FUNDAMENTALS OF ABM 1 (FABM 1)

Performance No. 1
Developing a Chart of Accounts

Rodrigo Lucena organized a new business and named it Lucena Business Consultancy. Listed below are the
accounts that will be needed in the ledger.

Consulting Revenue Lucena, Withdrawals

Accounts Receivable Income Summary
Building Office Supplies Expense
Cash Lucena, Capital
Rent Expense Notes Payable
Furniture and Fixtures Prepaid Rent
Land Interest Expense
Miscellaneous Expenses Salaries Expense
Referral Revenues Unearned Consulting Revenue
Accumulated Depreciation – Building Office Supplies
Accumulated Depreciation – F/F Interest Payable]
Depreciation Expense – Building Insurance Expense
Depreciation Expense – F/F Accounts Payable

Required:
Arrange these accounts in the order in which they would appear. Assign each account a number, using a three-
digit numbering scheme: the 100 series for assets, the 200 series for liabilities, etc. Use the second digit to
indicate specific accounts within a major category; for example, Cash would be account number 100.

Please observe the proper standard of accounts based on liquidity.

 FUNDAMENTALS OF ABM 1 (FABM 1)

Performance No. 2
Recording Transactions in General Journal and General Ledger

On May 1, 2021, Mima Villanueva opened Self-Service Laundry. During May, the following transactions were
completed:

a. Villanueva deposited P 250,000 in a bank account in the name of the business.

b. Bought chairs and a table paying cash, P 6,700
c. Bought laundry supplies on account from Salvador Ho Supply Company, P 3,250.
d. Paid rent for the month, P 5,750.
e. Bought washing machines and dryers from Iloilo Equipment Company, P 115,000, paying P 35,000 in
cash and the balance on account.
f. Revenues earned on cash basis for the first half of the month, P 19,250.
g. Bought insurance for one year, P 5,600.
h. Paid accounts to Iloilo Equipment Company, P 7,000.
i. Received and paid electric bill, P 2,080.
j. Revenues earned on cash basis for the second half of the month, P 12,350.
k. Paid salaries of the part-time assistant, P 7,400.
l. Villanueva withdrew cash for personal use, P 5,000.
m. Paid accounts to Salvador Ho Supply Company, P 2,750.
n. Paid the city government for sidewalk repair assessment, P 2,800.

Required:

1. Establish the following ledger accounts: Cash; Accounts Receivable; Prepaid Insurance; Equipment;
Furniture & Fixtures; Accounts Payable; Villanueva, Capital; Villanueva, Withdrawals; Laundry
Revenues; Salaries Expense; Supplies Expense; Rent Expense; Utilities Expense and Miscellaneous
Expense.
2. Record the transactions in the General Journal and post to the General Ledger.
 FUNDAMENTALS OF ABM 1 (FABM 1)
Performance No. 3
Recording Transactions in T-Accounts and Preparing a Trial Balance
Nancy Mulles established the Mulles Data Encoders on March 1, 2022. The following transactions occurred
during the month:

Mar 1 Mulles invested P 157,000 cash to establish the business.

2 Bought office desks and filing cabinet for cash, P 15,150.

4 Mulles invested in the business her personal computer with a fair market value of P 57,500.

7 Bought computer software for use in the business from San Jose Computer Center for P 39,000,
paying P 15,000 down; the balance is due in thirty days.

9 Paid rent for the month, P 5,300.

10 Received cash for services rendered, P 5,160.

13 Ordered panaflex sign for P 9,000 from Royal Bright Enterprises, with P 5,000 as down payment
and the balance due when installed.

16 Received bill for advertising from Buy and Sell Newspaper, P 3,230.

18 Bought print paper and stationery on account, P 2,290.

20 Received and paid electric bill, P 1,240.

23 Paid bills for advertising recorded previously in transaction (March 16)

25 Received cash for services rendered P 10,900.

27 Paid salaries to employees, P 8,400.

30 Mulles withdrew cash for personal use, P 4,500.

Required:

1. Establish the following T-accounts: Cash; Accounts Receivable; Supplies; Office Equipment;
Computer Software; Signage; Accounts Payable; Mulles, Capital; Mulles, Withdrawals; Service
Revenues; Salaries Exepnse; Advertising Expense; Rent Expense; Utilities Expense and
Miscellaneous Expense.
2. Record the transactions directly into the T-accounts.
3. Prepare a Trial Balance.