Reference no: EM131801888
REQUIRED: JOURNALIZE THE TRANSACTION
Juan Cruz opened a shoe repair shop called "JC Shoes" with an initial capital composed of:
Cash 10,000
Supplies 5,000
Shoe machine 20,000
Transactions during the month are as follows:
1. Paid business tax to the City treasurer amounting to 3,000 and rent for the store space for the month amounting to 5,000.
2. Purchased cabinets and tablets from Balingit Furniture's for 15,000 on credit.
3. Received 3,000 cash for shoe repair services to various customers. Sent charge bill 20,000 for repairs rendered to Kiwi Shoes.
4. Bought supplies on credit from Tiongsan 2,000.
5. Sent charge bills for shoe repairs rendered on credit to:
Shoe Mart 30,000
Adidas 10,000
Nike 8,000
6. Paid the following expenses:
Salaries 12,000
Transportation 3,000
Telephone 1,500
7. Received cash as collections on credit from:
Kiwi Shoes 13,000
Shoe Mart 18,000
Adidas 6,000
Nike 5,000
8. Received 7,000 cash for services rendered to various customers. Paid Balingit Furniture's and Tiongsan 10,000 and 2,000 respectively.
9. Juan Cruz withdrew 9,000 cash for his personal use.
10. Paid 2,700 to repairman for repair service of the shoe machine.
11. Paid advertising for the month 1,800.
12. Hired a new shoe repair worker with 250 daily wage.