Exercise 3. Journalizing, Posting to T-accounts, and Trial Balance Preparation. Xavier Ignacio, a friendly neighbour of Charlotte was so inspired in the success story of having a business of the later that he formed on July 1 X-tra Link Internet Cafe business. He converted the parking space in front of his house into a place where students can rent computers. The following transactions occurred during its first month of his internet cafe's business operations. Required: 1. Journalize the following transactions 3. Compute the balances of each account 2. Post the entries to the T-accounts 4. Prepare the initial trial balance July 1 Xavier Igna, the owner, invested 200,000 of his personal funds and 2 units of his personal computers which he originally acquired at 25,000 each but has a current value of 18,000 each into the business 2 Borrowed additional cash from CITIBANK and issued a promissory note amounting to 50,000. 3 Purchased 5 units of desktop computer for 20,000 each from Dell Desktop Trading on account. 4 Paid barangay and municipal taxes for establishing the business amounting to 10,000 5 Bought 2 computer printers for cash worth 7,500 each. 6 Bought various coupon bonds, toners, and other supplies for use in the computer shop for 12,500 in cash. 7 Computer rentals on its first week of operations amounted to 45,850 cash 8 Paid % of the amount owed to dell Desktop Trading. 9 Billed Charlotte's Designer and Tailoring Shop for computer printing services rendered, 2,800. 10 Paid 500 for the repair of one of the computers 15 Paid salaries of shop assistant, 15,000 21 Computer rentals for 20 and 30 week amounted to 62,950 23 Mr. Xavier Ignacio withdrew 10,000 cash for his personal use in anticipation of future profits. 24 Collected 1% of the amount billed to Charlottes' Designer and Tailoring Shop 25 Paid Globe Telecom Company 11,950 for the internet subscription charges for the month. 30 Paid salaries of computer technicians. 12,000Exercise 2. Journalize the following transactions of MaDaya Consultancy Firm and post them to the T-accounts. August 1 May Daya established MaDaya Consultancy Firm. She invested 800,000 on this initial endeavour. May Daya issued a promissory note for 500,000 loan payable in one year. Acquired office furniture to be used for the office 150,000 cash. Acquired office equipment from eastern Marketing 50,000 paying 10,000 and the balance at the end of the month. Note: A compound entry is needed in this transaction. 7Paid Agno Insurance Co, 9,000 for one-year insurance premium. 8Rented office space and paid three-months rent in advance 45,000. 9The 7,000 office supplies ordered from Ace Supplies were delivered on account. 10 Consultation services rendered on account to MaCuenta Company, 100,000 11Paid Ace Supplies 5,000 of the amount owed. 12Received 50,000 from MaCuenta Company as partial payment. 14Debit increases in assets. Credit increases in liabilities. 18May Daya withdrew 18,000 for personal use. 20Received cash from Ms. Sue Gapa 30,000 for consultation services rendered. 23Paid assistant's salary for the month, 8,000. 25Paid electric bill for the month 5,000. 31Received bill from Maynilad 450