1 1

CHAPTER 9 ACTIVITIES
PROBLEMS 7

Name: Hawili, Jamaicka Section: BSA – 1112

SR Code: 21-50397 Score:

PROBLEM 7
1 2

Requirement (a): Provide the journal entries.

1 Cash ₱1,000,000
Owner’s Equity ₱1,000,000
to record owner's investment to the business

2 Computer Equipment ₱700,000

Cash ₱700,000
to record the purchase equipment

3 Dr. Business Permit and other Licenses (Expense) ₱200,000

Cash ₱200,000
to record the purchase equipment

4 Insurance Expense ₱42,00

Cash ₱42,000

5 Accounts Recievable ₱3,200,000

Service Fee ₱ 3,200,000
to record service fees on account

6 Utilities Expense ₱420,000

Cash ₱420,000
to record utilities expense

7 Salaries Expense ₱2,400,000

Cash ₱2,400,000
to record salaries expense

8 Cash ₱2,900,000
Accounts Recievable ₱2,900,000
to record the collection of accounts recievable
1 3

Requirement (b): Post the entries to the ledger.

ASSETS
Cash Accounts Receivables
1 ₱1,000,000 5 ₱3,200,000
8 ₱2,900,000
₱700,000 2 ₱2,900,000 8
₱200,000 3
₱42,000 4
₱420,000 6
2,400,000 7

Bal. ₱138,000 Bal. ₱300,000

Prepaid Supplies ComputerEquipment

4 ₱80,000 2 ₱700,000

Bal ₱80,000 Bal ₱700,000

INCOME EQUITY

Service Fees Owner’s Equity

₱3,200,000 5 ₱1,000,000 1

₱3,200,000 Bal. ₱1,000,000 Bal.

EXPENSES
Taxes and Licences
3 ₱200,000

Bal. ₱200,000

Insurance Expense Utilities Expense

4 ₱42,000 ₱420,000 6

Bal. ₱42,000 ₱420,000 Bal.

Salaries Expense

7 P 2,400,000

Bal. ₱ 2, 400,000
1 4

Requirement (c): Prepare the unadjusted trial balance

Wellness Massage
Unadjusted Trial Balance
December 31,20x1

Accounts Debit Credit

Cash ₱138,000
Accounts Receivable ₱300,000
Computer Equipment ₱700,000
Owner’s Equity ₱ 1,000,000
Service Fees ₱ 3,200,000
Taxes and Licenses ₱200,000
Insurance Expense ₱42,000
Utilities Expense ₱420,000
Salaries Expense ₱2,400,000

Totals ₱4,200,000 ₱ 4,200,000

 Page 5

Requirement (e): Complete the worksheet up to post-closing trial balance.

 Page 6

Requirement (f): Prepare the closing entries.