FUNDAMENTALS OF ACCOUNTING, BUSINESS AND MANAGEMENT 1

SUMMATIVE TEST: After learning how to journalize transactions, post to the

ledgers and prepare a trial balance, let us test your knowledge on these things and
appreciate how they are connected with each other.
Juan established an advertising ang marketing company registered with the DTI
under the name Juan Advertising in July 2020 and accomplished the following
transactions:
July 1- Juan deposited P600,000 cash in the bank account of the company as an
initial investment.
July 5- Acquired a tarpaulin printing equipment and various office furniture for cash
at P80,000 and P50,000 respectively.
July 9- Paid P400,000 cash purchases for land for an office site
July 10- Purchased supplies on account, P12,000
July 19- Loaned P500,000 from the bank. Juan advertising signed a note payable to
the bank payable in 5 years.
July 30- revenues earned during the month- P60,000 cash and P50,000 on account
July 30- Paid employees’ salaries- P24,000; office rent- P15,000; utilities- P4,000;
telephone- P2,000
July 30- Withdrew P40,000 from the business for personal use

Required:
A. Journalize each transaction. Use the following account titles: Cash; Accounts
Receivable; Supplies; Land; Equipment; Furniture; Accounts Payable; Notes
Payable; Juan, Capital; Juan, Withdrawals; Service revenue; Salary Expense;
Rent Expense; Utilities Expense; Communications Expense
B. Post all the transactions of Juan Advertising.
C. Prepare the Trial Balance of Juan Advertising for the month of July.
(If ruled columnar pads are available, you may use these. But if not, you can use
your pad paper for your answers. A T-Account may also be used for the
posting.)