CHAPTER 5 (Accounting For Service)

CHAPTER 5
EXERCISES
1.
ITEMS ITEMS
1. Cash Debit 6. Customers’ Accounts Debit
2. Suppliers’ Accounts Credit 7. Bank Loan Credit
3. Rent Expense Debit 8. Robles, Drawings Debit
4. Robles, Capital Credit 9. Deposit for Rent Debit
5.LaboratoryFees Revenue Credit 10. Advances from Clients Credit
2. A. 1) debit entries only 2) credit entries only 3) both debit and credit entries
a) Accounts Receivable 3 i) Office Supplies 3
b) Accounts Payable 3 j) Supplies Expense 1
c) Salary Expense 1 k) Rent Income 2
d) Taxes Due the Govt 3 l) Rent Deposit 3
e) Diva, Capital 2 m) Building 3
f) Advances fr Customers 3 n) Commission Earned 2
g) Diva, Drawing 1 o) Depreciation expense 3
B. Normal balance 1) debit 2) credit

a) Accounts Receivable 1 i) Office Supplies 1
b) Accounts Payable 2 j) Supplies Expense 1
c) Salary Expense 1 k) Rent Income 2
d) Taxes Due the Govt 2 l) Rent Deposit 1
e) Diva, Capital 2 m) Building 1
f) Advances fr Customers 2 n) Commission Earned 2
g) Diva, Drawing 1 o) Depreciation expense 1
3.
Cash 101 Garcia, Capital 501
1/2 100,000 1/3 16,000 1/2 100,000
1/11 11,250 1/5 25,000
1/20 10,000 1/25 12,500
1/28 5,000
Accounts Receivable 102 Garcia, Drawings 502

1/11 11,250 1/20 10,000 1/28 5,000
Office Supplies 103 Service Income 601

1/16 7,000 1/30 5,000 1/11 22,500
Office Equipment 201 Advertising 701

1/5 50,000 1/3 6,000
Accounts Payable 301 Rent 702

1/16 7,000 1/3 10,000
Utilities Payable 302 Supplies Expense 703

1/31 5,000 1/30 5,000
Notes Payable 401 tilities Expenses 704

1/25 12,500 1/5 25,000 1/301 5,000
Leo Garcia, Landscaper

Trial Balance
January 31, 2018
Cash P 62,750
Accounts Receivable 1,250
Office Suppliers 2,000
Equipment 50.000
Accounts Payable P 7,000
Utilities Payable 5,000
Notes Payable 12,500
Garcia, Capital 100,000
Garcia , Personal 5,000
Service Income 22.500
Advertising 6,000
Rent 10,000
Supplies Expense 5,000
Utilities Expense 5,000
Totals P147,000 P147,000
4. June 1 official receipt

3 purchase invoice, cash voucher
5 purchase invoice, cash voucher
10 purchase invoice
12 service invoice/official receipt
15 cash voucher
20 service invoice
22 cash voucher
23 official receipt
25 cash voucher
Cash Accounts Payable

6 6/1 300,000 6/3 150,000 6/15 5,500 6/3 150,000
6 /12 25,000 6/5 3.750 6/10 27,500
6 6/23 7,000 6/15 5,500
6/22 15,000
156,750 6/25 1,000 172,000
Accounts Receivable Mac, Capital

66/20 17,000 6/23 7,000 6/1 300,000
10,000
Supplies Mac, Drawings

6/5 3,750 6/25 1,000
Office Equipment Delivery Fees Earned

6/10 27,500 6/12 25,000
6/20 17,000
42,000
Delivery Van Rent Expense

6/3 300,000 6/22 15,000
Speed Delivery Service

Trial Balance
June 30, 2018
Cash 156,750
Office Suppliers 3,750
Equipment 27,500
Delivery Van 300.000
Accounts Payable 172,000
Mac, Capital 300,000
Mac , Personal 1,000
Delivery Fees Earned 42,000
Rent 15,000
Totals 514,000 514,000
5.
Apr. 1 Cash 50,000
Lee, Capital 50,000
4 Supplies 1,900
7 Accounts Receivable 2,900
Service Revenue 2,900
12 Cash 6,000
Service Income 6,000
15 Salaries 5,000
Cash 5,000
25 Accounts Payable 1,000
Cash 1,000
29 Cash 2,900
30 Cash 2,500
Advances from Clients 5,000
30 Supplies Expense 500
Supplies 500
Supplies used up.
6.
Oct. 1 Asset increase debit cash P200,000
Owner’s Equity increase credit Leynes, Capital P200,000
2 Asset increase debit Furniture P30,000
Liabilities increase credit Accounts Payable P30,000
8 Asset increase debit Equipment P30,000
Liability increase credit Accounts Payable P15,000
Assets decrease credit Cash P15,000
12 Asset increase debit Cash P100,000
Liability increase credit Notes Payable P100,000
15 Owner’s Equity decrease debit Salaries P80,000
Assets decrease credit Cash P80,000
18 Owner’s Equity decrease debit Advertising P5,000
Liability increase credit Accounts Payable P5,000
20 Asset increase debit cash P30,000
Owner’s Equity increase credit Service Fee P30,000
21 Liabilities decrease debit Accounts Payable P15,000
Asset decrease credit Cash P15,000
24 Asset increase debit Accounts Receivable P50,000
Owner’s Equity increase Credit service Fee P50,000
25 Asset increase debit cash P25,000
Asset increase debit Accounts Receivable P25,000
Owner’s Equity increase credit Service Fee P50,000
26 Owner’s Equity decrease debit Utilities P17,500
Asset decrease credit Cash P17,500
30 Asset increase debit Cash P12,500
Asset decrease credit Accounts Receivable P12,500
7.
Date Particulars F Debit Credit
Apr 5 Cash 11 P200,000
Timothy, Capital 31 P200,000
6 Rent Expense 53 8,000

Cash 11 8,000
7 Equipment 16 55,000
Accounts Payable 22 55,000
8 Truck 18 180,000
Bank Loan Payable 21 100,000
Cash 11 80,000
10 Supplies 13 11,315
Cash 11 11,315
12 Cash 11 57,500
Service Fees 41 57,500
Supplies Expense 55 8,250

Supplies 13 8,250
20 Supplies 13 15,000
Cash 11 15,000
23 Accounts Receivable 12 14,950
Service Fees 41 14,950

Supplies 13 3,500
24 Repairs Expense 54 4,500

Cash 11 4,500
25 Utilities Expense 59 1,750

Cash 11 1,750
26 Bank Loan Payable 21 20,000

Cash 11 20,000
27 Cash 11 10,000
Accounts Receivable 12 10,000
28 Salary Expense 51 5,000

Cash 11 5,000
29 Accounts Payable 22 5,000

Cash 11 5,000
30 Timothy, Drawing 32 3,500

Cash 11 3,500
Cash Acct No 11
Date Explanation F Debit Credit Balance
Apr Debit Credit
5 investment GJ 1 200,00 200,000
0
8 Payment for rent GJ 1 8,000 192,000
8 Payment for used car GJ 1 80,000 112,000
10 Payment for supplies GJ 1 11,315 100,685
12 Cash collected from Laura GJ 1 57,500 158,185
24 Payment for car repair GJ 2 4,500 153,685
25 Payment for utility expense GJ 2 1,750 151,935
26 Payment for bank loan GJ 2 20,000 131,935
27 Cash collected from Ferrer GJ 2 10,000 141,935
28 Payment for salary GJ 2 5,000 136,935
29 Payment for Delta account GJ 2 5,000 131,935
30 Cash drawing by Timothy GJ 2 3,500 128,435
Accounts Receivable Acct No 12

Apr Debit Credit
23 Service on account to Ferrer GJ 1 14,950 14,950
27 Collected from Ferrer GJ 2 10,000 4,950
Supplies Acct No 13
Apr Debit Credit
10 Purchased on credit GJ 1 11,315 11,315
12 Supplies used up GJ 1 8,250 3,065
20 Purchased for cash GJ 1 15,000 18,065
23 Supplies used up GJ 1 3,500 14,565
Equipment Acct No 16
Apr Debit Credit
07 Purchased an equipment GJ 1 55,000 55,000
Truck Acct No 18
Apr Debit Credit
108 Purchased a used car GJ 1 180,000 180,000
Loan Payable Acct No 21

Apr Debit Credit
08 Bank loan GJ 1 100,000 100,000
26 Partial payment GJ 2 20,000 80,000
Accounts Payable Acct No 22

Apr Debit Credit
8 Purchased equipment GJ 1 55,000 55,000
20 Purchased mat and supplies GJ 1 15,000 70,000
29 Partial Payment GJ 2 5,000 65,000
Timothy , Capital Acct No 31

Apr Debit Credit
1 Initial investment GJ 1 200,000 200,000
Timothy, Drawings Acct No 32

Apr Debit Credit
30 GJ 2 3,500 3,500
Service Fees Acct No 41

Apr Debit Credit
12 Service rendered to Ms Laura GJ 1 57,500 57,500
23 Service rendered to Mr. Ferrer GJ 1 14,950 72,450
Salaries Expense Acct No 51

Apr Debit Credit
28 GJ 2 5,000 5,000
Rent Expense Acct No 53

Apr Debit Credit
6 GJ 1 8,000 8,000
Repairs Expense Acct No.54

Apr Debit Credit
24 GJ 2 4,500 4,500
Supplies Expense Acct No 55

Apr Debit Credit
12 GJ 1 8,250 8,250
23 GJ 1 3,500 11,750
Utilities Expense Acct No 59

Apr Debit Credit
25 GJ 2 1,750 1,750
TRIAL BALANCE
APRIL 30, 2018
Cash P128,435
Supplies 14,565
Equpment 55,000
Truck 180,000
Loan Payable P80,000
Timothy, Capital 200,000
Timothy, Drawings 3,500
Service Fees 72,450
Salaries 5,000
Utilities 1,750
Supplies 11,750
Rent 8,000
Repairs 4,500
Totals P417,450 P417,450
8.
Oct 1 Cash 1 50,000
Computer System 11 20,000
Office Equipment 12 80,000
Dy, Capital 30 150,000
3 Computer Supplies 3 8,420


Professional Fees 40 4,800

Cash 1 8,420

15 Cash 1 2,400
17 Repairs Expense 53 1,500

Cash 1 1,500
20 Advertising 50 1,750
Cash 1 1,750
22 Cash 1 2,400
28 Cash 1 7,600
29 Rent 52 15,000
Cash 1 15,000
Utilities 55 2,200
Utilities Payable 21 2,200
30 Dy, Drawings 31 3,000

Computer Supplies 3 3,000

Computer Supplies 3 3,400
31 Salaries 53 5,000
Cash 1 5,000
Cash Acct No 101

Dat Explanation F Debit Credit Balance
e
Oct Debit Credit
1 investment GJ 1 50,000 50,000
8 Payment for supplies GJ 1 8,420
15 Collection of customer acct GJ 2 2,400
17 Payment for repairs GJ 2 1,500
20 Payment for advertising GJ 2 1,750
28 Down payment GJ 2 7,600
29 Payment for rent GJ 2 15,000
31 Payment for salaries GJ 2 5,000 30,730
Oct Debit Credit
6 Service on account GJ 1 4,800 4,800
12 GJ 2 14.000
15 Service on account GJ 2 2,400
28 Service with a down payment GJ 2 7,600 21,600
Computer Supplies Acct No 103

Oct Debit Credit
3 Purchased on credit 8,420 8,420
30 Timothy drawings 3,000 5,420
30 Used up 3,400 2,020
Computer System Acct No 201

Oct Debit Credit
1 Initial investment 20,000 20,000
Office Equipment Acct No 202

Oct Debit Credit

Oct Debit Credit
3 Supplies on account GJ 1 8,420 8,420
8 Paid in full GJ 1 8,420 0
Utilities Payable Acct No 302

Oct Debit Credit
29 GJ 2 2,200 2,200
Dy, Capital Acct No 501

Oct Debit Credit
1 Initial investments GJ 1 150,000 150,000
Ty, Drawings Acct No 502

Oct Debit Credit
30 GJ 2 3,000 3,000
Professional Fees Acct No 601

Oct Debit Credit
6 GJ 1 4.800 4.800
12 GJ 2 14,000 18,800
28 GJ 2 15,200 34,000
Advertising Acct No 701

Oct Debit Credit
20 GJ 2 1,750 1,750
Rent Expense Acct No 702

Oct Debit Credit
29 GJ 2 15,000 15,000
Repairs Expense Acct No 703

Oct Debit Credit
17 GJ 2 1,500 1,500
Salaries Expense Acct No 704

Oct Debit Credit
31 GJ 2 5,000 5,000
Supplies Expense Acct No 705

Oct Debit Credit
30 GJ 2 3,400 3,4 00
Utilities Acct No 706

Oct Debit Credit
29 GJ 2 2,200 2,200
BUSINESS SOLUTIONS COMPANY

TRIAL BALANCE
OCTOBER 31, 2017
Cash 30,730
Computer Supplies 2,020
Computer System 20,000
Office Equipment 80,000
Utilities Payable P 2,200
Ty, Capital 150,000
Ty, Drawings 3,000
Professional Fees 34,000
Salaries 5,000
Supplies 3,400
Utilities 2,200
Advertising 1,750
Rent 15,000
Repairs 1,500
Totals P186,200 P186,200
9. SUBSIDIARY LEDGER FOR SUPPLIERS:
Delta Equipment
Mar 12 On credit 15,000 15,000
19 Paid 50% 5,000 10,000
Easy Internet
Oct. 6 Billed customer 4,800 4,800
15 Received 50% 2,400 2,400
22 Collected balance 2,400 0
Fast Internet
Date Terms F Debit Credit Balance
Oct 12 Computer system 3,400 3,400
. IMC Company
Oct. 28 Consulting services 5,200 5,200
50% down payment 2,600 2,600
10. Chart of Accounts:
Current Assets Owner’s Equity
Cash 101 Ignacio, Capital 401
Accounts Receivable 102 Ignacio, Drawings 402
Supplies 103 Professional Care Fees 501
Non Current Assets Advertising 601
Office Equipment 201 Rent 602
Medical Equipment 202 Salaries 603
Current Liabilities Supplies 604
Accounts Payable 301 Utilities 605
Installments Payable 302
Journal Entries:
March 1 Cash 101 150,000
Ignacio, Capital 401 150,000
5 Medical Equipment 202 90,000

Cash 101 45,000
Installments Payable 302 45,000
10 Supplies 103 17,850

Cash 101 17,850
12 Office Equipment 201 15,000

15 Cash 101 50,000

Professional Care Fees 501 65,000

Cash 101 5,000
20 Utility Expense 605 18,500

Cash 101 18,500

Advertising 601 10,000
Cash 101 25,000
27 Cash 101 45,000

Accounts Receivable 102 3.000
Professional Care Fees 501 42,000
29 Installments Payable 302 22,500

Cash 101 22.500

Cash 101 36,000
31 Supplies Expense 604 13,500

Supplies 13,500
Cash 101 Ignacio, Capital 401

March 1 150,000 Mar05 45,000 March 1 150,000
18 50,000 10 17,850
27 45,000 12 15,000
19 5,000
20 18,500
28 25,000
29 22,500 Drawings
30 36,000 Mar 29 5,000
70,150
145,000
Accounts Receivable 102 Prof Care Fees 501

Mar 15 15,000 Mar 27 3,000 Mar 15 65,000
27 42,000
12,000 107,000
Supplies 103 Salaries 603

Mar 10 17,850 Mar 31 13,500 Mar 30 36,000
4,350
Medical Equipment 201 Utilities 605

Mar 5 90,000 Mar 20 18,500
Office Equipment 202 Supplies Expense 604

Mar 12 15,000 Mar 25 13,500
Installment Payable 302 Rent Expense 602

Mar 29 22,500 Mar 5 45,000 Mar 25 15,000
22,500
Accounts Payable 301 Advertising Expense 601

Mar 19 5,000 Mar 12 15,000 Mar 25 10,000
10,000
Ignacio Facial Care Center

Trial Balance
March 31, 2018
Cash 70,150
Supplies 4,350
Medical Equipment 90,000
Installments Payable P 22,500
Ignacio, Capital 150,000
Ignacio, Drawing 5,000
Professonal Care Fees 107,000
Advertising 10.000
Rent 15,000
Salaries 36,000
Supplies 13,500
Utilities 18,500
________ ________
Totals P289,500 P289,500
Ignacio Facial Care Center Ignacio Facial Care Center

Income Statement Statement of Owner’s Equity
For the month of March 2018 For the month ended March 31, 2018
Professional Care Fees P 107,000 Ignacio Capital, Mar 1 P 150,000
Less: Expenses Add: Net Income 14,000
Salaries P 36,000 Less Drawings (5,000)
Rent 15,000 Ignacio Capital, March 31 P 159,000
Utilities 18,500
Advertising 10,000
Supplies 13,500 93,000
Net Income P 14,000
Ignacio Facial Care Center

Statement of Financial Position
March 31, 2018
Assets Liabilities & Owner’s Equity

Current Assets Current Liabilities:
Cash P 70,150 Accounts Payable P 10,000
Accounts Receivable 12,000 Installments Payable 22,500
Supplies 4,350 Total Liabilities P 32,500
Total P 86,500
Non- Current Assets Ignacio, Capital 159,000
Medical Equipment 90,000
Total 105,000 ________
Total Assets P 191,500 Total Liabilities & Owner’s Equity P 191,500
SUBSIDIARY LEDGERS FOR PATIENTS:

. Mr Mateo
Mar 15 6,000 6,000
Ms Mirasol
Mar 15 On credit 9,000 9,000
27 1/3 collected 3,000 6,000
12. Sterling Investigative Services

Trial Balance
May 31, 2017
Debit Credit
Cash P 55,800
Rent Deposit 8,000
Equipment 80,000
Taxes Payable 900
Silver, Capital 117,000
Professional Fees 69,600
Salaries Expense 42,000
Advertising Expense 11,000
Representation Expense 9,000 _______
P231,500 P231,500
13. Bayanihan
Trail Balance
July 31, 2017
Cash 47,500
Supplies 5,084
Prepaid Insurance 3,000
Equipment 58,786
Accumulated Depreciation – Equipment 15,000
Notes Payable 9,000
Moreno, Capital 72,500
Moreno, Drawing 2,500
Talent Fees Income 145,280
Advertising 12,100
Rent 6,000
Salaries 49,500
Depreciation 5,000
Utilities 6,420
Insurance 7,000
Transportation 13,400
Interest Expense 740 _______
P247,430 P247,430
Problem 1.
1.
GENERAL JOURNAL

April 1 Cash 100,000
Furniture & Fixtures 22,500
Pascual, Capital 122,500
3 Rent Deposit 30,000

Cash 15,000
5 Advertising 5,000
Cash 5,000
6 Office Equipment 12,500

Cash 12,500
8 Supplies 1,500
10 Cash 3,000
Processing Fees Revenue 3,000
11 Passport & Document Fees 1,200

Cash 1,200
12 Cash 5,000
Commission Income 5,000


Commission Income 10,000
16 Salaries 12,500
Cash 12,500
18 Transportation Expense 1,500

Cash 1,500
19 Pascual, Drawing 1,500

Cash 1,500
20 Passport & Document Fees 7,500

Rental Income 7,500
24 Cash 5,000

30 Salaries Expense 12,500

Utilities Expense 7,500
Cash 20,000
GENERAL JOURNAL
2. Date Particulars Debit Credit
April 1 Cash 250,000
Rosales, Capital 265,000
2 Cars 300,000
Cash 150,000
3 Office Equipment 12,000
Cash 12,000
7 Gas & Oil 2,000
Cash 2,000
8 Advertising 10,000
Cash 10,000
11 Cash 4,000
Fees 4,000
14 Cash 2,000
Driving Fees 4,000
15 Salaries 4,500
Cash 4,500
19 Rosales, Drawing 1,500
Cash 1,500
20 Cash 3,500
Driving Fees 7,000
26 Rent Expense 7,500
Rent Payable 7,500
27 Utilities Expense 4,500
Cash 4,500
30 Salaries 4,500
Cash 4,500
Budget Driving Institute

Chart of Accounts
Asset Capital
1 Cash 30 Rosales, Capital
2 Accounts Receivable 31 Rosales Drawing
3 Office Supplies
4 Cars Revenue
10 Furniture & Fixtures 40 Driving Fees Income
11 Office Equipment
Expenses
Liabilities 50 Advertising Expense
20 Accounts Payable 51 Gas and Oil Expense
21 Rent Payable 52 Rent Expense
22 Notes Payable 53 Salaries
54 Utilities
55 Insurance
56 Taxes
Cash No. 1
Date Explanation F Debit Date Explanation F Credit
April 1 1 250,000 April 2 1 150,000
11 1 4,000 3 1 12,000
14 1 2,000 7 1 2,000
20 Balance 70,500 1 3,500 8 1 10,000
15 1 4,500
19 1 1,500
27 1 4,500
30 1 4,500
Accounts Receivable No. 2

4/14 1 2,000
20 Balance 5,500 1 3,500
Office Equipment No. 3
4/3 1 12,000
Furniture & Fixtures No. 10
4/1 1 15,000
Cars No. 11
4/2 1 300,000
Rent Payable No. 21

Notes Payable No. 22

4/2 1 150,000
Rosales, Capital No. 30
4/1 1 265.000
Rosales, Drawings No. 30
4/19 1 1,500
Driving Fees Revenue No. 40
4/11 1 4,000
14 1 4,000
20 Balance 15.000 1 7,000
Advertising Expense No. 50
4/8 1 10,000
Gas & Oil Expense No. 51

4/2 2,000
Rent Expense No. 52

4/26 7,500
Salaries Expense No. 51

4/15 4,500
4/30 Balance 9,000 4,500
Utility Expense No. 52

4/27 4,500

Trial Balance
For the month ended April. 30, 2014
Debit Credit
Cash P 70,500
Office Equipment 12.000
Furniture & Fixtures 15.000
Cars 300,000
Notes Payable P150,000
Rent Payable 7,500
Rosales,Capital 265.000
Rosales, Drawing 1,500
Driving Fees Revenue 15,000
Gas and Oil 2,000
Rent Expense 7,500
Utility Expense 4,500 ________
Totals P 437,500 P437,500
3..
2017
May 1 Rent Payable 7,500
Cash 7,500
3 Repair Expense 3,500
4 Cars 500,000
Rosales, Capital 500,000
5 Taxes 2,500
Insurance 1,500
Cash 4,000
7 Cash 8,100
Boundary Fees 3,600
8 Gas & Oil 4,500
Cash 4,500
9 Equipment 12,500
12 Cash 5,500
Cash 4,500
19 Cash 6,500
Cash 3,500
25 Cash 12,000
Boundary Fees 12,000
28 Repairs Expense 2,500
Gas & Oil 4,500
Cash 7,000
Rent Expense 7,500
Cash 12,000
Cash No. 1
April 1 1 250,000 April 2 1 150,000
11 1 4,000 3 1 12,000
14 1 2,000 7 1 2,000
20 1 3,500 8 1 10,000
May 7 2 8,100 15 1 4,500
12 2 5,500 19 1 1,500
20 2 6,500 27 1 4,500
25 Balance 59,600 2 12,000 30 1 4,500
May 1 2 7,500
5 2 4,000
8 2 4,500
18 2 4,500
21 2 3,500
28 2 7,000
31 2 12,000
Accounts Receivable No. 2

4/14 1 2,000 May 12 2 5,500
20 1 3,500
5/20 Balance 1,000 2 1,000
Equipment No. 3
4/3 1 12,000
5/9 Balance 24.500 2 12,500
Furniture & Fixtures No. 10
4/1 1 15,000
Cars No. 11
4/2 1 300,000
5/4 800,000 2 500,000
Accounts Payable No. 20
5/21 2 3,500 5/3 2 3,500
5/9 Balance 12,500 2 12,500
Rent Payable No. 21
5/1 2 7,500 4/26 0 1 7,500
Notes Payable No. 22

4/2 1 150,000
Rosales, Capital No. 30
4/1 1 265.000
5/4 Balance 765,000 2 500,000
Rosales, Drawings No. 30
4/19 1 1,500
Driving Fees Revenue No. 40
4/11 1 4,000
14 1 4,000
20 1 7,000
5/7 2 4,500
20 Balance 27.000 2 7,500
Boundary Fees Revenue No. 41

5/7 2 3,600
25 2 12,000
Balance 15,600
Advertising Expense No. 50
4/8 1 10,000
Gas & Oil Expense No. 51

4/2 1 2,000
5/8 2 4.500
28 Balance 11,000 2 4,500
Rent Expense No. 52
4/26 1 7,500
5/31 2 7,500
Salaries Expense No. 51

4/15 1 4,500
4/30 1 4,500
5/18 2 4,500
31 Balance 18,000 2 4,500
Utility Expense No. 52

4/27 1 4,500
Repair Expense No. 53

5/3 2 3,500
28 Balance 6,000 2 2,500
Insurance Expense No. 54

5/5 1,500
Taxes Expense No. 55

5/5 2,500

Trial Balance
For two months ended May. 31, 2014
Debit Credit
Cash P 59,600
Office Equipment 24.500
Furniture & Fixtures 15.000
Cars 800,000
Notes Payable P150,000
Rosales,Capital 765,000
Rosales, Drawing 1.500
Boundary Fees 15,600
Repair 6.000
Insurance 1,500
Taxes and Licenses 2,500
Gas and Oil 11,000
Rent Expense 15,000
Utility Expense 4,500 _________
Totals P 970,100 P 970.100
4.
Dec. 1 Cash 500,000
Vergel, Capital 500,000
3 Equipment 500,000
Cash 200,000
4 Deposit for Rent 100,000
Cash 100,000
Cash 15,000
6 Furniture & Fixtures 150,000
Cash 75,000
8 Cash 20,000
Ticket Sales Revenue 20,000
11 Cash 14,500
18 Cash 15,000
19 Taxes & Licenses 1,500
Cash 1,500
Cash 10,000
25 Cash 14,750
Cash 15,000
27 Utilities 9,500
Utilities Payable 9,500
29 Vergel, Personal 5,850
Cash 5,850
31 Cash 3,750
Lease Income 3,750
Salaries 12,000
Cash 12,000
Engineer Gonzales
Dec. 6 75,000 75,000
26 15,000 60,000
LVM
Dec. 12 15,000 15,000
23 10,000 5,000

Dec. 30 25,000 25,000
Cash Ticket Sales Revenue

12/1 1 500,000 12/3 1 200,000 12/8 1 2,000
8 1 20,000 4 1 100,000 11 1 14,500
11 1 14,500 5 1 15,000 18 1 15,000
18 1 15,000 6 1 75,000 25 1 14,750
25 1 14,750 19 1 1,500
31 1 3,750 23 1 10,000 Lease Income
26 1 15,000 12/31 1 3,750
29 1 5,850
31 1 12,000 Advertising
568,000 434,350 12/5 1 15,000
Equipment Rent
12/3 1 500,000 12/12 1 15,000
30 1 25,000
Furniture & Fixtures Taxes
12/6 1 150,000 12/19 1 1,500
Deposit for Rent Salaries

12/4 1 100,000 12/31 1 12,000
Accounts Payable Utilities

12/23 10,000 12/6 1 75,000 12/27 1 9,500
26 15,000 12 1 15,000
30 1 25,000
Utilities Payable
12/27 9,500
Vergel, Capital Vergel, Personal
12/1 1 500,000 12/23 1 5,850
Mega Theater
Trail Balance
December 31, 2018
Account No. Account Title Debit Credit
1 Cash P133,650
6 Equipment 500,000
11 Deposit for Rent 100,000
16 Accounts Payable P 90,000
17 Notes Payable 300,000
18 Utilities Payable 9,500
21 Vergel, Capital 500,000
22 Vergel, Personal 5,850
26 Ticket Sales Revenue 64,250
27 Lease Income 3,750
32 Rent 40,000
33 Taxes 1,500
34 Salaries 12,000
35 Utilities 9,500 ______
Total P967,500 P967,500
5.
Sept. 1 Cash 101 50,000
Furniture & Fixtures 104 5,000
De Jesus, Capital 301 55,000
2 Washing Equipment 105 24,000
Cash 101 5,000
5 Washing Supplies 103 4,500
Cash 101 4,500
6 Cash 101 2,500
Service Income 401 2,500
9 Pressing Equipment 106 6,000
11 Cash 101 2,500
13 Taxes & Licenses 503 1,500
Cash 101 1,500
14 Cash 101 1,000
15 Salaries Expense 502 6,000
Cash 101 6,000
16 Cash 101 1,500
17 Cash 101 1,500
25 Need not be recorded
Cash 101 4,550
29 Salaries 502 6,000
Cash 101 6,000
Cash 101 2,000

30 Washing Supplies Used 505 2,000
Washing Supplies 102 2,000
Supplier: Automatic Center

Sept. 2 12 monthly instalments 24,000 24,000
30 first instalment 2,000 22,000
Supplier: Citibank
Sept. 9 Six months 6,000 6,000
Customer: Mitch Eulogio

Sept. 6 1,000 1,000
14 Full collection 1,000 0
Customer: Helen Narvasa
Sept. 10 500 500
16 Full collection 500 0
Customer: Kristy Gatdula

Sept. 10 1,500 1,500
16 500 1,000
Customer: Myrna Tan

Sept. 10 7500 750
18 500 250
Royal Laundry Services

Schedule of Accounts Payable
October 31, 2018
Automatic Center P22,000
Citibank 6,000
Total P28,000

Schedule of Accounts Receivable
October 30, 2018
Cristy Gatdula P1,000
Myrna Tan 250
Total P1,250
6 Chart of Accounts
Account No. Account Titles
101 Cash
102 Accounts Receivable
103 Supplies
104 Furniture & Fixtures
105 Washing Equipment
106 Office Equipment
201 Accounts Payable
202 Utilities Payable
301 De Jesus, Capital
302 De Jesus Personal
401 Service Income
501 Rent Expense
502 Salaries
503 Taxes & Licenses
504 Utilities Expense
505 Washing Supplies Used
Cash 101 De Jesus, Capital 301

Date Particulars F Debit Date Particulars F Credit Date Particulars F Debit Date Particulars F Credit
9/1 1 50,000 9/3 1 5,000 9/1 1 55,000
6 1 2,500 5 1 4,500
11 1 2,500 13 1 1,500
14 1 1,000 15 1 6,000
16 1 1,500 26 1 4,550
17 29,450 1 1,500 29 1 6,000
30 1 2,000
Accounts Receivable 102 Service Income 401

10 1 3,750 14 1 1,000 6 1 2,500
22 1,250 2,000 16 1 1,500 10 1 3,750
30 11 1 2,500
18 10,250 1 1,500
Supplies 103 Rent 501

5 2,500 1 4,500 30 1 2,000 3 1 5,000
Furniture & Fixtures 104 Salaries 502

1 1 5,000 15 1 6,000
29 1 6,000
Equipment 105 Taxes & Licenses 503
2 1 24,000 13 1 1,500
9 30,000 1 6,000
Utilities 504
25 1 4,550
Accounts Payable 201 Washing Supplies Used 505

29 2,000 2 1 24,000 30 1 2,000
9 28,000 1 6,000
Utilities Payable 202
Date Particulars F Debit Date Particulars F Credit

Trial Balance
October. 31, 2018
Account No. Account Title Debit Credit
101 Cash P29,450
103 Washing Supplies 2,500
105 Equipment 30,000
301 De Jesus, Capital 55,000
401 Service Income 10,250
501 Rent 5,000
502 Salaries 12,000
503 Taxes 1,500
504 Utilities 4,550
505 Washing Supplies Used 2,000 ______
Totals P93,250 P95,875
7.
May 1 Cash 101 150,000
Castillo, Capital 501 150,000
Initial cash investment of Castillo.
3 Deposit for Rent 105 15,000

Cash 101 15,000
Signed a contract of lease and made a
cash deposit.
4 Furniture and Fixtures 201 50,000

Cash 101 50,000
Construction of cabinets, shelves.
5 Repair Supplies 103 7,500

Cash 101 7,500
Purchase repair supplies and paid cash.
8 Repair Equipment 202 15,000

Cash 101 7,500
Accts Payable 301 7,500
Purchased repair equipment with a 50%
down payment.
9 Cash 101 1,500

Repair Fees Revenue 601 1,500
Repair service for cash.
May 10 Accounts Receivable 102 7,500
Repair Fees Revcnue 601 7,500
Billed Madison for repair work
14 Cash 101 8,000

Notes Receivable 103 2,500
Repair service partly paid in cash and
in note.

Cash 101 3,800
Telephone, light and water bills paid.

Billed Telecom System.
22 Cash 101 8,5 00

Repair service partly paid in cash and
Liberty on credit.
25 Repair Supplies Used 701 2,200

Repair Supplies 104 2.200
28 Cash 101 3,750

Collection from Madison.

Rent Expense 702 15,000
Cash 101 25,000
31 Castillo, Drawings 502 2,500

Supplies 104 2,500
Supplies withdrawn by Castillo.
Cash Acct No 101

May Debit Credit
0
3 Payment for rent deposit GJ 1 15,000 135,000
4 Payment for furniture GJ 1 50,000 85,000
5 Payment for supplies GJ 1 7,500
8 Down payment for equipment GJ 1 7,500 70,000
9 Repair fees GJ 1 1,500 71,500
14 Repair fees GJ 1 8,000 79,500
16 Utilties GJ 2 3,800 75,700
22 Repair fees GJ 2 8,500 84,200
28 Collection GJ 2 3,750 87,950
30 Salaries and rent GJ 2 25,000 62,950
May Debit Credit
10 Billed Madison GJ 2 7,500 7,500
18 Telecom System GJ 2 15,000 22,500
22 Liberty Trading GJ 2 12,000 34,500
28 Collected Madison GJ 2 3,750 30,750
Notes Receivable Acct No 103

Explanation F Debit Credit Balance
Date
May Debit Credit
14 Computer repair GJ 2 2,500 2,500
Repair Supplies Acct No 104

Explanation F Debit Credit Balance
Date
May Debit Credit
5 GJ 1 7,500 7,500
25 GJ 2 2,200 5,300
31 GJ 2 2,500 2,800
Deposit for Rent Acct No 105

May Debit Credit
3 GJ 1 15,000 15,000
Furniture and Fixture Acct No 201

May Debit Credit
4 GJ 2 50,000 50,000
Repair Equipment Acct No 202

May Debit Credit
8 GJ 1 15,000 15,000

May Debit Credit
6 GJ 1 7,500 7,500
Castillo , Capital Acct No 501

May Debit Credit
1 Initial cash investment GJ 1 150,000 150,000
Castillo, Drawings Acct No 502

May Debit Credit
31 For personal use 2,500 2,500
Repair Fees Acct No 601

May Debit Credit
9 GJ 1 1,500 1,500
10 GJ 1 7,500 9,000
14 GJ 2 10,500 19,500
18 GJ 2 15,000 34,500
22 GJ 2 20,500 55,000
Repair Supplies Used Acct No 701

May Debit Credit
25 GJ 2 2.200 2,200
Rent Acct No 702

Debit Credit
May
30 GJ 2 15,000 15,000
Salaries Acct No 703

May Debit Credit
30 Payment for salaries GJ 2 10,000 10,000
Utilities Acct No 704

May Debit Credit
16 Telephone, light and water GJ 2 3,800 3,800
Liabilities &
Assets Owner’s Equity
Cash 62,950
Notes Receivable 2,500
Supplies 2,800
Equipment 15,000
Rent Deposit 15,000
Castillo, Capital 150,000
Castillo, Drawings (2,500)
Repair Fees 55,000
Rent (15,000)
Salaries (10,000)
Supplies (2,200)
Utilities ______ (3,800)
Total 179,000 179,000
. Madison
May
10 Computer repair service GJ 1 7,500 7,500
28 Received 50% GJ 2 3,750 3,750
Telecom
May 18 Computer repair work GJ 2 15,000 15,000
. Liberty Company
May. 22 Cell phone repair work GJ 2 12,000 12,000
8. a) Weight Loss
Trial Balance
Dec. 31, 2014
Cash (52,700-1,800) + 2,250 + 4,500 57,640
Slimming Equipment (75,000 – 7,500) 67,500
Accumulated Depreciation – Slimming 8,000
Accumulated Depreciation – Furn. & Fix 10,000
Dominguez Capital 349,620
Dominguez Personal 8,450
Treatment Fees (2,250 + 134,400) 136,650
Rent 93,680
Utilities 88,000
Salaries 33,800
Med. Consultant Fees 19,240
Depreciation 8,000
Supplies Used 2,400
Miscellaneous Expense 15,400 _______
537,420 537,420
b)
Assets Liabilities Owner’s Equity
Nos. Over Under Under Over Under
1 7,500
2 1,800
3 NA NA
4 8,000
5 2,250 2,250
6 5,000
7 4,500
8 2,400
164,000 118,800 18,500 34,500 7,500
Cash No. 1 Accounts Receivable No. 2

May 164,000 May31 118,800 May 31 18,500
Notes Receivable No. 3 Repair Supplies No. 4

May 15 2,000 May 5 7,500 May 25 2,200
Furniture & Fixtures No. 11 Repair Equipment No. 12
May 1 5,000 May 8 15,000
4 25,000
6 45,000
Rent Deposit Accounts Payable No. 21
May 3 15,000 May 31 2,500 May 8 7,500
Castillo, Capital No. 41
May 1 155,000
Castillo, Drawings No.42

May 31 2,500
Repair Fees No. 51 Repair Supplies Used No. 61
May 9 1,500 May 25 2,200
10 3,500
14 6,000
18 15,000
22 8,500
Rent Expense No. 62 Salaries Expense No. 63

May 30 5,000 May 14 5,000
30 5,000
Utilities Expense No. 64

May 17 3,800
Liabilities &
Cash 42,700
Supplies 5,300
Equipment 15,000
Rent Deposit 15,000
Repair Fees 34,500
Rent (5,000)
Salaries (10,000)
Supplies (2,200)
Utilities ______ (3,800)
Total 173,500 173,500
5???. Cash No. 1 Accounts Receivable No. 2
May 1 150,000 May 3 15,000 May 10 3,500
9 1,500 4 25,000 18 15,000
15 4,000 5 7,500
22 8,500 6 45,000
8 7,500
14 5,000
17 3,800
30 10,000
31 2,500
Notes Receivable No. 3 Repair Supplies No. 4
May 15 2,000 May 5 7,500 May 25 2,200
Furniture & Fixtures No. 11 Repair Equipment No. 12
May 1 5,000 May 8 15,000
4 25,000
6 45,000
Rent Deposit Accounts Payable No. 21
May 3 15,000 May 31 2,500 May 8 7,500
Castillo, Capital No. 41
May 1 155,000
Castillo, Drawings No.42

May 31 2,500
Repair Fees No. 51 Repair Supplies Used No. 61
May 9 1,500 May 25 2,200
10 3,500
14 6,000
18 15,000
22 8,500
Rent Expense No. 62 Salaries Expense No. 63

May 30 5,000 May 14 5,000
30 5,000
Utilities Expense No. 64

May 17 3,800
Liabilities &
Cash 42,700
Supplies 5,300
Equipment 15,000
Rent Deposit 15,000
Repair Fees 34,500
Rent (5,000)
Salaries (10,000)
Supplies (2,200)
Utilities ______ (3,800)
Total 173,500 173,500
ETHICAL ISSUES/FILIPINO TRAITS

1. a) Toyota should own up its part of the blame because there was also negligence in their part.
b) Quality control is a must. Parts ordered should be inspected upon receipt, tested also before installation and
even after installation.
c) Quality cannot be traded off nor safety of customers. In fact quality would be an important factor specially
for vehicles because customers would not want to risk their lives when driving. Reputation of Toyota will be at
stake.
2. a) Filipinos also show respect at work by making a bow to their employers and greeting them.
b) Children respect elders by saying "po" and "opo," which mean "yes," when answering or talking to their
elders.
c) Children or young adults also show respect by putting their elders' hands on their foreheads.
d)They don’t answer back when scolded. They only answer when they are asked or questioned.

CHAPTER 5 (Accounting For Service)

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CHAPTER 5 (Accounting For Service)

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CHAPTER 5

B. Normal balance 1) debit 2) credit

Accounts Receivable 102 Garcia, Drawings 502

Office Supplies 103 Service Income 601

Office Equipment 201 Advertising 701

Accounts Payable 301 Rent 702

Utilities Payable 302 Supplies Expense 703

Notes Payable 401 tilities Expenses 704

Leo Garcia, Landscaper

4. June 1 official receipt

Cash Accounts Payable

Accounts Receivable Mac, Capital

Supplies Mac, Drawings

Office Equipment Delivery Fees Earned

Delivery Van Rent Expense

Speed Delivery Service

Totals 514,000 514,000

6 Rent Expense 53 8,000

Supplies Expense 55 8,250

Supplies Expense 55 3,500

24 Repairs Expense 54 4,500

25 Utilities Expense 59 1,750

26 Bank Loan Payable 21 20,000

28 Salary Expense 51 5,000

29 Accounts Payable 22 5,000

30 Timothy, Drawing 32 3,500

Accounts Receivable Acct No 12

Loan Payable Acct No 21

Accounts Payable Acct No 22

Timothy , Capital Acct No 31

Timothy, Drawings Acct No 32

Service Fees Acct No 41

Salaries Expense Acct No 51

Rent Expense Acct No 53

Repairs Expense Acct No.54

Supplies Expense Acct No 55

Utilities Expense Acct No 59

3 Computer Supplies 3 8,420

6 Accounts Receivable 2 4,800

8 Accounts Payable 20 8,420

12 Accounts Receivable 2 14,000

17 Repairs Expense 53 1,500

30 Dy, Drawings 31 3,000

Supplies Expense 54 3,400

Cash Acct No 101

Computer Supplies Acct No 103

Computer System Acct No 201

Office Equipment Acct No 202

Accounts Payable Acct No 301

Utilities Payable Acct No 302

Dy, Capital Acct No 501

Ty, Drawings Acct No 502

Professional Fees Acct No 601

Advertising Acct No 701

Rent Expense Acct No 702

Repairs Expense Acct No 703

Salaries Expense Acct No 704

Supplies Expense Acct No 705

Utilities Acct No 706

BUSINESS SOLUTIONS COMPANY

5 Medical Equipment 202 90,000

10 Supplies 103 17,850