EXERCISE – JOURNAL ENTRIES

Listed below are several transactions for Bebe Co Health Spa for July 2019.
July 4 Bebe Co invested P 1,500,000 cash and vacant lot worth P 300,000 in a health clinic called Bebe
Co Health Spa.
6 Hired a janitor, cashier, and therapist with a monthly salary of P 5,000, P 7,500, and P 10,000.
8 Purchased P 900,000 worth of equipment and P 15,000 worth of supplies in cash and on account,
respectively.
10 Bought furniture & fixtures from a friend at a cost of P 150,000 to pay after 7 days. The fair value
prevailing in the market is P 100,000. Only P 80,000 of these were placed in the clinic, the
remaining furniture & fixtures were placed in her newly built house.
12 Withdrew supplies worth P 1,000 for personal use.
13 Paid one half of the account due on the furniture and fixtures.
15 A two-story clinic was constructed on the vacant lot. The construction cost was P 1,500,000 and
was paid out of bank loan.
17 Paid the remaining balance on the purchased of furniture and fixtures.
30 Paid the salary of the employees.
Total service revenue rendered for the month is P 350,000, 30% of which is on credit.
Paid utilities for the month amounting to P 60,000.

Required:

a. Prepare journal entries.