Chapter 7

Posting to the Ledger

NAME: Date:
Professor: Section: Score:

QUIZ 1: JOURNALIZING & POSTING

The following were the transactions of Entity A during the period:

Date Transactions
Jan. 8 Services worth ₱150,000 were rendered for cash.
Jan. 9 Services worth ₱200,000 were rendered on account.
Jan. Cash amounting to ₱25,000 was disbursed for advertising expense.
10
Jan. Accounts receivable of ₱180,000 was collected.
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Jan. The owner made a temporary withdrawal of ₱10,000 cash from the business.
12

Requirements:
a. Provide the journal entries.
b. Post the journal entries to the ledger then determine the ending balances of the accounts. Use T-
accounts for this purpose. Arrange your T-accounts in this order: Assets, Liabilities, Equity,
Income and Expenses.

1
“There is no end to education. It is not that you read a book, pass an examination, and finish with
education. The whole of life, from the moment you are born to the moment you die, is a process
of learning.” - Jiddu Krishnamurti
- END -
SOLUTIONS TO QUIZ 1:

Requirement (a): Journal entries

  JOURNAL
Date Account titles Debit Credit
Jan. 8  Cash 150,000
Service fees 150,000
to record service fees
Jan. 9  Accounts receivable 200,000
Service fees 200,000
to record service fees
Jan. 10  Advertising expense 25,000
Cash 25,000
to record the payment for advertising expense
Jan. 11  Cash 180,000
Accounts receivable 180,000
to record the collection of accounts receivable
Jan. 12  Owner’s drawings 10,000
Cash 10,000
to record the drawings of the owner

Requirement (b): Posting

ASSETS
Cash Accounts receivable
1/8 150,000   1/9 200,000  
1/11 180,000 25,000 1/10 180,000 1/11
10,000 1/12  
       
295,000 end. 20,000 end.

EQUITY
Owner's drawings
1/12 10,000  
 
  10,000 end.

INCOME
Service fees
150,000 1/8

2
 200,000 1/9
end. 350,000  

EXPENSES
Advertising expense
1/10 25,000  
 
  25,000 end.

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 NAME: Date:
Professor: Section: Score:

QUIZ 2: UNADJUSTED TRIAL BALANCE

The ledger accounts of Entity A have the following balances on December 31, 20x1:

Account titles Balances

Accounts payable 480,000
Accounts receivable 210,000
Accumulated depreciation - Bldg. 1,250,000
Accumulated depreciation - Equipt. 1,800,000
Advertising expense 70,000
Allowance for bad debts 30,000
Bad debt expense 20,000
Building 5,000,000
Cash 770,000
Depreciation expense 200,000
Equipment 3,600,000
Land 2,000,000
Miscellaneous expense 4,000
Notes receivable 420,000
Owner’s drawings 80,000
Owner’s equity 4,200,000
Prepaid supplies 40,000
Salaries expense 1,140,000
Salaries payable 120,000
Service fees 6,000,000
Supplies expense 60,000
Taxes and licenses 120,000
Transportation and travel expense 140,000
Utilities expense 46,000
Utilities payable 40,000

Requirement: Prepare the unadjusted trial balance. Be sure to provide a proper heading for the report
and arrange the accounts in the correct sequence.

“In some parts of the world, students are going to school every day. It's their
normal life. But in other part of the world, we are starving for education... it's like a
precious gift. It's like a diamond.” – Malala Yousafzai

- END -

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SOLUTION TO QUIZ 2:

  Entity A  
  Unadjusted Trial Balance  
  December 31, 20x1  
   
  Account titles Debit Credit  
  Cash ₱770,000  
  Accounts receivable 210,000  
  Allowance for bad debts ₱30,000  
  Notes receivable 420,000  
  Prepaid supplies 40,000  
  Land 2,000,000  
  Building 5,000,000  
  Accumulated depreciation - Bldg. 1,250,000  
  Equipment 3,600,000  
  Accumulated depreciation - Equipt. 1,800,000  
  Accounts payable 480,000  
  Salaries payable 120,000  
  Utilities payable 40,000  
  Owner’s equity 4,200,000  
  Owner’s drawings 80,000  
  Service fees 6,000,000  
  Salaries expense 1,140,000  
  Utilities expense 46,000  
  Supplies expense 60,000  
  Bad debt expense 20,000  
  Depreciation expense 200,000  
  Advertising expense 70,000  
  Taxes and licenses 120,000  
  Transportation and travel expense 140,000  
  Miscellaneous expense 4,000  
₱13,920,00 ₱13,920,00
  Totals  
0 0
         

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 NAME: Date:
Professor: Section: Score:

QUIZ 3: POSTING & UNADJUSTED TRIAL BALANCE

Mr. A opened a management consulting firm called “Alpha Consulting” on October 1, 20x1. The
following were the transactions during the first week of operations:

Oct. Transactions
1 Provided ₱300,000 cash as initial investment to the business.
2 Acquired furniture and fixture for ₱200,000 cash.
4 Purchased supplies for ₱30,000 cash.
5 Rendered services worth ₱20,000 on cash basis.
7 Paid ₱10,000 salaries of employees.

Requirements:
a. Provide the journal entries.
b. Post the entries to the ledger (use T-accounts).
c. Prepare the unadjusted trial balance on October 7, 20x1.

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“So do not fear, for I am with you; do not be dismayed, for I am your God. I will strengthen you and help you; I
will uphold you with my righteous right hand.”
(Isaiah 41:10)
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SOLUTIONS TO QUIZ 3:

Requirement (a):

Oct. 1 Cash 300,000

Owner’s equity (or A, Capital) 300,000
to record the owner’s contribution
2 Furniture and fixture 200,000
Cash 200,000
to record the acquisition of equipment
4 Prepaid supplies 30,000
Cash 30,000
to record the purchase of supplies
5 Cash 20,000
Service fees 20,000
to record service fees
7 Salaries expense 10,000
Cash 10,000
to record salaries expense

Requirement (b):

ASSETS
Cash
1 300,000
200,000 2
5 20,000 30,000 4
10,000 7
80,000

Prepaid supplies
4 30,000
Bal. 30,000

Furniture and fixture

2 200,000
Bal. 200,000

EQUITY
Owner’s equity

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 300,000 1
300,000 Bal.

INCOME EXPENSES
Service fees Salaries expense
  20,000 5 7 10,000
 
20,000 Bal. Bal. 10,000

Requirement (c):
  Alpha Consulting  
  Unadjusted Trial Balance  
  October 7, 20x1  
   
  Accounts Debit Credit  
  Cash ₱80,000  
Prepaid supplies 30,000
  Furniture and fixture 200,000  
  Owner’s equity ₱300,000  
  Service fees 20,000  
  Salaries expense 10,000  
  Totals ₱320,000 ₱320,000