Weddings “R’ Us

Elisa Diaz is a social entrepreneur from the South. She is into a lot of interesting causes. Her fine taste is preeminent such that she
is considered an authority in Planning weddings. Upon the advice and prodding of an esteemed colleague, Maria Concepcion
Manalo, Diaz decided to organize her wedding consultancy. Below are the transactions when she established her business on the
month of May 2014.

May 1. She invested P250,000 into her business called “Weddings “R” Us.”
May 1. Rented office space and paid two months’ rent in advance, P8,000.
May 2. Elisa Diaz issued a promissory note for P210,000 loan from Metrobank. This availment will be used for acquisition of
service vehicle. The note carries a 20% interest per annum. The arrangement with the bank is that both the interest and principal
are payable in full in one year.
May 2. Hired an assistant and an account executive each with P7,800 monthly salary; or each is to received P300 per day for a 26-
day work month. No entry at this point. They started work immediately.
May 4. Acquired service vehicle for P420,000.
May 4. Paid Prudential Guarantee and Assurance, Inc. P14,400 for one-year comprehensive insurance
coverage on the service vehicle.
May 5. Acquired office equipment from Fair and Square Emporium for P60,000; paying P15,000 in cash and the balance next
month. Note: A compound entry is needed for this transaction.
May 8. Purchased supplies on credit for P18,000 from San Jose Merchandising.
May 9. Paid San Jose Merchandising P10,000 of the amount owed.
May 10. Coordinated and finalized simple bridal arrangement for three couples and collected fees of P8,800 per couple. Service
include prospecting and selecting the church and reception location, couturier, caterer, car service, flower, souvenirs and invitations.
May 13. Paid salaries, P6,600. The entity pays salaries every two Saturdays.
May 15. The entity is earning additional revenues by referring consulting clients to friendly hotels, caterers, printers, and couturiers.
Received P 10,000 advance fees for three clients referred.
May 19. Coordinated and finalized elaborate bridal arrangement for three couples and billed fees of P12,000 per couple. Additional
services include documents preparations, consultations with a feng shui expert as to the ideal wedding date for prosperity and
harmony, provisions for limousine service and honeymoon trip.
May 25. Diaz withdrew 14,000 for personal expense.
May 27. Paid Salaries, P7,200.
May 30. Received the ICC-BayanTel telephone bill, P1,400.
May 30. Received P24,000 from two clients for service billed last May 19.
May 31. Settled the electricity bill of P3,000 for the month.

Required: Use the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Prepaid Insurance; Service Vehicle;
Office Equipment; Notes Payable; Accounts Payable; Salaries Payable; Utilities Payable; Interest Payable; Unearned Referral
Revenues; Diaz, Capital; Diaz, Withdrawals; Consulting Revenues; Referral Revenues; Salaries Expense; Supplies Expense; Rent
Expense; Insurance Expense; Miscellaneous Expense; Interest Expense.

Weddings “R’ Us

Elisa Diaz is a social entrepreneur from the South. She is into a lot of interesting causes. Her fine taste is preeminent such that she
is considered an authority in Planning weddings. Upon the advice and prodding of an esteemed colleague, Maria Concepcion
Manalo, Diaz decided to organize her wedding consultancy. Below are the transactions when she established her business on the
month of May 2014.

May 1. She invested P250,000 into her business called “Weddings “R” Us.”
May 1. Rented office space and paid two months’ rent in advance, P8,000.
May 2. Elisa Diaz issued a promissory note for P210,000 loan from Metrobank. This availment will be used for acquisition of
service vehicle. The note carries a 20% interest per annum. The arrangement with the bank is that both the interest and principal
are payable in full in one year.
May 2. Hired an assistant and an account executive each with P7,800 monthly salary; or each is to received P300 per day for a 26-
day work month. No entry at this point. They started work immediately.
May 4. Acquired service vehicle for P420,000.
May 4. Paid Prudential Guarantee and Assurance, Inc. P14,400 for one-year comprehensive insurance coverage on the service
vehicle.
May 5. Acquired office equipment from Fair and Square Emporium for P60,000; paying P15,000 in cash and the balance next
month. Note: A compound entry is needed for this transaction.
May 8. Purchased supplies on credit for P18,000 from San Jose Merchandising.
May 9. Paid San Jose Merchandising P10,000 of the amount owed.
May 10. Coordinated and finalized simple bridal arrangement for three couples and collected fees of P8,800 per couple. Service
include prospecting and selecting the church and reception location, couturier, caterer, car service, flower, souvenirs and invitations.
May 13. Paid salaries, P6,600. The entity pays salaries every two Saturdays.
May 15. The entity is earning additional revenues by referring consulting clients to friendly hotels, caterers, printers, and couturiers.
Received P 10,000 advance fees for three clients referred.
May 19. Coordinated and finalized elaborate bridal arrangement for three couples and billed fees of P12,000 per couple. Additional
services include documents preparations, consultations with a feng shui expert as to the ideal wedding date for prosperity and
harmony, provisions for limousine service and honeymoon trip.
May 25. Diaz withdrew 14,000 for personal expense.
May 27. Paid Salaries, P7,200.
May 30. Received the ICC-BayanTel telephone bill, P1,400.
May 30. Received P24,000 from two clients for service billed last May 19.
May 31. Settled the electricity bill of P3,000 for the month.

Required: Use the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Prepaid Insurance; Service Vehicle;
Office Equipment; Notes Payable; Accounts Payable; Salaries Payable; Utilities Payable; Interest Payable; Unearned Referral
Revenues; Diaz, Capital; Diaz, Withdrawals; Consulting Revenues; Referral Revenues; Salaries Expense; Supplies Expense; Rent
Expense; Insurance Expense; Miscellaneous Expense; Interest Expense.