ACCOUNTING 1 QUIZ 1 (MIDTERM)

R. Ejercito, a mechanic decided to open an auto shop named Eres Auto Repair Shop. The partial
chart of accounts listed below is used:
BALANCE SHEET ACCOUNTS
INCOME STATEMENT
1 Assets
ACCOUNTS
11 Cash
4 Income
12 Accounts Receivable
41 Service Income
13 Prepaid Rent
14 Office Supplies
5 Expenses
15 Equipment
51 Wages Expense
2 Liabilities
52 Electricity Expense
21 Accounts Payable
53 - Telephone Expense
22 Notes Payable
54 Miscellaneous Expense
23 Utilities Payable
24 Unearned Income
3 Owners Equity
31 R. Ejercito, Capital
32 R. Ejercito, Drawing
In June of the current year, the following transactions during the first month of business are
below.

Date
June 6
June 8
June 9
June 10
June 16
June 16
June 20
June 21
June 21
June 22
June 27
June 28
June 28
June 28

Transaction
R. Ejercito invested 300,000 cash to start his Auto Repair Shop.
An amount of 50,000 was paid for six months of rent.
Equipment costing 100,000 was purchased using 40,000 cash. The remaining amount of
60,000 is a one year note with an interest rate of 3.4%
Office supplies were purchased totaling 25,000 on account.
Received 39,400 in cash for services rendered to customers.
Paid the account for office supplies purchased June 10.
63,900 worth of services were given to customers. Received cash amount of 43,700.
Customers promised to pay remaining amount of 20,200.
Paid employees wages for June 8-June 21. Wages totaled 23,500.
Received 20,200 in cash for services rendered to customers on June 20.
Received 6,300 in cash as advanced payment from customers.
Office supplies were purchased totaling 3,500 on account.
Electricity bill received totaling 1,850.
Phone bill received totaling 2,650.
Miscellaneous expenses totaled 4,320.

Required:
A) Analyze and journalize each transaction in a general journal.
B) Posting to the general ledger.