Chapter S

5-8

Journalizing Based on the Given Chart of Accounts

Mr. Edgar Esparaguera is a professional accountant. He ventured in a milling business t serve the needs of farmers in the rural areas of Dipolog City. With a given chart a accounts, record in a two-column General Journal the transactions for the first month operations on April 2014.

Dipolog Rice Mill Chart of Accounts

Assets

Cash in Bank

Petty Cash Fund

Accounts Receivable

Advances to Employees Diesoline Inventory

Satake Rice Mill

Furniture and Fixtures Liabilities

Accounts Payable

Unearned Milling Income

Owner's Equity

E. Esparaguera, Capital E. Esparaguera, Drawing

Income

Milling Income Other Income

Expenses

Salaries and Wages Taxes and Licenses

Repairs and Maintenance Light and Water

Transactions for the month:

April 1 Mr. Edgar Esparaguera invests cash of P100,000. He deposited the P99,000 in Land Bank and kept the P1,000 as petty cash fund to pay for small expenses. He also invests a Satake Rice Mill which includes installation cost worth P950,000 and Furniture amounting to P80,000 for a total investments of P1,130,000.

3- Purchased diesoline worth P15,000 account from Caltex Philippines. 5- Paid licenses and business permits to the city government, P2,800.

7- Salary advance of an employee deductible from payroll, P3,000.

8- Paid minor repairs, P500. This was taken from the Petty Cash Fund.

14- Received cash for milling services, P9,000.

18- Withdrew P8,000 cash for personal use.

20- Rendered milling services to Zamboanga Traders on account, P18,000

23- Paid in full the account with Caltex Philippines, P15,000. 27- Collected partially the account of Zamboanga Traders, P10,000.

28 Received cash in advance but service is

still to be rendered, P7,000.

29- Paid light and water for the month, P8,000. 30- Total payroll for the month, P15,000 less salary advance of P3,000.

- Billed Dipolog Farms for milling services rendered, P25,000.

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