GENERAL JOURNAL

DATE Post
20XX DESCRIPTION Ref. Debit Credit
1 May 2 Cash 11 150,000.00 1
2 Mike, Capital 150,000.00 2
3 To record investment 3
4 4
5 2 Repair Equipment 14 60,000.00 5
6 Cash 11 40,000.00 6
7 Accounts Payable 21 20,000.00 7
8 To record purchase of equipment 8
9 9
10 7 Tools 13 12,000.00 10
11 Cash 11 12,000.00 11
12 To record purchase of tools 12
13 13
14 7 Rent Expense 4,000.00 14
15 Cash 11 4,000.00 15
16 To record payment for rent 16
17 17
18 8 Taxes & Licenses 4,000.00 18
19 Cash 11 4,000.00 19
20 To record payment for taxes/licenses 20
21 21
22 11 Cash 11 45,000.00 22
23 Service Income 41 45,000.00 23
24 To record income received 24
25 25
26 18 Accounts Receivable 12 20,000.00 26
27 Service Income 41 20,000.00 27
28 To record billed services 28
29 29
30 21 Truck 15 80,000.00 30
31 Mike, Capital 80,000.00 31
32 To record Mike's transfer of truck 32
33 33
34 25 Mike, Drawing 3,000.00 34
35 Cash 11 3,000.00 35
36 To record owner's drawing 36
37 37
38 31 Wages Expense 8,000.00 38
39 Cash 11 8,000.00 39
40 To record payment of salaries 40
41 41
42 31 Accounts Payable 21 20,000.00 42
43 Notes Payable 22 20,000.00 43
44 To record note issued 44
45 45
46 46
47 47
48 48
49 49
50 50
51 51
52 52
53 53
54 54
55 55
56 56
57 57
58 58
59 59
60 60
61 61
62 62
63 63
64 64
65 65
66 66
67 67
68 68
69 69
70 70
 GENERAL LEDGER

CASH 11 ACCOUNTS PAYABLE 21

Date PR DEBIT CREDIT BALANCE Date PR DEBIT CREDIT BALANCE
May 2 J-1 150,000 150,000 Aug 2 J-1 20,000 20,000
2 J-1 40,000 110,000 31 J-1 20,000 -
7 J-1 12,000 98,000 NOTES PAYABLE 22
7 J-1 4,000 94,000 Date PR DEBIT CREDIT BALANCE
8 J-1 4,000 90,000 Aug 31 J-1 20,000 20,000
11 J-1 45,000 135,000
25 J-1 3,000 132,000
31 J-1 8,000 124,000
MIKE, CAPITAL 31
Date PR DEBIT CREDIT BALANCE
Aug 2 J-1 150,000 150,000
21 J-1 80,000 230,000
ACCOUNTS RECEIVABLE 12 MIKE DRAWING 32
Date PR DEBIT CREDIT BALANCE Date PR DEBIT CREDIT BALANCE
Aug 18 J-1 20,000 20,000 Aug 25 J-1 3,000 3,000

SERVICE INCOME 41
TOOLS 13 Date PR DEBIT CREDIT BALANCE
Date PR DEBIT CREDIT BALANCE Aug 11 J-1 45,000 45,000
Aug 7 J-1 12,000 12,000 18 J-1 20,000 65,000
RENT EXPENSE 51
REPAIR EQUIPMENT 14 Date PR DEBIT CREDIT BALANCE
Date PR DEBIT CREDIT BALANCE Aug 7 J-1 4,000 4,000
Aug 2 J-1 60,000 60,000
WAGES EXPENSE 52
TRUCK 15 Date PR DEBIT CREDIT BALANCE
Date PR DEBIT CREDIT BALANCE Aug 31 J-1 8,000 8,000
Aug 21 J-1 80,000 80,000
TAXES & LICENSES 53
Date PR DEBIT CREDIT BALANCE
Aug 8 J-1 4,000 4,000
Reminders: Problem 4-2

1.) No indention, no spaces after each enrty = minus 5 in total score Mike opened a repair shop which he called Big M Repair Shop. During May
he completed the following transactions:
2.) Wrong Spelling = wrong
3.) No explanation = minus 5 in total score May
4.) Missing Post references = minus 5 in total score
5.) Missing double rules = minus 5
BIG M REPAIR SHOP
Trial Balance
MAY 31, 2019

Debit Credit
CASH 124,000
ACCOUNTS RECEIVABLE 20,000
TOOLS 12,000
REPAIR EQUIPMENT 60,000
TRUCK 80,000 temporary settlement of his liabi
ACCOUNTS PAYABLE -
Required: Record the above transactions in a two-column journal using the
NOTES PAYABLE 20,000 Receivable; Tools; Repair Equipment; Truck; Notes Payable; Accounts Paya
MIKE, CAPITAL 230,000 Service Income; Rent Expense; Wages Expense; Taxes and Licenses. Post to
ending May 31, 2019
MIKE DRAWING 3,000
SERVICE INCOME 65,000 Chart of Accounts:
RENT EXPENSE 4,000 11 - Cash
WAGES EXPENSE 8,000 12 - Accounts Receivable
TAXES & LICENSES 4,000 13 - Tools
TOTAL 315,000 315,000 14 - Repair Equipment
15 - Truck
air shop which he called Big M Repair Shop. During May 2019, his first month of operations,
ollowing transactions:

2 Mike invested P150,000 cash in an auto repair shop.

2 Bought necessary repair equipment from 3B Auto Supply for P60,000, p
P40,000 in cash and the balance to be paid within 30 days.
7 Purchased tools for cash, P12,000.
7 Paid the rent on the shop space, P4,000.
8 Paid taxes and licenses, P4,000.
11 Services rendered for cash, P45,000.
18 Services rendered to Jam, P20,000, on credit.
21 Mike transferred his truck for the exclusive use in the business P80,000.
25 Mike withdrew cash of P3,000 for his personal use.
31 Paid the wages of the shop helpers, P8,000.
31 Gave a promissory note to 3B Auto Supply in the amount of P20,000 as
temporary settlement of his liability.

the above transactions in a two-column journal using the following accounts: Cash; Accounts
Repair Equipment; Truck; Notes Payable; Accounts Payable; Mike, Capital; Mike, Drawing;
ent Expense; Wages Expense; Taxes and Licenses. Post to Ledger and Prepare Trial Balance
19

21 - Accounts Payable 51 - Rent Expense

22 - Notes Payable 52 - Wages Expense
31 - Mike, Capital 53 - Taxes and Licenses
32 - Mike, Drawing
41 - Service Income