CHART OF ACCOUNTS

CashReceivable – A TradingFurniturePayable – XCo, Capital

Repair IncomeRent Expense Salary ExpenseSupplies Expense Telephone ExpenseUtilities Expense

Journal Entries

Jan. 2Cash Dan, Capital Initial Investment

P 20,000

P 20,000

4

EquipmentFurniture and FixturesBeauty Supplies Cash Purchase of Beauty Shop

12, 0005,0001,000

18, 000

5Rent Expense Cash Month’s Rent

1, 0001, 000

7Cash Service income Cash income.

1, 6001, 600

15Receivable – X Studio Service Income Account Income.

2, 4002, 400

Journal Entries ContinuationJan. 20

Telephone Expense Cash Telephone bill paid.

210210

22Beauty Supplies Payable – Y Supplies on account.

1, 3001, 300

24Cash Receivable – X Studio Partial Collection.

1, 5001, 500

26Payable – Y Cash Partial payment.

500500

31

Salary ExpenseUtilities expenseDan, Drawing CashVarious Payments

800150350

1, 300

Chart of Accounts

Cash Receivable – X

Studio Beauty Supplies Equipment Furniture and

Fixtures

Payable – Y Dan, Capital Dan, Drawing Service Income Rent Expense Telephone Expense Salary Expense Utility Expense

Transactions of Mr. Dan

Jan. 2. Dan invested cash of P 20,000 4. Bought Equipment, P12, 000.

Bought beauty supplies, P 1,000. Bought furniture and fixtures, P 5,000.

5. Paid rent for the month, P1, 000 7. Cash received from customers, P 1, 600

15. Billed X Studio, P 2, 400, for services rendered. 20. Paid telephone bill, 200. 22. Bought beauty supplies on credit from Y, P1,300. 24. Collected P1,500 from X. 26. Paid Y partially, P500. 31. Paid salaries, P800.

Paid light and water, P150 Took P350 for personal use.

*Carefulness is next to

exactness.*When is an entry good?When is it

not?