Reviewer Materials for Perpetual and Periodical Accounting Cycle

Additional Guides and Tips for TESDA NC III Bookkeeping.

-Accounting Tutorial

Therefore, I tell you, whatever

you ask in prayer, believe that you have
received it, and it will be yours.

-Mark 11:24 ESV

Heavenly Father, please be with this student as he/she go
where they do not know.

As they seek to grow in knowledge, show and give

him/her to find your light and graciousness.

As they start to conquer the world, I pray that he/she start

to conquer your kingdom too. Give them struggles for this
will be their strengths and will use to fight all the
hindrances along the way to you and to your kingdom.

Take he/she deeper that his/her feet could ever wander

and let his/her will be made stronger in the presence of
our Lord Jesus, Our Savior.

Always bring him/her to where he/she belong. To your

hands, heart and kingdom.

Amen
SOLE PROPRIETORSHIP
ACCOUNTING
TRANSACTIONS

(MOCK EXAM)
Completing the Accounting Cycle from Journal Entries to Post closing Trial
balance with a provided worksheet and answer keys.

On December 1, Mark Rivera began an AUTO REPAIR SHOP, Rivera’s Quality Automotive. The
following transactions occurred during December:
December 1 Rivera contributed PHP 200,000.00 cash to the business in exchange of shares of
common stocks.
December 1 Purchased PHP 12,000.00 of computer equipment paid thru cash.
December 1 Paid a 3 months insurance policy starting December 1,2020, PHP 9,000.00
December 5 Purchased Office Supplies on account, PHP 5,800.00
December 8 Borrowed PHP 80,000.00 from the bank for business use. Rivera prepared and
signed promissory notes payable to bank under the name of his business.
December 9 Paid advertising expenses for only PHP 1,580.00
December 10 Paid half of the supplies on account
December 13 Rivera’s Quality Automotive paid registration and licensing fees for the business,
PHP 10,800.00
December 16 The company acquired tables, chairs, shelves, and other fixtures for a total of
PHP 30,000.00 The entire amount was paid in cash.
December 17 The company acquired service equipment for PHP 16,000.00 The company paid
a 50% down payment and the balance will be paid after 60 days.
December 17 The company received PHP 10,900.00 for services rendered.
December 17 Rendered services on account, PHP 78,000.00. As per agreement with the Rapid
Automotive, the amount is to be collected after 10 days
December 19 Mr. Rivera invested an additional PHP 53,200.00 into the business
December 20 Rendered services to a big corporation on December 20. As per agreement, the
PHP 33,400.00 amount due will be collected after 30 days
December 21 Paid in full the supplies on account
December 21 The owner withdrew cash due to an emergency need. Mr. Rivera withdrew PHP
60,000.00 from the company.
December 22 Paid rent for December, PHP 1,500.00
December 23 Paid salaries to its employees, PHP 3,500.00
December 27 Collected from the Rapid Automotive full amount.
December 28 Paid the bank 30% of loan payable
Rivera's Quality Automotive
Chart of Accounts
101 Cash
102 Accounts Receivable
103 Office Supplies
104 Prepaid Insurance
105 Computer Equipment
106 Accumulated Depreciation - Equipment
107 Furniture and Fixtures
108 Service Equipment
109 Accumulated Depreciation - Service Equipment
201 Accounts Payable
202 Notes Payable
203 Interest Payable
204 Loan Payable
205 Unearned Revenue
301 Capital
302 Withdrawal
303 Income Summary Account
401 Service Revenue
601 Salaries Expense
602 Rent Expense
603 Utilities Expense
604 Supplies Expense
605 Insurance Expense
606 Taxes and Licenses
607 Advertising Expenses
608 Depreciation Expense – Computer Equipment
609 Depreciation Expense – Service Equipment

ADJUSTMENT DATA:
A. Office Supplies used during the month, PHP 3,800.00
B. Depreciation of the computer for the month, PHP 2,400.00
C. Depreciation of the service equipment for the month, PHP 3,200.00
D. One-month insurance was expired.
REQUIREMENTS:
1. Prepare the journal entries and post to the T-Accounts
2. Prepare unadjusted trial balance
3. Prepare the adjusting journal entries and post to the T-Accounts
4. Prepare adjusted trial balance
5. Prepare the Financial Statements: (Income Statements, Statement of Owner’s Equity,
Balance Sheet)
6. Prepare the closing entries and post to the T- Accounts
7. Prepare post-closing trial balance
 PREPARE JOURNAL ENTRIES:
JOURNAL ENTRIES
DR Amount (in CR Amount (in
Sr No. Particulars PHP) PHP)
 JOURNAL ENTRIES:

JOURNAL ENTRIES
Sr No. Particulars DR Amount (in PHP) CR Amount (in PHP)
 JOURNAL ENTRIES:
JOURNAL ENTRIES
Sr No. Particulars DR Amount (in PHP) CR Amount (in PHP)
 Cash Accounts Receivable

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:

Office Supplies Prepaid Insurance

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:
 Service Equipment Accumulated Depreciation - Service Equipment

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:

Accounts Payable Notes Payable

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:
 Loan Payable Unearned Revenue

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:

Capital Withdrawal

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:
 Income Summary Account Service Revenue

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:

Salaries Expense Rent Expense

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:
 Utilities Expense Supplies Expense

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:

Insurance Expense Taxes and Licences

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:
 Depreciation Expense - Computer Equipment Depreciation Expense - Service Equipment

TOTAL TOTAL TOTAL TOTAL

Balance: Balance:
RIVERA’S QUALITY AUTOMOTIVE
UNADJUSTED TRIAL BALANCE
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
ADJUSTED TRIAL BALANCE
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
INCOME STATEMENT
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
STATEMENT OF ACCOUNT
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
CASH FLOW
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
BALANCE SHEET
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
POST CLOSING TRIAL BALANCE
DECEMBER 31,2020
SOLE PROPRIETORSHIP
ACCOUNTING
TRANSACTIONS

(ANSWER KEYS)
ADJUSTMENT DATA:

E. Office Supplies used during the month, PHP 3,800.00

F. Depreciation of the computer for the month, PHP 2,400.00

G. Depreciation of the service equipment for the month, PHP 3,200.00

H. One-month insurance was expired.

REQUIREMENTS:
8. Prepare the journal entries and post to the T-Accounts
9. Prepare unadjusted trial balance
10. Prepare the adjusting journal entries and post to the T-Accounts
11. Prepare adjusted trial balance
12. Prepare the Financial Statements: (Income Statements, Statement of Owner’s Equity,
Balance Sheet)
13. Prepare the closing entries and post to the T- Accounts
14. Prepare post-closing trial balance
 PREPARE JOURNAL ENTRIES:
JOURNAL ENTRIES
DR Amount (in CR Amount (in
Sr No. Particulars PHP) PHP)
101 CASH 200,000.00
301 RIVERA, CAPITAL 200,000.00
To record the investment of the owner
105 COMPUTER EQUIPMENT 12,000.00
101 CASH 12,000.00
To record purchased computer equipment
PREPAID INSURANCE 9,000.00
101 CASH 9,000.00
To record availed insurance
103 OFFICE SUPPLIES 5,800.00
201 ACCOUNTS PAYABLE 5,800.00
To record bought office supplies on account
101 CASH 80,000.00
204 LOANS PAYABLE 80,000.00
To record loans payable
607 ADVERTISING EXPENSE 1,580.00
101 CASH 1,580.00
To record the payment for advertising
201 ACCOUNTS PAYABLE 2,900.00
101 CASH 2,900.00
To record the payment for office supplies in half
606 TAX AND LICENSES 10,800.00
101 CASH 10,800.00
To record the payment for the registration of licenses
107 FURNITURE AND FIXTURES 30,000.00
101 CASH 30,000.00
To record bought furniture and fixtures
108 SERVICE EQUIPMENT 16,000.00
101 CASH 8,000.00
201 ACCOUNTS PAYABLE 8,000.00
To record bought service equipment on cash and on account
 JOURNAL ENTRIES:

JOURNAL ENTRIES
Sr No. Particulars DR Amount (in PHP) CR Amount (in PHP)
101 CASH 10,900.00
401 SERVICE REVENUE 10,900.00
To record rendered services received on cash
102 ACCOUNTS RECEIVABLE 78,000.00
401 SERVICE REVENUE 78,000.00
To record rendered services received on AR
101 CASH 53,200.00
301 RIVERA’S CAPITAL 53,200.00
To record additional investment of owner
102 ACCOUNTS RECEIVABLE 33,400.00
401 SERVICE REVENUE 33,400.00
To record rendered services received on AR
201 ACCOUNTS PAYABLE 2,900.00
101 CASH 2,900.00
To record full payment on supplies
302 RIVERA’S WITHDRAWAL 60,000.00
101 CASH 60,000.00
To record withdrawal of owner
RENT EXPENSES 1,500.00
101 CASH 1,500.00
To record payment of rent
SALARIES EXPENSES 3,500.00
101 CASH 3,500.00
To record payment of salaries of employees
101 CASH 78,000.00
ACCOUNTS RECEIVABLE 78,000.00
To record the cash received from Rapid Customer
LOAN PAYABLE 24,000.00
101 CASH 24,000.00
To record payment of loan 30%

JOURNAL ENTRIES:
 JOURNAL ENTRIES
Sr DR Amount (in CR Amount (in
Particulars
No. PHP) PHP)
ADJUSTING ENTRIES
SUPPLIES EXPENSE 3,800.00
OFFICE SUPPLIES 3,800.00
To adjust office supplies
DEPRECIATION EXPENSE – COMPUTER 2,400.00
ACCUMULATED DEPRECIATION - COMPUTER 2,400.00
To record depreciation of computer equipment
DEPRECIATION EXPENSE – SERVICE EQUIPMENT 3,200.00
ACCUMULATED DEPRECIATION – SERVICE
3,200.00
EQUIPMENT
To record depreciation of service equipment
INSURANCE EXPENSE 3,000.00
PREPAID INSURANCE 3,000.00
To recognize 1-month insurance

CLOSING ENTRIES
SERVICE REVENUE 122,300.00
INCOME SUMMARY ACCOUNT 122,300.00
To closed revenue
INCOME SUMMARY AMOUNT 29,780.00
SALARIES EXPENSE 3,500.00
RENT EXPENSE 1,500.00
TAX EXPENSE 10,800.00
ADVERTISING EXPENSE 1,580.00
INSURANCE EXPENSE 3,000.00
DEPRECIATION EXPENSE - COMP. EQUIPMENT 2,400.00
DEPRECIATION EXPENSE - SERVICE EQUIPMENT 3,200.00
To closed expenses
INCOME SUMMARY ACCOUNT 92,520.00
RIVERA, CAPITAL 92,520.00
To closed income summary account
RIVERA, CAPITAL 60,000.00
WITHDRAWAL 60,000.00
To closed withdrawal
 Cash Accounts Receivable
Revenue
Capital 200,000 Computer 12,000
78,000
Revenue
Loans 80,000 Insurance 9,000
33,400
Revenue
Revenue 10,900 Supplies 2,900
78,000
Capital 53,200 Tax 10,800
Revenue 78,000 Furnitures 30,000
Equipment 8,000
Withdrawal 60,000
Salaries 3,500
Loan 24,000
Advertising 1,580
Supplies 2,900
Rent 1,500

TOTAL 422,100 TOTAL 166,180 TOTAL 111,400 TOTAL 78,000

Balance:
Balance: 33,400
255,920

Office Supplies Prepaid Insurance

Adjustment Adjustment
Supplies 5,800 3,800 Insurance 9,000 3,000

TOTAL 5,800.00 TOTAL 3,800 TOTAL 9,000 TOTAL 3,000

Balance:
2,000.00 Balance: 6,000
 Service Equipment Accumulated Depreciation - Service Equipment
Adjustment
Service 16,000 3,200

TOTAL 16,000 TOTAL TOTAL TOTAL 3,200

Balance:
16,000.00 Balance: 3,200.00

Computer Equipment Accumulated Depreciation - Equipment

Computer Adjustment
12,000 2,400.00

TOTAL 12,000 TOTAL TOTAL TOTAL 2,400

Balance: 12,000 Balance 2,400.00
 Accounts Payable Notes Payable
AP 5,800
AP 2,900
AP 2,900 AP 8,000

TOTAL
TOTAL 5,800 13,800 TOTAL TOTAL
Balance: 8,000.00 Balance:

Loan Payable Unearned Revenue

LP 24,000 LP 80,000

TOTAL
TOTAL 24,000 80,000 TOTAL TOTAL
Balance: 56,000.00 Balance:
 Capital Withdrawal
Withdrawal
Capital 200,000 60,000 ISA 60,000.00
Capital 53,200
ISA 92,520.00
Withdrawal
60,000

TOTAL TOTAL
TOTAL 60,000.00 345,720. TOTAL 60,000 60,000
Balance: 285,720.00 Balance: 0.00

Income Summary Account Service Revenue

Expenses Revenue Revenue
29,780 122,300.00 ISA 122,300.00 10,900
Revenue
Capital 92,520 78,000
Revenue
33,400

TOTAL 122,300 TOTAL 122,300 TOTAL 122,300 TOTAL 122,300

Balance: 0.00 Balance: 0.00
 Salaries Expense Rent Expense
Salaries 3,500 ISA 3,500.00 Rent 1,500 ISA 1,500.00

TOTAL
TOTAL 3,500 TOTAL 3,500 TOTAL 1,500.00 1,500.00
Balance: 0.00 Balance: 0.00

Utilities Expense Supplies Expense

Adjustment 3,800.00 ISA 3,800.00

TOTAL
TOTAL TOTAL TOTAL 3,800
3,800.00
Balance:
Balance:
0.00
 Insurance Expense Taxes and Licenses
Adjustment
3,000.00 ISA 3,000.00 TAX 10,800 ISA 10,800

TOTAL TOTAL
TOTAL 3,000.00 3,000.00 TOTAL 10,800 10,800
Balance: 0.00 Balance: 0.00

Depreciation Expense - Computer Equipment Depreciation Expense - Service Equipment

Adjustment 2,400 ISA 2,400 Adjustment 3,200 ISA 3,200

TOTAL 2,400.00 TOTAL 2,400 TOTAL 3,200 TOTAL 3,200

Balance: 0.00 Balance: 0.00
 Furniture and Fixtures Advertising Expenses
Furnitures 30,000 Advertising 1,580 1,580

TOTAL 30,000.00 TOTAL TOTAL 1,580 TOTAL 1,580

Balance: 30,000.00 Balance: 0.00 0.00
 RIVERA’S QUALITY AUTOMOTIVE
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2020

101 Cash PHP 255,920.00

102 Accounts Receivable PHP 33,400.00

103 Office Supplies PHP 5,800.00

104 Prepaid Insurance PHP 9,000.00

105 Computer Equipment PHP 12,000.00

107 Furniture and Fixtures PHP 30,000.00

108 Service Equipment PHP 16,000.00

201 Accounts Payable PHP 8,000.00

204 Loan Payable PHP 56,000.00

301 Capital PHP 253,200.00

302 Withdrawal PHP 60,000.00

401 Service Revenue PHP 122,300.00

601 Salaries Expense PHP 3,500.00

602 Rent Expense PHP 1,500.00

606 Taxes and Licenses PHP 10,800.00

607 Advertising Expenses PHP 1,580.00

TOTAL TRIAL BALANCE PHP 439,500.00 PHP 439,500.00

 RIVERA’S QUALITY AUTOMOTIVE
ADJUSTED TRIAL BALANCE
DECEMBER 31,2020

101 Cash PHP 255,920.00

102 Accounts Receivable PHP 33,400.00

103 Office Supplies PHP 2,000.00

104 Prepaid Insurance PHP 6,000.00

105 Computer Equipment PHP 12,000.00

106 Accumulated Depre - Computer Equipment PHP 2,400.00

107 Furniture and Fixtures PHP 30,000.00

108 Service Equipment PHP 16,000.00

109 Accumulated Depre - Service Equipment PHP 3,200

201 Accounts Payable PHP 8,000.00

204 Loan Payable PHP 56,000.00

301 Capital PHP 253,200.00

302 Withdrawal PHP 60,000.00

401 Service Revenue PHP 122,300.00

601 Salaries Expense PHP 3,500.00

602 Rent Expense PHP 1,500.00

606 Taxes and Licenses PHP 10,800.00

607 Advertising Expenses PHP 1,580.00

604 Supplies Expenses PHP 3,800.00

605 Insurance Expenses PHP 3,000.00

607 Depreciation Exp – Computer PHP 2,400.00

608 Depreciation Exp – Service PHP 3,200.00

TOTAL TRIAL BALANCE PHP 445,100.00 PHP 445,100.00
 RIVERA’S QUALITY AUTOMOTIVE
INCOME STATEMENT
DECEMBER 31,2020

REVENUES
Service Revenue PHP 122,300.00
TOTAL REVENUES PHP 122,300.00

EXPENSES

Salaries Expense (PHP 3,500.00)

Rent Expense (PHP 1,500.00)

Taxes and Licenses (PHP 10,800.00)

Advertising Expenses (PHP 1,580.00)

Supplies Expenses (PHP 3,800.00)

Insurance Expenses (PHP 3,000.00)

Depreciation Exp – Computer (PHP 2,400.00)

Depreciation Exp – Service (PHP 3,200.00)

TOTAL EXPENSES (PHP 29,780.00)

NET INCOME PHP 92,520.00

 RIVERA’S QUALITY AUTOMOTIVE
STATEMENT OF ACCOUNT
DECEMBER 31,2020

Mark Rivera, Capital December 1,

Investment during the year PHP 253,200.00
Net Income for the year PHP 92,520.00
TOTAL PHP 345,720.00
Less: Withdrawal (PHP 60,000.00)
Net Increase in owner’s equity PHP 285,720.00

Mark Rivera, Capital December 31, PHP 285,720.00

 RIVERA’S QUALITY AUTOMOTIVE
CASH FLOW
DECEMBER 31,2020

CASH FLOW FROM OPERATING ACTIVITIES

Cash received from customers PHP 88,900.00
Less paid cash for:
Insurance PHP 9,000.00
Supplies PHP 5,800.00
Taxes and Licenses PHP 10,800.00
Salaries PHP 3,500.00
Advertisement PHP 1,580.00
Rent PHP 1,500.00 (PHP 32,180.00)
NET CASH PROVIDED BY OPERATING ACTIVITIES PHP 56,720.00

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Equipment:
Computer PHP 12,000.00
Service Equipment PHP 8,000.00
Furnitures and Fixtures PHP 30,000.00
NET CASH PROVIDED BY INVESTING ACTIVITIES (PHP 50,000.00)

CASH FLOW FROM FINANCING ACTIVITIES

Capital PHP 253,200.00
Loans PHP 80,000.00
Repayment of Loans (PHP 24,000.00)
Withdrawal (PHP 60,000.00)
NET CASH PROVIDED BY FINANCING ACTIVITIES PHP 249,200.00

CASH BALANCE AT DECEMBER 31,2020 PHP 255,920.00

 RIVERA’S QUALITY AUTOMOTIVE
BALANCE SHEET
DECEMBER 31,2020

ASSETS LIABILITIES AND OE

CURRENT ASSETS CURRENT LIABILITIES
Cash PHP 255,920.00 Accounts Payable PHP 8,000.00
Accounts Receivable PHP 33,400.00 Total Current Liability PHP 8,000.00
Office Supplies PHP 2,000.00
Prepaid Insurance PHP 6,000.00 Long-term liabilities PHP 56,000.00
Total Current Assets: PHP 297,320.00 TOTAL LIABILITY PHP 64,000.00

PLANT AND EQUIPMENT Owners Equity PHP 285,720.00

Computer Equipment PHP 12,000.00
Less: Accumulated Depre - Computer (PHP 2,400.00)
Furniture and Fixtures PHP 30,000.00
Service Equipment PHP 16,000.00
Less: Accumulated Depre - Service (PHP 3,200.00)
Total Plant Equipment: PHP 52,400.00

TOTAL ASSETS: PHP 349,720.00 TOTAL LIABILITIES & OWNERS

EQUITY PHP 349,720.00
 RIVERA’S QUALITY AUTOMOTIVE
POST CLOSING TRIAL BALANCE
DECEMBER 31,2020

101 Cash PHP 255,920.00

102 Accounts Receivable PHP 33,400.00

103 Office Supplies PHP 2,000.00

104 Prepaid Insurance PHP 6,000.00

105 Computer Equipment PHP 12,000.00

106 Accumulated Depre - Computer Equipment PHP 2,400.00

107 Furniture and Fixtures PHP 30,000.00

108 Service Equipment PHP 16,000.00

109 Accumulated Depre - Service Equipment PHP 3,200.00

201 Accounts Payable PHP 8,000.00

204 Loan Payable PHP 56,000.00

301 Capital PHP 285,720.00

TOTAL POST CLOSING TRIAL BALANCE PHP 355,320.00 PHP 355,320.00