Exercises-Journalizing.Posting, Trial Balance PDF

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This is an exercises containing an overview of the accounting concepts and principles....

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Journalizing, Posting and Trial Balance Problem 1 Journalize the following transactions of M. Union Consultancy using the Chart of Accounts given below: Cash Accounts Receivable Notes Receivable Office Supplies Land Building Office Furn & Fixtures Office Equipment Accounts Payable Mortgage Payable

101 102 103 104 105 106 107 108 201 202

Mr. M. Union, Capital Mr. M. Union, Drawing Professional Income Salaries Expense Rent Expense Telephone & Light Expense Repair Expense Miscellaneous Expense

301 302 401 501 502 503 504 505

July 2

Michael Union invested P900,000 cash, and land and building worth P5,000,000 into his consultancy business. The land has a fair market value of P3,000,000 and is mortgaged for P 800,000.

3

Paid business permit and licenses P4,500.

4

Purchased office furniture worth P36,000 on account from Slim Furniture.

5

Paid rent for the month, P15,000.

7

Billed customers for services rendered P25,000.

8

Purchased office supplies for cash P4,000.

9

Purchased a computer for P 40,000, paying 50% down.

10

Received cash for services rendered, P7,100.

11

Received P15,000 from customers on account.

14

Paid semi- monthly salaries of employees, P18,200.

15

Billed a customer for services rendered in the amount of P60,000 as follows: cash payment of P12,000; balance payable on August 15, 2020.

18

The owner withdrew P20,000 for personal use.

19

Paid telephone and light P6,200.

23

Paid P25,000 as monthly amortization on the mortgage.

24

Paid Slim Furniture in full.

28

Received P5,000 from customer on account.

30

Paid salaries for the second half of January, P16,000.

REQUIRED: Prepare journal entries to record the above transactions.

Problem 2

A Trial Balance had been prepared for MARBLE COMPUTER SERVICE Co. as of August 31, 2020 (see below): Debit

Cash Accounts receivable Notes receivable Office supplies Prepaid insurance Computer equipment Office furniture & equipment Accounts payable Mr. Marble, capital Mr. Marble, drawing Service income Salaries expense Rent expense Taxes & licenses Advertising expense Utilities expense

Credit

? 184,000 300,000 15,600 26,400 120,500 460,000 101,900 1,200,000 40,000 340,000 30,000 43,000 8,600 12,000 9,400

Transactions for the month of Sept. are given as follows: Sept. 3

Purchased a new computer worth P50,000 paying 30% down and the balance payable in two equal monthly installments.

6

Cash collected from customers amounted to P 62,000 for services rendered.

8

Bought supplies worth P12,000 in cash.

9

Billed a customer for graphic design, P32,000.

15

Paid the following:

Salaries and wages Utilities expense

P17,200 P9,400.

22

Sold a worn-out computer unit (original cost, P30,000) for P20,000.

23

Cash received from customers for services rendered totaled P38,000.

25

Billed a customer P24,000 receiving 50% cash.

29

Paid monthly salaries of employees, P20,000.

30

Mr. Marble withdrew P12,000 for personal use.

REQUIRED: a. Open T-accounts showing the beginning balances. b. Journalize the transactions and post to the ledger accounts. c. Prepare a Trial Balance as of September 30, 2020....