Application Test: Recording (Journalizing) transactions

2bero Plumbing & Repair Services is a newly opened firm owned and managed by Mr. Mario Luigi. Below is the
firm’s Chart of Accounts.

The firm had the following transactions during the month of January of the current year:

Jan. 1 The company borrowed ₱ 500,000 from Rural Bank of Timbukto payable on installment basis every year
for the next 5 years. The loan is subject to an interest of 10%.
Jan. 10 The company paid the rent for January until March totaling ₱ 45,000. The monthly rent is ₱ 15,000.

Jan. 2 The company rendered services to Ms. Myn Chin for ₱ 50,000. The company installed the plumbing system
of her house which is under construction. She initially paid ₱ 20,000 and issued a promissory note for the
balance.
 ----Mr. Luigi invested a pick-up truck worth ₱ 300,000 and plumbing machines worth ₱250,000 to the
business.
Jan. 3 The company paid ₱ 20,000 to insure the newly bought pick-up truck.
Jan. 4 The company bought various plumbing supplies on account amounting to ₱ 22,250 from Banbantay
Hardware.
Jan. 5 The company bought cabinets, chairs and tables amounting to ₱ 85,000 from Karpintero Inc. The company
paid ₱ 25,000 as down payment and the balance to be paid at after 3 months evidenced by a promissory
note.
Jan. 6 The company received cash for plumbing services rendered, ₱ 27,000.
Jan. 7 The company paid a total of ₱ 7,500 for the business permit, clearances, and other fees to register the
business.
Jan. 8 The owner withdrew ₱ 8,000 from the business for an emergency. He was hospitalized due to a minor
accident.
Jan. 12 The company settled its account with Banbantay Hardware in connection with the transaction last Jan. 4.
Jan. 15 Ms. Peppa Big availed of the services of the company on account for ₱ 2,000 to repair the clogged comfort
room of her house.
Jan. 16 The company received an advance payment of ₱ 10,000 from Mr. Ram Yun for plumbing services to be
performed on his house next month.
Jan. 17 Received the payment of Ms. Myn Chin amounting to ₱ 30,000 in relation to the transaction last Jan. 2.
Jan. 20 The company received the telephone bill from Kumunikasyon Corp. for the month amounting to ₱ 1,499.
The company intends to pay it on its due date on Feb. 20.
Jan. 23 The company paid ₱ 2,500 for the fuel of the truck being used by the company.
Jan. 25 The company paid the electricity and water bill for the month amounting to ₱1,500 and 600 respectively.
Jan. 27 Collected the payment of Ms. Peppa Big in connection to the transaction last Jan. 15.
Jan. 28 The company paid ₱ 20,000 to Karpintero Inc. representing the first installment payment for the purchased
furniture and fixtures last Jan. 5.
Jan. 31 The company paid the salary of the employees, P 36,000.

REQUIRED: Record the transactions in a journal. Every transaction is worth 3 points (1 point for correct debit entry;
1point for correct credit entry; and 1 point for the explanation and observance of the entry rules).