Topic 6.
Topic 6.
Topic 6.
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Course/Section: BSBA-FM 1B
B193 | BACC 1B | Basic Financial Accounting and Reporting
CONCEPTUAL PORTFOLIO
2. Provide the journal entries to record the transactions described below. You do
not need to provide a short description for the journal entries.
1. Owner contributes ₱600,000 to the business.
5. Sale of goods for ₱900,000, on account. The cost of the goods sold is
₱400,000.
JOURNAL
Date Account titles Debit Credit
1 Cash ₱600,000
Capital ₱600,000
To record cash contribution of the owner
2 Cash ₱400,000
Loans payable ₱400,000
To record the loan obtained by the business
3 Inventory ₱200,000
Cash ₱200,000
To record purchase of inventory on cash basis
4 Inventory ₱500,000
Accounts payable ₱500,000
To record purchase of inventory on account
7 Cash ₱500,000
Accounts receivable ₱500,000
To record the collection of accounts
receivable
8 Equipment ₱480,000
Cash ₱480,000
To record the purchase of equipment in cash
9 Drawing ₱10,000
Cash ₱10,000
To record the drawing made by the owner
JOURNAL
Date Account titles Debit Credit
Nov. 1, 20x1 Cash ₱2,000,000
Owner’s capital ₱2,000,000
To record the investment made by the
owner