JOURNALIZING NO 3

Laarni Pascua, a veteran photographer, opened a studio for the professional practice in July 1.
transaction completed during the month follows:
• Deposited P146,200 in a bank account in the name of the business, Pascua Photo Profiles
• Bought new photography equipment on account from Canon equipment, P71,210
• Invested personal photography equipment into the business P 51,620 ( it is an investment)
• Paid office rent for the month, P5,500
• Bought Photography supplies for cash P7,960
• Paid premium for insurance cover on photography equipment P1,240
• Received P8,960 as professional fees for services rendered
• Paid salary of part time assistant P6,000
• received and paid bill for telephone service P640
• Paid canon Equipment part of the amount owed on the purchased of photography equip.
P4,200
• Received p15, 480 as professional fees for services rendered
• Paid for minor repairs to photography equipment P760
• Pascua withdrew cash for personal use P9,600

CHART OF ACCOUNT
ASSET INCOME
110 Cash 410 Service Revenue
120 Accounts Receivable
130 Supplies
140 Service Vehicle EXPENSES
170 Office Equipment
180 Professional equipment 510 Salaries Expense
530 Rent expense
LIABILITIES 540 Insurance expense
210 Notes Payable 550 Utilities expense
220 Accounts Payable 580 Telecommunication Expense
600 Advertising Expense
OWNERS EQUITY
310 Lopez, Capital
320 Lopez, Withdrawals

JOURNAL

Date Account Titles and Explanation P. R. Debit Credit

1 July 1 Cash 110 146,200

2 Laarni's Capital 310 146,200

3 Initial Investment

4 July 2 Photography Equipment 180 71,210

5 Accounts Payable 220 71,210

6 Purchased photography equipment on Account

7 July 3 Photography Equipment 180 51,620

8 Laarni's Capital (Photography Equipment) 310 51,620

9 Initial Investment

10 July 4 Rent Expense 530 5,500

11 Cash 110 5,500

12 Rent Payment for Month

13 July 5 Photography Supplies 130 7,960

14 Cash 110 7,960

15 Purchased photography supplies for cash

16 July 6 Insurance Expense 540 1,240

17 Cash 110 1,240

18 Paid Insurance on equipment for cash

19 July 7 Cash 110 8,960

20 Services Revenue 410 8,960

21 Received cash from services rendered

22 July 8 Salaries Expense 510 6,000

23 Cash 110 6,000

24 Paid Salaries of employees

25 July 9 Utilities Expense 550 640

26 Cash 110 640

27 Received a bill and paid for cash

28 July Accounts Payable 220 4,200

10

29 Cash 110 4,200

30 Paid cash for purchased equipment on account

31 July Cash 110 15,480
11

32 Service Revenue 410 15,480

33 Received cash from services

34 July Repair Expense 610 760

12

35 Cash 110 760

36 Paid Cash for repair of equipment

37 July Laarni's Withdrawals 320 9,600

13

38 Cash 110 9,600

39 Owner withdrew cash for personal use

The Ledger

ACCOUNT: CASH ACCOUNT NO: 110

Date Explanation J.R. Debit Credit Balance

1 July 1 Initial Investment 146,200 146,200

2 July 4 Rent Payment for Month 1 5,500 140,700

3 July 5 Purchased photography 1 7,960 132,740

supplies for cash

4 July 6 Paid Insurance on equipment 1 1,240 131,500

for cash

5 July 7 Received cash from services 1 8,960 140,460

rendered

6 July 8 Paid Salaries of employees 1 6,000 134,460

7 July 9 Received a bill and paid for cash 1 640 133,820

8 July 10 Paid cash for purchased 1 4,200 129,620

equipment on account

9 July 11 Received cash from services 1 15,480 145,100

10 July 12 Paid Cash for repair of 1 760 144,340
equipment

11 July 13 Owner withdrew cash for 1 9,600 134,740

personal use

ACCOUnt: Laarni's Capital ACCOUNT NO: 310

Date Explanation J.R. Debit Credit Balance

1 July 1 Initial Investment 1 146,200 146,200

2 July 3 Initial Investment (Photography 1 51,620 197,820

Equipment)

ACCOUNT: PHOTOGRAPHY EQUIPMENT ACCOUNT NO: 180

Date Explanation J.R. Debit Credit Balance

1 July 2 Purchased photography 1 71,210 71,210

equipment on Account

2 July 3 Initial Investment 1 51,620 122,830

ACCOUNT NAME: PHOTOGRAPHY SUPPLIES ACCOUNT NO: 130

Date Explanation J.R. Debit Credit Balance

1 July 5 Purchased photography 1 7,960 7,960

supplies for cash

2 1

ACCOUNT: ACCOUNTS PAYABLE ACCOUNT NO: 220

Date Explanation J.R. Debit Credit Balance

1 July 2 Purchased photography 1 71,210 71,210
equipment on Account

2 July 10 Paid cash for purchased 1 4,200 67,010

equipment on account

ACCOUNT: UTILITIES EXPENSE ACCOUNT NO: 550

Date Explanation J.R. Debit Credit

1 July 9 Received a bill and paid for 1 640 640

cash

2 J-1

ACCOUNT: RENT EXPENSE ACCOUNT NO: 530

Date Explanation J.R. Debit Credit Balance

1 July 4 Rent Payment for Month 1 5,500 5,500

2 1

ACCOUNT: INSURANCE EXPENSE ACCOUNT NO: 540

Date Explanation J.R. Debit Credit Balance

1 July 6 Paid Insurance on 1 1,240 1,240

equipment for cash

2 J-1

ACCOUNT: SALARIES EXPENSE ACCOUNT NO: 510

Date Explanation J.R. Debit Credit Balance

1 July 8 Paid Salaries of 1 6,000 6,000

employees
2

ACCOUNT: REPAIR EXPENSE ACCOUNT NO: 610

Date Explanation J.R. Debit Credit Balance

1 July 12 Paid Cash for repair 1 760 760

of equipment

2 J-1

ACCOUNT: SERVICE REVENUE ACCOUNT NO: 410

Date Explanation J.R. Debit Credit Balance

1 July 7 Received cash from 1 8,960 8,960

services rendered

2 July 11 Received cash from J-1 15,480 24,440

services

ACCOUNT: Laarni's Withdrawal ACCOUNT NO: 320

Date Explanation J.R. Debit Credit Balance

1 July 13 Owner withdrew 1 9,600 9,600

cash for personal use

2 J-1

TRIAL BALANCE
AS OF JULY , 2015

ACCOUNT TITLE DEBIT CREDIT

ASSET
Cash 134,740

Photography Equipment 122,830

Photography Supplies 7,960

LIABILITIES

Accounts Payable 67,010

OWNERS EQUITY
Laarni's Capital 197,820

Laarni's Withdrawal 9,600

INCOME
Service Revenue 24,440

EXPENSES
Repair Expense 760

Salaries Expense 6,000

Insurance Expense 1,240

Rent Expense 5,500

Utilities Expense 640

TOTAL DEBIT AND CREDIT 289,270 289,270