Mr. Andres Flores put up a computer shop business under the name Flores Computer Shop.

During the month of June, 2020, the following transactions occurred:

1 - The owner invested cash, P500,000
1 - Paid municipal licenses and permits, P 1,260.
1 - Bought office equipment on account, P 48,000
1 - Paid 3-month rent in advance, P45,000.
1 - Bought office supplies for cash, P 11,250
1 - Paid for the 2 months advertisement in the newspaper, P 10,000
1 – Rendered services on credit, P 222,000
5 – Collected partial payment of P 6,000 from a credit customer
5 - Bought office tables and chairs on account, P42,650
6 - Returned defective tables costing P 2,650. (see transaction dated June 5).
7 - The owner invested his computer in the business, P 75,000.
10 – Rendered services for cash, P 9,200.
11 – Collected cash from credit customer, P 12,500.
15 - Paid the employees’ salaries, P 12,000
25 - Borrowed money from the bank, P 200,000 at an interest rate of 6% per annum payable in 5 years.
27 - The owner withdrew cash P 10,000 for his personal use.
30 - Bought delivery van P 850,000 terms 20% down and the balance is payable in 12 equal month installments ove
30 -Issued a 60-day 6% promissory note, P 18,000 for the purchase of supplies.
30 – Sent bill for the rendered services, P 46,000.
30- Signed a contract to repair the computers of the Angeles Law Firm, P90,000.
Adjustments to be made on June 30, 2020:

a. Supplies on hand, June 30, P 2,150.

b. Depreciation of 20% per annum is to be provided for the office equipment.

c. The tenant's payment is good for 3 months.

d. Accrued interest on the notes payable.

e. Prepaid advertising is one half of the amount paid.

REQUIRED: 10 points each

1. Record the transactions in the general journal.

2. Post to the T accounts.

3. Prepare the preliminary trial balance on June 30, 2020.

4. Prepare the adjusting entries.

5. Prepare a 10-clumn worksheet.

6. Prepare the Income Statement for the month ended June 30, 2020.

7. Prepare the Statement of Changes in Owner's Equity for the month ended June 30, 2020.

8 Prepare the Balance Sheet as at June 30, 2020

9. Prepare the closing entries.

10. Prepare the post-closing trial balance.

 General Journal
Date Particulars and Explanation PR
2020
June 1 Cash 101
Mr. Flores, Capital 301
To record intial cash investment of the owner.

1 Taxes and Licenses 607

Cash 101
To record payment for municipal license and permits.

1 Office Equipment 106

Account Payable 201
To record acquisition of Office Equipment on account.

1 Prepaid Rent 105

Cash 101
To record advance payment for 3-month rent. dfdssfsf

1 Office Supplies 103

Cash 101
To record acquisition of Office Supplies.ssssssssss

1 Prepaid Advertising 104

Cash 101
To record advance payment for 2-months advertisement.

1 Account Receivable 102

Service Income 401
To record rendering of services to customers on account.

5 Cash 101
Account Receivable- Account Customer 102
To record partial payment from account customer. grrrg

5 Furnitures and Fixtures 108

Account Payable 201
To record acquisition of Furnitures and FIxtures on account.

6 Account Payable 201

Furnitures and Fixtures 108
 To record returns of Furnitures and Fixtures.

7 Office Equipment 106

Mr. Flores, Capital 301
To record owner's non-cash investment. gggggggg

10 Cash 101
Service Income 401
To record cash received from service rendered. fffff

11 Cash 101
Account Receivable 102
To record payment from credit customer. ggggggg

15 Salaries Expense 601

Cash 101
To record payment of salaries of employees. gggg

25 Cash 101
Loans Payable - Bank 204
To record borrowing of money from the bank. eeee

27 M. Flores, Drawing 302

Cash 101
To record owner's drawing. hhhhhhhhhhhhhhhhhh

30 Vehicle 109
Cash 101
Account Payable 201
To record acquisition of vehicle with 20% down payment.

30 Office Supplies 103

Note Payable 202
To record purchase of supplies under a promissory note.

30 Account Receivable 102

Service Income 401
To record sending of bill to a credit customer. gggg
 Debit Credit

P 500,000.00
P 500,000.00

1,260.00
1,260.00

48,000.00
48,000.00

45,000.00
45,000.00

11,250.00
11,250.00

10,000.00
10,000.00

222,000.00
222,000.00

6,000.00
6,000.00

42,650.00
42,650.00

2,650.00
2,650.00
 75,000.00
75,000.00

9,200.00
9,200.00

12,500.00
12,500.00

12,000.00
12,000.00

200,000.00
200,000.00

10,000.00
10,000.00

850,000.00
170,000.00
680,000.00

18,000.00
18,000.00

46,000.00
46,000.00
 Cash Vehicle
Dr Cr Dr
2020 June (1) P 500,000.- 2020 June (1) P 1,260.- 2020 June (30) P 850,000.-
(5) 6,000.- (1) 45,000.-
(10) 9,200.- (1) 11,250.-
(11) 12,500.- (1) 10,000.-
(25) 200,000.- (15) 12,000.- Furnitures and Fixtures
P 727, 700.- (27) 10,000.- Dr
(259,510.-) (30) 170,000.- 2020 June (5) P 42,650.-
P 468, 190.- P 259,210.- P 42,650.-
(2,650.-)
P 40,000.-

Account Receivable
Dr Cr
2020 June (1) P 222,000.- 2020 June (5) P 6,000.- Account Payable
(30) 46,000.- (11) 12,500.- Dr
P 268,000.- P 18,500.- 2020 June (6) P 2,650.-
(18,500.-) P 2,650.-
P 249,500.-

Prepaid Rent
Dr Cr
2020 June (1) P 45,000.- 2020 June (30) P 15,000.-
P 45,000.- P 15,000.- Loans Payable - Bank
(15,000.-) Dr
P 30,000.-

Prepaid Advertising
Dr Cr Note Payable
2020 June (1) 10,000.- 2020 June (30) P 5,000.- Dr
P 10,000.- P 5,000.-
(5,000.-)
P 5,000.-
Interest Payable
Dr
Office Supplies
Dr Cr
2020 June (1) P 11,250.- 2020 June (30) P 21,700.-
 (30) 18,000.- P 21,700.-
P 29,250.- Mr. Flores, Capital
(21,700.-) Dr
P 2,150.00

Office Equipment
Dr Cr
2020 June (1) P 48,000.- Mr. Flores, Drawing
(7) 75,000.- Dr
P 123,000.- 2020 June (27) P 10,000.-
 Vehicle Service Income
Cr Dr Cr
2020 June (1) P 222,000.-
(10) 9,200.-
(30) 46,000.-
P 277,200.-
Furnitures and Fixtures
Cr
2020 June (6) P 2,650.- Taxes and Licenses
P 2,650.- Dr Cr
2020 June (1) 1,260.-

Salaries Expense
Account Payable Dr Cr
Cr 2020 June (15) P 12,000.-
2020 June (1) P 48,000.-
(5) 42,650.-
(30) 680,000.-
P 770,650.-
(2650.-) Office Supplies Expense
P 768,000.- Dr Cr
2020 June (30) P 21,700.-

Loans Payable - Bank

Cr
2020 June (25) P 200,000.- Depreciation Expense - O.E
Dr Cr
2020 June (30) P 2,050.-

Note Payable
Cr
2020 June (30) P 18,000.- Accumulated Depreciation - O.E
Dr Cr
2020 June (30) P 2,050.-
Interest Payable
Cr
2020 June (30) P 166.67

Rent Expense
 Dr Cr
Mr. Flores, Capital 2020 June (30) P 15,000.-
Cr
2020 June (1) P 500,000.-
(7) 75,000.-
P 575,000.- Advertising Expense
Dr Cr
Mr. Flores, Drawing 2020 June (30) P 5,000.-
Cr
 Interest Expense
Dr Cr
2020 June (30) P 166.67
 CHART OF ACCOUNTS
Particulars PR
Cash 101
Account Receivable 102
Office Supplies 103
Prepaid Advertising 104
Prepaid Rent 105
Office Equipment 106
Accumulated Depreciation - Office Equipment 107
Furniture and Fixture 108
Vehicle 109

Account Payable 201

Note Payable 202
Interest Payable 203
Loan Payable - Bank 204

Mr. Flores, Capital 301

Mr. Flores, Drawing 302

Service Income 401

Salaries Expense 601

Office Supplies Expense 602
Rent Expense 603
Advertising Expense 604
Depreciation Expense - Office Equipment 605
Interest Expense 606
Taxes and Licenses 607
Income Summary 608
 Flores Computer Shop
Unadjusted Trial Balance
June 30,2020
Particulars Debit Credit
Cash P 468,190.-
Account Receivable 249,500.-
Prepaid Rent 45,000.-
Prepaid Advertising 10,000.-
Office Supplies 29,250.-
Office Equipment 123,000.-
Furnitures and Fixtures 40,000.-
Vehicle 850,000.-
Account Payable P 768,000.-
Loans Payable - Bank 200,000.-
Note Payable 18,000.-
Mr. Flores, Capital 575,000.-
Mr. Flores, Drawing 10,000.-
Service Income 277,200.-
Taxes and Licenses 1,260.-
Salaries Expense 12,000.-
TOTAL P 1, 838, 200.00 P 1, 838, 200.00
 ADJUSTING ENTRIES FOR THE MONTH OF JUNE, 2020
PARTICULARS
a. Office Supplies Expense 602
Office Supplies 103
To record adjustment from supplies acquired.

Computation : P 29,250 - P 2,150 = P 27,100.-

b. Depreciation Expense - Office Equipment 605

Accumulated Depreciation - Office Equipment 107
To record adjustment for the month from office equipment.

Computation : P 123,000 x 20% = 24,600/ 12 months = P 2,050.-

c. Rent Expense 603

Prepaid Rent 105
To record adjustment for 3-month rent.

Computation : P 45,000 / 3 months = P 15,000.- used for the month

d. Interest Expense 606

Interest Payable 203

Computation : I = Prt
I = 200,000 x 6% x 5 years = P 60,000 / 360 = P 166.67

e. Advertising Expense 604

Prepaid Advertising 104
To record adjustment for 2-month advertising in the newspaper.

Computation : P 10,000 / 2 months =P 5,000

2020
DEBIT CREDIT
P 27,100.-
P 27,100.-

2,050.-
2,050.-

15,000.-
15,000.-

166.67
166.67

5,000.-
5,000.-
 Flores Compute
Workshee
For the month ended
Unadjusted Trial Adjusting
Balance Entries
Particulars Debit Credit Debit
Cash P 468,190.-
Account Receivable 249,500.-
Prepaid Rent 45,000.-
Prepaid Advertising 10,000.-
Office Supplies 29,250.-
Office Equipment 123,000.-
Furnitures and Fixtures 40,000.-
Vehicle 850,000.-
Account Payable P 768,000.-
Loans Payable - Bank 200,000.-
Note Payable 18,000.-
Mr. Flores, Capital 575,000.-
Mr. Flores, Drawing 10,000.-
Service Income 277,200.-
Taxes and Licenses 1,260.-
Salaries Expense 12,000.-
TOTAL P 1, 838, 200.00 P 1, 838, 200.00
Office Supplies Expense 27,100.-
Depreciation Expense- Office Equipment 2,050.-
Accumulated Depreciation - Office Equipment
Rent Expense 15,000.-
Advertising Expense 5,000.-
Interest Expense 166.67
Interest Payable
TOTAL

NET INCOME
 Flores Computer Shop
Worksheet
For the month ended, June 2020
Adjusting Adjusted Income
Entries Trial Balance Statement
Credit Debit Credit Debit Credit
P 468,190.-
249,500.-
P 15,000.- 30,000.-
5,000.- 5,000.-
27,100.- 2,150.-
123,000.-
40,000.-
850,000.-
P 768,000.-
200,000.-
18,000.-
575,000.-
10,000.-
277,200.- P 277,200.-
1,260.- P 1,260.-
12,000.- 12,000.-

27,100.- 27,100.-
2,050.- 2,050.-
2,050.- 2,050.-
15,000.- 15,000.-
5,000.- 5,000.-
166.67 166.67
166.67 166.67
P 1, 840,416.67 P 1, 840,416.67 P 62,576.67 P 277,200.00
-62,576.67
P 214,623.33
 Balance
Sheet
Debit Credit
P 468,190.-
249,500.-
30,000.-
5,000.-
2,150.-
123,000.-
40,000.-
850,000.-
P 768,000.-
200,000.-
18,000.-
575,000.-
10,000.-

2,050.-

166.67
P 1, 780,340.00 P 1,563,216.67
214,623.33
P 1,777,840.00 P 1,777,840.00
 Flores Computer Shop
Statement of Comprehensive Income
For the month ended June 30, 2020
Service Income P 277,200.- A
less : Operating Expenses CURRENT ASSETS
Taxes and Licenses P 1,260.- Cash
Salaries Expense 12,000.- Account Receivable
Office Supplies Expense 27,100.- Prepaid Rent
Depreciation Expense 2,050.- Prepaid Advertising
Rent Expense 15,000.- Office Supplies
Advertising Expense 5,000.- Office Equipment
Add : Other Source of Expense Less: Accumulated Depreciation
Interest Expense 166.67 -62,576.67 TOTAL CURRENT ASSETS
NET INCOME P 214,623.33 Add: Non-Current Assets
Vehicle
Furnitures and Fixtures
Flores Computer Shop TOTAL ASSETS
Capital Statement
For the month ended June 30, 2020

Mr. Flores, Capital P 575,000.-

less : Mr. Flores, Drawing (10,000.-)
TOTAL CAPITAL P 565,000.-
Add : NET INCOME 214,623.33
ENDING CAPITAL AS OF JUNE 30, 2020 P 779,623.33
 Flores Computer Shop
Statement of Financial Position
June 30, 2020
ASSETS LIABILITES
RENT ASSETS Current Liabilites
Cash P 468,190.- Account Payable
Account Receivable 249,500.- Note Payable
Prepaid Rent 30,000.- Interest Payable
Prepaid Advertising 5,000.- TOTAL CURRENT LIABILITIES
Office Supplies 2,150.- Add : Non - Current Liabilities
Office Equipment P 123,000.- Loans Payable - Bank
Accumulated Depreciation - O (2,050.-) 120,950.- TOTAL LIABILITIES
OTAL CURRENT ASSETS P 875,790
Non-Current Assets CAPITAL
Vehicle 850,000.-
Furnitures and Fixtures 40,000.- Mr. Flores, Capital
TOTAL ASSETS P 1,765,790.00 TOTAL LIABILITIES AND CAPITAL
 P 768,000.-
18,000.-
166.67
P 786,166.67

200,000.-
P 986,166.67

779,623.33
P 1,765,790.00
 GENERAL JOURNAL
Date Particulars and Explanation

2020
June 30 Service Income
Income Summary
To close income account.

30 Income Summary
Taxes and Licenses
Salaries Expense
Office Supplies Expense
Depreciation Expense- Office Equipment
Rent Expense
Advertising Expense
Interest Expense
To close expense account.

30 Mr. Flores, Capital

Mr. Flores, Drawing
To close drawing account.

30 Income Summary
Mr. Flores, Capital
To close net income of the period.
 GENERAL JOURNAL
lars and Explanation Debit Credit

401 P 277, 200.-

y 607 P 277,200.-
se income account.

608 62,576.67
ses 607 1,260.-
e 601 12,000.-
Expense 602 27,100.-
pense- Office Equipment 605 2,050.-
603 15,000.-
nse 604 5,000.-
606 166.67
se expense account.

301 10,000.-
ing 302 10,000.-
se drawing account.

607 214,623.33
al 301 214,623.33
et income of the period.
 Cash Vehicle
Dr Cr Dr
2020 June (1) P 500,000.- 2020 June (1) P 1,260.- 2020 June (30) P 850,000.-
(5) 6,000.- (1) 45,000.-
(10) 9,200.- (1) 11,250.-
(11) 12,500.- (1) 10,000.-
(25) 200,000.- (15) 12,000.- Furnitures and Fixtures
P 727, 700.- (27) 10,000.- Dr
(259,510.-) (30) 170,000.- 2020 June (5) P 42,650.-
P 468, 190.- P 259,210.- P 42,650.-
(2,650.-)
P 40,000.-

Account Receivable
Dr Cr
2020 June (1) P 222,000.- 2020 June (5) P 6,000.- Account Payable
(30) 46,000.- (11) 12,500.- Dr
P 268,000.- P 18,500.- 2020 June (6) P 2,650.-
(18,500.-) P 2,650.-
P 249,500.-

Prepaid Rent
Dr Cr
2020 June (1) P 45,000.- 2020 June (30) P 15,000.-
P 45,000.- Loans Payable - Bank
(15,000.-) Dr
P 30,000.-

Prepaid Advertising
Dr Cr Note Payable
2020 June (1) 10,000.- 2020 June (30) P 5,000.- Dr
P 10,000.-
(5,000.-)
P 5,000.-

Interest Payable
Office Supplies Dr
Dr Cr
2020 June (1) P 11,250.- 2020 June (30) P 21,700.-
 (30) 18,000.-
P 29,250.-
(21,700.-) Mr. Flores, Capital
P 2,150.00 Dr
2020 June (30) P 10,000.-
Office Equipment P 10,000.-
Dr Cr
2020 June (1) P 48,000.-
(7) 75,000.-
P 123,000.-

Mr. Flores, Drawing

Dr
2020 June (27) P 10,000.-

0
 Vehicle Service Income
Cr Dr Cr
2020 June (30) P 277,200.- 2020 June (1) P 222,000.-
(10) 9,200.-
(30) 46,000.-
P 277,200.- P 277,200.-
Furnitures and Fixtures 0
Cr
2020 June (6) P 2,650.- Taxes and Licenses
P 2,650.- Dr Cr
2020 June (1) 1,260.- 2020 June (30) 1,260.-

Salaries Expense
Account Payable Dr Cr
Cr 2020 June (15) P 12,000.- 2020 June (30) P 12,000.-
2020 June (1) P 48,000.-
(5) 42,650.- 0
(30) 680,000.-
P 770,650.-
(2650.-) Office Supplies Expense
P 768,000.- Dr Cr
2020 June (30) P 21,700.- 2020 June (30) P 21,700.-

Loans Payable - Bank 0

Cr
2020 June (25) P 200,000.- Depreciation Expense - O.E
Dr Cr
2020 June (30) P 2,050.- 2020 June (30) P 2,050.-

Note Payable 0
Cr
2020 June (30) P 18,000.- Accumulated Depreciation - O.E
Dr Cr
2020 June (30) P 2,050.- 2020 June (30) P 2,050.-

Interest Payable 0
Cr
2020 June (30) P 166.67
Rent Expense
 Dr Cr
2020 June (30) P 15,000.- 2020 June (30) P 15,000.-
Mr. Flores, Capital
Cr 0
2020 June (1) P 500,000.-
(7) 75,000.- Advertising Expense
(30) 214623.33 Dr Cr
P 789,623.33 2020 June (30) P 5,000.- 2020 June (30) P 5,000.-
(10,000.-)
P 779,623.33 0

Mr. Flores, Drawing

Cr
2020 June (30) P 10,000.-
 Interest Expense
Dr Cr
2020 June (30) P 166.67 2020 June (30) P 166.67

Income Summary
Dr Cr
2020 June (30) P 59,910.- 2020 June (30) P 277,200.-
(30) 217,290.-
P 277,200.- P 277,200.-
 Flores Computer Shop
Post-Closing Trial Balance
Junec30,2020
Account TItles PR Debit
Cash 101 P 468,190.-
Account Receivable 102 249,500.-
Prepaid Rent 105 30,000.-
Prepaid Advertising 104 5,000.-
Office Supplies 103 2,150.-
Office Equipment 106 123,000.-
Accumulated Depreciation - Office Equipment 107
Vehicle 109 850,000.-
Furnitures and Fixtures 108 40,000.-
Account Payable 201
Note Payable 202
Loans Payable - Bank 204
Interest Payable 203
Mr. Flores, Capital 301
P 1,767,840.00
 Credit

2,050.-

P 768,000.-
18,000.-
200,000.-
166.67
779,623.33
P 1,767,840.00