1. Mr. Ji Min invested the following in his business to be known as JM Photocopying Center: Cash, Ph 30,000; and Photocopying Equipment, Ph 30,000 (with sales invoice - No Salvage Value, 5 years useful life). In addition, his Accounts Payable
orenDO wIbe assumed ov ine ousiness
2. Photoconving Center paid for business permits and licenses amounting to Pho
2,000 (with official receipt)
3. The business received a 60-day, 12% note with a principal amount of Php 5,500
trom Andres Cruz
4. Received Php 3,000 cash from a client for a photocopying service expected to be completed on August 05, 2021.
5. Issued a 30-day. 12% note with a principal amount of Php 5,000 for the purchase
of office tables. The salvage value is Pho 500. and the useful life of the office tables is 5 vears.
6. Hired an additional employee with a weekly rate of Php 1,000. There are 5 days work from Monday to Friday, and that the payday for this employee is every Monday which fall on August 03
7. IM Photocopying Center paid rent for two months amounting to Php 10,000 (with statement of account)
pa help po asap
orenDO wIbe assumed ov ine ousiness
2. Photoconving Center paid for business permits and licenses amounting to Pho
2,000 (with official receipt)
3. The business received a 60-day, 12% note with a principal amount of Php 5,500
trom Andres Cruz
4. Received Php 3,000 cash from a client for a photocopying service expected to be completed on August 05, 2021.
5. Issued a 30-day. 12% note with a principal amount of Php 5,000 for the purchase
of office tables. The salvage value is Pho 500. and the useful life of the office tables is 5 vears.
6. Hired an additional employee with a weekly rate of Php 1,000. There are 5 days work from Monday to Friday, and that the payday for this employee is every Monday which fall on August 03
7. IM Photocopying Center paid rent for two months amounting to Php 10,000 (with statement of account)
pa help po asap
Answers & Comments
Verified answer
ANSWERS:
1. Cash investment: Php 30,000
Photocopying Equipment investment: Php 30,000
2. Business permits and licenses payment: Php 2,000
3. Note received from Andres Cruz: 60-day note, principal amount of Php 5,500, 12% interest
4. Cash received from client for photocopying service: Php 3,000
5. Note issued for the purchase of office tables: 30-day note, principal amount of Php 5,000, 12% interest, salvage value of Php 500, 5-year useful life
6. Additional employee hired: Weekly rate of Php 1,000, working 5 days a week (Monday to Friday), payday on August 03
7. Rent payment for two months: Php 10,000
EXPLANATION:
Mr. Ji Min invested a total of Php 60,000 in his business, JM Photocopying Center, with Php 30,000 in cash and Php 30,000 worth of photocopying equipment. The equipment has a useful life of 5 years and no salvage value.
The Photoconving Center paid Php 2,000 for business permits and licenses, which was supported by an official receipt.
The business received a 60-day note from Andres Cruz, amounting to Php 5,500, with an interest rate of 12%.
A client paid Php 3,000 in cash for a photocopying service that is expected to be completed on August 05, 2021.
The business issued a 30-day note, amounting to Php 5,000, with an interest rate of 12% to purchase office tables. The office tables have a salvage value of Php 500 and a useful life of 5 years.
The business hired an additional employee with a weekly rate of Php 1,000. The employee works 5 days a week from Monday to Friday, and the payday falls on August 03.
JM Photocopying Center paid rent for two months, totaling Php 10,000, which was supported by a statement of account.
Office Furniture: Represents the cost of the office tables purchased for the business. This account will be depreciated over their useful life.
Accumulated Depreciation: Represents the accumulated depreciation of the photocopying equipment and office tables.
Rent Expense: Represents the payment of rent for two months, totaling Php 10,000.