IN A NUTSHELL

YOUR TURN
Activity 25. We all know that the purpose of accounting is to provide quantitative information
of the business entity. In gathering this information accounting process follows a sequential
procedures in accumulating this information. In this activity you will demonstrate your
understanding of the accounting cycle by answering a comprehensive problem.

Prepare journal entries with brief explanation to record the following transactions. Use the chart of
account below. In posting follow the general ledger format below. Write your journal entries, trial
balance, Financial statements, closing entries and post closing trial balance in a clean sheet of paper
(preferably journals). Do not forget to post the adjustments and closing entries in the general ledger.
PASS THIS REQUIREMENT THRU E-MAIL. ATTACH YOUR FILE, DO NOT USE PICTURE IT IS VERY DIFFICULT
TO CHECK.

Jay Omotoy opened a plumbing service, Alabang Plumbing. Operations began on April 1, 2019, and the
following transaction were completed during the month.
April 1 – Withdrew P67,000 from a personal savings account and used it to open a new account in the
name of Alabang Plumbing.
April 2 – Acquired a service vehicle costing P81,000. A payment of P17,500 in cash was made and a
noted was issued for the balance of P63,500.
April 3 – Paid rent for the month , P 7,150.
April 6 – Acquired plumbing supplies on account for P15,700.
April 7 – Paid for three months of advertising and use the asset approach in recording the payment
P6,000.
April 8- Cash in the amount of P18,350 was received for plumbing services rendered.
April 9 – Acquired additional plumbing supplies for cash P8,050.
April 11- Paid salaries P11,600
April 15- Rendered plumbing services and billed the customer for P42,200.
April 16- Paid P5,700 of the amount owed from the transaction of April 6.
April 19- Paid miscellaneous expenses, P4,300.
April 20- Collected P21,000 from the customer on April 15 transaction.
April 21- Withdrew P14,500 from the business.
April 22 – Paid the salaries of workers P14,100.
April 24 – Paid the 1st installment of the note payable P3,850.
April 25 – Paid telephone subscription P1,500.
April 27- Billed the Clement Resort for plumbing services rendered P 14,150
April 29 – Received from customer amounting to P50,000 for services to be rendered in the future.

CHART OF ACCOUNT
Cash; Accounts Receivable; Plumbing Supplies; Prepaid Advertising; Service Vehicle; Notes Payable;
Accounts payable; Unearned Plumbing revenues; accrued expenses; Salaries Payable; Omotoy Capital;
Omotoy withdrawals; Plumbing Revenues; Salaries Expense; Rent Expense; Telephone Expense;
Miscellaneous Expense; Light and Power; Depreciation Expense; Advertising Expense

GENERAL LEDGER FORMAT

Date Debit Date Credit
 2019 2019

Total