Answer to Question #279294 in Accounting for Bianca

Question

Beatrice Luigi Gomez established a fashion designing service business in Cebu City on December 2021 which she

named Top 5 Best Designs. Below are the following completed transactions during the first year of business.

Dec. 1 Beatrice transferred cash from a personal account to an account to be used for the business, P243,000.

3 Beatrice invested in the business her personal computer equipment having a fair market value of P34,000.

4 Bought office equipment on account from Robinsons Cybergate, P13,740.

5 Paid rent covering 1 year amounting P70,000. (Use Asset Method)

6 Bought a used service vehicle car for P93,000, paying P45,000 down, with the balance due in thirty days.

9 Received invoice and paid 1-year insurance premium to Cacawa Fidelity company, P25,000. (Use Asse

Answer 1

Solution:

The journal entries are as below: