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    Activity 10

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    Yor Milizé
    April Anne Mangubat established an organic gardening business and had the following transactions in July 2020: 1) Deposited $50,000 into the business bank account from savings. 2) Paid 3 months of office rent in advance totaling $3,000. 3) Paid $4,200 for business permits and taxes. 4) Bought $5,500 of supplies on credit and $500 in cash for seeds. 5) Billed customers $10,500 and collected $17,000 in cash from customers. 6) Paid expenses of $7,700 which included supplies, services, and utilities.

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    Activity 10

    Uploaded by

    Yor Milizé
    52 views1 page
    April Anne Mangubat established an organic gardening business and had the following transactions in July 2020: 1) Deposited $50,000 into the business bank account from savings. 2) Paid 3 months of office rent in advance totaling $3,000. 3) Paid $4,200 for business permits and taxes. 4) Bought $5,500 of supplies on credit and $500 in cash for seeds. 5) Billed customers $10,500 and collected $17,000 in cash from customers. 6) Paid expenses of $7,700 which included supplies, services, and utilities.

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    Activity 10 acc

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    April Anne Mangubat established an organic gardening business and had the following transactions in July 2020: 1) Deposited $50,000 into the business bank account from savings. 2) Paid 3 months of office rent in advance totaling $3,000. 3) Paid $4,200 for business permits and taxes. 4) Bought $5,500 of supplies on credit and $500 in cash for seeds. 5) Billed customers $10,500 and collected $17,000 in cash from customers. 6) Paid expenses of $7,700 which included supplies, services, and utilities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    52 views1 page

    Activity 10

    Uploaded by

    Yor Milizé
    April Anne Mangubat established an organic gardening business and had the following transactions in July 2020: 1) Deposited $50,000 into the business bank account from savings. 2) Paid 3 months of office rent in advance totaling $3,000. 3) Paid $4,200 for business permits and taxes. 4) Bought $5,500 of supplies on credit and $500 in cash for seeds. 5) Billed customers $10,500 and collected $17,000 in cash from customers. 6) Paid expenses of $7,700 which included supplies, services, and utilities.

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    YOUR TURN

    Activity 10: We all know that the purpose of accounting is to provide quantitative information
    of the business entity. In gathering this information accounting process follows a sequential
    procedures in accumulating this information. The first step of the accounting process is the
    preparation of journal entries. Your previous knowledge in account classification, identifying
    normal balance, type of transaction and the effect of this transaction to the accounting
    equation is very important. In this activity you are going prepare journal entries using the chart
    of accounts (that you will also provide), post these journal entries to the General Ledger and
    extract the balances from each general ledger.

    April Anne Mangubat July 1, 2020 – Deposited the amount of P50,000 from her
    established an Organic savings to her business bank account.
    Gardening Planters, by July 2, 2020 - She rented an office space at P1,000 per month
    providing gardening and paid 3 months rent in advance.
    services to the people July 3, 2020 – Paid business permit and other taxes amounting
    during the quarantine to P4,200.
    period. This is the July 4, 2020 – She bought gardening supplies on credit from a
    business that she decided hardware P5,500.
    to open which is very July 5, 2020- Bought for cash various seeds for plantingP500.
    timely during this covid July 7, 2020 – Billed customers for services rendered to various
    crisis. During the first customers P 10,500.
    month of operations the July 10, 2020- Make partial payment for the account on July 4
    following transactions has P3,000.
    occurred. July 13, 2020- Received cash from customer for the services
    rendered P8,000.
    July 14, 2020- Collected cash from July 7, account P9,000.
    July 15, 2020- Paid the services of the gardeners for the 1st half of the month P3,500.
    July 20, 2020- Received cash from customer for the services to be rendered in the future P6,000.
    July 23, 2020- Paid the electric and water consumption of the office P2,200.
    July 27, 2020- Paid charges for advertising the company P800.
    July 31, 2020- Paid the services of the gardeners for the 2nd half of the month P3,500.
    July 31, 2020- The owner withdrew cash for personal use P3,500.

    REQUIRED:
    Prepare journal entries
    with brief explanation
    after each entry, post the
    entries to general ledger
    and prepare a trial
    balance. You have to
    develop your own chart of
    accounts for this type of
    business.

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