"DEBIT and CREDIT"

ASSETS:
Cash, Accounts Receivable, Prepaid Rent, Prepaid Insurance, Office Supplies.
Office Building, Office Equipment, Furniture and Fixture.
LIABILITIES:
Accounts Payable, Mortgage Payable
CAPITAL (Owner's Equity):
De Asis Capital, De Asis Drawing
REVENUES:
Service Income
EXPENSES:
Salaries and Wages Expense, Repairs and Maintenance Expense, Taxes and Licenses Ex
pense
~~~~~~~~~~~~~~~~~~~~~~~~~~
#JOURNALIZING
1. Francis "opened an account " with BPI under the Assisi Business Agency's name and
deposited 850000 CASH. He also "invested" his two personal COMPUTERS which he ac
quired a year ago for 20000 each but with a fair market value of 15000 each.
DEBIT: Cash 850000
DEBIT: Office Equipment 30000 (15000 x 2)
CREDIT: De Asis, Capital 880000 (850000+30000)
.........................................
2. PAID barangay and municipal TAXES, 3500.
DEBIT: Taxes and Licenses Expense 3500
CREDIT: Cash 3500
.........................................
3. Bought a small office CONDOMINIUM for 500000, giving 250000 CASH and signing a
MORTGAGE payable in 10 years for the balance.
DEBIT: Office Building 500000
CREDIT: Cash 250000
CREDIT: Mortgage Payable 250000 (500000-250000)
.........................................
4. HIRED a secretary with monthly salary of 8500.
"No Entry"
.........................................
5. Bought office TABLES AND CHAIRS on CREDIT from Mansion, Inc., 40000
DEBIT: Furniture and Fixture 40000
CREDIT: Accounts Payable 40000
.........................................
6. BILLED a client for SERVICES rendered, 20000.
DEBIT: Accounts Receivable 20000
CREDIT: Service Income 20000
.........................................
7. Purchases computer INK, COUPON BOND PAPER and BALLPENS to be used in the offi
ce; terms: CASH basis, 4500.
DEBIT: Office Supplies 4500
CREDIT: Cash 4500
.........................................
8. PAID fifty percent of the amount OWED to Mansion, Inc. (See #5)
DEBIT: Accounts Payable 20000 (40000 x 50%)
CREDIT: Cash 20000
.........................................
9. Francis "WITHDREW" "CASH" of 50000 and two reams of BOND PAPER worth 1000 f
or personal use.
DEBIT: De Asis, Drawing 51000 (50000 + 1000)
CREDIT: Cash 50000
CREDIT: Office Supplies 1000
.........................................
10. PAID 400 for the REPAIR of one of the computers
DEBIT: Repairs and Maintenance Expense 400
CREDIT: Cash 400
.........................................
11. RECEIVED 5000 as payment for the SERVICES rendered to one of their clients.
DEBIT: Cash 5000
CREDIT: Service Income 5000
.........................................
12. COLLECTED one half of the AMOUNT DUE FROM CLIENT on #6 (see #6)
DEBIT: Cash 10000
CREDIT: Accounts Receivable 10000 (20000 x 1/2)
.........................................
13. PAID "ONE YEAR RENT" for a special machine to be used in business operations, 30
000.
DEBIT: Prepaid Rent 30000
CREDIT: Cash 30000
.........................................
14. PAID "ONE YEAR INSURANCE" of the office condominium, 25000.
DEBIT: Prepaid Insurance 25000
CREDIT: Cash 25000
.........................................
15. PAID one half of the SALARY of the secretary (see #4)
DEBIT: Salaries Expense 4250 (8500 x 1/2)
CREDIT: Cash 4250
~~~~~~~~~~~~~~~~~~~~~~~~
#GENERAL LEDGER Balances
DEBIT BALANCE = Debits > Credits
CREDIT BALANCE = Debits < Credits
Cash (All debits, minus all credits)
= 477350 Debit Balance
Accounts Receivable
= 10000 Debit balance
Prepaid Rent
= 30000 Debit balance
Prepaid Insurance
=25000 Debit balance
Office Supplies
= 3500 Debit balance
Office Building
= 500000 Debit balance
Office Equipment
=30000 Debit balance
Furniture and Fixture
=40000 Debit balance
Accounts Payable
=20000 Credit balance
Mortgage Payable
=250000 Credit balance
De Asis Capital
=880000 Credit balance
De Asis Drawing
= 51000 Debit balance
Service Income
= 25000 Credit balance
Salaries and Wages Expense
= 4250 Debit balance
Repairs and Maintenance Expense
= 400 Debit balance
Taxes and Licenses Expense
= 3500 Debit balance