Paracale National High School

Paracale, Camarines Norte

Bookkeeping
Name:
______________________________________
_____________________
Date: ____________________________________

Section:

ACCOUNTING CYCLE
Problem #1
Elvine Michael started Michaels Industrial Spray Service on May 1,
2015. During May, he completed the following transactions:
a) Invested cash in the business, P60, 000.
b) Bought a service vehicle from CDO Motors for P112,500, paying
P22,500 in cash, with the remainder due in thirty days.
c) Bought spray equipment on account from Misamis Company,
P18,000.
d) Paid rent for the month, P5,600.
e) Paid cash for insurance on service vehicle for the year, P5,760.
f) Received cash for spray services done on a building P21,750.
g) Bought supplies for cash P5,730.
h) Billed customers on account for services performed, P4,440.
i) Paid cash for utilities P960.
j) Received bill for gasoline used by the service vehicle during the
month, P3,270.
k) Receipts from cash customers, P16,420.
l) Russel withdrew cash for personal use, P10,500.
m) Paid salaries to employees, P20,400.
Required:
Record the transactions for the month of May 2015 using a financial
transaction worksheet. Use the following accounts: Cash; Accounts
Receivable; Supplies; Prepaid Insurance; Spray Equipment; Service
Vehicle; Accounts Payable; and Michael, Capital. If the owners equity is
affected by a transaction, identify it as revenue, expense, investment or
withdrawal.
Problem #2
Worksheet

Recording

Transactions

in

Financial

On December 1, 2008, Oliver Rementina ventured into a billiards

recreation business, Balls and Sticks. During the month, the following
occured:
December 1
Oliver Rementina began the business by depositing
P200,000 cash in a
bank account in the name of
the business.
3
Purchased an existing billiard hall at a price of
P210,000 for the land
and
P300,000
for
the
building. Rementina paid the former owner
P100,000 in cash and issued a short-term notes payable for the
balance of the purchase price.
10
Bought 10 billiard tables for P10,000 each, paying
P60,000 cash and
agreeing to pay the balance
in 30 days.
14
Sold a billiard table to the owner for P10,000. The
entity was paid
P5,000 cash and the balance
within 30 days.
20
Paid P20,000 of the amount owed on the billiard
table sold.
24
Collected P2,000 on the billiard table sold.
30
Purchased one used billiard table from another
billiard hall, paying
P6,000 cash.

Required:
Record the transactions for the month of December 2008 using a
financial transaction worksheet. Indicate the new account balances after
each transaction. Use the following accounts: Cash; Accounts Receivable;
Land; Building; Billiard Tables; Notes Payable; Accounts Payable; and
Rementina, Capital.