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Froilan Lim PDF

1) Froilan Lim established Lim Catering Service and deposited P165,000 in the business bank account from his capital contribution. 2) Various assets were purchased including a service vehicle for P194,500, catering equipment for P28,500, and 1 year of insurance for the vehicle for P4,000. 3) The business incurred expenses such as rent of P6,200, utilities of P6,040, gas and oil of P6,080, and salaries of P11,200, while also generating revenues from catering services of P52,440.

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4K views2 pages

Froilan Lim PDF

1) Froilan Lim established Lim Catering Service and deposited P165,000 in the business bank account from his capital contribution. 2) Various assets were purchased including a service vehicle for P194,500, catering equipment for P28,500, and 1 year of insurance for the vehicle for P4,000. 3) The business incurred expenses such as rent of P6,200, utilities of P6,040, gas and oil of P6,080, and salaries of P11,200, while also generating revenues from catering services of P52,440.

Uploaded by

grace
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Problem 2

On March 1, 2020, Froilan Lim established Lim Catering Service. Transactions completed
during the month are as follows:
a. Lim deposited P165,000 in a bank account in the name of the business
b. Bought a service vehicle from Elpidio Motors for P194,500 paying P25,000 in cash and the
balance on account
c. Bought catering equipment on account from Quirino Equipment, P28,500
d. Paid rent for the month, P6,200
e. Rendered catering services for cash, P24,200
f. Bought supplies for cash, P1,800
g. Bought 1 year insurance for service vehicle, P4,000
h. Received and paid the utility bill for P6,040
i. Received bill from Baguio Gas for gas and oil used for the service vehicle, P6,080
j. Rendered catering services on account, P28,240
k. Rendered catering services for cash, P25,200
l. Paid salaries of assistants, P11,200
m. Withdrew cash for personal use, P15,500

Required:
Record the transactions in general journal form for the month of March using the following
account titles: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Service Vehicle;
Equipment; Accounts payable; Lim Capital, Lim Drawings; Catering Revenues; Salaries expense;
Utilities expense; Rent expense, Gas and oil expense

Problem 2

Date Particulars Debit Credit


Mar. a. Cash 165 000.00
Lim, Capital 165
000.00
To record the investment by F.Lim.

b. Service Vehicle 194 500.00


Cash 25 000.00
Accounts Payable 169
500.00
To record purchase of vehicle paid in cash and on account.

c. Equipment 28 500.00
Accounts Payable 28 500.00
To record purchase of equipment.

d. Rent Expense 6 200.00


Cash 6 200.00
To record payment of rent.

e. Cash 24 200.00
Catering Revenues 24 200.00
To record the rendered catering services.
f. Supplies 1 800.00
Cash 1 800.00
To record payement for supplies.

g. Prepaid Insurance 4 000.00


Cash 4 000.00
To record payment of insurance for service vehicle.

h. Utilities Expense 6 040.00


Cash 6 040.00
To record payment of utilities.

i. Gas and Oil Expense 6 080.00


Cash 6 080.00
To record payment of gas and oil.

j. Accounts Receivable 28 240.00


Catering Revenues 28 240.00
To record the rendered catering services on account.

k. Cash 25 200.00
Catering Revenues 25 200.00
To record the rendered catering services.

l. Salaries Expense 11 200.00


Cash 11 200.00
To record payment for salaries.

m. Lim, Drawing 15 500.00


Cash 15 500.00
To record the withdrawal of the owner.

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