Required Prepare the following 1 Chart of accounts to be use

ACCOUNT e i- s TEC ING CYCIE 1 Comprehensive Problem bished an enterprise to be known as S Designs, on June of the current year. During the remainder Sed the following business tiansactions Mr. S transferred cash from his personal bank account to an account to Jbe used for the business, P500,000. 4: Purchased supplies for cash, P25,000, 6: Purchased equipment on account, P30,000 8 Purchased a truck for P150,000, paying P80,000 cash and giving a note payable for the remainder. 10: Paid rent for the period of June 15 to end of month, P5,000 12: Received cash for job completed, P200,000. 13: Purchased supplies on account, P40,000 15: Paid wages of workers, P60,000. 17: Paid premiums of property and casualty insurance, P2.000 19: Paid creditor for equipment purchased on June 6, P15,000. 20: Recorded sales on account and sent invoices to customers, P250,000. Received cash for job completed, P90,000. The sale had not been 21: recorded previously. 24 25 27 Received an invoice for truck repair, P4,000 aid utilities expense, P1,500. Paid miscellancous expense, P5O0. Received cash from customers on account, P100,000. Paid wages of workers, P75,000 ithdraw cash for personal use, P20,000. 30: Required: Prepare the following: 1. Chart of accounts to be used to record the above transactions 2. Journal entries in a two-column journal. 3. Ledger posting from the journal, inserting appropriate posting reference 4. Trial balance. S. Income statement, statement of capital, and statement of financial position.

Solution

CHART OF ACCOUNTS CASH ACCOUNTS RECEIVABLE SUPPLIES EQUIPMENT TRUCK ACCOUNTS PAYABLE NOTES PAYABLE OWNERS CAPITAL WITHDRAWAL SALES REVENUE RENT EXPENSES WAGES EXPENSE PROPERTY INSURANCE EXPENSE REPAIR EXPENSE UTILITIES EXPENSES MISCELLENEOUS EXPENSES JOURNAL ENTRY Date Account Title Debit Credit .June1 Cash            500,000 Owners Capital            500,000 .June4 Supplies              25,000 Cash              25,000 .June6 Equipment              30,000 Accounts payable              30,000 .June8 Truck            150,000 Cash              80,000 Note payable              70,000 .June10 Rent expense                 5,000 Cash                 5,000 .June12 Cash            200,000 Sales Revenue            200,000 .June13 Supplies              40,000 Accounts payable              40,000 .June15 Wages expense              60,000 Cash              60,000 .June17 Property Insurance expense                 2,000 Cash                 2,000 .June19 Accounts payable              15,000 Cash              15,000 .June20 Accounts receivable            250,000 Sales revenue            250,000 .June21 Cash              90,000 Sales revenue              90,000 .June24 Repair expenses                 4,000 Accounts payable                 4,000 .June25 Utilities expense                 1,500 Cash                 1,500 .June27 Miscelleneous expenses                    500 Cash                    500 .June28 Cash            100,000 Accounts receivable            100,000 .June30 Wages expenses              75,000 Cash              75,000 .June30 Withdrawal              20,000 Cash              20,000 LEDGER POSTING CASH Date Account Debit Credit .June1 Owners Capital            500,000 .June4 Supplies              25,000 .June8 Truck              80,000 .June10 Rent expense                 5,000 .June12 Sales Revenue            200,000 .June15 Wages expense              60,000 .June17 Property Insurance expense                 2,000 .June19 Accounts payable              15,000 .June21 Sales Revenue              90,000 .June25 Utilities expense                 1,500 .June27 Miscelleneous expenses 500 .June28 Accounts receivable            100,000 .June30 Wages expenses              75,000 .June30 Withdrawal              20,000 Ending Balance            606,000 ACCOUNTS RECEIVABLE Date Account Debit Credit .June20 Sales Revenue            250,000 .June28 Cash            100,000 Ending Balance            150,000 SUPPLIES Date Account Debit Credit .June4 Cash              25,000 .June13 Accounts payable              40,000 Ending balance              65,000 EQUIPMENT Date Account Debit Credit .June6 Accounts payable              30,000 TRUCK Date Account Debit Credit .June8 Cash              80,000 Notes payable              70,000 Ending Balance            150,000 ACCOUNTS PAYABLE Date Account Debit Credit .June6 Equipment              30,000 .June13 Supplies              40,000 .June19 Cash              15,000 .June24 Repair expenses                 4,000 Ending Balance              59,000 NOTES PAYABLE Date Account Debit Credit .June8 Truck              70,000 OWNERS CAPITAL Date Account Debit Credit .June1 Cash            500,000 WITHDRAWAL Date Account Debit Credit .June30 Cash              20,000 SALES REVENUE Date Account Debit Credit .June12 Cash            200,000 .June20 Accounts receivable            250,000 .June21 Cash              90,000 Ending Balance            540,000 RENT EXPENSES Date Account Debit Credit .June10 Cash                 5,000 WAGES EXPENSE Date Account Debit Credit .June15 Cash              60,000 .June30 Cash              75,000 Ending Balance            135,000 PROPERTY INSURANCE EXPENSE Date Account Debit Credit .June17 Cash                 2,000 UTILITIES EXPENSES Date Account Debit Credit .June25 Cash                 1,500 MISCELLENEOUS EXPENSES Date Account Debit Credit .June27 Cash                    500 REPAIR EXPENSE Date Account Debit Credit .June24 Accounts payable                 4,000 TRIAL BALANCE Account Debit Credit CASH            606,000 ACCOUNTS RECEIVABLE            150,000 SUPPLIES              65,000 EQUIPMENT              30,000 TRUCK            150,000 ACCOUNTS PAYABLE              59,000 NOTES PAYABLE              70,000 OWNERS CAPITAL            500,000 WITHDRAWAL              20,000 SALES REVENUE            540,000 RENT EXPENSES                 5,000 WAGES EXPENSE            135,000 PROPERTY INSURANCE EXPENSE                 2,000 REPAIR EXPENSE                 4,000 UTILITIES EXPENSES                 1,500 MISCELLENEOUS EXPENSES                    500 TOTAL        1,169,000        1,169,000