INSTRUCTIONS: Prepare journal entries for the following transactions. Make sure to observe the proper format of journal entries.

Mr. Panatag opened the Panatag Security Services. The following financial transactions and other arrangements took place from July 01 to August, 2019: July 01 Mr. Panatag invested his savings in the business amounting to P895,000, and his old car with market value of P545,000.

July 02 Mr. Panatag signed a lease contract to be used as the office of his business. In accordance with the lease contract, Mr. Panatag paid the advance rental for three months amounting to P60,000.

July 03 The owner purchased furniture amounting to P50,00. Paid 70% cash and the balance will be paid after 30 days.

July 04 Mr. Panatag conducted interviews of security guards, and hired 10 security guards with a monthly salary of P13,000 per month.

July 05 The owner secured a loan from the bank amounting to P250,000 payable over the period of 5 years. The amount received from the loan was deposited to the bank account of the business.

July 06 Mr. Panatag bought office supplies on account from A One Office Supplies amounting to P8,000.

July 07 The business started the business by contacting possible companies as clients. One client, Kuripot Company signed a one month security contract for P59,000.

July 08 The business provided services for one - day security to Ms. Catriona Gray for P30,000. The account was promised to be paid after 30 days.

Aug 09 Received full payment from Ms. Gray.

Aug 10 Paid A One Office Supplies in full.

Aug 11 Paid the services of security guards amounting to P32,000.

Aug 12 The business paid the monthly amortization of the loan amounting to P4,000.

Aug 13 The business paid the tuition fee of the owners child amounting to P32,000.

Aug 14 The business received and record the bill from Meralco for the light and power consumption amounting to P7,000.

Aug 15 The business received cash from customers amounting to P48,000 for providing security services.

Below is the chart of account of the business:

Cash Accounts Receivable Supplies Prepaid Rent Furniture Car Accounts Payable Loans Payable Panatag, Capital Panatag, Drawing Service Income Salaries Expense Utilities Expense