Miss Yoon Se-Ri, established a travel and tours agency business in the Philippines which she

called LANDING ON YOU TRAVEL SERVICES COMPANY, a company that promises safe travel
with no crash landing.

The company started pre-operational activities on April 1, 2020 and rendered their first travel
services on April 9, 2020.

The business offers travel and tours services to local Philippine destinations such as Batanes,
Sagada, Cebu, Camarines Sur, and Palawan, international Asian destinations such as South
Korea, Japan, Thailand, Singapore, and Hong Kong, and other travel services such as VISA
assistance and flight booking assistance.

CHART OF ACCOUNTS
ASSETS REVENUE
101 Cash 401 Local Travel Fees Earned
102 Accounts Receivable 402 International Travel Fees Earned
103 Office Supplies 403 Travel Assistance Fees Earned
104 Prepaid Rent
105A Automobile EXPENSES
105B Accumulated Depreciation – Automobile 501 Salaries Expense
106A Office Equipment 502 Utilities Expense
106B Accumulated Depreciation – Office Equipment 503 Rent Expense
107A Furniture and Fixtures 504 Repairs and Maintenance Expense
107B Accumulated Depreciation – Furniture and Fixtures 505 Organization Expense
506 Office Supplies Expense
507 Interest Expense
LIABILITIES 508 Depreciation Expense – Automobile
201 Accounts Payable 509 Depreciation Expense – Office Equipment
202 Notes Payable 510 Depreciation Expense – Furniture and Fixtures
203 Unearned Local Travel Fees 511 Gas and Oil Expense
204 Unearned International Travel Fees
205 Interest Payable

CAPITAL
301 Yoon, Capital
302 Yoon, Drawing
303 Profit or Loss Summary

Transactions of the company on its first month of operations (April 2020) are as follows:

01 (Transaction # 1) Miss Yoon Se-Ri invested P6,000,000 to open Landing On You Travel
Services Company. Five (5) employees were initially hired for the travel services team
with two (2) drivers.
02 (Transaction # 2) Paid pre-operating expenses for permit and licenses to start
 operations, P250,000 cash payment. Bank borrowing was approved with a note of
promise to pay, P100,000 payable in one year with 12% interest upon repayment of
the principal amount.
04 (Transaction # 3) Purchased two (2) units of a shuttle 15-seater van amounting to
P1,600,000 per vehicle, on account.
06 (Transaction # 4) Purchased ten (10) computer equipment sets for operational
purposes, P30,000 per unit, cash payment made.
07 (Transaction # 5) Purchased office supplies amounting to P50,000 and paid rent in
advance covering 6 months’ equivalent rent, P150,000.
08 (Transaction # 6) Purchased furniture and fixtures such as tables, chairs, cabinets and
sofa set for guests and clients, package of P600,000, P200,000 paid in cash, balance on
account.
09 (Transaction # 7) Started operations through rendering travel services to customers with
the following details:

Destination Tara na sa Batanes 3 days 2 nights

Number of persons 10 persons
Price per person P7,316
Payment terms Cash payment

11 (Transaction # 8) Paid the amount of one of the two shuttle vans purchased on April 4,
2020.
15 (Transaction # 9)Paid salaries of employees, total of P95,000 in cash.
18 (Transaction # 10) Rendered travel services to customers with the following details:

Destination Wonderful Seoul 5 days 4 nights

+ Gyeonggido Day Tour
Number of persons 5 persons
Price per person P38,888
Payment terms Payable in one month (on account)

19 (Transaction # 11) Paid P7,000 for minor repairs of automobile, cash payment.
23 (Transaction # 12) Received advanced payment for the following travels:

Destination Splendid Cebu 4 days 3 nights

May 3-6, 2020
Number of persons 8 persons
Price per person P6,454
Payment terms Advanced payment

Destination Japan, Japan, Sagot Sa Kasiyahan

5 days 4 nights
April 25-30, 2020
Number of persons 10 persons
Price per person P63,800
Payment terms Advanced payment
25 (Transaction # 13) Received payment from three (3) customers of the Wonderful Seoul
5 days 4 nights + Gyeonggido Day Tour who went to South Korea on April 18, 2020.
29 (Transaction # 14) The owner, Miss Yoon Se-Ri, had an emergency and has withdrawn
P30,000 cash for personal use.
30 (Transaction # 15) Paid the following: salaries, P95,000, utilities, P12,000, gas and oil,
P10,000.

Data for adjustments:

a) Interest accrued for the note payable for one month.
b) Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle.
c) Depreciation of office equipment, five-year useful life, 10% estimated residual value per set.
d) Depreciation of furniture and fixtures, five-year useful life, no residual value.
e) P35,000 worth of office supplies were used.
f) One month of rent was expired.
g) Earned the Japan travel service in full on April 30.