CHAPTER 5

JOURNALIZING
ASSIGNMENT

I. Peter Motor Shop had the following transactions during the month of June 2020.

June 1 – Peter made the following investment: Cash – P200,000; Shop equipment – P300,000.
2 - Purchased shop supplies on account, P5,000.
3 – repaired trucks for cash, P4,000.
3 – Paid rent for the shop, P8,000.
4 – Sent bill for the vehicle repaired, P10,000.
5 – Paid the supplies purchased on June 2.
7 – Hired a mechanic with weekly salary of P3,000.
10 – Collected the account on June 4.
12 – Received cash for services rendered, P3,000
14 -Paid the electric bill, P4,500.
14 – Paid the weekly salary of mechanic.
16 – Bought shop supplies for cash, P2,500.
19 – Purchased additional equipment for the shop on account, P20,000.
20 – Rendered services on cash, P8,000
21 – Paid the weekly salary of mechanic.
22 – Paid the water bill, P1,200.
25 – Repaired trucks and sent bill amounting to P15,000.
27 – Rendered repair services for cash, P6,000.
28 - Paid the weekly salary of mechanic.
30 – Rendered service on account, P10,000.

Required: Journal entries.

II. Mr. Kuh Lang opened a delivery business and had the following transactions during December 2019:

Dec 1 – The owner invested P300,000 in cash and delivery trucks valued at P500,000.
1 – Paid the registration fees with the government, P5,000.
2 – Purchased for cash shop supplies, P 3,500.
3 – Bought from A & G Co. office equipment costing P 50,000. Terms: 3/15, n/30.
4 – Customers paid P 12,000 cash for services rendered.
5 – Billed Excelsior Inc., P50,000. Terms: 2/15, n/30.
10 – ABC Corp. issued a 15-day, 9% note for services rendered amounting to P120,000.
12 – Billed Rolex Ent., P60,000. Terms: 3/10, n/30.
17 – Rental for the month of December was paid, P15,000.
18 – Paid in full the account with A & G Co.
19 – Billed XYZ Corp. for services rendered, P60,000.
20 – Paid fuel and oil, P21,000.
20 – Received a 30-dy, 6% note from Excelsior Inc. in settlement of its account.
 21- Rendered services to Tortex Co., P30,000. Terms: 50% down; balance n/30.
24 – Rolex paid its account in full.
25 – Collected the note of ABC.
28 – Collected the account of XYZ Corp.
29 – Paid the electricity bill, P6,000.
30 – Paid the wages of drivers and helpers, P 40,000
31 – The owner withdrew P 10,000 for his personal use.

Required: Journal entries.