Sir Win – Accounting Lectures

Jokes Tagalog
Stories Legit Professor
Life Lessons

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Accounting Cycle: Journal Entries w/ Chart of Accounts
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Jan Marini won a concession to rent out bicycles in the Burnham Park
during summer. During the month of May, Jan Marini completed the
following transactions for her bicycle rental business:

May 2 Began business by placing P120,000 in a business

checking account. Cash – Marini, capital

3 Purchased supplies on account for P1,500.

4 Purchased ten bicycles for P25,000, paying

P12,000 down and agreed to pay the balance in
thirty days.

5 Paid P29,000 in cash for a furnished container to

store the bicycles and use for other operations.

6 Received P4,700 in cash for rentals during the first

week of operation.

8 Paid P4,000 in cash for shipping and installation

costs to place the container at the park entrance.

9 Hired a part-time assistant to help on weekends.

10 Paid a maintenance person P750 to clean the

grounds.
 Sir Win – Accounting Lectures
Jokes Tagalog
Stories Legit Professor
Life Lessons

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Accounting Cycle: Journal Entries w/ Chart of Accounts
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13 Received P5,000 in cash for rentals during the
second week of operation.

16 Paid the assistant P480 for a weekend’s work.

17 Paid for the supplies purchased on May 3.

18 Paid a P550 repair bill on bicycles.

20 Received P5,500 in cash for rentals during the

third week of operation.

22 Paid the assistant P480 for a weekend’s work.

23 Billed an entity P1,100 for bicycle rentals for

employees’ outing.

25 Paid the P3,000 fee for May to the Park

Administration for the right to the bicycle
concession.

27 Received P4,100 in cash for rentals during the

week.

29 Paid the assistant P480 for a weekend’s work.

 Sir Win – Accounting Lectures
Jokes Tagalog
Stories Legit Professor
Life Lessons
30 Transferred P5,000 to personal checking account.

Jan Marini Bike Concession

Chart of Accounts
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Statement of Financial Comprehensive Income
Position Accounts Statement Accounts
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Assets Income
101 Cash 401 Rental Revenues
102 Accounts Receivable
103 Supplies Expenses
104 Container 501 Wages Expense
105 Bicycles 502 Maintenance Expense
503 Repair Expense
Liabilities 504 Concession Fee
201 Accounts Payable Expense
202 Notes Payable

Owner’s Equity
301 Marini, Capital
302 Marini, Drawings