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Mid Term Assignment 1 On FAR - Journalizing, Posting, and Unadjusted Trial Balance

Dave Mac opened a delivery service with a P300,000 cash investment. He purchased a delivery van for P300,000 by paying 50% down and financing the rest. Office supplies were bought for P3,750 cash. Equipment costing P27,500 was purchased on account. Fees of P25,000 were received in cash. P5,500 of accounts payable was paid for the equipment purchase. Services of P17,000 were billed, with P10,000 due from Jane and P7,000 from Mike. Rent of P15,000 was paid in cash and P7,000 was collected from Mike. Mac withdrew P1,000 for personal use.

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Anne Alag
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756 views1 page

Mid Term Assignment 1 On FAR - Journalizing, Posting, and Unadjusted Trial Balance

Dave Mac opened a delivery service with a P300,000 cash investment. He purchased a delivery van for P300,000 by paying 50% down and financing the rest. Office supplies were bought for P3,750 cash. Equipment costing P27,500 was purchased on account. Fees of P25,000 were received in cash. P5,500 of accounts payable was paid for the equipment purchase. Services of P17,000 were billed, with P10,000 due from Jane and P7,000 from Mike. Rent of P15,000 was paid in cash and P7,000 was collected from Mike. Mac withdrew P1,000 for personal use.

Uploaded by

Anne Alag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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FAR – Journalizing, Posting, and Unadjusted Trial Balance

Problem: ( 50 points ) – The June transactions of Dave Mac for Speedy Delivery Service are given
below. Use the following accounts:

Assets: Cash, Accounts Receivable, Office Supplies, Office Equipment, Delivery Van

Liability: Accounts Payable

Equity: Mac, Capital; Mac, Drawings

Income: Delivery Fees Earned

Expense: Rent Expense

June 1 Mac invested P300,000 cash to open a delivery service for the OFWs.

June 3 Purchased a delivery van for P300,000 from Hi Ace, 50% down, balance on credit.

June 5 Purchased office supplies for P3,750 cash.

June 10 Purchased P27,500 equipment on account.

June 12 Received P25,000 cash as fees for services provided to overseas contract workers.

June 15 Paid cash to settle P5,500 of the account payable from the June 10 purchase.

June 20 Billed two customers P17,000 for services provided: Jane P10,000 and Mike P7,000.

June 22 Paid P15,000 cash for the monthly rent.

June 23 Collected from Mike.

June 30 Mac withdrew P1,000 cash from Speedy Delivery Service for personal use.

Required:

a. Provide the journal entries. ( 20 points )

b. Post the entries to the ledger ( use T-accounts) – 20 points

c. Prepare the unadjusted trial balance. ( 10 points )

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