Mr.

Jerome decided to go into business for himself as a CPA and the following
transactions transpired in January to February.

Jan 1 Jerome made an initial investment of 125,000 cash

1 Purchased office equipment worth 50,000 and office furniture worth
30,000, both on account
2 Paid 2,000 worth for the taxes and licenses to start the business.
He named his business as Jerome Accounting Firm.
5 Received from George Jimenez, 20,000 for the service rendered
8 Bought office supplies from National Pandayan Expression
amounting to 10,000 on account
10 Paid 10,000 as a partial payment of the office equipment purchased
14 Billed Christian Marcos, 5,000, for the auditing service rendered.
15 Paid the secretary’s salary amounting to 5,000
17 Mr. Jerome withdraw 10,000 cash for his personal used
19 Paid 20,000 and 10,000 as partial payments to the office equipment
and office furniture, respectively
21 Collected the half of Christian Marcos’ account
23 Paid the electric bill and water bill amounting to 5,500
25 Received 10,000 from various customers for the service rendered
26 Billed Ms. Cristine, 2,500, for the bookkeeping service rendered to
her.
27 Paid, 3,000 to PLDT Co for telephone bills
28 Paid the Rent for the month of January amounting to 2,500
29 Received the full amount of Mr, Marcos’ account.
30 Paid the secretary’s salary amounting 5,000

Feb 1 Paid the 6-month rent of the office amounting to 15,000

3 Purchased additional supplies amounting to 5,000
4 Rendered an auditing service to Coloma’s Advertising Agency
amounting to 20,000. Mr. Jaspher Coloma, the owner of the
business, promise to pay his account to Mr. Jerome.
4 Collected 1,000 from Ms, Cristine
8 Paid the 20,000 as the full payment for the office equipment
purchased
10 Received 10,000 from Mr. Coloma as partial payment of his
account
15 Paid the salary of the secretary amounting 5,000
17 Received 13,500 from GLEDCO for the auditing service rendered
20 Billed 3,500 to Data Center College for the bookkeeping service
rendered
25 Paid the electric bill and water bill amounting to 4,570
27 Paid 3,000 to PLDT Co for telephone bills
28 Paid the secretary’s salary amounting 5,000
Additional Information
1. It is estimated that 5% of the unadjusted accounts receivable will be
uncollectible
 2. The office equipment and office furniture has an estimated useful life of 5 year
and 7 years, respectively. After, it can be sold for 10,000 and 5,000
respectively
3. Supplies used for 2 months was 5,650

REQUIRED:
1. Journalize the above transactions in the general journal
2. Journalize the adjusting entries at February 28, 2018
3. Determine the balances of the accounts affected by the adjustments
4. Prepare the Statement of Comprehensive Income
5. Prepare the Statement of Financial Condition

Chart of Accounts

Assets Liability Capital

Cash Accounts Payable Jerome, Capital
Accounts Receivable Jerome, Drawings
Allowance for Bad debts
Prepaid Rent
Office Supplies
Office Equipment
Accumulated Depreciation - OE
Office Furniture
Accumulated Depreciation- OF

Revenue Expenses
Service Income Taxes and Licenses
Office Supplies Expense
Utilities Expense
Salary Expense
Communication Expense
Rent Expense
Depreciation Expense
Bad Debts Expense

Bonus Questions:

1. I hate this subject because

2. I will not pass this subject because
3. I hate my instructor because
4. I like my instructor because
5. My comments/suggestions to my instructor are

TANDAAN:
KUNG KAYA MONG PAGSIKAPAN AT MAHALIN ANG TAONG WALANG PAKE
SA’YO, KAYA MO RING PAGSIKAPAN ANG GRADES MO 
-Have an enjoyable vacation ahead-
 GENERAL JOURNAL

Date Account Title Debit Credit

 GENERAL JOURNAL

Date Account Title Debit Credit

 GENERAL JOURNAL

Date Account Title Debit Credit

 GENERAL LEDGER

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT
 GENERAL LEDGER

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT
 GENERAL LEDGER

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT
 GENERAL LEDGER

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT
 GENERAL LEDGER

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT

Account Title: ________________________________

DATE DEBIT DATE CREDIT
 JEROME ACCOUNTING FIRM
February 28, 20CY
Preliminary Trial Balance

ACCOUNT TITLES DEBIT CREDIT

 ADJUSTING ENTRIES

Date Account Title Debit Credit

 JEROME ACCOUNTING FIRM
Statement of Comprehensive Income
For the Month Ended February 28,20CY
 JEROME ACCOUNTING FIRM
Statement of Financial Position
February 28,20CY
 DATA CENTER COLLEGE OF THE PHILIPPINES
A.G. Tupaz cor M. V. Fariñas St.
Brgy. 8, San Vicente, Laoag City

Final
Examination
Accounting

Name: ________________________
Year&Sec: ____________________
Rating: _______________________