1 BSA WORKBOOK PS Service

Ang Salon ng Bayan
BY: GIL O. ANASIN, C.P.A.
NAME OF STUDENT
COURSE/YEAR & SECTION

_______
Page 1 of 37
PREFACE
In order to have a strong foundation in basic accounting, this
practice set has been designed for students taking up accounting course
with the following objectives:
1. To illustrate the application of general accounting principles and

procedures affecting a sole proprietorship engaged in small service-type
enterprise
2. To provide the students the experience of going through the series of

activities involved in a service-type business.
3. To have a full grasp of the accountant’s work.
4. To serve as a vital tool to fully understand and appreciate the processes

from the first step of the accounting cycle up to the presentation of the
financial statements.
With this material, it is the author’s intention to arouse the student’s

interest in accounting as a career as he believes that accounting is still
the most in demand job for all kinds of organizations.
Good luck and welcome to the world of accountants.
Gil Ortua Anasin,

C.P.A.
Table of contents
Page 2 of 37
I Introduction 4
Ii Chart of Accounts 5
III Narrative of Transactions for December 6
IV Additional Information for Adjustments 9
V General Journal 10
VI General Ledger 15
VII Trial Balance 24
X Adjusting Entries 25
XI Adjusted Trial Balance 26
XII Worksheet 28
XIII Statement of Comprehensive Income 30
XIV Statement of Changes in Owner’s Equity 31
XV Statement of Financial Position 33
XVI Statement of Cash Flows 33
XVII Closing Entries 34
XVIII Post Closing Trial Balance 35
XIX Reversing Entries 36
XX Acknowledgement 37
Introduction
Page 3 of 37
Ms. Gemma R. Angeles decided to put up her business, GEMS
HAIRCUTTERS. She hired you to help her start her business and provide her all
the necessary records: general journal, general ledgers, worksheet, and financial
statements.
Chart of accounts have been provided to you for reference. Specific

instructions on how to continue working with this practice set will be given to you
by your teacher or you can follow the steps of accounting cycle.
Upon completion of this practice set, you should be able to submit to your
teacher the following:
1. General Journals
2. General Ledgers
3. Trial Balance
4. Adjusting Entries
5. Worksheet
6. Payroll
7. Statement of Comprehensive Income
8. Statement of Financial Position
9. Statement of Changes in Equity
10. Statement of Cash Flows
11. Closing Journal Entries
12. Post-Closing Trial Balance
13. Reversing Journal Entries
Good luck and may your self-discovery learning be a productive journey
Gil Ortua Anasin, C.P.A.
Page 4 of 37
GEMS HAIRCUTTERS
CHART OF ACCOUNTS
ACCOUNTS NUMBERS ACCOUNT TITLES
ASSETS
101 Cash on Hand
102 Cash in Bank
103 Accounts Receivable
103A Allowance for Doubtful Account
104 Notes Receivable
105 Shop Supplies
106 Prepaid Rent
107 Prepaid Insurance
108 Shop Equipment
108A Accumulated Depreciation – Shop Equipment
109 Furniture and Fixture
109A Accumulated Depreciation- Furniture & Fixture
LIABILITIES
201 Accounts Payable
206 Notes Payable
207 Interest Payable
OWNER’S EQUITY
301 Gemma R. Angeles, Capital
302 Gemma R. Angeles, Drawing
REVENUE
401 Service Revenue
EXPENSES
501 Taxes and Licenses
502 Salaries Expense
503 Shop Supplies Expense
504 Rent Expense
505 Utilities Expense
506 Insurance Expense
507 Advertising Expense
508 Interest Expense
509 Employee’s Benefits
510 Doubtful Account Expense
511 Depreciation Expense
512 Income and Expense Summary
Page 5 of 37
NARRATIVE OF TRANSACTIONS FOR DECEMBER
Ms. Gemma R. Angeles opened a business in the name of GEMS Haircutters by investing
P500,000 cash on December 1, 2012. The following transactions have occurred during the
month of December, 2012
December 1 Rented a space for her beauty parlor for P12,000 per month by paying P36,000
for 3 month’s rent
1 Hired 1 Supervisor and 4 Beauticians.
2 Secured business permits and other municipal licenses and paid P10,000
3 Deposited P50,000 with Delmont Bank from the cash investment
3 Paid P3,500 cash for billboard and signage
3 Purchased Shop Equipment for P100,000 on cash
4 Purchased Shop Supplies for P50,000 cash
6 Purchased the following Furniture
Tables and Chairs – P6,500

Sofa – P15,000
Aircon – P25,000
Note: Paid 50% by issuing check no. 1501 and the balance after 30 days
6 Secured insurance for her parlor for P500,000 and issued Check No. 1502
amounting to P36,000 representing annual premium
7 Got a contract from GMA Talent Centers. Rendered service for P100,000 and
received 50% down payment and the balance after 30 days.
8 Deposited P50,000 with Delmont Bank
Page 6 of 37
8 Bought additional supplies for P10,000 cash
14 The customer’s logbook showed total cash receipts of P55,000 for services
rendered to walk-in customers for week 1 of operation
15 Rendered service on account to the following customers:
Zeny Alviar – P3,000

Elisa Lopez – P2,500
Samuel Barros – P5,000
15 Paid the semi-monthly salaries of Employees, P30,000.00
16 Rendered service to Ms. Imelda Dela Peña wedding for P50,000 on account
16 Purchase additional tables and chairs and issued a 60-day 6% promissory note
to City Appliance Store, P15,000
16 Paid P15,000 for advertisements and other promotional materials
17 Ms. Gemma R. Angeles withdrew cash for her personal use, P10,000
18 Collected the account of Ms. Imelda Dela Peña
22 Paid the following bills: Meralco for electricity – P16,250,Ccheck No. 1503,
PLDT for Telephone service – P2,400, Check No. 1504
23 Collected the account of Ms. Zeny Alviar
23 Rendered service to Ms. May Manuel and received a promissory note of

P5,000
24 Made the following purchases on account: Shop Supplies – from HBC -

Page 7 of 37
Amount – P31,250, Terms: 30 days
26 Rendered service to Ms. Arlene Dela Paz for cash – P3,500
27 Rendered service on account to the following customers:
Angel Lora – P1,500

Janet Fuentes – P3,500
Jeffrey Reyes – P3,000
27 Ms. Gemma R. Angeles made an additional withdrawal for her personal use,
P5,000
29 Collected half of the balance in December 7 transaction.
30 Received the bill from Maynlad Water Company for water consumption for the
month of December, P3,570
30 Paid salaries of employees, P30,000.00
rendered to walk-in customers for 3 days.
31 Additional information:
 The expense method of recording prepayments is followed
 Three percent (3%) of doubtful accounts are allowed on accounts

receivable
 Shop Equipment are expected to last for 5 years with no salvage value
 Furniture and Fixture are expected to have a useful life of 5 years with
a salvage value of P5,000
 It is the company’s policy to take full month’s depreciation on the

month fixed asset was purchased
Page 8 of 37
 The 2 depreciation expense may be combined
 Unused supplies amounted to P35,000
 The rent paid is for 3 months
 The insurance paid is for 1 year
 The notes payable is to be accrued for an interest of 6% for 15 days
PAGE _____
GENERAL JOURNAL
DATE DESCRIPTION PR DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
Page 9 of 37
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
PAGE _____
GENERAL JOURNAL
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
Page 10 of 37
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
PAGE _____
GENERAL JOURNAL
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
Page 11 of 37
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
PAGE _____
GENERAL JOURNAL
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
Page 12 of 37
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
PAGE _____
GENERAL JOURNAL
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Page 13 of 37
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
GENERAL LEDGER
CASH ON HAND Account No. 101
Date Items PR Debit Date Items PR Credit
CASH IN BANK Account No. 102

Page 14 of 37
ACCOUNTS RECEIVABLE Account No.103
ALLOWANCE FOR DOUBTFUL ACCOUNTS Account No. 103A

NOTES RECEIVABLE Account No. 104

SHOP SUPPLIES Account No. 105

Page 15 of 37
PREPAID RENT Account No. 106
PREPAID INSURANCE Account No. 107

SHOP EQUIPMENT Account No. 108

ACCUMULATED DEPRECIATION – SHOP EQUIPMENT Account No. 108A

Page 16 of 37
FURNITURE AND FIXTURE Account No. 109
ACCUMULATED DEPRECIATION- FURNITURE AND FIXTURE Account No. 109A

ACCOUNTS PAYABLE Account No. 201

NOTES PAYABLE Account No. 206

Page 17 of 37
INTEREST PAYABLE Account No. 207
GEMMA R. ANGELES, CAPITAL Account No. 301

GEMMA R. ANGELES, DRAWING Account No. 302

SERVICE REVENUE Account No. 401

Page 18 of 37
TAXES AND LICENSES Account No. 501
SALARIES EXPENSE Account No. 502

SHOP SUPPLIES EXPENSE Account No. 503

RENT EXPENSE Account No. 504

Page 19 of 37
UTILITIES EXPENSE Account No. 505
INSURANCE EXPENSE Account No. 506

ADVERTISING EXPENSE Account No. 507

INTEREST EXPENSE Account No. 508

Page 20 of 37
EMPLOYEES BENEFITS Account No. 509
DOUBTFUL ACCOUNT EXPENSE Account No. 510

DEPRECIATION EXPENSE Account No. 511

INCOME AND EXPENSE SUMMARY Account No. 512

Page 21 of 37
GEMS HAIRCUTTERS
TRIAL BALANCE
DECEMBER 31, 2012
ACCOUNT ACCOUNT DEBIT CREDIT
NUMBER TITLES
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Page 22 of 37
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
GEMS HAIRCUTTERS
ADJUSTING ENTRIES
DECEMBER 31, 2012

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
Page 23 of 37
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
GEMS HAIRCUTTERS
ADJUSTING ENTRIES
DECEMBER 31, 2012

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
Page 24 of 37
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
GEMS HAIRCUTTERS
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2012
NUMBER TITLES
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
Page 25 of 37
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
WORKSHEET
FOR THE MONTH ENDED
DECEMBER 31, 2012
Page 26 of 37
TRIAL BALANCE ADJUSTMENTS ADJUSTED INCOME STATEMENT OF
TRIAL BALANCE STATEMENT FINANCIAL POSITION
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Page 27 of 37
ACCOUNT TITLES
ACCOUNT NO
FINANCIAL STATEMENTS
FOR THE MONTH ENDED
DECEMBER 31, 2012
Page 28 of 37
GEMS HAIRCUTTERS
STATEMENT OF COMPREHENSIVE INCOME
FOR THE MONTH ENDED DECEMBER 31, 2012
Page 29 of 37
GEMS HAIRCUTTERS
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2012
Page 30 of 37
GEMS HAIRCUTTERS
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2012
Page 31 of 37
GEMS HAIRCUTTERS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED DECEMBER 31, 2012
Page 32 of 37
GEMS HAIRCUTTERS
CLOSING ENTRIES
DECEMBER 31, 2012
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
Page 33 of 37
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
GEMS HAIRCUTTERS
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2012
NUMBER TITLES
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
Page 34 of 37
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
GEMS HAIRCUTTERS
REVERSING ENTRIES
DECEMBER 31, 2012

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
Page 35 of 37
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
ACKNOWLEDGEMENT
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
Page 36 of 37
____________________________________________________
____________________________________________________
_____________________
STUDENT’s SIGNATURE
Page 37 of 37

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Ang Salon ng Bayan

BY: GIL O. ANASIN, C.P.A.

COURSE/YEAR & SECTION

1. To illustrate the application of general accounting principles and

2. To provide the students the experience of going through the series of

3. To have a full grasp of the accountant’s work.

4. To serve as a vital tool to fully understand and appreciate the processes

With this material, it is the author’s intention to arouse the student’s

Good luck and welcome to the world of accountants.

Gil Ortua Anasin,

III Narrative of Transactions for December 6

IV Additional Information for Adjustments 9

VII Trial Balance 24

XI Adjusted Trial Balance 26

XIII Statement of Comprehensive Income 30

XIV Statement of Changes in Owner’s Equity 31

XV Statement of Financial Position 33

XVI Statement of Cash Flows 33

XVII Closing Entries 34

XVIII Post Closing Trial Balance 35

XIX Reversing Entries 36

Chart of accounts have been provided to you for reference. Specific

7. Statement of Comprehensive Income

8. Statement of Financial Position

9. Statement of Changes in Equity

10. Statement of Cash Flows

11. Closing Journal Entries

12. Post-Closing Trial Balance

13. Reversing Journal Entries

Good luck and may your self-discovery learning be a productive journey

Gil Ortua Anasin, C.P.A.

ACCOUNTS NUMBERS ACCOUNT TITLES

1 Hired 1 Supervisor and 4 Beauticians.

3 Deposited P50,000 with Delmont Bank from the cash investment

3 Paid P3,500 cash for billboard and signage

3 Purchased Shop Equipment for P100,000 on cash

4 Purchased Shop Supplies for P50,000 cash

6 Purchased the following Furniture

Tables and Chairs – P6,500

8 Deposited P50,000 with Delmont Bank

15 Rendered service on account to the following customers:

Zeny Alviar – P3,000

15 Paid the semi-monthly salaries of Employees, P30,000.00

16 Paid P15,000 for advertisements and other promotional materials

18 Collected the account of Ms. Imelda Dela Peña

23 Collected the account of Ms. Zeny Alviar

23 Rendered service to Ms. May Manuel and received a promissory note of

24 Made the following purchases on account: Shop Supplies – from HBC -

26 Rendered service to Ms. Arlene Dela Paz for cash – P3,500

27 Rendered service on account to the following customers:

Angel Lora – P1,500

29 Collected half of the balance in December 7 transaction.

30 Paid salaries of employees, P30,000.00

 Three percent (3%) of doubtful accounts are allowed on accounts

 It is the company’s policy to take full month’s depreciation on the

 Unused supplies amounted to P35,000

 The rent paid is for 3 months

 The insurance paid is for 1 year

 The notes payable is to be accrued for an interest of 6% for 15 days

CASH IN BANK Account No. 102

ALLOWANCE FOR DOUBTFUL ACCOUNTS Account No. 103A

NOTES RECEIVABLE Account No. 104