I.

Journalise the following transactions:

1 May: Ram started a paint business called Paint Points Inc. with Php500,000 cash.
3 May: Bought furniture Php5,000, machine for Php40,000, office equipment worth
Php10,000 and Building Php1000,000.
5 May: Sold goods to customers for 50,000 on account
10 May: Ram acquired a 3-year term loan of Php 200,000 for the business with an
interest of 20% PA.
12 May: Bought supplies for 30,000 in cash.
15 May: Customer paid 60% of the goods sold on 5 May.
18 May: Provided services to customers worth Php75,000.
20 May: Paid salaries to employees Php15,000 in cash.
23 May: Customer made an advance payment of Php 35,000 for a service to be
rendered by the end of July 2024.
25 May: Paint Points Inc. received the water bill worth Php 3,500 to be paid on 3
June.

II. Make the following adjustments on 31 May 2024.

A. Furniture purchased have a useful life of 3 years. Record the depreciation for the
month.
B. Machine will have a salvage value of 5,000 after 5 years.
C. The office equipment will have a useful life of 4 years and will be worthless after.
D. The loan interest for the month must be paid together with the principal amount of
Php 8,333.33.
E. Used a total of Php 12,000 for the month.
F. One employee was not paid his overtime pay for 4 hours. Hourly rate is Php120.
G. By the end of the month, Paint Points Inc has completed 40% of the services.
H. A customer made a rush order of paints and billed them for Php25,000.

Note: For the adjustments, format is the same as the journal entries except the dates.
Use the letters instead of the date to record the transactions.

Ex.

Debit Credit
A. Depreciation Expense Php XXX
Accumulated Depreciation Php XXX