On July 1, 2020, Jessie Halverson established an interior decorating business,

Photogenic Designs. During the month, Jessie Halverson completed the following
transactions related to the business:

July 1 Jessie transferred cash from the personal bank account to an

account to be used for the business, ₱1,800,000.
4 Paid rent for July, ₱17,500
10 Purchased a truck for P800,000, paying ₱400,000 cash and
giving a note payable for the remainder
13 Purchased equipment on account, ₱70,000
14 Purchased supplies for cash, ₱1,200
15 Paid annual premiums on property and casualty insurance,
₱27,000
15 Received cash for job completed, ₱105,000
21 Paid creditor a portion of the amount owed for equipment
purchased on July 13, ₱250,000
24 Recorded jobs completed on account and sent invoices to
customers, ₱146,000
26 Received an invoice for truck repairs, to be paid on August
15, 2020, ₱8,000
27 Paid utilities expense, ₱9,000
27 Paid miscellaneous expenses, ₱3000
29 Received cash from customers on account, ₱36,000
30 Paid salaries of employees, ₱24,000
31 Jessie withdrew cash for personal use, ₱20,000

Chart of Accounts
100 Assets 300 Equity
101 Cash 301 Jessie Halverson, Capital
105 Accounts Receivables 302 Jessie Halverson, Drawings
110 Allowance for Bad Debts 400 Fees Earned
115 Office Supplies 500 Expenses
120 Prepaid Insurance 505 Utilities Expense
130 Equipment 510 Supplies Expense
135 Accumulated Depreciation - 515 Salaries Expense
Equipment
150 Truck 520 Depreciation Expense
155 Accumulated Depreciation - Truck 525 Bad Debts Expense
160 Building 530 Insurance Expense
165 Accumulated Depreciation - 540 Rent Expense
Building
200 Liabilities 550 Repairs and Maintenance
201 Accounts Payable 560 Miscellaneous Expense

Adjustments:
 Truck has a useful life of 20 years
 Equipment has a useful life of 10 years
 Building has a useful life of 50 years.
 Supplies used for the month is ₱750