Yan, a tax consultant, began his practice on Dec. 1, 2017. The

transactions of the firm are as follows:

December

1 Yan invested P150,000 in the firm.

2 Paid rent for December to Kaka Yanin Realty, P8,000.

2 Purchased supplies on account, P7,200.

3 Acquired medical equipment costing P420,000 and medical

supplies amounting to P39,000 by paying P59,000 cash and

issuing a 24% note payable, maturing in 6 months, for the

P400,000 balance.

8 Paid P7,200 on account for supplies purchased.

14 Paid assistant's salaries for two weeks, P6,000.

20 Performed consulting services for cash, P20,000.

28 Paid assistant's salaries for two weeks, P6,000.

30 Billed clients for December consulting services, P48,000.

31 Yan withdrew P12,000 from business.

Presented below is the chart of accounts used by Kayamo Yan:

Assets Income

110 Cash 410 Consulting Revenues

120 Accounts Receivable

130 Supplies

140 Prepaid rent

150 Office Equipment Expenses

155 Accumulated Depreciation 510 Salaries Expense

520 Supplies Expense

Liabilities 530 Rent Expense

210 Accounts Payable 540 Depreciation

Expense

220 Salaries Payable

230 Notes Payable

Owner's Equity

310 Yan, Capital

320 Yan Withdrawals

The following information is available on Dec. 31, 2017.

a. Supplies on hand amounted to 4,700.

b. Salaries of P1,800 have accrued at month-end.

c. Rent has expired for the whole month of December

d. The office equipment has a 10-year life span and has a salvage value

of 50,000.

e. Yan has spent 20 hours on a tax fraud case during December. When

completed in January, his work will be billed at P500 per hour.

Required:

1. Journalize the December transactions

2. Post the transactions to the ledger (T-accounts).