ANALYSIS OF BUSINESS TRANSACTIONS

Date Transactions
Jun 2 Cruz opened a repair shop business by investing cash of P200,000.
value received
value parted with
Received Increase in Asset, Debit, Cash, P200,000
Business Owner
Given up Increase in Equity, Credit , Cruz, Capital, P200,000 AWE

3 Paid P2,500 for monthly rent.

LCR
Received Increase in Expense, Debit, Rent Expense, P2,500
Business Lessor
Given up Decrease in Asset, Credit, Cash, P2,500 CRUZ REPAIR SHOP
CHART OF ACCOUNTS
4 Purchased equipment on account from AVENSON, P25,000.
ASSETS
Received Increase in Asset, Debit, Equipment, P25,000 101
Business AVENSON 102

Given up Increase in Liabilities, Credit, Accounts Payable - AVENSON, P25,000 103

104
7 Rendered repair services for cash, P7,000. 105
106
Received Increase in Assets, Debit, Cash, P7,000
Business Customers LIABILITIES
Given up Increase in Revenue, Credit, Repairs Revenue, P7,000 201
202

10 Purchased repair supplies on account from Aze Hardware, P2,000.

EQUITY
Received Increase in Asset, Debit, Supplies, P2,000 301
Business Aze Hardware 302
Increase in Liabilities, Credit, Accounts Payable - Aze Hardware,
Given up P2,000 303

12 Returned defective supplies, P500. REVENUE

Since the supplies is purchased on account, returns will decrease the account. 401

Received Decrease in Liabilities, Debit, Accounts Payable - Aze Hardware, P500

Business Aze Hardware EXPENSES
Given up Decrease in Assets, Credit, Supplies, P500 501
502
Hired an assistant for a monthly salary of P5,000. The assistant will
13 start reporting for duty on June 15, 2020. 503
504
 Received None since the employee has not yet started the service 505
Business Employee 506
Given up None since nothing is given to the employee on this date
signing bonus
Rendered repair services on account: Bartolome - P3,000; Stefano -
15 P5,000; and Mateo, P2,000.

Increase in Assets, Debit, Accounts Receivable - Bartolome, P3,000;

Accounts Receivable - Stefano, P5,000; and Accounts Receivable -
Received Mateo, P2,000.
Business Customers

Increase in Revenues, Credit, Repairs Revenue, P10,000 (which is the

Given up total of P3,000, P5,000 and P2,000)

Paid in full the account with Aze Hardware and paid P12,500 of the
18 AVENSON account. Aze HW
Jun-10

Decrease in Liabilities, Debit, Accounts Payable - Aze Hardware,

P1,500 (P2,000 purchase less returns of P500); Accounts Payable -
Received AVENSON, P12,500 Jun-12
Suppliers: Aze
Business Hardware &
AVENSON Payment
Decrease in Assets, Credit, Cash, P14,000 (total of P1,500 and
Given up P12,500)

Collected customers' account: Bartolome - P3,000; and Stefano -

22 P2,500.

Received Increase in Assets, Debit, Cash, P5,500 (total of P3,000 and P2,500)
Business Customers

Decrease in Assets, Credit, Accounts Receivable - Bartolome, P3,000;

Given up Accounts Receivable - Stefano, P2,500

28 Cruz withdrew cash for personal use, P3,000.

Received Increase in Drawing, Debit, Cruz, Drawing, P3,000 reduction in the ownership in
Business Owner reduction in equity
Given up Decrease in Assets, Cash, Credit, P3,000 increase in the withdrawal

30 Received and paid MERALCO bill, P2,800.

Received Increase in Expenses, Debit, Utilities Expense, P2,800

Business MERALCO
Given up Decrease in Assets, Credit, Cash, P2,800

30 Paid the assistant's salary, P2,500.

Received Increase in Expense, Debit, Salaries Expense, P2,500

Business Employee
Given up Decrease in Assets, Credit, Cash, P2,500
value received debit
value parted with credit

Increases Debit
Decreases Credit

Increases Credit
Decreases Debit

CRUZ REPAIR SHOP

CHART OF ACCOUNTS account titles must be consistent with those in
the chart of accounts

Cash

Accounts Receivable

Allowance for Bad Debts

Supplies Accounts Receivable 100,000.00
Equipment Less: Allowance for Bad Debts 5,000.00
Accumulated Depreciation Net Realizable Value 95,000.00

LIABILITIES
Accounts Payable Equipment 30,000.00
Utilities Payable Less: Accumulated Depreciation 6,000.00

Book Value or Carrying Amount 24,000.00

Cruz, Capital

Cruz, Drawing

Income and Expense Summary

Repairs Revenue

Rent Expense
Salaries Expense

Supplies Expense
Utilities Expense
 Bad Debts Expense
Depreciation Expense

signing bonus

auditing firms
cpa board topnotchers

student leaders

debit employee benefit expense

credit cash

Avenson
2,000 Jun-04 25000

-500

1,500 12500

full partial

reduction in the ownership in the business

reduction in equity
increase in the withdrawal
 General Journal Page 1
money columns
Date Particulars f Dr Cr
Jun 2 Cash 101 P 200,000
Cruz, Capital 301 P 200,000
Invested cash in the business.

3 Rent Expense 501 2,500

Cash 101 2,500
Paid rent for the month.

4 Equipment 105 25,000

Accounts Payable - AVENSON 201/ 25,000
Purchased equipment on account.

7 Cash 101 7,000

Repairs Revenue 401 7,000
Rendered services for cash.

10 Supplies 104 2,000

Accounts Payable - Aze Hardware 201/ 2,000
Purchased repair supplies on account.

12 Accounts Payable - Aze Hardware 201/ 500

Supplies 104 500
Returned defective supplies.

13 Hired an assistant for a P5,000 monthly salary.

15 Accounts Receivable - Bartolome 102/ 3,000

Accounts Receivable - Stefano 102/ 5,000
Accounts Receivable - Mateo 102/ 2,000
Repairs Revenue 401 10,000
Rendered services on account.

18 Accounts Payable - Aze Hardware 201/ 1,500

Accounts Payable - AVENSON 201/ 12,500
Cash 101 14,000
Paid suppliers on account.

General Journal Page 2

 Date Particulars f Dr Cr
Jun 22 Cash 101 P 5,500
Accounts Receivable - Bartolome 102/ P 3,000
Accounts Receivable - Stefano 102/ 2,500
Collected customers' accounts.

28 Cruz, Drawing 302 3,000

Cash 101 3,000
Withdrew cash for personal use.

30 Utilities Expense 504 2,800

Cash 101 2,800
Paid MERALCO bill.

Salaries Expense 502 2,500

Cash 101 2,500
Paid assistant's salary.

General Journal Page 3

Date Particulars f Dr Cr
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

f = folio
PR
Posting
Reference
1,275,873.50

1 2 7 5
Types of Journal Entries
1 Dr Simple Journal Entry
1 Cr

more than 1 Dr
1 Cr

1 Dr compound Journal Entry

more than 1 Cr combination of 2 or more transactions recorded
as one
more than 1 Dr
more than 1 Cr

no Dr
no Cr Memo or Memorandum Entry
explanation
1,275,873.50

50
8 7 3 comma x
decimal point x