Reference no: EM132987746

Problem - After several months of planning, Jasmine Worthy started a haircutting business called Expressions. The following events occurred during its first month.

a. On August 1, Worthy invested P3,000 cash and P15,000 of equipment in Expressions.

b. On August 2, Expressions paid P600 cash for furniture for the shop.

c. On August 3, Expressions paid P500 cash to rent space in a strip mall for August.

d. On August 4, it purchased P1,200 of equipment on credit for the shop (using a long-term note payable).

e. On August 5, Expressions opened for business. Cash received from haircutting services in the first week and a half of business (ended August 15) was P825.

f. On August 15, it provided P100 of haircutting services on account.

g. On August 17, it received a P100 check for services previously rendered on account.

h. On August 17, it paid P125 to an assistant for hours worked during the grand opening.

i. Cash received from services provided during the second half of August was P930.

j. On August 31, it paid a P400 installment toward principal on the note payable entered into on August 4.

k. On August 31, Worthy withdrew P900 cash for personal use.

Required - Open the following ledger accounts in T-Account format (account numbers are in parentheses): Cash (101); Accounts Receivable (102); Furniture (161); Store Equipment (165); Note Payable (240); J. Worthy, Capital (301); J. Worthy, Withdrawals (302); Haircutting Services Revenue (403); Wages Expense (623); and Rent Expense (640).

1. Prepare general journal entries for the transactions.

2. Post the journal entries (from requirement 1) to the ledger accounts.

3. Prepare a trial balance as of August 31.