Name: Course & Year: Score:

Assignment # 2

INSTRUCTIONS: Make the journal entries for the following transactions.

Mr. Seokjin Kim, CPA opened a current account with Development Bank of the Philippines and
deposited ₱150,000 to start with his public practice.

CHART OF ACCOUNTS
ASSETS OWNER’S EQUITY
Cash on Hand S. Kim, Capital
Accounts Receivable S. Kim, Drawing
Advances to Employees INCOME
Prepaid Interest Professional Income
Supplies Inventory EXPENSES
Office Furniture & Fixtures Professional Development Expense
LIABILITIES Postage and Telephone
Accounts Payable Travelling Expense
Unearned Professional Income Rent Expense
Loans Payable Utilities Expense
Salaries Expense
Taxes and Licenses

Transactions:
Dec 3 Deposited ₱150,000 to the bank and invested office table and computer worth ₱80,000 in the
business.
4 Bought various office stationeries and supplies on account, ₱15,000.
5 Received cash of ₱15,000 for installation and design of accounting system.
7 Paid ₱6,000 convention registration fee for Philippine Institute of Certified Public Accountants
9 Paid ₱2,500 for transportation expense in visiting a client in Davao City.
1 Rendered professional service on account, ₱10,000
0
1 Received cash, ₱6,000 from Cebu Golden Plaza but professional service has yet to be rendered.
2
1 Salary advance given to his staff to be deducted against payroll, ₱5,000
3
1 Paid taxes and business permits for cash, ₱4,500
3
1 Paid ₱1,500 for telephone bills
4
1 Collected in full the account of a client on December 10.
6
1 Partial payment of account on December 4, ₱3,000.
7
1 Bought steel cabinets on account from Sungold, Inc. ₱25,000.
8
1 Received electric and water bill for ₱3,500 and immediately made payment.
9
2 Mr. Kim made a withdrawal from his bank account of ₱25,000 for his personal use.
1
2 Paid transportation expense in visiting a client in Zamboanga City, ₱3,000
2
2 Paid office rental of ₱5,000
3
2 Sent a brochure to a client in Davao City through Aboitiz 2-Go, ₱2,500
4
2 Rendered a professional service for cash to various clients, ₱45,000
5
2 Partial payment of account with Sungold, Inc., ₱10,000
6
2 Received a loan from Cebu Accountant’s Multi-Purpose Cooperative, ₱47,000, net of interest
7 payable six months after.
2 Received cash ₱15,000 as retainer’s fee from various clients.
9

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3 Paid salaries to his staff, ₱18,000 net of deduction for salary advance of December 13.
0
3 Full payment of account with Sungold, Inc.
0
3 Rendered professional service to Cebu Golden Plaza, paying out the advanced payment received
0 on December 12.
3 Full payment of December 4 account.
0
3 Billed a client for professional services rendere, ₱35,000
0
3 Plane ticket to avail of promotional fare re-travel to Manila to attend PICPA Convention, ₱6,200.
0
3 Send PICPA Bulletin through LBC Air Cargo, ₱1,200.
0
3 Received cash from a client for professional services rendered ₱8,000
0
3 Taxi fares claimed by staff while out in office for official business, ₱850
0

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