MIDTERM EXAMINATION

AE 13: FINANCIAL ACCOUNTING AND REPORTING (BASIC)

PART 1: JOURNALIZING TRANSACTIONS (NON LENS)

November 4, 2021, 1:00 – 2:00 PM

After several years with a large accounting firm, Glenn Hufancia decided to establish his own accounting
practice. The following transactions of Glenn Hufancia, CPA, were completed during October 2021:

Oct. 2 Transferred P500,000 cash from a personal savings account to a checking account, Glen
Hufancia Accounting Services.
3 Acquired office equipment on account from Vega Furniture, P36,800.
4 Acquired office supplies on account from RDV Office Supply, P17,100.
6 Performed accounting services for RL Computers and submitted a bill of P29,200 for those
services.
7 Paid for accounting and tax books for use in the practice, P19,500.
8 Paid RDV Supply, P4,100 on account.
10 Acquired a condominium unit for the office in the accounting practice, P265,000. A down
payment of P38,000 was made and issued a note payable for the remaining P227,000.
12 Hired one accounting assistant with a salary of P12,000
13 Received P9,750 from RL Computers, billed on October 6.
15 Paid salaries, P14,200.
16 Paid telephone expense, P650.
19 Received cash in the amount of P14,600 from Z. Millan Books for accounting services rendered
for the month.
22 Acquired office supplies on account from RDV Office Supply, P4,650.
23 Withdrew P10,000 for personal use.
25 Billed Alcantara Builders P31,600 for accounting services rendered.
27 Paid PICPA-Cagayan P5,500 for professional dues.
28 Paid P3,250 rent on an office-copying machine.
29 Paid the amount due to RDV Office Supply in full.
30 Paid salaries, P25,000.

Required:

Prepare the journal entries for the October transactions using the following accounts: Cash (110);
Accounts Receivable (120); Office Supplies (130); Office Condominium (140); Office Equipment (150);
Accounting Library (160); Notes Payable (210); Accounts Payable (220); Hufancia, Capital (310); Hufancia,
Withdrawals (320); Accounting Revenues (410); Salaries Expense (510); Rent Expense (520); Telephone
Expense (530) and Professional Dues Expense (540).

Use this template: (Provide also a brief explanation)

Date Account Titles and Explanation P.R. Debit Credit

After you done with the problem, capture your answers with your name and signature on it and send via
private message in my messenger.

Don’t stop when you are TIRED, stop when you are DONE.

Good luck to all of you taking this exam. Try your best and remember there are ways to be successful in
life without cheating just for an amazing grade. Be honest!

PREPARED BY:

REY D. VILORIA, CPA, MBA

FAR Instructor