AB Photo Arts:

Problem 1:

Andrea Bonito has decided to go into the business for herself as a professional photographer and the
following transactions transpired in October.

October 1 She invested P300,000 to open the AB Photo Arts

3 Paid rental for the month, P12,000

5 Purchased camera equipment for cash worth P220,000

7 Bought photo and developing supplies worth P18,000 on account

15 Bought office equipment worth P45,000 on credit from Burroughs Company

17 Received P25,000 for photography services rendered

19 Andrea Bonito withdrew P12,000 from the business for her personal use

23 Paid Burroughs Company P30,000 as partial payment of account

24 Took wedding pictures and agreed to accept payment fifteen days later, P12,000

30 Paid salary of assistant for the month, P6, 000.

Use the listed chart of accounts below to journalize the above transactions:

101 Cash 301 Andrea Bonito, Capital

102 Accounts Receivable 302 Andrea Bonito, Withdrawal
103 Supplies 501 Fees Earned
104 Camera Equipment 601 Rent Expense
105 Office Equipment 602 Salaries and Wages Expense
106 Computer Equipment
201 Accounts Payable

REQUIRED:

1. Journalize the above transaction

Post the journal entries to the General Ledger
2. Post the transactions in T-Accounts
3. Prepare the trial balance