1. CHART OF ACCOUNTS
Cash Repair Income
Receivable – A Rent Expense
Trading Salary Expense
Furniture Supplies Expense
Payable – X Telephone Expense
Co, Capital Utilities Expense

2. Journal Entries
Cash
Jan. 2 Dan, Capital P 20,000
Initial Investment P 20,000
Equipment 12, 000
Furniture and Fixtures 5,000
4 Beauty Supplies 1,000
Cash 18, 000
Purchase of Beauty Shop
Rent Expense 1, 000
5 Cash 1, 000
Month’s Rent
Cash 1, 600
7 Service income 1, 600
Cash income.
Receivable – X Studio 2, 400
15 Service Income 2, 400

3. Journal Entries Continuation
Telephone Expense 210
Jan
20 Cash 210
.
Telephone bill paid.
Beauty Supplies 1, 300
22 Payable – Y 1, 300
Supplies on account.
Cash 1, 500
24 Receivable – X Studio 1, 500
Partial Collection.
Payable – Y 500
26 Cash 500
Partial payment.
Salary Expense 800
Utilities expense 150
31 Dan, Drawing 350
Cash

4. Chart of Accounts
 Cash  Payable – Y
 Receivable – X Studio  Dan, Capital
 Beauty Supplies  Dan, Drawing
 Equipment  Service Income
 Furniture and Fixtures  Rent Expense
 Telephone Expense
 Salary Expense
 Utility Expense

5. Transactions of Mr. Dan
Jan. 2. Dan invested cash of P 20,000
4. Bought Equipment, P12, 000.
Bought beauty supplies, P 1,000.
Bought furniture and fixtures, P 5,000.
5. Paid rent for the month, P1, 000
7. Cash received from customers, P 1, 600
15. Billed X Studio, P 2, 400, for services rendered.
20. Paid telephone bill, 200.
22. Bought beauty supplies on credit from Y, P1,300.
24. Collected P1,500 from X.
26. Paid Y partially, P500.
31. Paid salaries, P800.
Paid light and water, P150
Took P350 for personal use.

6. *Carefulness is
next to
exactness.
*When is an
entry good?