Journalizing, Posting, Trial Balance PDF

Preview

Summary

P1 The transactions below are those of EVEREST Services,an aircon-repair business. 2021 March 4 Invested P100,000 cash for the business. 5 Bought various tools and equipment, P25,000. 6 Parts and supplies amounting to P10,200 were bought on account. 9 Paid P1,000 for office supplies. 10 Purchased pa...

Description

The transactions below are those of EVEREST Services, an aircon-repair business.

P1 2021 March 4

Invested P100,000 cash for the business.

5

Bought various tools and equipment, P25,000.

6

Parts and supplies amounting to P10,200 were bought on account.

9

Paid P1,000 for office supplies.

10

Purchased parts and supplies for cash, P7,000.

12

Rendered services for cash, P18,000.

13

Made partial payment of purchases made on May 6, P2,000.

15

Paid salaries, P8,000.

18

Rendered services to various customers on account, P23,000.

24

Collected from customers, P19, 400.

27

Bought parts and supplies on account, P9,000.

30

Paid salaries, P9,600.

REQUIRED: a. Prepare a chart of accounts. b. Journalize the transactions. c. Post to ledger accounts. d. Prepare a trial balance.

P2

Mr. Rolando Dominguez opened his RD Power Promotions Agency on January 1, 2021. His records showed the following ledger balances on December 31, 2021.

Debit Accounts Payable Accounts Receivable Cash Advertising Fees Earned Advertising Supplies Used Electricity Expense Gas & Water Expense Miscellaneous Expense Rent Expense Salary Expense Telephone Expense Office Equipment

P 2,600 2,700 34,40 0 400 800 200 400 3,680 10,56 0 240 20,70 0

Dominguez, Capital Dominguez, Personal Notes Payable Totals

Credi t P 9,250

10,00 0 1,450 P43,3 30

1,660 P55,7 10

The following errors were discovered: a. Collected and recorded an account of a customer for P500 but posted to the Accounts Receivable ledger for P5,000. b. A note payable for medical equipment bought for P2,500 was posted by the accountant to the accounts payable account. c. Telephone expense recorded at P500 was not posted to the ledger.

d. A debit to Dominguez, Personal for P1,750 was debited to the capital account. e. Advertising Fees Earned of P500 was posted twice. f.

Footing for cash on the debit side was understated by P450.

g. Accounts Payable paid amounting to P4,065 was posted on the credit side. h. Advertising Supplies used was copied in the trial balance on the credit side. REQUIRED: Prepare a corrected trial balance. P3 The accountant of 26K Talent Agency, a modeling agency, has prepared a trial balance for December 31, 2021. She is having problems because the trial balance is out of balance: Debit Cash Accounts receivable Supplies unused Prepaid insurance Equipment Notes payable Accounts payable Vic Mateo, capital Vic Mateo, drawing Talent fees Salary expenses Rent expense Advertising Utilities Transportation

Credit

P 43,000 18,400 1,084 3,000 28,786 P 14,000 5,650 31,500 2,000 145,280 46,500 6,000 12,100 5,920 8,40 0 P175,19 0

P196,43 0

Mr. Vic Mateo, proprietor, has asked you to verify the amounts in the trial balance and help the accountant prepare a corrected trial balance. The following errors were noted: a. The cash balance was understated by P2,000. b. A debit of P5,000 was not posted to Notes Payable. c. A debit for utility expense for P1,500 was posted as P1,000. d. Salary expense of P3,000 was posted to transportation expense. e. A debit of P500 for the drawing account of Mateo was posted to the credit side of Vic Mateo, capital. f.

Interest Expense was overlooked in the ledger, P740.

g. A debit entry for accounts receivable was posted to the credit side, P6,000. REQUIRED: Prepare a corrected trial balance. P4 The following transactions relate to Mommy’s Delivery Service, a business owned and operated by Margaret “Mommy” Lee: 2021 Feb 1 Invested P1,400,000 in the business. 3 Various furniture and fixtures costing P30,000 were purchased for cash. 4 Purchased 2 units of second-hand vans from Recon Incorporated at P80,000 each. 5 Bought office supplies for cash, P3,000. 6 Bought computer equipment, P40,000. 7 Paid the insurance premium on the vans, P10,000. 8 Purchased supplies on account from GHI Company, P5,000, payable February 23. 9 Paid P12,000 on office improvements and repairs. 10 Received P25,000 from customers. 11 Rendered delivery services to XYZ Corp. for P12,000,

14 20 23 24 27 28

due on February 20. Paid half-month salaries of employees, P18,000. Collected in full the amount billed to XYZ Corp. last February 11. Paid GHI Company for the purchases made on February 8. Received cash for delivery services rendered to various customers, P46,000. Paid employees’ salaries for the second half of the month, P15,000. Paid the monthly rent, P8,000, and utility bills, P6,000.

REQUIRED: a. Journalize the transactions and post to T-accounts. b. Prepare a trial balance as of month-end.

Reference: Fundamentals of Accounting Volume 1 by Beticon, J., Hinayon, M., and Ireneo, S....