Problem 2

Katy Dee started to rent out bicycles in the Burnham Park during the summer. During the month
of April, Dee completed the following transactions for her bicycle rental business:
2 Began business by placing P120,000 in a business checking account
3 Purchased supplies on account for P1,500
4 Purchased bicycles for P25,000, paying P12,000 down and agreed to pay the balance after 30 days
5 Paid P29,000 in cash for furnished container to store the bicycles and use for other operations
6 Received P4,700 in cash for rentals during the first week of operation
8 Paid P4,000 in cash for shipping and installation costs (considered as part of cost of container) to place
the container at the park entrance
9 Hired a part-time assistant to help on weekends
10 Paid a maintenance crew P750 to clean the grounds
13 Received P5,000 in cash for rentals during the second week of operation
16 Paid the assistant P480 for a weekend’s work
17 Paid for the supplies purchased in on April 3
18 Paid a P550 repair bill
20 Received P5,500 for rentals during the week
22 Paid the assistant P480 for the week’s salary
23 Billed a client, P1,100 for bicycle rentals
25 Paid the P3,000 concession fee to Burnham
27 Received P4,100 in cash for rentals
29 Paid the assistant P480 for his compensation
30 Transferred P5,000 in personal checking account

The company uses the following account titles: Cash; Accounts Receivable; Supplies; Container;
Bicycles; Accounts Payable; Dee Capital; Dee Drawings; Rental Revenues; Wages Expense;
Maintenance Expense; Repair Expense; Concession Expense
Required:
1) Prepare the Journal entries in good form, present solutions in Excel
2) Post transactions in T Accounts and get the ending balances
3) Prepare a Trial Balance