blue Space Mountain Resort Established A Propri 1 (64.59 KiB) Viewed 43 times

PROBLEM 1. Joumalizing Business Transactions Jums Carrean, the owner of Blue Space Mountain Resort, established a proprietorship on July 1, 2022 with an initial capitalization of P350,000 in cash and P90,000 cost of office tables and chairs to start the business. Her accountant, S.Giova has prepared the Chart of Accounts shown below Blue Space Mountain Resort Chart of Accounts Assets Liabilities Revenues Cash Notes Payable Service Revenues Notas Receivable Accounts Payable Interest income Accounts Receivable Salaries Payable Other Income Allowance for Bad Debits Operating Supplies Owner's Equity Expenses Prepaid Insurance Carreon, Capital Salaries & Wages Land Carteon. Drawings Utilities Expense Building Service Charges Furniture & Equipment Rent Expense The following completed transactions took place in July, its first month of operations in 2022 2. Bought two (2) units lap top computers at P29,000 each by paying P10,000 as down payment and signed a promissory note for the balance payable in two (2) equal end-of-the-month installment payments starting July 31 3. Cash Invoices show the purchase of office supplies for 12,800, and cleaning supplies for P5,000 5. A charge invoice shows additional purchase of cleaning supplies worth P2 100. 8. Jums Carreon made an additional cash investment of P250,000 for the business. 9 - Bought a second-hand car for P380,000 to be used as a company service vehicle, by paying 80% of the cost and the balance will be paid three (3) months thereafter as per verbal agreement with the seller. 10 - Revenues earned from services rendered totaled 160.700 of which P48,200 were cash receipts and the remainder were open accounts established from clients 12. Received electricity billing statement for the month, 74,300, 13 - Received water billing statement for the month, P3,200 15 - Paid various expenses for salaries of employees, P28,600; rentals, P25,000; and minor repair of vehicle, P1,000, 17 - Revenues earned from services rendered are shown below. VISA/MasterCard receipts were Immediately deposited to and validated by the bank with a 4% service fee Cash receipts P3.400 VISA credit cards 15,800 MasterCard credit cards 29.200 20 - Collected 60% of the July 10 open accounts from clients. The cash collections were used to pay all unpaid utility bills for the month 23 - Documents confirm revenues eamed from services rendered amounted to P20,000, all of which were company credit cards accepted by the management and sent immediately to these credit card companies 25. Received payments from credit card companies, net of 4 5% service fees. 27 - Jums Carreon made a cast withdrawal of P5,000 for her personal use 29. Paid in full the July 5 account. 30. Pald salaries for the 2 half of the month, P28,600 31 - Bought P400 worth of prepaid cards for mobile phones used for the business A temporary receipt also shows the first installment payment made by the company on the July 2 account Required Prepare journal entries to record the transactions above. (Use excel submission will be through our classroom)