JOURNALIZING

EXERCISES
EXERCISE 4.3
EXERCISE 4.3
Chart of Accounts: Cash, Office Equipment, Accounts Payable, Aldrin
Garganta, Capital, Aldrin Garganta, Drawing, Professional Fees Income,
Taxes and Licenses
EXERCISE 4.3
Aldrin Garganta opened an accounting and auditing firm. He is the owner of the
proprietorship which he named AG Consultancy. During the first month of
operations, January 2022, Garganta engaged in the following transactions:

a. Garganta invested P350,000 of personal funds to start the business.

Cash P350,000
Aldrin Garganta, Capital P350,000
*to record investment by owner*
EXERCISE 4.3
b. Rendered professional service for cash, P10,000.

Cash P10,000
Professional Fees Income P10,000
*to record service rendered*
EXERCISE 4.3
c. Bought equipment on account, P40,000.

Office Equipment P40,000

Accounts Payable P40,000
*to record the purchase of equipment*
EXERCISE 4.3
d. Paid taxes and licenses to the government, P3,000

Taxes and Licenses P3,000

Cash P3,000
*to record payment of taxes and licenses*
EXERCISE 4.3
e. Withdrew P5,000 cash for personal use.

Aldrin Garganta, Drawing P5,000

Cash P5,000
*to record withdrawal of owner*
EXERCISE 4.4
EXERCISE 4.4
Chart of Accounts: Cash, Accounts Receivable, Office Supplies, Furniture
and Fixtures, Accounts Payable, Alfie, Capital, Alfie, Drawings, Service
Income, Rent Expense
EXERCISE 4.4
The following are some of the transactions of Alfie Company:
a. Alfie invested P2,000,000 to start the business.

Cash P2,000,000
Alfie, Capital P2,000,000
*to record investment of owner*
EXERCISE 4.4
b. Office supplies were purchased and paid, P23,000.

Office Supplies P23,000

Cash P23,000
*to record purchase of office supplies*
EXERCISE 4.4
c. Received cash from services rendered to clients, P150,000.

Cash P150,000
Service Income P150,000
*to record service rendered*
EXERCISE 4.4
d. Purchased furniture on account, P56,000.

Furniture and Fixture P150,000

Accounts Payable P150,000
*to record the purchase of furniture*
EXERCISE 4.4
e. Received cash from services rendered to clients, P115,000.

Cash P115,000
Service Income P115,000
*to record service rendered*
EXERCISE 4.4
f. Additional cash invested by the owner, P300,000.

Cash P300,000
Alfie, Capital P300,000
*to record additional investment of owner*
EXERCISE 4.4
g. Rendered services to customers on credit, P65,000.

Accounts Receivable P65,000

Service Income P65,000
*to record service rendered*
EXERCISE 4.4
h. Rental for the leased premises was paid, P30,000.

Rent Expense P30,000

Cash P30,000
*to record payment of rent*
EXERCISE 4.4
i. Cash was withdrawn by the owner for his personal use, P20,000.

Alfie, Drawings P20,000

Cash P20,000
*to record withdrawal of owner*
EXERCISE 4.4
j. Settle accounts with creditors, P56,000.

Accounts Payable P56,000

Cash P56,000
*to record payment of liability*
EXERCISE 4.5
EXERCISE 4.5
Chart of Accounts: Cash, Accounts Receivable, Supplies, Videokes, Accounts
Payable, Dator, Capital, Dator, Withdrawal, Videoke Rental Fees, Rent
Expense, Salaries Expense, Utilities Expense
EXERCISE 4.5
On March 1, 2022, Nila Dator opened a videoke rental store, Nila Videoke, by
investing P300,000 cash from her personal savings account.

Mar 1 Cash P300,000

Dator, Capital P300,000
*to record investment of owner*
EXERCISE 4.5
During the month the following transactions took place:
Mar 1 - Acquired videokes costing P250,000, on account.

Mar 1 Videokes P250,000

Accounts Payable P250,000
*to record the purchase of videokes*
EXERCISE 4.5
Mar 3 - Billed Villa Paraiso for videoke rentals, P105,000.

Mar 3 Accounts Receivable P105,000

Videoke Rental Fees P105,000
*to record revenue from videoke rental*
EXERCISE 4.5
Mar 5 - Paid P90,000 to creditors.

Mar 5 Accounts Payable P90,000

Cash P90,000
*to record payment of liability*
EXERCISE 4.5
Mar 10 -Received P108,000 cash from Villa Linel for rental fees.

Mar 10 Cash P108,000

Videoke Rental Fess P108,000
*to record revenue from videoke rental *
EXERCISE 4.5
Mar 16 - Paid salaries, P75,000.

Mar 16 Salaries Expense P75,000

Cash P75,000
*to record payment of salaries*
EXERCISE 4.5
Mar 17 - Collected from Villa Paraiso, P95,000.

Mar 17 Cash P95,000

Accounts Receivable P95,000
*to record collection from customer*
EXERCISE 4.5
Mar 20 - Dator withdrew P50,000 from the business.

Mar 20 Dator, Withdrawal P50,000

Cash P50,000
*to record withdrawal of owner*
EXERCISE 4.5
Mar 25 - Paid rent for the month, P50,000.

Mar 25 Rent Expense P50,000

Cash P50,000
*to record payment of rent*
EXERCISE 4.5
Mar 27 - Paid utilities bill for the month, P7,800.

Mar 27 Utilities Expense P7,800

Cash P7,800
*to record payment of utilities*
EXERCISE 4.5
Mar 30 - Acquired supplies on account, P23,000.

Mar 30 Supplies P23,000

Accounts Payable P23,000
*to record purchase of supplies*
EXERCISE 4.6
EXERCISE 4.6
Nelson Entienza formed the ADS Sign Company on April 1, 2022. He deposited
P350,000 at the UCPB under the name of the new business entity. During the
month of April 2022, the following transaction occurred:

Apr 1 Cash P350,000

Entienza, Capital P350,000
*to record investment of owner*
EXERCISE 4.6
Apr 2 - Acquired a service vehicle in the amount of P250,000 on account.

Apr 2 Service Vehicle P250,000

Accounts Payable P250,000
*to record the purchase of service vehicle*
EXERCISE 4.6
Apr 3 - Acquired supplies for cash, P32,000.

Apr 3 Supplies P32,000

Cash P32,000
*to record the purchase of supplies*
EXERCISE 4.6
Apr 8 - Received P90,000 cash for signs painted.

Apr 8 Cash P90,000

Service Revenue P90,000
*to record service rendered*
EXERCISE 4.6
Apr 11 - Paid the month’s rent, P25,000.

Apr 11 Rent Expense P25,000

Cash P25,000
*to record payment of rent*
EXERCISE 4.6
Apr 12 - Painted signs for KSJ Company on account, P200,000.

Apr 12 Accounts Receivable P200,000

Service Revenue P200,000
*to record service rendered*
EXERCISE 4.6
Apr 13 - Paid P75,000 on account from April 2.

Apr 13 Accounts Payable P75,000

Cash P75,000
*to record payment of liability*
EXERCISE 4.6
Apr 15 - Withdrew P30,000 for personal use.

Apr 15 Entenzia, Withdrawal P30,000

Cash P30,000
*to record withdrawal of owner*
EXERCISE 4.6
Apr 19 - Collected P75,000 from KSJ Company.

Apr 19 Cash P75,000

Accounts Receivable P75,000
*to record collection from KSJ company*
EXERCISE 4.6
Apr 24 - Paid salaries of P85,000 for the month.

Apr 24 Salaries Expense P85,000

Cash P85,000
*to record salaries*
EXERCISE 4.6
Apr 28 - Paid PLDT P3,000 for communications services for the month.

Apr 28 Communication Expense P3,000

Cash P3,000
*to record communication expense*
EXERCISE 4.6
Apr 30 - Paid a bill from Panaflex for P120,000 for 6 months advertising.

Apr 30 Prepaid Advertising P20,000

Cash P20,000
*to record advance payment for advertising*
EXERCISE 4.7
EXERCISE 4.7
Chart of Accounts: Cash in Bank, Accounts Receivable, Shop Supplies
Inventory, Accounts Payable, P. Pulgar, Equity, . Pulgar, Drawing, Service
Revenue, Rental Expense, Salaries Expense, Utilities Expense, Taxes and
Licenses
EXERCISE 4.7
Paco Pulgar invests in a Shoe and Bag Repair Shop. The following took place in
May 2022.
May 1 - The owner invested P70,000 which he deposited in the bank.

May 1 Cash in Bank P70,000

P. Pulgar, Equity P70,000
*to record investment of owner*
EXERCISE 4.7
May 5 - Bought various shop supplies on account, P15,000.

May 5 Shop Supplies Inventory P15,000

Accounts Payable P15,000
*to record purchase of supplies*
EXERCISE 4.7
May 7 - Rendered repair services to various customers on account, P5,500.

May 7 Accounts Receivable P5,500

Service Revenue P5,500
*to record service rendered*
EXERCISE 4.7
May 10 - Partially paid the May 5 account, P15,000.

May 10 Accounts Payable P15,000

Cash in Bank P15,000
*to record payment of liability*
EXERCISE 4.7
May 15 – Paid space rental for the month, P3,000.

May 15 Rental Expense P3,000

Cash in Bank P3,000
*to record payment of liability*
EXERCISE 4.7
May 18 - Rendered repair services for cash, P25,000.

May 18 Cash in Bank P25,000

Service Revenue P25,000
*to record service rendered*
EXERCISE 4.7
May 23 - The owner withdrew cash of P10,000 for his personal use.

May 23 P. Pulgar, Drawing P10,000

Cash in Bank P10,000
*to record withdrawal of owner*
EXERCISE 4.7
May 25 - Paid taxes and licenses, P1,500.

May 25 Taxes and Licenses P1,500

Cash in Bank P1,500
*to record payment of taxes and licenses*
EXERCISE 4.7
May 27 - Paid salaries for the month, P21,000.

May 27 Salaries Expense P21,000

Cash in Bank P21,000
*to record payment salaries*
EXERCISE 4.7
May 29 - Paid light and water bills, P2,300.

May 27 Utilities Expense P2,300

Cash in Bank P2,300
*to record payment of water and light bills*
EXERCISE 4.7
May 31- Additional cash invested by the owner, P50,000.

May 31 Cash in Bank P50,000

P. Pulgar, Equity P50,000
*to record additional investment of owner*