Kristo Ver P.

Tampos BISU – MC BSME

Problem 1

Bernard Lopez formed a corporation to provide concrete construction work. His jobs typically involve
building parking lots, drives, and foundations. Bernard provided the following information about
transactions occurring during the first month of operation. Evaluate the transactions and prepare
journal entries for this activity.

Jan. 2, 2020 Bernard Lopez invested ₱ 20,000.00 cash in the capital stock of the newly
formed corporation.

Jan. 4, 2020 Purchased equipment on account for ₱ 15,000.00

Jan. 12, 2020 Received ₱ 30,000.00 from customers for services rendered.

Jan. 15, 2020 Received a bill for construction supplies used in the amount of ₱ 4,000.00

Jan. 18, 2020 Provided ₱ 6,400.00 of services on account.

Jan. 20, 2020 Paid employees ₱ 4,600.00 for wages earned.

Jan. 22, 2020 Collected 60% of the amount due for the work provided on January 18.

Jan. 23, 2020 Paid 40% of the amount due on the equipment purchased on January 4.

Jan. 25, 2020 Purchased (and immediately used) construction supplies for cash in the amount
of ₱ 1,200.00.

Jan. 31, 2020 The company paid Bernard Lopez a ₱ 3,000.00 dividends.

GENERAL JOURNAL
DATE ACCOUNTS DEBIT CREDIT
Jan. 2, 2020 Cash ₱ 20,000.00
Bernard Lopez, Capital ₱ 20,000.00
Issued stock to Bernard Lopez for Cash

Jan. 4, 2020 Equipment ₱ 15,000.00

Accounts Payable ₱ 15,000.00
Purchased equipment on account

Jan. 12, 2020 Cash ₱ 30,000.00

Service Revenue ₱ 30,000.00
Provided services to customers for cash

Jan. 15, 2020 Supplies Expense ₱ 4,000.00

Accounts Payable ₱ 4,000.00
Received bill for cost of supplies

Jan. 18, 2020 Accounts Receivable ₱ 6,400.00

Service Revenue ₱ 6,400.00
Provided services to customers on account

Jan. 20, 2020 Wage Expense ₱ 4,600.00

Cash ₱ 4,600.00
Paid wages of employees

Jan. 22, 2020 Cash ₱ 3,840.00

Accounts Receivable ₱ 3,840.00
Collected 60% of the amount due from the
transaction of Jan. 18
Jan. 23, 2020 Accounts Payable ₱ 6,000.00
Cash ₱ 6,000.00
Paid 40% of the amount due for the
transaction of Jan. 4

Jan. 25, 2020 Supplies Expense ₱ 1,200.00

Cash ₱ 1,200.00
Paid for supplies used

Jan. 31, 2020 Dividends ₱ 3,000.00

Cash ₱ 3,000.00
Paid dividends to Bernard Lopez
Problem 2

June 2, 2019 Anabelle Reyes invested ₱ 50,000.00 cash in the capital stock of the newly
formed corporation.

June 3, 2019 Hired an administrative assistant, to be paid ₱ 6,000.00 per month. Leased
office space at the rate of ₱ 2,000.00 per month. Signed a contract with Bangalore to
deliver consulting services valued at ₱ 15,000.00.

June 8, 2019 Purchased (and immediately used) office supplies on account for ₱ 1,500.00

June 9, 2019 Received ₱ 5,000.00 from Bangalore for work performed to date.

June 15, 2019 Paid ₱ 2,400.00 for travel costs associated with consultation work.

June 16, 2019 Provided services on account to Amalga for ₱ 6,000.00.

June 17, 2019 Paid ₱ 3,000.00 to administrative assistant for salary.

June 23, 2019 Billed Wheel for ₱ 8,000.00 consulting engagement performed.

June 25, 2019 The company paid Anabelle Reyes a ₱ 2,000.00 dividends.

June 26, 2019 Collected 50% of the amount due for the billing on June 23.

June 27, 2019 Purchased computer furniture for ₱ 8,000.00, paying ₱2,000.00 down.

June 27, 2019 Paid ₱ 1,500.00 on the open account relating to the June 8 purchase.

June 28, 2019 Completed the Bangalore job and billed the remaining amount.

June 30, 2019 Paid ₱ 3,000.00 to administrative assistant for salary.

June 30, 2019 Paid rent for June ₱ 2,000.00

Pryor consulting uses the following accounts:

Cash

Accounts Receivable

Equipment

Accounts Payable

Capital Stock

Revenues

Salary Expense

Rent Expense

Travel Expense

Supplies Expense

Dividends

Instruction: Journalize the listed transactions.

GENERAL JOURNAL
 DATE ACCOUNTS DEBIT CREDIT
June 2, 2019 Cash ₱ 50,000.00
Capital Stock ₱ 50,000.00
Anabelle Reyes invested ₱ 50,000.00 cash
in the capital stock of the newly formed
corporation.

June 8, 2019 Supplies Expense ₱ 1,500.00

Accounts Payable ₱ 1,500.00
Purchased (and immediately used) office
supplies on account for ₱ 1,500.00.

June 9, 2019 Cash ₱ 5,000.00

Revenues ₱ 5,000.00
Received ₱ 5,000.00 from Bangalore for
work performed to date.

June 15, 2019 Travel Expense ₱ 2,400.00

Cash ₱ 2,400.00
Paid ₱ 2,400.00 for travel costs associated
with consultation work.

June 16, 2019 Accounts Receivable ₱ 6,000.00

Revenues ₱ 6,000.00
Provided services on account to Amalga for
₱ 6,000.00

June 17, 2019 Salary Expense ₱ 3,000.00

Cash ₱ 3,000.00
Paid ₱ 3,000.00 to administrative assistant
for salary

June 23, 2019 Accounts Receivable ₱ 8,000.00

Revenues ₱ 8,000.00
Billed Wheel for ₱ 8,000.00 consulting
engagement performed.

June 25, 2019 Dividends ₱ 2,000.00

Cash ₱ 2,000.00
The company paid Anabelle Reyes
₱ 2,000.00 dividend

June 26, 2019 Cash ₱ 4,000.00

Accounts Receivable ₱ 4,000.00
Collected 50% of the amount due for the
billing on June 23

June 27, 2019 Equipment ₱ 8,000.00

Cash ₱ 2,000.00
Accounts Payable ₱ 6,000.00
Purchased computer furniture for
₱ 8,000.00, paying ₱ 2,000.00 down.

June 27, 2019 Accounts Payable ₱ 1,500.00

Cash ₱ 1,500.00
Paid ₱ 1,500.00 on the open account
relating to the June 8 purchase.
 June 28, 2019 Accounts Receivable ₱ 10,000.00
Revenues ₱ 10,000.00
Completed the Bangalore job and billed the
remaining amount

June 30, 2019 Salary Expense ₱ 3,000.00

Cash ₱ 3,000.00
Paid ₱ 3,000.00 to administrative assistant
for salary.

June 30, 2019 Rent Expense ₱ 2,000.00

Cash ₱ 2,000.00
Paid rent for June, ₱ 2,000.00

Problem 3
Hagen Corporation provided the following information about transactions occurring during the first
month of operation. Evaluate the transactions and prepare journal entries for this activity.

Jan. 2, 2020 Collected ₱ 40,000.00 on an open account receivable.

Jan. 3, 2020 Purchased additional tract of land for ₱ 80,000.00 cash.

Jan. 5, 2020 Provided services on account to a customer for ₱ 60,000.00.

Jan. 7, 2020 Borrowed ₱ 48,000.00 on a term loan payable.

Jan. 11, 2020 Paid salaries of ₱ 12,000.00.

Jan. 12, 2020 Provided services to customers for cash ₱ 44,000.00.

Jan. 15, 2020 Purchased (and used) office supplies on account, ₱ 8,000.00.

Jan. 17, 2020 The Company paid shareholders a ₱ 10,000.00 dividends.

Jan. 20, 2020 Paid rent of ₱ 6,800.00.

Jan. 23, 2020 Paid salaries of ₱ 16,000.00

Jan. 24, 2020 Paid ₱ 64,000.00 on the open accounts payable.

Jan. 29, 2020 Collected ₱ 200,000.00 on accounts receivable.

Jan. 31, 2020 Repaid loans of ₱ 88,000.00.

Jan. 31, 2020 Paid interest on loans of ₱ 2,400.00.

GENERAL JOURNAL
DATE ACCOUNTS DEBIT CREDIT
Jan. 2, 2020 Cash ₱ 40,000.00
Accounts Receivable ₱ 40,000.00
Collected ₱ 40,000.00 on an open account
receivable

Jan. 3, 2020 Property Expense ₱ 80,000.00

Cash ₱ 80,000.00
Purchased additional tract of land for
₱ 80,000.00 cash

Jan. 5, 2020 Accounts Receivable ₱ 60,000.00

Service Revenues ₱ 60,000.00
Provided services on account to a customer
for ₱ 60,000.00

Jan. 7, 2020 Cash ₱ 48,000.00

Loan Payable ₱ 48,000.00
Borrowed ₱ 48,000.00 on a term loan
payable.

Jan. 11, 2020 Salary Expense ₱ 12,000.00

Cash ₱ 12,000.00
Paid salaries of ₱ 12,000.00

Jan. 12, 2020 Cash ₱ 3,000.00

Service Revenues ₱ 3,000.00
Provided services to customers for cash
₱ 44,000.00
Jan. 15, 2020 Supplies Expense ₱ 8,000.00
Accounts Payable ₱ 8,000.00
Purchased (and used) office supplies on
account, ₱ 8,000.00

Jan. 17, 2020 Dividends ₱ 10,000.00

Cash ₱ 10,000.00
The company paid shareholders a
₱ 10,000.00 dividend

Jan. 20, 2020 Rent Expense ₱ 6,800.00

Cash ₱ 6,800.00
Paid rent of ₱ 6,800.00

Jan. 23, 2020 Salary Expense ₱ 16,000.00

Cash ₱ 16,000.00
Paid salaries of ₱ 16,000.00

Jan. 24, 2020 Accounts Payable ₱ 64,000.00

Cash ₱ 64,000.00
Paid ₱ 64,000.00 on the open accounts
payable

Jan. 29, 2020 Cash ₱ 200,000.00

Accounts Receivable ₱ 200,000.00
Collected ₱ 200,000.00 on accounts
receivable

Jan. 31, 2020 Loans Receivable ₱ 88,000.00

Cash ₱ 88,000.00
Repaid loans of ₱ 88,000.00

Jan. 31, 2020 Interest Expense ₱ 2,400.00

Cash ₱ 2,400.00
Paid interest on loans ₱ 2,400.00