JOHN LLOYD SUIZO

MSU – MARAWI CAMPUS

ACT 001 - Ll

Ariel Aerobics Studio conducts aerobics classes. Presented below are transactions during its first month
of operations:

January 2 Made initial investment of cash. P100,000.

2         Bought aerobics equipment, P 70,000.

3        Received loan proceeds from Bank, 150,000.

4         Paid rent for 3 months, P15,000 (Prepaid Rent)

5         Paid suppliers of complimentary T-shirts given to early enrollees as an advertising

promotion, P 6,000.

6         Received cash from- walk-in clients, P 10,000.

7         Billed clients for January class program, P 25,000

8         Collected P 15,000 from clients on account.

14 Paid salaries of aerobics aides, P 5,000

18 Paid P 38,000 for sound system equipment.

23         Paid P 2,000 interest on Bank loan availed of on January 3

24         Received P 3,000 invoice for January utilities.

Year   Particulars PR Debit Credit

Month Day Debit item      

    Credit item      

    Explanation of the Nature of transaction      

         

JANUARY 2 CASH ON HAND 100,000

 ARIEL AEROBICS STUDIO, CAPITAL 100,000

TO RECORD CASH INVESTMENT

JANUARY 2 AEROBICS EQUIPMENT 70,000

CASH 70,000

TO RECORD THE PAYMENT OF EQUIPMENT

JANUARY 3 CASH ON HAND 150,000

ACCOUNTS RECEIVABLE 150,000

TO RECORD COLLECTION OF RECEIVABLE

JANUARY 4 RENT EXPENSE 15,000

CASH 15,000

TO RECORD PAYMENT OF RENT EXPENSE

JANUARY 5 SALARY EXPENSE 6,000

CASH 6,000

TO RECORD PAYMENT OF SALARY

JANUARY 6 CASH ON HAND 10,000

SERVICE INCOME 10,000

TO RECORD SERVICES RENDERED ON CASH

JANUARY 7 ACCOUNTS PAYABLE 25,000

SERVICE INCOME 25,000

 TO RECORD THE SERVICES ON ACCOUNT

JANUARY 8 CASH ON HAND 15,000

ACCOUNTS RECEIVABLE 15,000

TO RECORD COLLECTION OF RECEIVABLE

JANUARY 14 SALARY EXPENSE 5,000

CASH 5,000

TO RECORD PAYMENT OF SALARY

JANUARY 18 SOUND SYSTEM EQUIPMENT 38,000

CASH 38,000

TO RECORD THE PAYMENT OF EQUIPMENT

JANUARY 23 ACCOUNTS PAYABLE 2,000

CASH 2,000

TO RECORD PAYMENT OF ACCOUNTS PAYABLE

JANUARY 24 UTILITY BILLS PAYABLE 3,000

UTILITIES EXPENSE 3,000

TO RECORD UTILITIES EXPENSE OF UTILITY BILLS

PAYABLE