Instructor’s Notes:

1. Prepare journal entries (solutions have been prepared for your guide). Your part is to do the analysis. Each
student shall be called to present the solution with analysis. All team members should prepare. Once a
member cannot answer, the group will automatically lose its points. Other team member is not allowed to
answer in behalf of the member who is called. The total points acquired by the whole team shall be the
points for each member on this activity.
2. Using T-account, compute for the ending balance of the Balance Sheet accounts ONLY for each problem.

Problem 1:
On April 01, 2016 Belinda started business with Php 100,000 cash and other transactions for the month are:
#1 2. Purchase Furniture for Cash Php 7,000.
#2 8. Purchase Goods for Cash Php 40,000 and for Credit Php 10,000 from Junalou Retail Store.
#3 14. Sold Goods to Justin Php 12,000 on credit and Cash Sales Php 5,000.
#4 18. Owner withdrew of worth Php 2,000 for personal use.
#5 22. Paid Junalou Retail Store Php 5000.
#6 26. Received Php 10,000 from Justin
#7 30. Paid Salaries Expense Php 1,000

Problem 2:
On March 2017, Cleroul starts wholesaling business. Following transactions as follows:
#8 1. She started business with capital of Php 15,000 and Land worth Php 10,000.
#9 8. Bought goods from Jealbert and Friends Php 1,000 and by cash from Grichel Co. Php 2,000.
#10 13. Sold goods to Paisa Mae Php 1,500 by credit and by cash Php 5,000.
#11 17. Gave away charity of cash Php 50 and merchandising worth Php 30.
#12 21. Paid Jealbert and Friends cash Php 975; discount received Php 25.
#13 28. Received cash from Paisa Mae Php 1,450; allowed him discount of Php 50.

Problem 3:
Prepare general journal entries for the following transactions of a business called Pose for Perater in 2016:
#14 Aug. 1: AM Perater, the owner, invested Php 57,500 cash and Php 32,500 of photography equipment
in the business.
#15 04: Paid Php 3,000 cash for an insurance policy covering the next 24 months.
#16 07: Services are performed and clients are billed for Php 10,000.
#17 13: Purchased office supplies for Php 1,400. Cash paid Php 400 and remaining outstanding.
#18 20: Received Php 2,000 cash in photography fees earned previously.
#19 24: The client immediately pays Php 15,000 for services to be performed at a later date.
#20 29: The business acquires photography equipment. The purchase price is Php 100,000, pays Php
25,000 cash and signs a note for the balance.

 
Problem 4:
Penelus Marine is a boat repair yard. During August 2016, its transactions included the following:
#21 03. Loan taken from Vienn Bank Ltd. of Php 25,000. Php 20,000 withdrawn for business and remaining
in the bank a/c.
#22 06. Paid rent for the month of August Php 4,400 and accrued rent expenses was Php 600.
#23 12. At request of Ciecy Insurance, Inc, made repairs on boat of Elde Seaways. Sent bill for Php 5,620
for services rendered to Ciecy Insurance Inc.
#24 18. Made repairs to boat of Davenson Copper and collected in full the charge of Php 2,830.
#25 20. Placed Advertisement in The Xenia of Php 165, payment to be made within 30 days.
#26 25. Received a check for 5,620 from Ciecy Insurance Inc representing collection of the receivable of
August 12.
#27 30. Sent check to The Xenia in payment of the liability incurred on August 20.