IT2P: Accounting Principles

Problem Set 1
Journalizing
Splongks Printing Services was established by Mr. Sef on January 1, 2014 with an initial capital of
P1,000,000.00. During the first two months of its operations, the business engaged in the following financial
transactions:
Date

Transaction

Jan 2

An amount of P36,000 was paid as advance rent for two months.

Jan 3

Paid P60,000 cash on the purchase of equipment costing P80,000. The remaining amount was
recognized as a one year note payable with interest rate of 9%.

Jan 4

Purchased office supplies costing P17,600 on account.

Jan 5

Mr. Sef invested his vehicle, worth P200,000, for the businesss use.

Jan 13

Provided services to its customers and received P28,500 in cash.

Jan 13

Paid the accounts payable on the office supplies purchased on January 4.

Jan 14

Paid wages to its employees for first two weeks of January, aggregating P19,100.

Jan 18

Provided P54,100 worth of services to its customers. They paid P32,900 and promised to pay the
remaining amount.

Jan 23

Received P15,300 from customers for the services provided on January 18.

Jan 25

Received P4,000 as an advance payment from customers.

Jan 26

Purchased office supplies costing P5,200 on account.

Jan 28

Paid wages to its employees for the third and fourth week of January: P19,100.

Jan 31

Mr. Sef withdrew P5,000 for personal use.

Jan 31

Received electricity bill of P2,470.

Jan 31

Received telephone bill of P1,494.

Jan 31

Miscellaneous expenses paid during the month totaled P3,470.

Feb 1

Paid for the premium of a one-year business insurance worth P20,000.

Feb 3

Paid telephone bill.

Feb 4

Paid electricity bill

Feb 8

Earned P21,225 from customers.

Feb
10
Feb
12
Feb
15
Feb
16
Feb
18
Feb
19
Feb
24
Feb
26
Feb
28

Received additional P100,000 from Mr. Sef.

Paid wages to its employees for first two weeks of February, aggregating P19,100.
Purchased additional equipment worth P61,500.
Paid the office supplies purchased on January 26.
Rendered P43,100-worth services to its customers on cash.
Provided services for the customers who paid on January 25.
Received and paid electricity bill of P3,712.
Received and paid telephone bill of P1,837.
Paid wages to its employees for the third and fourth weeks of February, aggregating P19,100.

Feb
28

Received P123 from the bank as interest.

1. Prepare the Journal entries of Splongks Printing Services for the months of January and February.