Battle

Tank Co.

Gem and Jastine just met early this year. With their newfound friendship, they
have decided to venture into a new business. The following events occurred, as
they established Battle Tank Co.

April 1 – Gem Reyes and Jastine Celetaria initially invested Php 500,000 each in
their business, Battle Tank Co.

April 2 – Gem purchased two sewing machines for Php 50,000 each, while Jastine
purchased a printing machine for Php 100,000. These will be used for their day-
to-day business activities. They used the money that they invested yesterday.

April 3 – They realized that it would be a hassle for them to go to the office if they
commute, so Gem agreed to take a loan Php 1,000,000 from the bank so he can
use it for his own transportation needs.

April 4 – Jastine also had an outstanding Php 1,000,000 personal loan and she
paid half of it today.

April 5 – Gem and Jastine went to Divisoria to canvas for different fabrics for
their tank tops. They found a supplier that gave them Php 75 per shirt. They
ordered 500 pieces and paid for it in full.

April 6 – Since Jastine is very creative, they thought of having each tank top
designed and painted by her. They bought paintbrushes for a total of Php 350.

April 7 – The partners bought paint, which will be used for the tank tops. This
amounted to Php 1,250, which was not paid yet.

April 8 – Each tank top sells for Php 250 and initially costs Php 110 to produce.
However, since they are charging a high amount, they though of including a nice
packaging for the tank tops. Athough this will cost them an additional Php 15,
they didn’t change the price. They bought 500 pcs of the packaging on credit.

April 9 – They paid half of what they owed for the packaging.

April 10 – They were able to sell 25 shirts, including 2 on credit.

April 11 – Since it was a weekend, there were more customers. They were able to
sell 100 shirts and 20 more on credit.

April 12 – Gem purchased some supplies to be used for the company, amounting
to Php 800.

April 13 – They were informed that the initial rent billing statement of Php 5,000
will be due in four days.

April 14 – Jastine didn’t have enough money for her birthday celebration in High
Street Café, so she withdrew money from the company amounting to Php 34,540.

April 15 – They were able to sell 120 shirts today.

April 16 – To make sure that they will not encounter problems with their
inventory, they purchased 300 more shirts, still at Php 70 per piece.

April 17 – The water bill amounting to Php 450 arrived. They settled it
immediately, together with the rent.

April 18 – Gem is planning to invest on an extra sewing maching, which has an
estimated value of Php 35,000.

April 19 – All customers settled their liabilities with the store, as requested by its
owners.

1. Prepare the company’s journal entries for April.
2. Prepare Battle Tank’s T-Accounts.
3. Construct Battle Tank’s Trial Balance.