Activity 8

Journalizing
Joe Marky opened a plumbing service, Marky Plumbing. Operations began Apr. 1, 2020, and the
following transactions were completed during the month:

Apr. 1 Withdrew P67,000 from a personal savings account and used it to open a new
account in the name of Marky Plumbing.

Cash 67,000
Marky, Capital 67,000

2 Acquired a service vehicle costing P81,000. A payment of P17,500 in cash was

made and a note payable given for the P63,500 remainder.

Service Vehicle 81,000

Cash 17,500
Notes Payable 63,500

3 Paid rent for the month, P7,150.

Rent Expense 7,150

Cash 7,150

6 Acquired plumbing supplies on account P15,700.

Plumbing Supplies 15,700

Accounts Payable 15,700

7 Paid for three months of advertising and recorded Prepaid Advertising in the
amount of P6,000.

Prepaid Advertising 6,000

Cash 6,000

8 Cash in the amount of P18,350 was received for plumbing services rendered.

Cash 18,350
Plumbing Revenues 18,350

9 Acquired additional plumbing supplies for cash, P8,050.

Plumbing Supplies 8,050

Cash 8,050
11 Paid salaries, P11,600.

Salaries Expense 11,600

Cash 11,600

15 Rendered plumbing services and billed the customer, P42,200.

Accounts Receivable 42,200

Plumbing Revenues 42,200

16 Paid P5,700 of the amount owed from the transaction of Apr. 6.

Accounts Payable 5,700

Cash 5,700

19 Paid miscellaneous expenses, P4,300.

Miscellaneous Expense 4,300

Cash 4,300

20 Collected P21,000 from the customer on the Apr. 15 transaction.

Cash 21,000
Accounts Receivable 21,000

21 Withdrew P14,500 from the business.

Marky, Withdrawals 14,500

Cash 14,500

22 Paid salaries, P14,100.

Salaries Expense 14,100

Cash 14,100

24 Paid the first installment of the note payable, P3,850.

Notes Payable 3,850

Cash 3,850
 25 Paid telephone expense, P1,250.

Telephone Expense 1,250

Cash 1,250

27 Billed the Bel Company for plumbing services rendered, P14,150.

Accounts Receivable 14,150

Plumbing Revenues 14,150

Required:

Prepare the journal entries for the April transactions.

Use the following accounts: Cash; Accounts Receivable; Plumbing Supplies; Prepaid
Advertising; Service Vehicle; Notes Payable; Accounts Payable; Marky, Capital; Marky,
Withdrawals; Plumbing Revenues; Salaries Expense; Rent Expense; Telephone Expense; and
Miscellaneous Expense.

Cash
April 1 67,000 April 2 17,500
8 18,350 3 7,150
20 21,000 7 6,000
9 8,050
11 11,600
16 5,700
19 4,300
21 14,500
22 14,100
24 3,850
25 1,250
106,350 94,000
Bal 12,350

Accounts Receivable
April 15 42,200 April 20 21,000
27 14,150
56,350 21,000
Bal 35,350

Plumbing Supplies
April 6 15,700
9 8,050
 Bal 23,750

Prepaid Advertising
April 7 6,000
Bal 6,000

Service Vehicle
April 2 81,000
Bal 81,000

Accounts Payable
April 16 5,700 April 6 15,700
Bal 10,000

Notes Payable
April 24 3,850 April 2 63,500
Bal 59,650

Marky, Capital
April 1 67,000
Bal 67,000

Marky, Withdrawal
April 21 14,500
Bal 14,500
 Plumbing Revenues
April 8 18,350
15 42,200
27 14,150
Bal 74,700

Rent Expense
April 3 7,150
Bal 7,150

Salaries Expense
April 11 11,600
22 14,100
Bal 25,700

Miscellaneous Expense
April 19 4,300
Bal 4,300

Telephone Expense
April 25 1,250
Bal 1,250

Marky Plumbing
Trial Balance
April 30, 2020
 Debit Credit
Cash 12,350
Accounts Receivable 35,350
Plumbing Supplies 23,750
Prepaid Advertising 6,000
Service Vehicle 81,000
Notes Payable 59,650
Accounts Payable 10,000
Marky, Capital 67,000
Marky, Withdrawals 14,500
Plumbing Revenues 74,700
Salaries Expense 25,700
Rent Expense 7,150
Telephone Expense 1,250
Miscellaneous Expense 4,300
211,350 211,350