GENERAL JOURNAL

GJ-1

Date Account Title and Explanation

2020
Jan 6 Cash
Kan, Capital
To record initial investment of Mr. Kan
7 Office Equipment
Accounts Payable
To record purchase of office equipment on account
9 Supplies
Cash
To record purchase of supplies paid for cash
13 Prepaid Insurance
Cash
To record payment of one-year insurance
15 Accounts Receivable
Service Revenue
To record services rendered to a customer on account
16 Cash
Accounts Receivable
To record collections from customers on account
20 Accounts Payable
Cash
To record cash paid as partial payment for purchase of office equipment on account
22 Accounts Receivable
Service Revenue
To record service rendered billed to a customer
23 Cash
Loans Payable
To record money borrowed from the bank
31 Salaries Expense
Cash
To record payment of salaries
GJ-2

Kan, Drawing
Cash
To record Mr. Kan's personal withdrawal
Utilities Expense
Cash
To record payment of telephone bill
Supplies Expense
 Supplies
To record supplies used

ADJUSTING ENTRIES

GJ-3

Date Account Title and Explanation

Jan 31 Depreciation Expense
Accumulated Depreciation-Office Equipment
To record depreciation on office equipment
Insurance Expense
Prepaid Insurance
To record expired prepaid insurance
CLOSING ENTRIES

GJ-4

Date Account Title and Explanation

Jan 31 Service Revenue
Income and Expense Summary
To close revenue account
Income and Expense Summary
Salaries Expense
Supplies Expense
Utilities Expense
Insurance Expense
Depreciation Expense
To close expense accounts
Income and Expense Summary
Kan, Capital
To close Net Income
Kan, Capital
Kan, Drawings
To close owner's withdrawals
PR Debit Credit

101 ₱ 200,000
301 ₱ 200,000

151 33,000
201 33,000

121 19,500
101 19,500

131 12,000
101 12,000

111 50,000
401 50,000

101 40,000
111 40,000

201 20,000
101 20,000

111 30,000
401 30,000

101 15,000
211 15,000

501 16,000
101 16,000

311 11,000
101 11,000

512 2,500
101 2,500

511 7,500
121 7,500

PR Debit Credit
514 ₱ 500
152 ₱ 500

513 1,000
131 1,000

PR Debit Credit
401 ₱ 80,000
601 ₱ 80,000

601 27,500
501 16,000
511 7,500
512 2,500
513 1,000
514 500

601 52,500
301 52,500

301 11,000
311 11,000
 GENERAL LEDGER
Account Name: CASH

Account No. 101

Date Particulars
6/1/2020 To record initial investment of Mr. Kan
9/1/2020 To record purchase of supplies paid for cash
01/13/2020 To record payment of one-year insurance
01/16/2020 To record collections from customers on account
01/20/2020 To record cash paid as partial payment for purchase of office equipment on account
01/23/2020 To record money borrowed from the bank
01/31/2020 To record payment of salaries
01/31/2020 To record Mr. Kan's personal withdrawal
01/31/2020 To record payment of telephone bill
GRAND TOTAL

GENERAL LEDGER

Account Name: ACCOUNTS RECEIVABLE

Account No. 111

Date Particulars
01/15/2020 To record services rendered to a customer on account
01/16/2020 To record collections from customers on account
01/22/2020 To record service rendered billed to a customer
GRAND TOTAL

GENERAL LEDGER
Account Name: SUPPLIES

Account No. 121

Date Particulars
9/1/2020 To record purchase of supplies paid for cash
01/31/2020 To record supplies used
GRAND TOTAL

GENERAL LEDGER
Account Name: PREPAID INSURANCE

Account No. 131

Date Particulars
01/13/2020 To record payment of one-year insurance
01/31/2020 To record prepaid insurance expired
GRAND TOTAL

GENERAL LEDGER
Account Name: OFFICE EQUIPMENT

Account No. 151

Date Particulars
7/1/2020 To record purchase of office equipment on account
GRAND TOTAL

GENERAL LEDGER
Account Name: ACCUMULATED DEPRECIATION - OFFICE EQUIPMENT

Account No. 152

Date Particulars
01/31/2020 To record depreciation on office equipment
GRAND TOTAL
L LEDGER
Account Name: ACCOUNTS P

Balance Account No. 201

Post Debit Credit Debit Credit Date

GJ1 ₱ 200,000 ₱ 200,000 7/1/2020
GJ1 ₱ 19,500 180,500 01/20/2020
GJ1 12,000 168,500
GJ1 40,000 208,500
GJ1 20,000 188,500
GJ1 15,000 203,500
Account Name: LOANS PAYA
GJ1 16,000 187,500
GJ2 11,000 176,500
Account No. 211
GJ2 2,500 174,000
₱ 255,000 ₱ 81,000 ₱ 174,000 Date
01/23/2020
L LEDGER

Balance

Post Debit Credit Debit Credit

GJ1 ₱ 50,000 ₱ 50,000
GJ1 ₱ 40,000 10,000
GJ1 30,000 40,000
₱ 80,000 ₱ 40,000 ₱ 40,000

L LEDGER

Balance

Post Debit Credit Debit Credit

GJ1 ₱ 19,500 ₱ 19,500
GJ2 ₱ 7,500 12,000
₱ 19,500 ₱ 7,500 ₱ 12,000

L LEDGER

Balance

Post Debit Credit Debit Credit

 GJ1 ₱ 12,000 ₱ 12,000
GJ3 ₱ 1,000 11,000
₱ 12,000 ₱ 1,000 ₱ 11,000

L LEDGER

Balance

Post Debit Credit Debit Credit

GJ1 ₱ 33,000 ₱ 33,000
₱ 33,000 ₱ - ₱ 33,000

L LEDGER

Balance

Post Debit Credit Debit Credit

GJ3 ₱ 500 ₱ 500
₱ - ₱ 500 ₱ 500
 GENERAL LEDGER
unt Name: ACCOUNTS PAYABLE

unt No. 201

Particulars Post
To record purchase of office equipment on account GJ1
To record cash paid as partial payment for purchase of office equipment on account GJ1
GRAND TOTAL

GENERAL LEDGER
unt Name: LOANS PAYABLE

unt No. 211

Particulars Post
To record money borrowed from the bank GJ1
GRAND TOTAL
 Account Name: KAN, CAPITAL

Balance Account No. 301

Debit Credit Debit Credit Date

₱ 33,000 ₱ 33,000 6/1/2020
₱ 20,000 13,000 01/31/2020
₱ 20,000 ₱ 33,000 ₱ 13,000 01/31/2020

Account Name: KAN, DRAWINGS

Balance
Account No. 311
Debit Credit Debit Credit
₱ 15,000 ₱ 15,000 Date
₱ - ₱ 15,000 ₱ 15,000 01/31/2020
01/31/2020
 GENERAL LEDGER
ount Name: KAN, CAPITAL

ount No. 301

Particulars Post Debit

To record initial investment of Mr. Kan GJ1
To close income summary to owner's capital GJ4
To close owner's withdrawals to owner's capital GJ4 ₱ 11,000
GRAND TOTAL ₱ 11,000

GENERAL LEDGER
ount Name: KAN, DRAWINGS

ount No. 311

Particulars Post Debit

To record Mr. Kan's personal withdrawal GJ2 ₱ 11,000
To close owner's withdrawals to owner's capital GJ4
GRAND TOTAL ₱ 11,000
 Account Name: INCOME AND EXPENSE SUMMARY

Balance Account No. 601

Credit Debit Credit Date

₱ 200,000 ₱ 200,000 01/31/2020
52,500 252,500 01/31/2020
241,500 01/31/2020
₱ 252,500 ₱ 241,500

Balance

Credit Debit Credit

₱ 11,000
₱ 11,000 0
₱ 11,000 ₱ -
 GENERAL LEDGER
ount Name: INCOME AND EXPENSE SUMMARY

ount No. 601

Particulars Post Debit

To close revenue account to income summary GJ4
To close expense accounts to income summary GJ4 ₱ 27,500
To close income summary to owner's capital GJ4 52,500
GRAND TOTAL ₱ 80,000
 Account Name: SERVICE REVENUE

Balance Account No. 401

Credit Date
₱ 80,000 ₱ 80,000 01/15/2020
52,500 01/22/2020
0 01/31/2020
₱ 80,000 ₱ -
 GENERAL LEDGER
ount Name: SERVICE REVENUE

ount No. 401

Particulars Post
To record services rendered to a customer on account GJ1
To record service rendered billed to a customer GJ1
To close revenue account to income summary GJ4
GRAND TOTAL
 Account Name: SALARIES EXPENSE

Balance Account No. 501

Debit Credit Debit Credit Date

₱ 50,000 ₱ 50,000 01/31/2020
30,000 80,000 01/31/2020
₱ 80,000 0
₱ 80,000 ₱ 80,000 ₱ -

Account Name: SUPPLIES EXPENSE

Account No. 511

Date
01/31/2020
01/31/2020

Account Name: UTILITIES EXPENSE

Account No. 512

Date
01/31/2020
01/31/2020

Account Name: INSURANCE EXPENSE

Account No. 513

Date
01/31/2020
01/31/2020

Account Name: DEPRECIATION EXPENSE

Account No. 514

Account No. 514

Date
01/31/2020
01/31/2020
 GENERAL LEDGER
unt Name: SALARIES EXPENSE

unt No. 501

Particulars Post Debit Credit

To record payment of salaries GJ1 ₱ 16,000
To close expense accounts to income summary GJ4 ₱ 16,000
GRAND TOTAL ₱ 16,000 ₱ 16,000

GENERAL LEDGER
unt Name: SUPPLIES EXPENSE

unt No. 511

Particulars Post Debit Credit

To record supplies used GJ2 ₱ 7,500
To close expense accounts to income summary GJ4 ₱ 7,500
GRAND TOTAL ₱ 7,500 ₱ 7,500

GENERAL LEDGER
unt Name: UTILITIES EXPENSE

unt No. 512

Particulars Post Debit Credit

To record payment of telephone bill GJ2 ₱ 2,500
To close expense accounts to income summary GJ4 ₱ 2,500
GRAND TOTAL ₱ 2,500 ₱ 2,500

GENERAL LEDGER
unt Name: INSURANCE EXPENSE

unt No. 513

Particulars Post Debit Credit

To record prepaid insurance expired GJ3 ₱ 1,000
To close expense accounts to income summary GJ4 ₱ 1,000
GRAND TOTAL ₱ 1,000 ₱ 1,000

GENERAL LEDGER
unt Name: DEPRECIATION EXPENSE

unt No. 514

unt No. 514

Particulars Post Debit Credit

To record depreciation on office equipment GJ3 ₱ 500
To close expense accounts to income summary GJ4 ₱ 500
GRAND TOTAL ₱ 500 ₱ 500
 Balance

Debit Credit
₱ 16,000
0
₱ -

Balance

Debit Credit
₱ 7,500
0
₱ -

Balance

Debit Credit
₱ 2,500
0
₱ -

Balance

Debit Credit
₱ 1,000
0
₱ -

Balance
 Balance

Debit Credit
₱ 500
0
₱ -
 Kan Taxes and Accounting Services

UNADJUSTED TRIAL BALANCE

January 31, 2020

Account Title Debit Credit

Cash ₱ 174,000
Accounts Receivable 40,000
Supplies 12,000
Prepaid Insurance 12,000
Office Equipment 33,000
Accounts Payable ₱ 13,000
Loans Payable 15,000
Kan, Capital 200,000
Kan, Drawings 11,000
Service Revenue 80,000
Salaries Expense 16,000
Supplies Expense 7,500
Utilities Expense 2,500
Total ₱ 308,000 ₱ 308,000
 Kan Taxes and Accounting Services

ADJUSTED TRIAL BALANCE

January 31, 2020

Account Title Debit Credit

Cash ₱ 174,000
Accounts Receivable 40,000
Supplies 12,000
Prepaid Insurance 11,000
Office Equipment 33,000
Accumulated Depreciation-Office Equipment ₱ 500
Accounts Payable 13,000
Loans Payable 15,000
Kan, Capital 200,000
Kan, Drawings 11,000
Service Revenue 80,000
Salaries Expense 16,000
Supplies Expense 7,500
Utilities Expense 2,500
Insurance Expense 1,000
Depreciation Expense 500
Total ₱ 308,500 ₱ 308,500
Kan Taxes and Accounting

Statement of Financial Performance

For the month ended January 31, 2020

Revenues:
Service Revenue ₱ 80,000
Total Revenue: ₱ 80,000
Less Operating Expenses:
Salaries Expense 16,000
Supplies Expense 7,500
Utilities Expense 2,500
Insurance Expense 1,000
Depreciation Expense 500
Total Expenses: 27,500

Net Income: ₱ 52,500

Kan Taxes and Accounting Services

Statement of Changes in Equity

For the month ended January 31, 2020

Capital, December 31, 2019 P -

Add: Investment by the owner 200,000
Add: Net Income 52,500
Less: Withdrawals by the owner (11,000)
Capital, January 31, 2020 P 241,500
Kan Taxes and Accounting Services

Statement of Cash Flows

January 31, 2020

Cash flows from operating activities

Collections of accounts receivable P 40,000
Payment of supplies (19,500)
Payment of prepaid insurance (12,000)
Payment of salaries (16,000)
Payment of utilities (2,500)
Net cash flow from operating activities P (10,000)

Cash flows from investing activities

Payment of office equipment (20,000)
Net cash flow from investing activities (20,000)

Cash flows from financing activities

Investment by the owner 200,000
Bank borrowing 15,000
Cash withdrawal by the owner (11,000)
Net cash flow from financing activities 204,000
Net increase in cash 174,000
Add: Cash Balance December 31, 2019 -
Cash Balance January 31, 2020 P 174,000
 Kan Taxes and Accounting Services

POST-CLOSING TRIAL BALANCE

January 31, 2020

Account Title Debit Credit

Cash ₱ 174,000
Accounts Receivable 40,000
Supplies 12,000
Prepaid Insurance 11,000
Office Equipment 33,000
Accumulated Depreciation-Office Equipment ₱ 500
Accounts Payable 13,000
Loans Payable 15,000
Kan, Capital 241,500
Kan, Drawings -
Service Revenue -
Salaries Expense -
Supplies Expense -
Utilities Expense -
Insurance Expense -
Depreciation Expense -
Total ₱ 270,000 ₱ 270,000
Kan Taxes and Accounting Services

Statement of Financial Position

January 31, 2020

ASSETS
Current Assets
Cash P 174,000
Accounts Receivable 40,000
Supplies 12,000
Prepaid Insurance 11,000
Total Current Assets P 237,000
Non-Current Assets
Office Equipment P 33,000
Less: Accumulated Depreciation-Office Equipment (500) 32,500
TOTAL ASSETS P 269,500

LIABILITIES AND CAPITAL

Accounts Receivable P 13,000
Loans Payable 15,000
Kan, Capital 241,500
TOTAL LIABILITIES AND CAPITAL P 269,500