PROBLEM 1. Journalizing Business Transactions Jums Carreon, the owner of Blue Space Mountain Resort, established a proprietorship on July 1, 2022 with an initial capitalization of P350,000 in cash and P90,000 cost of office tables and chairs to start the business. Her accountant, S.Glova has prepared the Chart of Accounts shown below. Blue Space Mountain Resort Chart of Accounts Assets Cash Liabilities Revenues Notes Payable Notes Receivable Accounts Payable Service Revenues Interest Income Accounts Receivable Salaries Payable Other Income Allowance for Bad Debts Operating Supplies Owner's Equity Expenses Prepaid Insurance Carreon, Capital Salaries & Wages Land Carreon, Drawings Utilities Expense Building Service Charges Furniture & Equipment Rent Expense The following completed transactions took place in July, its first month of operations in 2022 2 Bought two (2) units lap top computers at P29,000 each by paying P10,000 as down payment and signed a promissory note for the balance payable in two (2) equal end-of-the-month installment payments starting July 31. 3 Cash invoices show the purchase of office supplies for P2,800, and cleaning supplies for P5,000. 8 5-A charge invoice shows additional purchase of cleaning supplies worth P2,100. Jums Carreon made an additional cash investment of P250,000 for the business. Bought a second-hand car for P380,000 to be used as a company service vehicle, by paying 80% of the cost and the balance will be paid three (3) months thereafter as per verbal agreement with the seller. 10 12 13 9 15 - Revenues earned from services rendered totaled P60,700 of which P48,200 were cash receipts and the remainder were open accounts established from clients. Received electricity billing statement for the month, P4,300. Received water billing statement for the month, P3,200. Paid various expenses for salaries of employees, P28,600; rentals, P25,000; and minor repair of vehicle, P1,000. 17 Revenues earned from services rendered are shown below. VISA/MasterCard receipts were immediately deposited to and validated by the bank with a 4% service fee. Cash receipts VISA credit cards P8,400 15,800 29,200 MasterCard credit cards 20 Collected 60% of the July 10 open accounts from clients. The cash collections were used to pay all unpaid utility bills for the month. 23 Documents confirm revenues eamed from services rendered amounted to P20,000, all of which were company credit cards accepted by the management and sent immediately to these credit card companies. Received payments from credit card companies, net of 4.5% service fees. Jums Carreon made a cash withdrawal of P5,000 for her personal use. 25 27 29 Paid in full the July 5 account. 30 31 Paid salaries for the 2" half of the month, P28,600. Bought P400 worth of prepaid cards for mobile phones used for the business. A temporary receipt also shows the first installment payment made by the company on the July 2 account. Required: Prepare journal entries to record the transactions above. (Use excel submission will be through our g classroom)