Problem

On December 1 of the current year Lucky Cruz opened , the “L.C. RTW Shop” , and during the month, the
following transactions were completed.

Dec. 1 – Lucky Cruz invested P 8,000 cash in the business.

1– She bought two sewing machines worth P 3,000 each from Rufino Merchandising. Gave P 1,500
down and the balance is payable within 60 days.
1 – Paid a three-month rental of the shop, P3,000 This was charged to Prepaid Rent account.
1 – Paid a one-year insurance policy , P 570. (Use expense method).
3 – Bought sewing tools P 590 and sewing supplies P 270 from Virgilio Trading on credit.
5 – Received P 120 from a customer for a terno delivered.
7 – Billed Flor Valdez, P 500 for a two-pair of pants and polo barong delivered.
10 – Purchased clothing materials from Divisoria Market and paid P 1,500 cash.
13 – Received P 1,250 from various customers for pants and barong made and delivered
14 – Gave Rufino Merchandising P 1,500 and issued a 60-day, 6% note for the balance.
15 – Paid the wages of the shop helper, P 250.
17 – Lucky Cruz withdrew P 500 from the business for personal use.
18 – F. Valdez gave P 200 as partial payment of his account.
20 – Received P 1,475 from various customers for pants and shirts delivered,
22 – Paid the wages of the shop helper, P 250.
23 – Billed Julius Ilagan P400 for barong and pants delivered to him.
27 – Paid the following monthly expenses: utility bills, P 150; telephone bill, P 250.

At the end of the month, the following data were gathered:

a. The sewing machines are estimated to have a 5-year useful life.
b. The actual count of sewing supplies revealed a balance of P 170.
c. The business is conservative to estimate a 5% of the receivables to be uncollectible.
d. Balance of the clothing materials account is P 700.

Required:
1. Journal entries
2. Posting
3. 10-column worksheet