Question

Joanne Java Review School entered into the following transactions during October 2020:
Oct. 1 Java made additional investments of P50,OOO in the business.
2 Bought liability insurance for one year, P14,500.
3 Received a bill for advertising from SouthMin News, P3,200.
4 Paid rent for the month, P8,900.
7 Received a bill for equipment repair from E. Hipolito, P2,880.
10 Received and deposited tuition from Ftudents, P62,500.
11 Received and paid the telephone bill, P2,3QO.
15 Bought chairs from E. Awayan Furniture, P18,800, paying P8,800 in cash and the balance on account.
18 Paid accounts to SouthMin News, P3,200.
21 Java withdrew P8,OOO for personal use.
24 Received a bill for gas and oil from Mindanao Oil Corp., PI,800.
25 Received and deposited tuition from students, P61,400.
27 Paid salaries of the office assistants, P 12,000.
28 Pought a photocopier on account from Dadiangas Office Machines, P7,500.
29 Received P7,000 tuition from a student who had charged the tuition on account last month.
30 Received and paid the water utilities bill, P3,600.
31 Paid for flower arrangements for front office, P620.
31 Java invested personal computer, with a fair market value of P 12,300, in the business.
Required:
Prepare the journal entries for the October transactions. Use the following accounts: Æash; Accounts Receivable; Prepaid Insurance; Equipment;Furniture; Accounts Payable;
Java, Capital; Java, Withdrawals;&hool Fees;Salaries Expense; Rent Expense; Gas and Oil Expense; Advertising Éxpense; Repair Expense; Supplies Expense; Utilities Expense; Telecommunications Expense and Miscellaneous Expense.

Answer 1

Concept:

Journal records transactions entries in the books of accounts keeping in mind the rules of personal accounts.

Given:

Transactions for the month of October 2020.

To find:

The journal entries for the October transactions.

Solution:

The journal entries for the given transactions are:

1. Cash A/c                                    Dr. 50000

          To Capital A/c                                 50000

For additional investment made.

2. Insurance A/c                           Dr.  14500

            To Cash A/c                                  14,500

For liability insurance for one year bought

3. Bill Receivable A/c                   Dr,  3200
             To Southmin News                       3200

For Received a bill for advertising from SouthMin News

4. Rent A/c                                    Dr.   8900

             To Cash A/c                                   8900

For Paid rent for the month,

5. E. Hipolito A/c                          Dr. 2880

              To Bills payable A/c                 2800

For Received a bill for equipment repair

6. Bank A/c                                   Dr.  62500

              Cash A/c                                     62500

For Received and deposited tuition from students

7. Miscellaneous expenses         Dr. 2300

                To cash A/c                              2300