Republic of the Philippines

City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

Problem 2-14 (Journalizing, Posting and Preparing a Trial Balance)

Jose Reyes owns the Bonifacio High Jumpers, a collegiate basketball team in the Phil-Am Basketball
Association. Presented below is the Nov 30, 2020 trial balance representing activities from Jan 1, 2020
to November 30, 2020:
Bonifacio High Jumpers
Trial Balance
Nov 30, 2020

Account Titles Debit Credit

Cash 1,129,800
Accounts Receivable 3,712,500
Uniform Supplies 31,050
Prepaid Insurance -0-
Land 2,025,000
Training Facilities 12,750,000
Training Equipment 2,625,000
Player Contracts 11,250,000
Notes Payable 1,800,000
Accounts Payable 4,725,000
Mortgage Payable 10,500,000
Reyes, Capital 17,643,750
Reyes, Withdrawals 1,875,000
Game Attendance Revenues 10,125,000
Salaries Expense 4,875,000
Advertising Expense 400,950
Travel Expense 1,532,400
Laundry Expense 528,000
Medical Expense 194,550
Utilities Expense 1,734,000
Miscellaneous Expense 130,500
Totals 44,793,750 44,793,750

During the month of December 2020, the Jumpers were participating in the 2020 playoffs and the
following transactions took place:

Dec 1 Acquired the contract of Agustin Tiongco from the Negros Navigators for P 1,875,000;
paying P 225,000 in cash and financing the P 1,650,000 by issuing a note payable.
2 Collected P 2,809,500 on accounts receivable from season-ticket holders.
3 Settled accounts payable, P 1,657,500.
4 Paid for TV advertising, P 78,600.
5 Acquired on account additional uniforms for the upcoming series with the San Alcantara

Fundamentals of Accounting I
NOT FOR SALE EXCLUSIVE FOR GORDON COLLEGE ONLY
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

Padres, P 30,750.
9 Billed season-ticket holders for the last five games, P 320,250.
10 Paid the amount due on this date for the note payable, P 600,000.
11 Acquired insurance for the months of December to June, P 215,250. Record as prepaid
insurance.
12 Acquired additional training equipment on account, P 319,500.
15 Paid players' salaries, P 1,136,250.
17 Received P 3,316,050 cash for tickets to playoff games.
19 Paid travel expenses to San Alcantara, P 558,000.
20 Paid laundry expenses, P 12,600.
23 Paid creditors, P 941,850.
25 Paid miscellaneous expenses. P 26,850.
26 Paid medical expenses, P 18,900.
27 Paid utilities expenses, P 210,450.
28 Paid players' salaries, P 1,240,650.
30 Jose Reyes withdrew P 250,000.
Required:
1. Prepare journal entries for the December transactions.
2. Post the entries in the ledger using T-accounts
3. Prepare a trial balance as at Dec 31, 2020.

Fundamentals of Accounting I
NOT FOR SALE EXCLUSIVE FOR GORDON COLLEGE ONLY