Mr Ventura engaged in a Milling business to serve the needs of farmers in the rural areas of Tacloban City.Below are given the charts of accounts for the first month of operations on June 2020;

VENTURA MILLING COMPANY

Chart of Accounts

ASSETS OWNER"S EQUITY

Cash in bank Mr. Ventura, Capital

Accounts Receivable MR. Ventura, Drawing

Diesoline Inventory

Machinery-Nasuki Rice Mill INCOME

Furniture and Fixtures Milling Income

LIABILITIES EXPENSES

Accounts payable Salaries and Wages

SSS Premium Payable Taxes and Licenses

Philhelath premium payable SSS Contribution

Philhealth Contribution

Transaction for the month;

June 1; Mr. Ventura purchased Machinery from Japan and invest it in his business worth

P1,000,000. He also invest cash of P100,000 and furniture and fixtures worth

P50,000.

2; Purchased diesoline worth P20,000 on account from Shell Company.

5: Paid licenses and business permits to the City Government P2,800.

10; Received cash for milling services P20,000.

18: Withdrew P10,000 cash for personal use.

20; Rendered milling services to Catiklan Traders on Account P28,000.

23; Paid in full the account with Shell Company P20,000.

27; Collected partially the account of Catiklan Traders P20,000.

30: Paid salaries and wages for the month:

Salaries and wages P17,500.00

Less; Deductions;

SSS Premium 583.50

Philhealth Premium 187.50 771.00

Net Payroll P16,729.00

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30: Employer share; SSS P936.50 and Philhealth P187.50.

Requirements;

1. Prepare journal entries.
2. Make the T-account and prepare Trial balance