pap 5. On July 1 of the current year Kenneth Brown formed the Pampanga Transport Line popularly called PTL. The following transactions occurred for the month of July: 1 The owner invested cash of P1,000,000. 2 Bought furniture and fixtures making a 50% down payment of P150,000 with the balance on account. 5 Second hand buses were ordered from Japan, through its domestic dealer Hino Motors Corporation, amounting to 8,444,000 in Japanese yens. A yen is equal to P.45. The amount was loaned by Hong Kong and Shanghai Bank after Brown issued a five-year promissory note. 8 The buses were delivered by Hino Motors. 10 Entered into an agreement with Petron who will supply the gas and oil of PTL payable at the end of the month. 11 Paid for radio advertisements and billboards which amounted to P100,000. 12 Passenger fares collected amounted to P240,000. 15 Paid for the salaries of clerks, drivers and conductors, P125,000. 20 Charged Holy Angel University P80,000 for the use of two buses for an education trip to Manila. The school made a 50% payment, the balance payable next month. 21 Cargo fares amounting to P70,000 were billed and collected from various customers. 25 The owner made a cash withdrawal of P50,000. 27 Utility bills were paid in the amount of P40,000. 28 Lessor sent a bill for rental due on the bus terminal, P75,000. 29 Summary of revenues collected: passenger fares P360,000 and cargo fares P120,000. 30 Paid for salaries of employees, P125,000. 31 Paid Petron P90,000. Required: a) Analyze the above transactions. Include money columns for the accounts Cash, Accounts Receivable, Furniture and Fixtures, Transport Buses, Accounts Payable, Notes Payable, Rent Payable and Brown, Capital. Use the following temporary titles to explain the changes in his capital account: Transportation Fare, Cargo Fare, Advertising Expense, Gas and Oil Expense, Rent Expense, Salaries Expense, Utilities Expense and Brown, Drawings. b) Prepare an income statement, a capital statement and a properly classified report form of statement of financial position