CHAPTER 5 JOURNALIZING

Prepare the selected journal entries of Strongbuilt Construction using the following accounts: Cash Accounts receivable Notes receivable Construction equipment Transportation equipment Office supplies Accounts payable Notes payable M. Banco capital Service revenue Interest income Construction materials Salaries expense Interest expense Rent expense Taxes and licenses Utilities expense

March 1 - Mr. M. Banco started his construction business by investing cash of P300,000; old construction equipment valued at P400,000; and used transportation equipment valued at P500.000.

2 - Paid registration fees with the government, P5,000.

3 - Purchased construction supplies from Megacon Ent., P50,000.

4 - Purchased office supplies for cash, P7,000.

5 - Received P20,000 for the renovation of Mr. Gil's house.

6 - Billed Extra Corp. for the services rendered, P120,000 payable in 10 days.

12 - Purchased additional construction equipment from Hardiware Co., P150,000. Terms: 20% down payment; balance payable in 15 days.

15 - Paid the salary of workers, P50,000

16 - Collected the account of Extra Corp. in full.

19 - Made partial payment to Megacon Ent.., P20,000.

27 - Settled the account with Hardiware Co. in full.

28 - Billed Excellent Corp. for renovation of its building, P200,000 payable in 30 days.

29 - Paid the electricity and water bill for the month, P8,500. 30 - Paid the salary of workers, P75,000

31 - Paid the monthly rental of P12,000.