Journal Entry

Date Particulars Ref. Debit Credit

Jan. Cash P200,000
6 Kan, Capital P200,000
(To record initial investment)
7 Office Equipment 33,000
Accounts Payable 33,000
(To record purchase of office equipment on account)
9 Supplies 19,500
Cash 19,500
(To record purchase of supplies)
13 Prepaid Insurance 12,000
Cash 12,000
(To record payment of 1 year insurance)
15 Accounts Receivable 50,000
Service Revenue 50,000
(To record an invoice issued to a costumer)
16 Cash 40,000
Accounts Receivable 40,000
(To record collections received from costumers on
account)
20 Accounts Payable 20,000
Cash 20,000
(To record partial settlement of account)
22 Accounts Receivable 30,000
Service Revenue 30,000
(To record a customer billed for services rendered on
account)
23 Cash 15,000
Loans Payable 15,000
(To record cash borrowed from a bank)
31 Salaries Expense 16,000
Cash 16,000
(To record payment of employees’ salary)
Kan, Drawing 11,000
Cash 11,000
(To record cash withdrawal made by the owner)
Utilities Expense 2,500
Cash 2,500
(To record payment of telephone’s bill)
Supplies Expense 12,000
Supplies 12,000
(To record remaining supplies on hand)

GENERAL LEDGER
 ACCOUNT TITLE: CASH ACCOUNT CODE: 101

Date Explanation Ref. Debit Credit Balance

Jan. 6 To record initial investment J-1 P200,000 P200,000
9 To record purchase of supplies J-1 P19,500 180,500
13 To record payment of 1 year insurance J-1 12,000 168,500
16 To record collections received from costumers on J-1 40,000 208,500
account
20 To record partial settlement of account J-1 20,000 188,500
23 To record cash borrowed from a bank J-1 15,000 203,500
31 To record payment of employees’ salaries J-1 16,000 187,500
31 To record cash withdrawal made by the owner J-1 11,000 176,500
31 To record payment of telephone’s bill J-1 2,500 174,000
GRAND TOTAL: P174,000
ACCOUNT TITLE: ACCOUNTS RECEIVABLE ACCOUNT CODE: 111

Date Explanation Ref. Debit Credit Balance

15 To record an invoice issued to a customer J-1 50,000 50,000
16 To record collections received from costumers on 40,000 10,000
account
22 To record a customer billed for services rendered on J-1 30,000 40,000
account
GRANDTOTAL: P40,000

ACCOUNT TITLE: SUPPLIES ACCOUNT CODE: 121

Date Explanation Ref. Debit Credit Balance

9 To record purchase of supplies J-1 19,500 19,500
31 To record remaining supplies on hand J-1 12,000 7,500
GRAND TOTAL:P7,500

ACCOUNT TITLE: PREPAID INSURANCE ACCOUNT CODE: 131

Date Explanation Ref. Debit Credit Balance

13 To record payment of 1 year insurance J-1 12,000 12,000
GRAND TOTAL:P12,000

ACCOUNT TITLE: OFFICE EQUIPMENT ACCOUNT CODE: 151

Date Explanation Ref. Debit Credit Balance

7 To record purchase of equipment on account J-1 33,000 33,000
GRAND TOTAL:P33,000

ACCOUNT TITLE: ACCOUNTS PAYABLE ACCOUNT CODE: 201

Date Explanation Ref. Debit Credit Balance

7 To record purchase of office equipment on account 33,000 33,000
20 To record partial settlement of account J-1 20,000 13,000
GRAND TOTAL: 13,000
ACCOUNT TITLE: LOANS PAYABLE ACCOUNT CODE: 211

Date Explanation Ref. Debit Credit Balance

23 To record cash borrowed from a bank J-1 15,000 15,000
GRAND TOTAL:P15,000
ACCOUNT TITLE: KAN, CAPITAL ACCOUNT CODE: 301

Date Explanation Ref. Debit Credit Balance

6 To record initial investment made by the owner J-1 200,000 200,000

GRAND TOTAL:P200,000
ACCOUNT TITLE:KAN, DRAWING ACCOUNT CODE:311

Date Explanation Ref. Debit Credit Balance

31 To record cash withdrawal made by the owner J-1 11,000 11,000
GRAND TOTAL:P11,000
ACCOUNT TITLE: SERVICE REVENUE ACCOUNT CODE:401

Date Explanation Ref. Debit Credit Balance

15 To record an invoice issued to a customer J-1 50,000 50,000
22 To record collections received from customers on J-1 30,000 80,000
account
GRAND TOTAL:P80,000
ACCOUNT TITLE: SALARIES EXPENSE ACCOUNT CODE: 501

Date Explanation Ref. Debit Credit Balance

31 To record payment of employees’ salaries J-1 16,000 16,000
GRAND TOTAL:P16,000
ACCOUNT TITLE: SUPPLIES EXPENSE ACCOUNT CODE: 511
Date Explanation Ref. Debit Credit Balance
31 To record remaining supplies on hand J-1 12,000 12,000
GRAND TOTAL:P12,000
ACCOUNT TITLE: UTILITIES EXPENSE ACCOUNT CODE: 512

Date Explanation Ref. Debit Credit Balance

31 To record payment of telephone’s bill J-1 2,500 2,500
GRAND TOTAL:P2,500

KAN’S TAXES AND ACCOUNTING SERVICES

UNADJUSTED TRIAL BALANCE
JANUARY 30,2020
Account Titles Debit Credit
Cash 174,000
Accounts Receivable 40,000
Supplies 7,500
Prepaid Insurance 12,000
Office Equipment 33,000
Accounts Payable 13,000
Loans Payable 15,000
Kan, Capital 200,000
Kan, Drawing 11,000
Service Revenue 80,000
Salaries Expense 16,000
Supplies Expense 12,000
Utilities Expense 2,500
TOTAL 308,000 308,000

ADJUSTING ENTRIES
 a. DEPRECIATION OF OFFICE EQUIPMENT, P500
DEPRECIATION EXPENSE Account Code: 152
Date Debit Credit Amount Amount
1/7/20 Depreciation Expense P500
Accumulated P500
Depreciation-Office
Equipment

INSURANCE EXPENSE Account Code: 513

Date Debit Credit Amount Amount
Insurance Expense P1,000
Prepaid Insurance P1,000