BUSINESS TRANSACTION: Preparation of Journal Entries

1.       Cruz invested P200,000 to start an auto repair business.

2.       Cruz Bought repair equipment from X Co. on credit, P100,000
3.       Cruz bough shop supplies for cash, P62,000.
4.       Paid X Co. partially, P60,000.
5.       Cruz received a bank loan business use P100,000.
6.       Customer paid cash for auto repairs service rendered, P25,000
7.       Repair service rendered on account, P50,000
8.       Paid a month’s rent, P10,000
9.       Cruz made partial collections from customer’s accounts, P30,000
10.   Cruz Paid the salaries and wages of laborers, P15,000
11.   Billed a customer, P6,000 and received a partial payment of P2,000
12.   Shop supplies purchased, P15,000 and made a down payment of P5,000
13.   Shop supplies bought for cash and used, P18,000
14.   Cruz withdrew P20,000 for his personal use
 ACCOUN
DEBIT(DR) CREDIT (CR) TRANS # ASSETS
Value Received or paid for Values given or parted with CASH A/R
Cash Cruz, Capital 1 200,000.00
Equipment Accounts Payable 2
Supplies Cash 3 -62,000.00
Accounts Payable Cash 4 -60,000.00
Cash Bank Loan 5 100,000.00
Cash Service Income 6 25,000.00
Accounts Receivable Service Income 7 50,000.00
Rent Expense Cash 8 -10,000.00
Cash Accounts Receivable 9 30,000.00 -30,000.00
Salaries and Wages Cash 10 -15,000.00
Cash, 2000, AR - 4000 Service Income 11 2,000.00 4,000.00
Supplies Cash-5000, AP-10000 12 -5,000.00
Supplies Expense Cash 13 -18,000.00
Cruz Drawing Cash 14 -20,000.00
167,000.00 24,000.00
TOTAL ASSETS
 ACCOUNTING EQUATION EXPANDED
ASSETS LIABILITIES OWNER'S EQUITY
SUPPLIES EQUIPMENT = A/P BANK LOAN + CRUZ CAPITAL REVENUES - EXPENSE
= + 200,000.00
100,000.00 = 100,000.00 +
62,000.00 = +
= -60,000.00 +
= 100,000.00 +
= + 25,000.00
= + 50,000.00
= + 10,000.00
= +
= + 15,000.00
= + 6,000.00
15,000.00 = 10,000.00 +
= + 18,000.00
= + -20,000.00
77,000.00 100,000.00 50,000.00 100,000.00 180,000.00 81,000.00 43,000.00
368,000.00 TOTAL LIABILITES & OWNER'S EQUITY 368,000.00
FOUR FINANCIAL STATEMENTS - SERVICE
I. STATEMENT OF COMPREHENSIVE INCOME II. STATEMENT OF FINANCIA

CRUZ AUTO REPAIR SHOP CRUZ AUTO REPAIR

STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIA
For the Month Ended June 30, 20__ June 30, 20__

REVENUE P 81,000.00 ASSETS

Repair/Service Income P 81,000.00 Cash
Accounts Receivable
EXPENSES Shop/Supplies
Salary 15,000.00 Equipment
Rent 10,000.00
Supplies 18,000.00 TOTAL ASSETS
Total Expense 43,000.00
LIABILITIES AND OWNER
INCOME FROM OPERATIONS P 38,000.00 LIABILITIES
Accounts Payable
Loan Payable
TOTAL LIABILITIES
OWNER'S EQUI
CRUZ, Capital
Add Net Income
Total
Less: Drawing
TOTAL OWNER'S EQUITY

TOTAL LIABILITIES & OWNER'S EQUI

ENT OF FINANCIAL POSITION III. STATEMENT OF CHANGES IN EQUITY

CRUZ AUTO REPAIR SHOP CRUZ AUTO REPAIR SHOP

ATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN EQUITY
June 30, 20__ June 30, 20__

ASSETS CRUZ, Capital - June 1 P

P 167,000.00 add: Investment P 200,000.00
24,000.00 Income in June 38,000.00
77,000.00 Total P
100,000.00 Less: J. Cruz, Drawing
CRUZ, Capital - June 30 P
P 368,000.00

IABILITIES AND OWNER'S EQUITY

LIABILITIES
P 50,000.00
100,000.00
P 150,000.00
OWNER'S EQUITY
P 200,000.00
38,000.00
P 238,000.00
20,000.00
NER'S EQUITY 218,000.00

ITIES & OWNER'S EQUITY P 368,000.00

S IN EQUITY 1V. STATEMENT OF CASH FLOWS

R SHOP CRUZ AUTO REPAIR SHOP

ES IN EQUITY STATEMENT OF CASH FLOWS
__ For the Month Ended June 30, 20__

- CASH FLOWS FROM OPERATING ACTIVIES:

Collection from Custpmers P 57,000.00
238,000.00 Payment for Expenses -25,000.00
238,000.00 Payment for Shop Supplies -85,000.00 -53,000.00
20,000.00
218,000.00 CASH FLOWS FROM INVESTING ACTIVIES:
Payment for Repair Equipment -60,000.00

CASH FLOWS FROM INVESTING ACTIVIES:

Bank Loan P 100,000.00
Investment of Cruz 200,000.00
Cash withdrawal og Cruz -20,000.00 280,000.00

TOTAL CASH FLOW P 167,000.00

TRIAL BALANCE

KAMUKAMO GRAPHIC DESIGN

TRIAL BALANCE
March 31, 2020

DR CR
Cash P 167,000.00
Accounts Receivable 24,000.00
Shop/Supplies 77,000.00
Equipment 100,000.00
Accounts Payable P 50,000.00
Loan Payable 100,000.00
CRUZ, Capital 200,000.00
KAMUKAMO, Withdrawals 20,000.00
Repair/Service Income 81,000.00
Salaries & Wages 15,000.00
Rent Expense 10,000.00
Supplies 18,000.00

P 431,000.00 P 431,000.00
T-ACCOUNTS

CASH CRUZ, CAPITAL

Bebit (DR) Credit (CR) Bebit (DR) Credit (CR)
#1 200,000.00 #3 62,000.00 #1
#5 100,000.00 #4 60,000.00
#6 25,000.00 #8 10,000.00
#9 30,000.00 # 10 15,000.00
# 11 2,000.00 # 12 5,000.00
# 13 18,000.00
# 14 20,000.00

357,000.00 190,000.00
Balance 167,000.00

REPAIR EQUIPMENT ACCOUNT PAYABLE

Bebit (DR) Credit (CR) Bebit (DR) Credit (CR)
#2 100,000.00 #4 60,000.00 # 2
# 12
60,000.00
Balance

REVENUE RENT EXPENSE

Bebit (DR) Credit (CR) Bebit (DR) Credit (CR)
#5 25,000.00 #8 10,000.00
#7 50,000.00
# 11 6,000.00
Balance 81,000.00

KAMUKAMO DRAWING SUPPLIES EXPENSE

Bebit (DR) Credit (CR) Bebit (DR) Credit (CR)
# 14 20,000.00 # 13 18,000.00
CAPITAL SUPPLIES
Credit (CR) Bebit (DR) Credit (CR)
200,000.00 #3 62,000.00
# 12 15,000.00
Balance 77,000.00

PAYABLE LOAN PAYABLE

Credit (CR) Bebit (DR) Credit (CR)
100,000.00 #5 100,000.00
10,000.00
110,000.00
50,000.00

XPENSE ACCOUNTS RECEIVABLE

Credit (CR) Bebit (DR) Credit (CR)
#7 50,000.00 # 9 30,000.00
# 11 4,000.00
54,000.00 30,000.00
Balance 24,000.00

EXPENSE SALARIES & WAGES EXPENSE

Credit (CR) Bebit (DR) Credit (CR)
# 10 15,000.00