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Name: Date: Score: Course/Year/Section: Professor: Practice Activity 3: Journal Entries Problem 1

Nelson Daganta formed Liceo Sign Company on October 1, 2011, depositing P250,000 into the company bank account. During October, transactions included acquiring a vehicle for P195,000 on account, supplies for P57,000 cash, receiving P87,500 cash for signs, paying rent of P25,000, painting signs for P170,000 on account, paying P55,000 on account, withdrawing P25,000 for personal use, collecting P35,000, paying salaries of P57,000, and paying bills to BayanTel and adAsia totaling P12,500. Ludivinia Victorino opened Cavite Video in December 2011 by investing P

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133 views

Name: Date: Score: Course/Year/Section: Professor: Practice Activity 3: Journal Entries Problem 1

Nelson Daganta formed Liceo Sign Company on October 1, 2011, depositing P250,000 into the company bank account. During October, transactions included acquiring a vehicle for P195,000 on account, supplies for P57,000 cash, receiving P87,500 cash for signs, paying rent of P25,000, painting signs for P170,000 on account, paying P55,000 on account, withdrawing P25,000 for personal use, collecting P35,000, paying salaries of P57,000, and paying bills to BayanTel and adAsia totaling P12,500. Ludivinia Victorino opened Cavite Video in December 2011 by investing P

Uploaded by

Bathala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NAME: DATE: SCORE:

COURSE/YEAR/SECTION: PROFESSOR:

Practice Activity 3:
JOURNAL ENTRIES
Problem 1
Nelson Daganta formed the Liceo Sign Company on Oct. 1, 2011. He deposited P 250,000 in GE Money Bank under the
name of the new business entity. During the month of October 2011, the following transactions occurred.
Oct. 2 Acquired a service vehicle in the amount of P 195,000 on account
3 Acquired supplies for cash, P 57,000.
9 Received P 87,500 cash for signs painted.
10 Paid the month’s rent, P 25,000
11 Painted signs for Cagayan Company on account, P 170,000
12 Paid P 55,000 on account from oct.2
16 Withdrew P 25,000 for personal use.
23 Collected P 35,000 from Cagayan Company.
27 Paid salaries of P 57,000 for the month.
30 Paid BayanTel P 7,500 for communication services for the month.
31 Paid a bill from adAsia for P 5,500 of advertising for the month

Required:
Prepare journal entries.

Problem 2
On Dec. 1, 2011, Ludivinia Victorino opened a videotape rental store, Cavite Video, by investing P 250,000 cash form her
personal savings account. During the month of December, the following transactions took place:
Dec. 1 Acquired supplies on account, P 67,000.
4 Acquired videotapes costing P 235,000, on account.
5 Paid P 85,000 to creditors.
8 Received P 78,000 cash from AGA Video for rental sales.
11 Billed Video City for video rentals, P 105,000.
16 Paid salaries, P 65,000
17 Collected P 77,000 from Video City
23 Victorino withdrew P 47,000 from the business.
24 Paid rent for the month, 41,500.
30 Paid utilities bill for the month, P17, 500.

Required:
Prepare journal entries.

“I can do all things through Christ who strengthens me.” >>Philippians 4:13 //BMS, CPA// Page 1 of 1

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