COMPREHENSIVE PROBLEM

Mr. Rodrigo Robredo quit his job as Chief Financial Officer in one of the best Financing
Companies of the Philippines. Upon getting his separation pay, he established his own
consultancy firm in San Jose, Camarines Sur. He began his practice on December 1, 2016.
During the first month of operations, the following transactions occurred:
Dec. 1 Robredo invested P150, 000 in the firm.
2 Paid rent for December, P8, 000
2 Purchased supplies on account, P7, 200
3 Acquired P75, 000 of office equipment, paying P37, 000 down with the balance
due in 30 days.
8 Paid P7, 200 on account for supplies purchased.
14 Paid assistants salaries for two weeks, P6, 000.
20 Performed consulting services for cash, P20, 000.
28 Paid assistants salaries for two weeks, P6, 000.
30 Billed clients for December consulting services, P48, 000.
31 Robredo withdrew P12, 000 from the business.

Required:
1. Create a chart of accounts and open the following general ledger accounts, using the
account numbers shown: Cash (110); Accounts Receivable (120); Fees Receivable (130);
Supplies (140); Office Equipment (150); Accumulated Depreciation (155); Accounts
Payable (210); Salaries Payable (220); Robredo, Capital (310); Robredo, Withdrawals
(320); Income Summary (330); Consulting Revenues (410); Salaries Expense (510);
Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540).
2. Journalize the December transactions and post to the ledger.
3. Prepare and complete worksheet using the following information:
a. Supplies on hand at December 31, 2016 amounted to P4, 700.
b. Salaries of P1, 800 have accrued at month-end.
c. Depreciation is P800 for December.
d. Robredo has spent 20 hours on a case regarding financial matters during
December. When completed in January, his work will be billed at P500 per hour.
Note: The firm uses the account Fees Receivable to reflect the amounts earned
but not yet billed.
4. Prepare the following financial statements:
a.Statement of Comprehensive Income (Income Statement)
b. Statement of Changes in Owners Equity
c. Statement of Financial Position (Balance Sheet)
d. Statement of Cash Flows
5. Journalize and post adjusting and closing entries.
6. Prepare a Post-Closing Trial Balance.
7. Journalize and Post the reversing entries

//davidconrivero/Midterm/Acctg1/AY_2017-2018