Technology and

Livelihood
Education 10
Welcome
Grade 10
House Rules
• Be on time and presentable.
• Camera ON, Mic OFF.
• Stay focused.
• Queries will be entertained before the end of the session.
• Click the raised hand icon if there are queries.
• Unmute your microphone only when acknowledge or ask
to do so.
• Submit your outputs on time. Late are not entertained.
 Quarter 2
Module 2

Accounting Cycle
Journal Entries
Lesson Objectives:
At the end of this lesson, the learners will be able to…

1. Understand the rules of debit and credit;

2. Analyze common business transactions using the rules of debit
and credit; and
3. Solve simple problems and exercises in the analyses of business
transaction
 Journal Entries
Listed below are the transactions made by The Neverland Shop,
accompany owned by Mr. Michael Jackstone which was
established a few days ago.

January 1 Michael invested P150,000 cash in the business.

Jan 1 Cash 150, 000

Michael Capital 150, 000
Journal Entries
January 1 Paid P10,000 for the first month’s rent on the shop.

Jan 1 Rent Expense 10,000

Cash 10,000
Journal Entries
January 2 Purchased supplies for cash, P12,250.

Jan 2 Supplies 12,250

Cash 12,250
Journal Entries
January 4 Purchased equipment on account, P35, 000.

Jan 4 Equipment 35, 000

Accounts Payable 35, 000
Journal Entries
January 6 Purchased furniture and fixtures for P10,800, giving a
down payment of P4,800 and a short term note for
the balance.
Jan 6 Furniture and Fixtures 10,800
Cash 4, 800
Notes Payable 6, 000
Journal Entries
January 8 Rendered services to customers, receiving cash
P4,000.

Jan 8 Cash 4, 000

Service Revenue 4, 000
Journal Entries
January 10 Rendered services to customers on account,
P3,960.

Jan 10 Accounts Receivable 3,960

Service Revenue 3,960
Journal Entries
January 11 Borrowed P75, 000 from a bank signing a note.

Jan 10 Cash 75, 000

Notes Payable 75, 000
Journal Entries
January 13 Paid salaries of employees, P4,550.

Jan 13 Salaries Expense 4,550

Cash 4,550
Journal Entries
January 17 Paid creditors on account, P4,500.

Jan 17 Accounts Payable 4,500

Cash 4,500
Journal Entries
January 22 The owner withdrew cash for his personal use,
P12,700.

Jan 22 Michael Drawings 12,700

Cash 12,700
Journal Entries
January 25 Paid the bank, P3,750.

Jan 25 Notes Payable 3,750

Cash 3,750
Journal Entries
January 28 Paid miscellaneous expenses, P855.

Jan 28 Miscellaneous Expenses 855

Cash 855
Journal Entries
January 30 Collected P2,790 from customers on account.

Jan 30 Cash 2,790

Accounts Receivable 2,790