Journalizing, Posting and Trial Balance

Problem 1
Journalize the following transactions of M. Union Consultancy using the Chart of
Accounts given below:

Cash 101 Mr. M. Union, Capital 301

Accounts Receivable 102 Mr. M. Union, Drawing 302
Notes Receivable 103 Professional Income 401
Office Supplies 104 Salaries Expense 501
Land 105 Rent Expense 502
Building 106 Telephone & Light Expense 503
Office Furn & Fixtures 107 Repair Expense 504
Office Equipment 108 Miscellaneous Expense 505
Accounts Payable 201
Mortgage Payable 202

July
2 Michael Union invested P900,000 cash, and land and building worth P5,000,000 into
his consultancy business. The land has a fair market value of P3,000,000 and is
mortgaged for P 800,000.
3 Paid business permit and licenses P4,500.
4 Purchased office furniture worth P36,000 on account from Slim Furniture.
5 Paid rent for the month, P15,000.
7 Billed customers for services rendered P25,000.
8 Purchased office supplies for cash P4,000.
9 Purchased a computer for P 40,000, paying 50% down.
10 Received cash for services rendered, P7,100.
11 Received P15,000 from customers on account.
14 Paid semi- monthly salaries of employees, P18,200.
15 Billed a customer for services rendered in the amount of
P60,000 as follows: cash payment of P12,000; balance payable on August 15, 2020.
18 The owner withdrew P20,000 for personal use.
19 Paid telephone and light P6,200.
23 Paid P25,000 as monthly amortization on the mortgage.
24 Paid Slim Furniture in full.
28 Received P5,000 from customer on account.
30 Paid salaries for the second half of January, P16,000.

REQUIRED: Prepare journal entries to record the above transactions.

Problem 2
 A Trial Balance had been prepared for MARBLE COMPUTER SERVICE
Co. as of August 31, 2020 (see below):

Debit Credit
Cash ?
Accounts receivable 184,000
Notes receivable 300,000
Office supplies 15,600
Prepaid insurance 26,400
Computer equipment 120,500
Office furniture & equipment 460,000
Accounts payable 101,900
Mr. Marble, capital 1,200,000
Mr. Marble, drawing 40,000
Service income 340,000
Salaries expense 30,000
Rent expense 43,000
Taxes & licenses 8,600
Advertising expense 12,000
Utilities expense 9,400

Transactions for the month of Sept. are given as follows:

Sept.
3 Purchased a new computer worth P50,000 paying 30% down and the balance
payable in two equal monthly installments.
6 Cash collected from customers amounted to P 62,000 for services rendered.
8 Bought supplies worth P12,000 in cash.
9 Billed a customer for graphic design, P32,000.
15 Paid the following: Salaries and wages P17,200
Utilities expense P9,400.
22 Sold a worn-out computer unit (original cost, P30,000) for P20,000.
23 Cash received from customers for services rendered totaled P38,000.
25 Billed a customer P24,000 receiving 50% cash.
29 Paid monthly salaries of employees, P20,000.
30 Mr. Marble withdrew P12,000 for personal use.

REQUIRED:
a. Open T-accounts showing the beginning balances.
b. Journalize the transactions and post to the ledger accounts.
c. Prepare a Trial Balance as of September 30, 2020.