Cordillera Career Development College

Buyagan, Poblacion, La Trinidad, Benguet

Tel. No.: (074) 422-2221/Email: ccdc@ccdc.edu.ph
COLLEGE OF ACCOUNTANCY

Bookkeeping 8
Practice Set 1

After several months of planning, Yenyen Kantis started a salon business in the City of
Baguio called Friend Salon. The following events occurred during its first month of
operation.

a. On August 1, Y. Kantis invested P30,000 cash and P150,000 of equipment in Friend

Salon.
b. On August 2, Friend Salon paid P6,000 cash for furniture for the salon.
c. On August 3, Friend Salon paid P5,000 cash to rent space in a strip mall for august.
d. On August 4, it purchased P12,000 of equipment on credit for the shop using long-term
note payable.
e. On August 5, Friend Salon opened for business. Cash received from services provided
in the first week and a half of business (ended August 15) is P8,250.
f. On August 15, it provided P1,000 of salon services on account.
g. On August 17, it received a PP1,000 check for services previously rendered on account.
h. On August 17, it paid P1,250 to an assistant for working during the grand opening.
i. Cash received from services provided during the second half of August is P9,300.
j. On August 31, it paid a P4,000 installment toward principal on the note payable entered
into on August 4.
k. On August 31, it paid P9,000 cash withdrawal of Y. Kantis.

Required:
1. Open the following ledger accounts in balance column format (account numbers are
in parentheses):
Cash (101) Salon Services Revenue (403)
Accounts Receivable (102) Wages Expense (623)
Furniture (161) Rent Expense(640)
Store Equipment (165) Y. Kantis, Capital (307)
Note Payable (240) Y. Kantis, Drawings (319)

Prepare general journal entries for the transactions.

 Cordillera Career Development College
Buyagan, Poblacion, La Trinidad, Benguet
Tel. No.: (074) 422-2221/Email: ccdc@ccdc.edu.ph
COLLEGE OF ACCOUNTANCY

2. Post the journal entries from (1) to the ledger accounts.

3. Prepare a trial balance as of August 31.
4. Prepare an Income Statement for August.
5. Prepare a Statement of Owner’s Equity.
6. Prepare a Statement of Financial Position as of August 31.