Problem:
FAST Computer Repair Shop started business in June of the current year and had the following transactions during the month as follows:
June 2-Mr. BB Que, the owner invests P100,000 cash in the business.
2-Paid taxes and licenses, P1,450.
3-Paid the current month’s rent, P4,000.
4-Purchased repair equipment, P35,000. Paid a down payment of P15,000 and the balance on account.
5-Purchased repair supplies for cash, P3,700.
6-Received cash from customers for repair services rendered to them, P25,000.
9-Rendered repair services on credit, P 18,000.
10-Purchased additional repair supplies on credit, P6,350.
11-Returned P1,250 worth of repair supplies purchased on June 10.
12-Received payment from customers for repairs completed, 20,000.
15-Received payment from customers on account, P10,000.
15-Paid employees’ salaries, P18,500.
20-Mr. Que, withdrew P7,000 cash from the business for his personal use.
25-Issud check in payment for the repair supplies purchased on account on June 10, less the return made on June 11.
31-Received electric bill for the month amounting to P8,790 to be paid next month.
31-Paid employees salaries, P18,500. The gross payroll amount to P20,500. The employees payroll deductions were: Withholding Tax, P1,200; SSS Contributions, P500; Philhealth Contributions, P300. Payroll deductions of the company are made every end of the month.
Required:
1. Prepare the journal entries to record the above transactions.
2. Post the entries from the journal to the ledger.
3. Prepare a trial balance for FAST Computer Repair Shop.
The accounts and their account number used by the company are:
Cash 101 BB Que, Capital 301
Accounts Receivable 102 BB Que, Drawing 302
Repair Supplies 103 Repair Fees 401
Repair Equipment 104 Salaries Expense 501
Accounts Payable 201 Rent Expense 502
Withholding Tax Payable 202 Utilities Expense 503
SSS Contributions Payable 203 Taxes Expense 504
PhilHealth Contributions Payable 204 Miscellaneous Expense 505