I.

The following are selected transactions of the “Perfect Designs”, a business owned by Architect Rene Bautista:
1. Investment by Architect Rene Bautista of P15,000 to the business.
2. Received P5,000 for services rendered to a client.
3. Billed a client, P8,000 for an architectural design made by Architect Bautista.
4. Collected P6,000 from the client in #3.
5. Bought drawing paper, ink and other office supplies, P600.
6. Paid taxes and licenses, P400.
7. Bought a drawing table on account, P10,000. Issued a note therefore.
8. Paid ½ of the note in #7.
9. The client in #3 settled his balance by issuing a note for P2,000.
10. Architect Bautista withdrew P2,500 for his personal use.

Required: Journalize the selected transactions of “Perfect Designs”. Use the following account titles:

Cash
Accounts Receivable
Notes Receivable
Office Furniture and Equipment
Accounts Payable
Notes Payable
R. Bautista, Capital
R. Bautista, Drawing
Professional Income
Office Supplies Expense
Taxes and Licenses

II. The following are selected transactions and events of Pines Theatre, a business owned by Mr. Jaime Demetrio:

A. Investment made by Mr. Jaime Demetrio to the business:

Cash of P 1,500,000
Movie equipment valued at 1,200,000
Office equipment valued at 18,000
Office furnitures valued at 20,000

(Note: An unpaid balance of P300,000 to the supplier of the movie equipment was assumed by the
business. A note for the obligation was previously issued by Mr. Demetrio to the supplier.)

B. Paid the following to the lessor of the movie house: Rent for the current month, P 150,000. Rent deposit
which is refundable to Mr. Demetrio after the end of the lease period of 5 years. P900,000.
C. Paid municipal and BIR for taxes and business permits, P12,300.
D. Cash receipts from the moviegoers, P130,500.
E. Paid the following percentage taxes in relation to the cash receipts:
Municipal P 2,175
BIR 2,610

F. Paid a movie booking company for the rent of the movies exhibited by Pines Theatre, P97,000.
G. Paid electric bills, P15,650.
H. Paid salaries of personnel:
Total salaries P 13,000
 SSS withheld from salaries (915)
Income taxes withheld from salaries (620)
Net cash paid to the personnel P 11,465

I. Mr. Demetrio withdrew P200,000 cash as a personal loan from Pines Theatre; payable after 2 months to
the business.
J. Paid ½ of the note to the supplier of the movie equipment.
K. Mr. Demetrio withdrew P20,000 for his personal use.

Required: Journalize the above transactions using the following account titles.
Cash
Loan Receivable – Officer
Theatre Rent Deposit
Movie Equipment
Office Equipment
Office Furnitures
Accounts Payable
Notes Payable
SSS Payable
Income Taxes Withheld Payable
J. Demetrio, Capital
J. Demetrio, Drawings
Theater Fees Income
Rent Expense – Theatre
Taxes and Licenses
Rent Expense – Movie Bookings
Salaries Expense
Electricity Expense

III. The following are selected transactions of the A. David Auto Repair Shop for the current year:
Jan 5 Mr. Arnold David, the owner invested the following in the business:
Cash P 100,000
Repair equipment valued at 80,000
Jan 31 Opened a checking account with PNB. The initial deposit was P95,000.
Feb 14 Bought a set of computers and other office equipment, P30,000. Issued a check for the purchase.
Feb 20 Bought additional repair equipment on account, P15,000.
Mar 01 Paid ½ of the account to the supplier of the repair equipment in Feb 20. Issued a check for the
payment.
Mar 25 Bought repair supplies, P1,300.50. Cash on hand was used for the payment.
Mar 31 Billed a client for repair services rendered, P20,000.
Apr 01 Cash receipts for repair services rendered, P8,000. The collection was immediately deposited to PNB.
Apr 15 Collected P 1,500 of the billing to the client on Mar 31. (The cash collection was not deposited to
PNB).
Apr 30 Cash receipts for repair services rendered, P6,000. (P5,000 of the collection was immediately
deposited to the bank, while the balance was left on hand.)

Required: Journalize and post the selected transactions of the A. David Auto Repair Shop.
IV. The following are the transactions and events of the “Pasetes Law Office”, a law firm owned by Atty. Lou
Pasetes, for its first month of operation in April 2022.

Apr 1. Investments made by Atty. Lou Pasetes to his law firm:

Cash P 100,000
Office Furniture 15,000
Office Equipment 10,000
Total P 125,000

Paid the lessor of the office space, P15,000; representing a rent deposit of P10,000 and P5,000 rent for the
month.
Apr 2. Paid P1,200 for business taxes and licenses.
Apr 3. Opened a checking account with the PNB, P30,000. PNB issued a checkbook to the law firm and
charged the business P 50 therefore. (The P50 was deducted by PNB from the initial deposit of the firm).
Apr 5. Bought an set of computer for P18,000. A check was issued for the purchase.
Apr 8. Bought office supplies for P250. Cash was from cash on hand.
Apr 10. Billed Mr. Rene Bautista, a client, for services rendered to him, P10,000.
Apr 11. Cash advance made by the secretary – P 500. Cash was from cash on hand.
Apr 12. Collected in full the account of Mr. Bautista. The collection was immediately deposited to PNB.
Apr 14. Billed Tiongsan Bazar, a client for services rendered, P25,000.
Apr 15 Paid the salary of the office secretary:
Gross salary P 6,750
Less: SSS withheld from salary (90)
Withholding tax (55)
Advances (500)
Total P 6,105
Apr 18. Paid for the repairs of P150. Cash paid was from cash on hand.
Apr 21. Collected the account Tiongsan Bazar as follows:
Cash P 15,000
Promissory note 10,000
Total P 25,000

(The cash collection was not deposited to the bank.)

Atty. Lou Pasetes withdrew from cash on hand P 10,000 for his personal use.
Apr 24. Paid electric bills thru a check, P450.
Apr 26. Bought tables and chairs on account, P7,500. Issued a promissory note therefore.
Apr 28. Collected ½ of the promissory note of Tiongsan Bazar. The collection was deposited to PNB.
Apr. 30 Paid the following from cash on hand:
Newspapers and magazines for the month P 90
Office supplies bought 100
Transportation & other miscellaneous expenses 236
Total P 426

Paid the following through checks:

Telephone bills P 524
Net salary of the office secretary;
computation is the same as the salary on the 15 th
April (except cash advance which had been collected
earlier) 6,105
 Total P 6,629
Required: On the general journal sheets, journalize the transactions and events of the Pasetes law Office. Use
the following chart of accounts
Cash on Hand
Cash in Bank
Accounts Receivable
Notes Receivable
Advances-Employees
Rent Deposit
Office Furnitures
Office Equipment
Accounts Payable
Notes Payable
SSS Payable
Withholding Taxes Payable
Atty. Lou Pasetes, Capital
Atty. Lou Pasetes, Drawing
Professional Fees Income
Rent Expense
Taxes and Licenses
Bank charges
Office Supplies Expense
Salaries Expense
Repairs and Maintenance
Water and Electricity Expense
Newspaper/Magazine Expense
Telephone Expense
Miscellaneous Expense

V. Ms. Evelyn Pineda, a new management major graduate decided to put a laundry business which she called
“Super Clean Laundry”. The following were the transactions and events of the business for the month of June.
2022.

1 Investment to the business made by Ms. Pineda: Cash P 30,000; Washing machine valued at P 30,000;
Other laundry equipment valued at P 12,000.

Paid rent for the laundry shop for the month, P 10,000.
2 Bought powder soap and other laundry supplies, P4,600.
3 Paid taxes and licenses, P2,960.
Paid for printing costs of business invoices; P2,000.
Bought columnar books and a general ledger, P322.50.
5 Cash receipts for laundry services, P 3,200.
8 Cash receipts for laundry services, P 5,800.
Bought laundry supplies on account from Benguet Trading, P 7,500.
Bought powder soap and other laundry supplies, P4,200.
Billed Mr. and Mrs. Shilah Soriano for laundry services rendered, P 1,250.
13 Billed Belfrant Hotel for the laundry services rendered, P 6,500.
14 Billed Mount Crest Hotel for services rendered, P 11,000.
15 Billed Mr. and Mrs. Roselyn Pulmano for laundry services rendered, P350.
 16 Collected the billing to Mr. And Mrs. Shilah Soriano.
Paid ½ of the account to Benguet Trading.
17 Collected the account of Mount Crest Hotel.
20 Collected ½ of the blling to Belfrant Hotel.
21 Cash receipts for laundry services, P8,500.
22 Billed Mr. and Mrs. Roselyn Pulmano for laundry services rendered, P 195.
23 Collected the billing on the 15 th from Mr. and Mrs Roselyn Pulmano.
24 Cash receipts for laundry services, P 4,605.
27 Paid P200 for the repair of a washing machine.
29 Paid electric bills for the month, P 2,354.80.
30 Paid water bills for the month, P 3,386.35.
Collected the billing on the 22 nd from Mr. and Mrs. Roselyn Pulmano.
Ms. Pineda withdrew P 1,500 for her personal use.
Paid salaries of workers, P6,000.

Required: Journalize the transactions and events of the Super Clean Laundry for the month of June. The
following is the chart of accounts being used by the business:
Cash
Accounts Receivable – Mt. Crest Hotel
Accounts Receivable – Mr. and Mrs. Soriano
Accounts Receivable – Mt. Belfrant Hotel
Accounts Receivable – Mr. and Mrs. Pulmano
Laundry Equipment
Account Payable – Benguet Trading
E. Pineda, Capital
E. Pineda, Personal
Laundry Income
Rent Expense
Laundry Supplies Expense
Office Supplies Expense
Repairs Expense
Electricity Expense
Water Expense
Taxes and Licenses
Salaries Expense
Miscellaneous Expense

VI. Ms. Judy Adina, a graduate of BS Psychology opened the RAINBOWS KIDDIE CENTER, a day care/nursery on
September 5, 2022. The following were the transactions and events of the business for the month of
September.

1 Investment of Ms. Adina: Cash P 350,000; Office equipment P 150,000.

(Note: There is an unpaid balance of P 5,000 to a supplier of an office equipment. The business
assumed the obligation.)
Paid rent of the facilities of the Rainbow Kiddie Center as follows:
P 50,000 – rent for the month of September
100,000 – 2 months deposit
Bought office supplies, P 6,660.80
Paid taxes and licenses:
 BIR – P 500
Municipal – P 3,000
2 Paid P 3,500 for advertisements.
3 Bought nursery supplies, P 8,500.75.
Bought tables and chairs to be used by the children, P25,600.
Bought on account tables and chairs to be used in the account office, P8,000.
4 Paid repairs for the facilities, P 4,700.
13 Collections from services, P 6,000.
15 Paid salaries of nursery teachers, P 4,000.
Paid salary of helper, P2,500.
16 Paid ½ of the account to the supplier of tables and chairs, P 4,000.
17 Billed parents of kids for services rendered, P 11,600.
28 Collected P 10,000 from the billing on the 17 th.
29 Paid electric and water bills for the months, P 8,700.60.
30 Paid salaries:
Total salaries P 6,250
SSS premiums withheld (266)
Income taxes withheld (180)
Net pay P 5,804

Set up of SSS employer’s share in the books, P276.

Required: Journalize the transactions and events of the RAINBOWS KIDDIE CENTER. Use the following chart
of accounts:
Cash
Accounts Receivable
Office Equipment
Office Furnitures
Rent Deposit
Nursery Furnitures and Equipment
Accounts Payable
Notes Payable
SSS Payable
Income Taxes Withheld Payable
J. Adina, Capital
J. Adina, Drawings
Nursery Fees income
Rent Expense
Nursery Supplies Expense
Office Supplies Expense
Taxes and Licenses
Advertising Expense
Salaries and Wages Expense
Repairs Expense
Water and Electricity Expense
SSS Expense