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The April 2015 transactions of Budget Driving Institute owned and managed by Crispin Rosales are listed below:

2 - Rosales invested P250,000 cash and P15,000 furniture and fixtures

4 - Two second hand cars were purchased and a 50% down payment of P150,000 was made. Issued a promissory note for the balance

5 - Bought office equipment for cash, P12,000

6 - Two student drivers filled up an application form stating, among others, that they were willing to pay P2,000 each for a one-week lesson

7 - Paid P2,000 for gas and oil

8 - Paid P10,000 for an advertisement that was posted along the highway to promote the business

11 - The two students drivers paid in full

14 - Another two students drivers were billed for P4,000 but only one paid in cash

15 - Salaries were paid for the first half of April amounting to P4,500

19 - Ms. Rosales made a cash withdrawal of P1,500

20 - Driving Fees of P7,000 were billed to various clients but only 50% was collected

26 - Lessor (owner of the building) sent a bill for office rent due P7,500

27 - Utility bills paid in cash, P4,500

30 - Salaries were paid for the second half of April



Required:

Record the above transactions in a two-column general journal.

Use the following account titles: Cash, Accounts Receivable, Furniture & Fixtures, Office Equipment, Cars, Accounts Payable, Rent Payable, Notes Payable, Rosales Capital, Rosales Drawings, Driving Fees Revenue, Advertising Expense, Gas and Oil Expense, Salaries Expense, Rent Expense, Utilities Expense

Open the general ledger using 3 columns, make postings and prepare the following :

-Unadjusted and Adjusted Trial Balance as of April 30, 2015

-Financial Statements (Income Statements, Balance Sheet and Statement of Cash Flows)

-Closing entries



Additional informations:

Allowance for doubtful accounts should be set-up at 10% of Revenues

Furniture and Fixture acquired with an estimated useful life of 10 years with no scrap value

Cars estimated useful life is 5yrs with No scrap value

Unexpired advertising P8,750.00

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