Haydee Carpio opened a beach resort called Blue Lagoon in Nasugbu, Batangas by investing cash P100,000 and furniture P20,000 on April 1. She signed a contract of lease on the property for ten years promising to pay P25,000 monthly. The following are the additional transactions for April:
5 Paid cash for the purchase of advertising billboards, P15,000.
10 Paid P75,000 for the construction of 5 cottages, 10 huts and an office. Issued note payable for
P50,000 within 30 days. (Use the title Leasehold Improvement).
11 Total cash receipt for the week, P150,000.
18 Billed Fortune Company for use of resort, P28,000.
20 Paid P50,000 for the note.
25 Utility bills paid amounted to P18,000.
26 Fortune Company paid ist account in full.
27 Total cash receipts amounted to P122,500.
28 Paid for salaries of clerks and helpers, P82,000..
29 Paid for the monthly rental of the property plus advertising of P20,000.
1. Prepare a journal entry
2. T-account