A Instruction: Prepare a simple journal entry with these following transactions. Write your answers in any clean sheet

Question

A Instruction: Prepare a simple journal entry with these following transactions. Write your answers in any clean sheet of paper. 1. On March 1, 2010, Mr. Ruel Santos opens a current account with Allied Banking Corporation amounting to P 700,000 to start with his laundry shop business under the trade name Gensan Laundry Services. On March 3, 2010 he purchased laundry supplies for cash, P40,000 from Gaisano Mall. Activity # 3-B 1. For each of the following accounts indicate the effects of (a) a debit and (b) a credit on the accounts and (c) the normal balance of the account. Accounts Payable. • Advertising Expense. Service Revenue. • Accounts Receivable. • A. J. Ritter, Capital. A. J. Ritter, Drawing. 2. Transactions for the Hank Norris Company for the month of June are presented below. Identify the accounts to be debited and credited for each transaction. June 1 Hank Norris invests P5,000 cash in a small welding business of which he is the sole proprietor 2 Purchases equipment on

Help In Homework · Accepted Answer

Activity # 3-A) Journal Entries: Date Acc Titles Debit P Credit P 1-Mar-10 Cash 700000 Capital contributed 700000 (capital brought in the business) 3-Mar-10 Laundry Supplies 40000 Cash 40000 (supplies purchased of cash) Activity # 3-B) 1) Effect: a) Debit on account b) Credit on account c) Normal Balance of A/c Accounts payable reduce raise Credit Advertising Expense raise reduce Debit Service Revenue reduce raise Credit Accounts Receivable raise reduce Debit A.J.Ritter, Capital reduce raise Credit A.J.Ritter, Drawing raise reduce Debit 2) Account to be debited & credited: Transaction date Debited Credited Both with amount P 1-Jun Cash Capital contributed 5000 2-Jun Equipment Accounts Payable 900 3-Jun Rent Cash 800 12-Jun Accounts Receivable Welding Revenue 300

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A Instruction: Prepare a simple journal entry with these following transactions

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Archived Solution

Activity # 3-A)

Journal Entries:

Date	Acc Titles	Debit P	Credit P
1-Mar-10	Cash	700000
	Capital contributed		700000
	(capital brought in the business)

3-Mar-10	Laundry Supplies	40000
	Cash		40000
	(supplies purchased of cash)



Activity # 3-B)

1)

Effect:	a) Debit on account	b) Credit on account	c) Normal Balance of A/c
Accounts payable	reduce	raise	Credit
Advertising Expense	raise	reduce	Debit
Service Revenue	reduce	raise	Credit
Accounts Receivable	raise	reduce	Debit
A.J.Ritter, Capital	reduce	raise	Credit
A.J.Ritter, Drawing	raise	reduce	Debit


2) Account to be debited & credited:

Transaction date	Debited	Credited	Both with amount P
1-Jun	Cash	Capital contributed	5000
2-Jun	Equipment	Accounts Payable	900
3-Jun	Rent	Cash	800
12-Jun	Accounts Receivable	Welding Revenue	300