Johnny Bee formed Queen's Beauty Parlor on June 1 and invested $120,000 cash. Over the first month of operations, the business purchased supplies, equipment, and furniture on credit and cash, paid rent and salaries, collected some cash from customers and paid down credit balances. By June 30, the business had $46,710 in assets, $21,500 in liabilities, and $144,210 in owner's equity.
Johnny Bee formed Queen's Beauty Parlor on June 1 and invested $120,000 cash. Over the first month of operations, the business purchased supplies, equipment, and furniture on credit and cash, paid rent and salaries, collected some cash from customers and paid down credit balances. By June 30, the business had $46,710 in assets, $21,500 in liabilities, and $144,210 in owner's equity.
Johnny Bee formed Queen's Beauty Parlor on June 1 and invested $120,000 cash. Over the first month of operations, the business purchased supplies, equipment, and furniture on credit and cash, paid rent and salaries, collected some cash from customers and paid down credit balances. By June 30, the business had $46,710 in assets, $21,500 in liabilities, and $144,210 in owner's equity.
Johnny Bee formed Queen's Beauty Parlor on June 1 and invested $120,000 cash. Over the first month of operations, the business purchased supplies, equipment, and furniture on credit and cash, paid rent and salaries, collected some cash from customers and paid down credit balances. By June 30, the business had $46,710 in assets, $21,500 in liabilities, and $144,210 in owner's equity.
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LAGUNA STATE POLYTECHNIC UNIVERSITY
LOS BAÑOS CAMPUS
1st SEMESTER A.Y. 2018-2019
Name: Q1 Score:
Section: Date: Professor Subject: Partnership & Corporation Acctg :
Queen’s Beauty Parlor was formed on June 1, of the current year by Johnny Bee. The transactions for the first month of operations are listed below.
June 1 Johnny invested P120,000 cash in his business.
1 Paid the first month’s rent on the shop, P4,500. 2 Purchased supplies for cash, P3,800. 4 Purchased equipment on account, P17,500. 6 Purchased furniture and fixtures for P24,400, giving a down payment of P4,400 and the remaining balance is on account. 8 Rendered services to customers received cash, P3,950. 10 Rendered services to customers on account, P8,220. 13 Paid salaries of beauticians, P8,900. 15 Paid one-half of the equipment purchased on June 4. 17 The owner withdrew P2,600 cash for his personal use. 19 Paid one-half of the note issued on June 6. 24 Paid miscellaneous expenses, P1,120. 25 Rendered services to customers receiving cash, P4,740. 30 Collected P4,110 from customers on account.
Instructions:
1. Record the transactions in the general journal that follows, and post to the ledger using the T-account and use the following account titles:
Assets Liabilities Owner’s Equity
11 Cash 21 Accounts payable 31 Johnny Bee, Capital 12 Accounts receivable 32 Johnny Bee, Withdrawal 13 Supplies 14 Equipment 15 Furniture and Fixtures
Income Expense 41 Service Revenue 51 Salaries Expense 52 Rent Expense 53 Utilities Expense 54 Miscellaneous Expense
