Problem 1

Dina Tetepok established a funeral home business in November 2020. At the beginning of the month
Dina invested Cash, Land and Building amounting to P 500,000, P 1,000,000 and P 700,000 respectively.

The following are her transaction for the month of November:

November 1 – Purchased funeral supplies for cash P 10,000
- Purchased funeral equipment from Casper amounting to P80,000 and promise to pay in
full after 30 days
2 – Rendered funeral services for cash P 50,000
3 – Paid rent for the month of November and 2 months’ advance rent amounting to P 15,000
4 - Paid Ghost Graphics for advertising, P 4,280
5 – Bought a filing cabinet on account from Bangky General Merchandise P 10,000
6 – Paid cash for chairs purchased last month P 7,500
7 – Paid Telephone bill for the month P 1,500
8 – Rendered funeral services to Grim P 100,000 and received an 18-day, 10% note.
9 – Tetepok withdrew cash for personal use P 5,000
12 – Paid 40% of the amount due to Casper
15 – Paid P 200,000 cash (net of 4% SSS contributions, 3% Pag-Ibig Contributions,2% Philhealth
Contributions and 1% Withholding tax)
18 – Received cash from Covida for funeral services to be rendered in the future P 30,000
19 – Paid the embalmer P 1,000 salary advance.
23 – Paid in full the amount due to Casper
24 – Rendered funeral services to customer P 90,000 by receiving P 40,000 cash and the
balance on account.
26 – Collected in full the note due from Grim
28 – Received P 10,000 from customers on account
29 – Rendered the funeral services to Covida P 30,000
30 – Paid salaries of employees, amounting to P 20,000 less 3% withholding tax, P 1,000 salary
advance

Required: Prepare Journal Entries

Problem 2

Money Pakyaw, tired of boxing, decided to engage in business in January 2020. Pakyaw established
Laban Na To Bombers a professional basketball team in the PBA. Presented below is the November
30,2020 trial balance representing activities from January 1,2020 to November 30, 2020, together with
the account number and titles:

Laban Na To Bombers
Trial Balance
November 30, 2020

During the month of December 2020, the Bombers were participating in the 2020 Bubble Playoffs and
the following transaction took place:

December 1 – Acquired the contract of Gerald Baretto from the General Santos Playboys for P
1,875,000; paying P 225,000 cash and financing the P 1,650,000 by issuing a 18%, 20-day note.
December 2 – Collected P 100,000 from customers on account
December 3 –Settled P 200,000 to creditors on account
December 4 – Paid TV advertising P 78,600
December 5 - Acquired on account additional uniforms for the upcoming series with San Alcantara
Padres P 30,750
December 9 –Billed season-ticket holders for the last five games, P 300,000
December 10 – Purchased balloons for in game decorations P 8,000
- Paid the promissory note, due on this date, issued last November 21 plus 12% interest
December 11 – Paid electric bill for the month P 1,000
December 12 – Acquired additional training equipment on account, P 319,500
December 15 – Paid players’ salaries, P 300,000
December 17 – Deposited P 500,000 cash, received from customers, to the business’ bank account
December 19 –Paid travel expenses P 15,000
December 20 – Paid Laundry Expense P 25,000
December 21 – Paid the note issued in December 1
December 23 – Paid Medical Expenses P 18,900
December 24 – Received a bill for internet expense P 10,000
December 25 – Pakyaw withdrew P 50,000 cash for personal use
December 26 – Collected P 300,000 from billed debtors
December 28 – Paid players’ salaries P 200,000
December 30 – Paid 10 % of the balance of Mortgage.

Required:
1. Prepare Journal Entries
2. Prepare Ledger
3. Prepare Trial Balance