Journalizing Transactions

Garfield started a business on January 1 and invested P100,000 in cash into the business.

• Dr Cash 100,000

• Cr Cash (100,000)

• Dr Garfield, Capital 100,000

• Cr Garfield, Capital (100,000)

Jan 2: Garfiled paid P36,000 was paid as advance rent for three months.

• Dr Prepaid Rent 36,000

• Cr Cash 36,000

• Cr Accounts Payable 36,000

• Dr Equipment 36,000

Jan 3: Paid P60,000 cash on the purchase of equipment costing P80,000. The remaining amount was recognized as a one year note payable.

• Dr Equipment 80,000

• Cr Cash 60,000

• Cr Notes Payable 20,000

• Cr Accounts Payable 80,000

Jan 4: Purchased office supplies costing P17,600 on account.

• Dr Office Supplies 17,600

• Cr Cash 17,600

• Cr Accounts Payable 17,600

• Dr Accounts Payable 17,600

Jan 13: Provided services to its customers and received $28,500 in cash.

• Dr Cash 28,500

• Cr Service Revenue 28,500

• Cr Accounts Receivable 28,500

• Dr Accounts Receivable 28,500

Jan 13: Paid the accounts payable on the office supplies purchased on January 4 for P17,600.

• Dr Accounts Payable 17,600

• Cr Cash 17,600

• Dr Notes Payable 17,600

• Cr Office Supplies 17,600

Jan 14: Paid wages to its employees for the first two weeks of January for a total of P19,100.

• Dr Wage Expense 19,100

• Cr Cash 19,100

• Dr Rent Expense 19,100

• Cr Equipment 19,100

Jan 18: Provided P54,100 worth of services to its customers. They paid P32,900 and promised to pay the remaining amount.

• Dr Cash 32,900

• Dr Accounts Receivable 21,200

• Cr Service Revenue 54,100

• Dr Wage Expense 54,100

Jan 23: Received P15,300 from customers for the services provided on January 18.

• Dr Cash 15,300

• Cr Accounts Receivable 15,300

• Cr Accounts Payable 15,300

• Cr Service Revenue 15,300

Jan 25: Received P4,000 as an advance payment from customers.

• Dr Cash 4,000

• Cr Unearned Revenue 4,000

• Cr Accounts Payable 4,000

• Cr Notes Payable 4,000