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Activity 1 (Journal Entries)

The document outlines a series of transactions for SD Automobile Service Center in January 2024, including initial capital investment, expenses for business permits, employee salaries, service income, rental payments, office supplies purchases, and a vehicle acquisition. Key financial activities include cash inflows from services rendered and cash outflows for salaries and operational costs. The document serves as a basis for preparing corresponding journal entries for these transactions.

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johnmark.arguelles
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37 views1 page

Activity 1 (Journal Entries)

The document outlines a series of transactions for SD Automobile Service Center in January 2024, including initial capital investment, expenses for business permits, employee salaries, service income, rental payments, office supplies purchases, and a vehicle acquisition. Key financial activities include cash inflows from services rendered and cash outflows for salaries and operational costs. The document serves as a basis for preparing corresponding journal entries for these transactions.

Uploaded by

johnmark.arguelles
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Activity 1: Journal Entries

Instructions: Analyze the following transactions and prepare the corresponding journal entries for
each. Assume all transactions occurred in 2024.
Jone, the owner of SD Automobile Service Center wants you to record the transactions enumerated
below during the first month of operation for the year 2024.
January 1: Invested ₱ 500,000 as her initial capital.
January 1: Paid business permit amounting to P15,000.00
January 2: Hired 7 employees with a salary of ₱15,000 per month per employee.
January 5: Received P50,000 cash as payment for services rendered to a customer.
January 7: Paid for an advance rental on the commercial space used, ₱50,000.
January 10: Purchased office supplies on credit for P10,000.
January 11: Purchased a business vehicle amounting to ₱250,000 by paying ₱50,000 as down
payment and the balance (with a note) to be paid on equal installment basis starting
next month for a 4-month period.
January 12: Provided services to a customer on credit amounting to P100,500.
January 14: Received a utility bill for the month of January to be paid next month.
Electricity ₱ 1,950
Water 900
Communication 1,800
January 17: Paid P35,000 cash for salaries and wages of employees for the month
of January.

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