EXERCISE NO. 1: The following ledger accounts are for Lansangan Services, Inc.

A. Cash M. Accumulated Depreciation

B. Accounts Receivable N. Office Equipment
C. Lansangan, Capital O. Utilities Expense
D. Lansangan, Drawings P. Interest Payable
E. Service Fees Income Q. Unearned Revenues
F. Prepaid Rent R. Notes Receivable
G. Prepaid Insurance S. Interest Expense
H. Land T. Notes Payable
I. Bonds Payable U. Supplies on Hand
J. Supplies Expense V. Rent Expense
K. Accounts Payable W. Interest Receivable
L. Utilities Payable X. Rent Payable

Required: Classify the above ledger account as: Asset, Liability, Owner’s Capital, Owner’s Withdrawals,
Income, Expense. Indicate the normal balance for each account. The following table is recommended
(letter a has been done for you):

Account Assets Liabilities Owner’s Income Expense Balance

Capital
a. Cash X Dr.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
r.
s.
t.
u.
v.
w.
x.

EXERCISE NO. 2: ANALYZING AND SUMMARIZING TRANSACTIONS

Accounting of the business transactions of Santos Law Office for the month of December 2022.

December 1 Jaime Santos invested P500,000 cash and computer equipment worth P100,000.

1 Purchased a condo-office unit for P1,200,000, making a P200,000 down payment,

signing a promissory note for P1,000,000 payable to the seller after two years.

2 Purchased P5,000 office supplies on account, payable after 10 days.

12 Paid P4,000 on the account payable created on December 2.

13 Mr. Santos remodeled his personal residence.

14 Jaime withdrew P20,000 cash for personal living expenses.

16 Jaime performed service for client and collected P80,000 cash.

18 Performed service for a client and billed for P100,000.

19 Performed legal service of P70,000 for a client, who paid P30,000 cash immediately.

21 Paid the following cash expenses: transportation expense, P9,000; salary, P15,000;
utilities, P5,000.

22 Received a telephone bill for P1,200 and will pay this expense the following week.

23 Collected P50,000 from the customers on account.

23 Paid the telephone bill received last December 22, 2022.

25 Jaime Santos withdrew P20,000 cash for personal use.

Requirements:

1. Analyze and journalize each transaction.

2. Post journal entries to the general ledger accounts.
3. Prepare the trial balance as of December 31, 2023.