Use 1 whole sheet of paper.

Prepare the journal entry of each transaction:

Date Transaction
1/1/2023 Purchased equipment costing P2,000,000 by issuing a 1-year 6% note. Interest and
principal will be paid after 1 year
1/31/2023 Purchased furniture costing P1,000,000 by paying P600,000. The balance will be paid
after 1 month.
1/31/2023 Performed services totaling P1,000,000. The customer issued a 6-month 12% note.
Interest and principal will be paid after 6 months
2/1/2023 Paid insurance coverage for P120,000 covering 2/1/2023 – 1/31/2024.
3/1/2023 Paid the remaining balance of the purchase on 1/31/2023
3/31/2023 Collected from a customer P500,000. No services have been performed yet
4/30/2023 Received and paid bills for water and electricity amounting to P120,000 (For utilities
such as electricity and water use “Utilities expense”)
5/30/2023 Paid salaries of employees amounting to P300,000
6/1/2023 Several employees requested for cash advance to be used during their field work for a
total of P100,000.
6/30/2023 The employees who returned from their fieldwork submitted liquidation reports
detailing the following:
Travel expenses – 50,000
Meal expenses – 40,000
The remaining amount of P10,000 was returned and recorded by the accountant
7/30/2023 Collected the note and interest for the transaction in 1/31/2023
8/1/2023 Issued 10,000 ordinary shares with Par value of P10, for P30 each.
Note: share capital will only be recorded when fully paid
8/30/2023 Performed the services for the collection on 3/31/2023
9/1/2023 Issued 5,000 ordinary shares with Par value of P10, for P10 each
10/1/2023 Purchased car (use “Equipment”) by availing the installment plan. The car has a cash
price of P1,800,000. The installment plan requires P100,000 monthly payment at the
end of each month. Use straight line method of recognizing interest (monthly interest
expense = total interest divided by the total number of monthly payments).
10/30/2023 Paid the first monthly payment for the car
11/30/2023 Paid the first monthly payment for the car
12/30/2023 Paid the first monthly payment for the car
12/30/2023 Paid the note for the transaction on 1/1/2023 including the interest.