CHART OF ACCOUNTS

ASSETS EQUITY
1001 Cash CAPITAL AND DRAWING
1002 Accounts Receivable 3001
1003 Notes Receivable 3002
1004 Input Tax
1005 Prepaid Rent INCOME
1006 Office Supplies 4001
1007 Office Equipment 4002
1007-A Accumulated Depreciation Expense - Office Equipment 4003
1008 Furniture
1008-A Accumulated Depreciation Expense - Furniture EXPENSES
1009 Land 5001
5002
LIABILITIES 5003
2001 Accounts Payable 5004
2002 Notes Payable 5005
2003 Unearned Income 5006
2004 Output Tax 5007
5008
UITY
PITAL AND DRAWING
Tomas Capital
Tomas Drawing

Professional Income
Interest Income
Miscellaneous Income

Utility Expense
Salary Expense
Rent Expense
Repairs and Maintenance Expense
Meal Allowance
Transportation Expense
Depreciation Expense - Office Equipment
Depreciation Expense - Furniture
Step 1: Journalize the transactions. Include input and output taxes.
Step 5: Prepare Adjusting Journal Entries. (Right after the last transaction which is Sept 30)
GENERAL JOURNAL
Prepare the following journal e
DATE TRANSACTIONS/PARTICULARS DEBIT CREDIT
Sept 1 Cash 600,000.00 Sept 1
Tomas Capital 600,000.00 Sept 2
Sept 3
Sept 2 Prepaid Rent 240,000.00 Sept 4
Input Tax 28,800.00
Cash 268,800.00 Sept 5
Sept 6
Sept 3 Office Equipment 30,000.00 Sept 15
Input Tax 3,600.00 Sept 19
Cash 33,600.00 Sept 22
Sept 23
Sept 4 Furniture 144,000.00 Sept 25
Input Tax 17,280.00 Sept 30
Cash 20,000.00
Accounts Payable 141,280.00 On December 30, 2018, the fol
1. Prepayments for 4 months (f
Sept 5 Office Supplies 10,000.00 2. Office equipment has a usefu
Input Tax 1,200.00 3. Furniture has a useful life of
Cash 11,200.00

Sept 6 Cash 112,000.00

Professional Income 100,000.00
Output Tax 12,000.00

Sept 15 Salary Expense 50,000.00

Cash 50,000.00

Sept 19 Utility Expense 5,000.00

Input Tax 600.00
Cash 5,600.00

Sept 22 Accounts Receivable 224,000.00

Professional Income 200,000.00
Output Tax 24,000.00

Sept 23 Accounts Payable 20,000.00

Cash 20,000.00
Sept 25 Cash 50,000.00
Accounts Receivable 50,000.00

Sept 30 Salary Expense 50,000.00

Cash 50,000.00

Step 5: Prepare Adjusting Journal Entries. (Right after the last transaction which is Sept 30)
(Computation is optional. You need to input the final amount on both Debit and Credit side)
31-Dec ADJUSTMENTS On December 30, 2018, the fol
1. Rent Expense 80,000.00 1. Prepayments for 4 months (f
Prepaid Rent 80,000.00 * amount of Prepaid Rent is P 2
optional 240,000 /12 months = 20,000 per month x 4 months (Sept - Dec) = P80,000

2. Depreciation Exp - Office Equip 1,000.00 2. Office equipment has a usefu

Accum Dep Exp - OE 1,000.00 * amount of Office Equipment
optional 30,000/10 years = 3,000 per year / 12 months = 250 per month
250 per month x 4 months (Sept-Dec) = P1,000

3. Depreciation Exp - Furniture 4,400.00 3. Furniture has a useful life of

Accum Dep Exp - Furniture 4,400.00 * amount of Furniture is P 144,
optional 144,000 - 12,000 = 132,000 (amount to be depreciated)
132,000/10years = 13,200 per year / 12 months = 1,100 per month
1,100 per month x 4 months (Sept-Dec) = P4,400
pare the following journal entries for the month of September 2018

Tomas offered business solutions services by investing P 600,000.

Paid a one-year rent of P 268,800.
Bought office equipment from Office Warehourse amounting to P 33,600.
Bought furniture from Urban Concept, P 161,280.
Of which, a downpayment of P 20,000 was made and the rest was on account.
Purchased office supplies from National Bookstore, P 11,200.
Offered services to ABC Company for cash, P 112,000
Paid salary of employees, P 50,000.
Paid utility expenses, P 5,600.
Sent billing to XYZ for services rendered, P 224,000.
Partially paid the account made last Sept 4, P 20,000
Partial collection from the account of XYZ, P 50,000.
Paid salary of employees, P 50,000.

December 30, 2018, the following items must be adjusted:

Prepayments for 4 months (from September to December)
Office equipment has a useful life of 10 years without scrap value.
urniture has a useful life of 10 years with scrap value of P 12,000
 December 30, 2018, the following items must be adjusted:
Prepayments for 4 months (from September to December)
mount of Prepaid Rent is P 240,000 (do not include Input Tax in the adjustment)

Office equipment has a useful life of 10 years without scrap value.

mount of Office Equipment is P30,000 (do not include Input Tax in the adjustment)

urniture has a useful life of 10 years with scrap value of P 12,000

mount of Furniture is P 144,000 (do not include Input Tax in the adjustment)
Step 2: Post the transactions to the T-Accounts
with formula * Provide for the Account Number and Account Title. eg: 10
without formula (get the net effect)

1001-Cash 1002-Accounts Receivable 1003-Notes Receivable

600,000.00 268,800.00 224,000.00 50,000.00
112,000.00 33,600.00
50,000.00 20,000.00
11,200.00
50,000.00
5,600.00
20,000.00
50,000.00

762,000.00 459,200.00 224,000.00 50,000.00 -

302,800.00 174,000.00

1005-Prepaid Rent 1006-Office Supplies 1007-Office Equipment

240,000.00 10,000.00 30,000.00

240,000.00 - 10,000.00 - 30,000.00

240,000.00 10,000.00 30,000.00

1008-Furniture 1008-A-Accum. Dep. Exp. - Furniture 1009-Land

144,000.00

144,000.00 - - - -
144,000.00

2002-Notes Payable 2003-Unearned Income 2004-Output Tax

- - - - -

3002-Tomas Drawing 4001-Professional Income 4002-Interest Income

100,000.00
200,000.00

- - - 300,000.00 -
300,000.00

5001-Utility Expense 5002-Salary Expense 5003-Rent Expense

5,000.00 50,000.00
50,000.00

5,000.00 - 100,000.00 - -
5,000.00 100,000.00
5005-Meal Allowance 5006-Transportation Expense 5007-Depreciation Expense (OE)

- - - - -

- - - - -
ber and Account Title. eg: 1001-Cash
GENERAL JOURNAL

1003-Notes Receivable 1004-Input Tax TRANSACTIONS/PARTICULARS

28,800.00 Cash
3,600.00 Tomas Capital
17,280.00
1,200.00 Prepaid Rent
600.00 Input Tax
Cash

Office Equipment
Input Tax
- 51,480.00 - Cash
51,480.00
Furniture
Input Tax
1007-Office Equipment 1007-A-Accum Dep Exp. Office Equip Cash
Accounts Payable

Office Supplies
Input Tax
Cash

Cash
Professional Income
Output Tax
- - -
Salary Expense
Cash

1009-Land 2001-Accounts Payable Utility Expense

20,000.00 141,280.00 Input Tax
Cash

Accounts Receivable
Professional Income
Output Tax

Accounts Payable
Cash
- 20,000.00 141,280.00
 121,280.00 Cash
Accounts Receivable

2004-Output Tax 3001-Tomas Capital Salary Expense

12,000.00 600,000.00 Cash
24,000.00

36,000.00 - 600,000.00
36,000.00 600,000.00

4002-Interest Income 4003-Miscellaneous Income

- - -

5003-Rent Expense 5004-Repairs and Maintenance

- - -
7-Depreciation Expense (OE) 5008-Depreciation Expense (Furniture)

- - -

- - -
GENERAL JOURNAL

DEBIT CREDIT
600,000.00
600,000.00

240,000.00
28,800.00
268,800.00

30,000.00
3,600.00
33,600.00

144,000.00
17,280.00
20,000.00
141,280.00

10,000.00
1,200.00
11,200.00

112,000.00
100,000.00
12,000.00

50,000.00
50,000.00

5,000.00
600.00
5,600.00

224,000.00
200,000.00
24,000.00

20,000.00
20,000.00
50,000.00
50,000.00

50,000.00
50,000.00
Step 3: Prepare Trial Balance (Unadjusted)
Tomas Business Solutions (Who >> Business Name)
Trial Balance (What >> What you are preparing)
December 31, 2018 (When >> End of Year)

Debit Credit
Cash 302,800.00 * Type/encode the account name. Arrange it accordi
Accounts Receivable 174,000.00 account number as it appears in your Chart of Acco
Input Tax 51,480.00 * Get the debit and credit balances.
Prepaid Rent 240,000.00 * Formula will not be provided
Office Supplies 10,000.00
Office Equipment 30,000.00
Furniture 144,000.00
Accounts Payable 121,280.00
Output Tax 36,000.00
Tomas Capital 600,000.00
Professional Income 300,000.00
Utility Expenses 5,000.00
Salary Expenses 100,000.00
TOTAL 1,057,280.00 1,057,280.00
nt name. Arrange it according to its
ppears in your Chart of Accounts
Step 4: Based on your Trial Balance, transfer the account title in the ACCOUNT TITLE column and its correspondin
UNADJUSTED TRIAL BALANCE column.
Step 5: Prepare adjusting journal entries. Use the General Journal found in "Journal Entries" Sheet. Type your ad
just below the last transactions.

Step 6: Post your adjusting journal entries to ADJUSTMENTS column. This serves as your T-Account.
Step 7: Fill out the ADJUSTED TRIAL BALANCE column. This serves as an example.
Unadjusted Trial Balance Adjustments
Debit Credit Debit
Cash 100,000.00
Prepaid 50,000.00
Capital 150,000.00
TOTAL (compute for the total) 150,000.00 150,000.00
ADJUSTMENTS:
1. Dep Expense 1,000.00
Accum Dep
2. Rent Expense 5,000.00
TOTAL (compute for the total) 6,000.00

Step 4 Step 6b
Unadjusted Trial Balance Adjustments
ACCOUNT TITLE Debit Credit Debit
Cash 302,800.00 -
Accounts Receivable 174,000.00 -
Input Tax 51,480.00 -
Prepaid Rent 240,000.00 -
Office Supplies 10,000.00 -
Office Equipment 30,000.00 -
Furniture 144,000.00 -
Accounts Payable - 121,280.00
Output Tax - 36,000.00
Tomas Capital - 600,000.00
Professional Income - 300,000.00
Utility Expenses 5,000.00 -
Salary Expenses 100,000.00 -
TOTAL 1,057,280.00 1,057,280.00

Step 6a
Adjustments (based on Step 5)
1. Rent Expense 80,000.00
2. Dep Exp - OE 1,000.00
 Accum Dep - OE
3. Dep Exp - Fur 4,400.00
Accum Dep - Fur
TOTAL 85,400.00
NT TITLE column and its corresponding amounts in the

"Journal Entries" Sheet. Type your adjusting journal entries

erves as your T-Account.

ample.
Adjustments Adjusted Trial Balance
Credit Debit Credit
100,000.00 * the amount in the Adjusted Trial Balance column is the sam
5,000.00 45,000.00 * the amount in the Adjusted Trial Balance column changes f
150,000.00 * same amount because there is no adjustment
* DO NOT FORWARD THE TOTAL IN THE ADJUSTED TRIAL BAL

1,000.00 * there are no amounts in the Unadjusted Trial Balance but i

1,000.00 1,000.00 Adjustments column. Thus, the amounts must be forwarded
5,000.00
6,000.00 151,000.00 151,000.00 * you will be the one to compute for the TOTAL balances

Step 7
Adjustments Adjusted Trial Balance Income Statement
Credit Debit Credit Debit Credit
302,800.00
174,000.00
51,480.00
80,000.00 160,000.00
10,000.00
30,000.00
144,000.00
121,280.00
36,000.00
600,000.00
300,000.00
5,000.00
100,000.00

80,000.00
1,000.00
 1,000.00 1,000.00
4,400.00
4,400.00 4,400.00
85,400.00 1,062,680.00 1,062,680.00
usted Trial Balance column is the same as the Unadjusted Trial Balance because there are no adustments in the Adjustments c
usted Trial Balance column changes from 50,000 to 45,000 because the Unadjusted Trial Balance has a debit balance of P50,00
e there is no adjustment
HE TOTAL IN THE ADJUSTED TRIAL BALANCE

in the Unadjusted Trial Balance but it has amounts in the

us, the amounts must be forwarded to Adjusted Trial Balance.

compute for the TOTAL balances

Balance Sheet Post Trial Balance

Debit Credit Debit Credit
 no adustments in the Adjustments column
Balance has a debit balance of P50,000 while its corresponding Adjustments column has a credit balance of P5,000
lance of P5,000