ACCOUNTING 1

ANSWER SHEET MODULE 5 WEEK 5

NAME: Caigoy, Kuen Juniel L. GR.&SEC.: XI – ABM Cojuangco SCORE:
TEACHER: Mrs. Jocelyn Antonio

LET’S RECALL
1. A
2. C
3. B
4. D

LET’S APPLY
1. False
2. True
3. False
4. False
5. False

LET’S ANALYZE
1.
Asset Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Insurance Expense 501 P75 000-
Prepaid Insurance 104 P75 000-
To record the used portion of the
advance payment of insurance
Expense Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Prepaid Insurance 104 P150 000-
Insurance Expense 501 P150 000-
To record the unused portion of the
advance payment of insurance
2.
Liability Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Unearned Rent Income 204 P48 000-
Rent Income 401 P48 000-
To record the earned portion of 9-
month rent in advance
Income Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Rent Income 401 P6 000-
Unearned Rent Income 204 P6 000-
To record the unearned portion of 9-
month rent in advance
3.
Asset Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Supplies Expense 502 P78 000-
Office Supplies 102 P78 000-
To record the used portion of the
office supplies
Expense Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Office Supplies 102 P45 000-
Supplies Expense 502 P45 000-
To record the used portion of the
office supplies
4.
Liability Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Unearned Service Income 205 P90 000-
 Sales 402 P90 000-
To record the earned portion of the
advance payment of merchandise
Income Method
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2018
June 30 Sales 402 P210 000-
Unearned Service Income 205 P210 000-
To record the used earned portion of
the advance payment of merchandise

LET’S TRY
1.
Date Particulars PR Debit Credit
*****Adjusting Entries*****
2020
Dec. 31 Prepaid Insurance 104 P0-
Insurance Expense 505 P0-
To record the unused portion of the
advance payment of insurance

Date Particulars PR Debit Credit

*****Adjusting Entries*****
2020
Dec. 31 Bad Debts Expense 506 P15 000-
Allowance for Bad Debts 105 P15 000-
To record bad debts expense for the
period

Date Particulars PR Debit Credit

*****Adjusting Entries*****
2020
Dec. 31 Salaries Expense 504 P17 000-
Salaries Payable 202 P17 000-
To record the accrue salaries expense
incurred but not yet paid

2.
Account
Account Name: ALLOWANCE FOR BAD DEBTS 105
Number
 Balance
Date Explanation P.R Debit Credit
Debit Credit
2020
December 31 Bad debts expense for the period GJ1 P15 000- P15 000-

Account
Account Name: SALARIES PAYABLE 202
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020 To accrue salaries expense incurred
December 31 but not yet paid P17 000- P17 000-

Account
Account Name: SALARIES EXPENSE 504
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020
March 31 Paid salaries of employees GJ1 P27 900- P27 900-
*****Adjusting Entries*****
To accrue salaries expense incurred
December
31 but not yet paid P17 000- P44 900-

Account
Account Name: INSURANCE EXPENSE 505
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020 Unused portion of advance payment of
December 31 insurance GJ1 P0- P0-

Account
Account Name: BAD DEBTS EXPENSE 506
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020
December 31 Bad debts expense for the period GJ1 P15 000- P15 000-

3.
CAI GENERAL MERCHANDISE
Adjusted Trial Balance
For the period ended December 31, 2020
Accounts Debit Credit
Cash P1 070 224-
Accounts Receivable 483 560-
Merchandise Inventory 125 280-
Prepaid Insurance 0-
Allowance for bad debts P15 000-
Accounts Payable 438 874-
Salaries Payable 17 000-
C. Montel, Capital 500 000-
C. Montel, Drawings 55 890-
Sales 1 691 900-
Sales Returns and Allowances 165 120-
Cost of Goods Sold 607 020-
Freight Out 2 000-
Advertising Expense 93 780-
Salaries Expense 44 900-
Insurance Expense 0-
Bad Debts Expense 15 000-
Total P2 662 774- P2 663 774-

4.
CAI GENERAL MERCHANDISE
Worksheet
For the period ended December 31, 2020
Accounts Income Statement Balance Sheet
Debit Credit Debit Credit
Cash P1 072 224 -
Accounts Receivable 483 560-
Merchandise Inventory 125 280-
Prepaid Insurance 0-
Allowance for bad debts P15 000-
Accounts Payable 438 874-
Salaries Payable 17 000-
C. Montel, Capital 500 000-
C. Montel, Drawings 55 890-
Sales P1 691 900-
Sales Returns and Allowances P165 120-
Cost of Goods Sold 607 020-
Freight Out 2 000-
Advertising Expense 93 780-
Salaries Expense 44 900-
Insurance Expense 0-
Bad Debts Expense 15 000-
Totals P925 820- P1 691 900- P1 736 954- P970 874
766 080-
P1 691 900- P1 691 900-

5.
Date Particulars PR Debit Credit
*****Closing Entries*****
2020
December 31 Sales 401 P1 691 900-
Income Summary 303 P1 691 900-
To close revenue account

Date Particulars PR Debit Credit

*****Closing Entries*****
2020
December 31 Income Summary 401 P165 120-
Sales Returns and Allowances 402 P165 120-
To close sales returns account

Date Particulars PR Debit Credit

*****Closing Entries*****
2020
December 31 Income Summary 303 P762 700-
Cost of Goods Sold 501 P607 020-
Freight Out 502 2 000-
Advertising Expense 503 93 780-
Salaries Expense 504 44 900-
Insurance Expense 505 0-
Bad Debts Expense 506 15 000-
To close expense accounts

Date Particulars PR Debit Credit

*****Closing Entries*****
2020
December 31 Income Summary 303 P764 080-
C. Montel, Capital 301 P764 080-
To close income summary account

6.
Account
Account Name: C. MONTEL, CAPITAL 301
Number
Balance
Date Explanation P.R. Debit Credit
Debit Credit
2020
March 1 Cash Investment by the owner GJ1 P500 000- P500 000-
*****Closing Entries*****
December 31 To close income summary account GJ1 764 080- P1 264 080-

Account
Account Name: INCOME SUMMARY 303
Number
Balance
Date Explanation P.R. Debit Credit
Debit Credit
2020
December 31 *****Closing Entries*****
To close revenue account GJ1 P1 691 900- P1 691 900-
To close sales returns account GJ1 P165 120- 1 526 780-
 To close expense account GJ1 762 700- 764 080-
To close income summary account GJ1 764 080- -

Account
Account Name: SALES 401
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020
March 10 Sales on cash GJ1 P550 400- P550 400-
19 Sales on account GJ1 690 800- 1 241 200-
27 Sales on cash GJ1 450 700- P1 691 900-
*****Closing Entries*****
December 31 To close revenue account P1 691 900- -

Account
Account Name: SALES RETURNS AND ALLOWANCES 402
Number
Balance
Date Explanation PR Debit Credit
Debit Credit
2020 Return damaged merchandise cash
March 14 refund GJ1 P165 120- P165 120-
*****Closing Entries*****
December 31 To close sales returns account GJ1 P165 120- -

Account
Account Name: COST OF GOODS SOLD 501
Number
Balance
Date Explanation P.R. Debit Credit
Debit Credit
2020
March 10 Cost of inventory sold as expense GJ1 P180 900- P180 900-
14 Return merchandise to inventory GJ1 P54 270- 126 630-
19 Cost of inventory sold as expense GJ1 289 590- 416 220-
27 Cost of inventory sold as expense GJ1 190 800- P607 020-
*****Closing Entries*****
December 31 To close expense account GJ1 P607 020- -

Account
Account Name: FREIGHT OUT 502
Number
Balance
Date Explanation P.R. Debit Credit
Debit Credit
2020
March 19 Payment for freight out bill GJ1 P2 000 P2 000-
*****Closing Entries*****
December 31 To close expense account GJ1 P2 000- -

Account
Account Name: ADVERTISING EXPENSE 503
Number
Balance
Date Explanation P.R. Debit Credit
Debit Credit
2020
March 18 Paid advertisements GJ1 P93 780- P93 780-
*****Closing Entries*****
December 31 To close expense account GJ1 P93 780-
 Account
Account Name: SALARIES EXPENSE 504
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020
March 31 Paid salaries of employees GJ1 P27 900- P27 900-
*****Adjusting Entries*****
To accrue salaries expense incurred GJ1
December
31 but not yet paid P17 000- P44 900-
*****Closing Expense*****
31 To close expense account GJ1 P44 900- -

Account
Account Name: INSURANCE EXPENSE 505
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020 Unused portion of advance payment of
December 31 insurance GJ1 P0- P0-
*****Closing Expense*****
31 To close expense account P0- -

Account
Account Name: BAD DEBTS EXPENSE 506
Number
Balance
Date Explanation P.R Debit Credit
Debit Credit
2020
December 31 Bad debts expense for the period GJ1 P15 000- P15 000-
*****Closing Entries*****
31 To close expense account P15 000- -

7.
CAI GENERAL MERCHANDISE
Post-closing Trial Balance
For the period ended December 31, 2020
Accounts Debit Credit
Cash P1 070 224-
Accounts Receivable 483 560-
Merchandise Inventory 125 280-
Prepaid Insurance 0-
Allowance for bad debts P15 000-
Accounts Payable 438 874-
Salaries Payable 17 000-
C. Montel, Capital 1 264 080-
C. Montel, Drawings 55 890-
Income Summary -
Sales -
Sales Returns and Allowances -
Cost of Goods Sold -
Freight Out -
Advertising Expense -
Salaries Expense -
Insurance Expense -
Bad Debts Expense -
Total P1 734 954- P1 734 954-