ACCOUNTING 1

I. Prepare the journal entries to record the following transactions of Silahis Motor
Repair Shop for the month of January 2014. Explanation is necessary.

Jan 6 The owner, A. Antonio, invested P10,000 cash to start the business.
7 Signed a contract of rent with Donya Ana Bldg. providing for a monthly rental
of P400 on the space occupied by the shop.
8 Bought for cash repair equipment worth P3,000.
8 Paid P800 for repair supplies bought from U-Save Trading.
10 Hired a chief mechanic at an agreed monthly pay of P600.
11 Repair tools valued at P900 were ordered from Timog Machine Tools.
13 Cash of P100 was received from Mr. Alejo for repair services done on his
automobile.
14 Two shop helpers were hired at a daily wage of P8 each.
15 Sent a bill for P350 to Quality Gravel and Sand for repair work done on their
delivery truck.
17 Received the tools ordered from Timog Machine Tools and paid cash for
them.
18 Paid the wages of shop helpers for the week, P80.
20 Bought repair supplies worth P400 from U-Save Trading payable on or before
the end of the month.
20 Collected P200 from Quality Gravel and Sand.
22 Placed an order for repair supplies costing P300 with Casa Blanca Trading.
24 Gave cash of P400 to U-Save Trading in full payme nt of the account with
them.
25 Wages of shop helpers were paid, P96.
28 Collected the balance of Quality Gravel and sand’s account.
29 Received P550 cash from various customers for repair services rendered.
30 Paid the rent for the month to Donya Ana Bldg.
31 The chief mechanic was paid 2/3 of his monthly salary in cash.
 II. Journalize the following transactions and prepare a preliminary trial balance for
the month of July , 2014. Show your posts or ledgers on a separate sheet.

July 1 The proprietor, Ivy Leeb, invested P435,000 to start off her own business.
2 Paid a real estate broker for the cost of the land, P 200,000.
4 Purchased office supplies on cash, P2,000.
7 Acquired furniture and fixture on account, P15,000.
9 Paid cash expenses: employee salaries, P2,000; utilities, P3,000; and office
rent, P5,000.
12 Received cash for professional services rendered, P10,000.
15 Paid the amount due in the acquisition of furniture and fixture.
17 Performed services for clients on account, P20,000.
22 Additional investment made in the business, P10,000.
23 Proceeds of bank loan received, P50,000.
24 Withdrew cash from business, P5,000.
25 Rendered professional services to clients for cash, P6,000.
27 Paid 60% of the bank loan.
28 Received amounts due from clients on account, P12,000.
29 Purchased additional office supplies on account, P500.
30 Paid insurance coverage for one year to commence next month, P24,000.
31 Settled in full the accounts due to bank.