Question

Kareen Leon won a concession to rent out bicycles in the Burnham Park during the summer. During the month of April, Leon completed the following transactions for her bicycle rental business:

April 2. Began business by placing P120,000 in a business checking account.

April 3. Purchased supplies on account for P1,500.

April 4. Purchased ten bicycles for P25,000, paying P12,000 down and agreed to pay the balance in thirty days.

April 5. Paid P29,000 in cash for a furnished container to store the bicycles and use for other operations.

April 6. Received P4,700 in cash for rentals during the first week of operation.

April 8. Paid P4,000 in cash for shipping and installation cost (considered an addition to the cost of the container) to place the container at the park entrance.

April 9. Hired a part time assistant to help on weekends.

April 10. Paid a maintenance person P750 to clean the grounds.

April 13. Received P5,000 in cash for rentals during the 2^nd week of operation.

April 16. Paid assistant P480 for a weekend's work.

April 17. Paid for the supplies purchased on April 3.

April 18. Paid a P550 repair bill on bicycles.

April20. Received P5,500 in cash for rentals during the third week of operation.

April 22. Paid the assistant P480 for a weekend's work.

April 23. Billed an entity P1,100 for bicycle rentals for employees' outing.

April 25. Paid the P3,000 fee for April to the park Administration for the right to the bicycle concession.

April 27. Received P4,100 in cash for rentals during the week.

April 29. Paid the assistant P480 for a weekend's work.

April 30. Transferred P5,000 to personal checking account.

REQUIRED:

1. Prepare the journal entries for the April transactions.

2. Set up the following ledger accounts and post all the journal entries:

Cash; Accounts Receivables; Supplies; Container; Bicycles; Accounts Payable; Leon, Capital; Leon, Drawings; Rental Revenues; Wages Expense; Maintenance Expense; Repair Expense; Concession fee Expense.