(kay sir pa ito HAHHAHAHAHHAHAH)

EXERCISE-1

1. Purchased equipment paying cash of P46,000

2. Paid monthly rent P15,000
3. Bought supplies on credit, P1,900
4. Owner invested furniture, P16,000
5. Cash received from customer P33,000
6. Paid creditor on account, P6,000
7. Received payment from customers on account P14,000
8. Owner withdrew P23,000
9. Paid salaries for the month P16,000
10. Purchased equipment costing P100,000 paying 25% down payment and the remaining
balance in 5 installment
11. Personal withdrawal of owner P5,000
12. Paid first installment for the equipment
13. Paid utilities for the month P6,700
14. Owner issued his personal check in payment for the equipment’s second installment
15. Customer could not pay his P10,000 account but issued a note for the account
16. Called National Bookstore to order office supplies costing P3,500
17. Customer paid the note
18. Payment of the third installment for the equipment
19. Paid the supplies bought on credit
20. Rendered services on account, P4,000

Instruction: Prepare Journal Entry with explanation, T-Accounts, and Trial Balance.
On March 1, of the current year, Ms. Jocelyn Montery made the following initial investments on her
consultancy office:

—Cash deposited in Metrobank P100,000; Revolving fund for current operation (Cash on hand)
P20,000.

During the month, the following were the transactions that occurred:

—March 2- Paid business permit and licenses from revolving fund, P2,000

—March 4- Bought office supplies on account P4,000

—March 6- Rendered consultancy service to clients on account, P10,000

—March 8- Purchased office furniture on cash P25,000

—March 9- Paid the monthly space rental, P4,000

—March 10- Received 15,000 for professional services to clients.

—March 12-Paid in full the office supplies purchased

—March 15- Paid the salary of the office assistant P5,000

—March 16-Collected the account on March 6 transaction

—March 18- Billed the customer for services rendered, P25,000

—March 20-Paid utilities for the month from the revolving fund: light P400, telephone P500

—March 23- withdrew P2,000 for personal use

—March 25- borrowed P400,000 from National Bank.

—March 30- Purchased vehicle for business use for P800,000 and made 40% down payment and the
balance is issued by a note or promissory note.

—March 30- collected 80% of the account on March 18 transaction.

Exercise 4
Atty. Evangelista, a young lawyer, completed the following transactions during October of the current
year.

Note: Journalize the following transactions for those selected students, the rest should do accounting
equation only.

Oct-1- Began the practice of law by investing P20,000 in cash and a law library having a fair value of
P130,000
Oct 2- Purchased P32,000 office equipment, paying P5,000 down and giving a promissory note for the
balance

Oct 4- Purchased P1,350 office supplies and P25,000 office equipment from Hernan’s Trading on
credit.

Oct 5- Completed legal work and received P4,500 cash

Oct 10- Paid 1,500 for insurance premium

Oct 15- Completed legal work for R. Moore on credit and billed him P45,000

Oct 15- Paid salary of the secretary, P5,000

Oct 18- Paid Hernan’s Tradomg

Oct 25- Received P15,000 from R. Moore as partial settlement of his account.

Oct 28- Atty. Evangelist withdrew P8,000 cash for personal use.

Oct 30-Billed R. Moore P10,5000 for additional legal services rendered

Oct 31- Paid Salary of the secretary 5,000

EXERCISE-4
Mr. Leo Cruz opened a car rental business. Transacations for the first month of operations are the
following:

Note: Journalize the following transactions for those selected students, the rest should do accounting
equation only.

Oct 1- Mr. Leo Cruz invested P80,000 cash and five automobiles worth P200,000 each. Notes payable
to Grand Prix Motor Co. worth P600,000 were due on the three cars.

Oct 3- Paid local newspaper for advertising the opending of the business P150
Oct 4- Paid office rent for the month P8,000

Oct 7- Cash received from customers for the week P42,000

Oct 9-Gas and oil bills paid, P4,200

Oct 10- Partial payments on notes payable, P50,000

Oct 14- Car rentals received P38,000

Oct 15- Gas and oil bills paid 3,800

Oct 19-Office supplies bought for cash P1,800

Oct 20-Car rentals received P35,000

Oct 21-Sent a bill to R. Hernandez, P2,500 for car services rendered at his wedding.

Oct 23- Gas and oil bills paid P1,800

Oct 25- Paid P15,000 for repairs of automobiles

Oct 28- Cash received from customers for the week 31,000

Oct 29- Collected P1,000 from R. Hernandez as partial settlement of his account

Oct 30- Paid the attendant’s salary P4,000

Oct 31- Leo Cruz withdrew P6,000 from the business for personal use.

The following transactions occurred in the first month of operation of the “A-Your-Service Motor-
Shop”

Note: Journalize the following transactions for those selected students, the rest should do accounting
equation only.

Jan 2- The owner, A. Moreno, invested P10,000 cash to start the business

Jan 6- Bought for cash repair equipment worth P45,000

Jan 7-Paid P3,550 for repair supplies bought

Jan 9- Cash of P2,500 was received from a customer for repair service done on his automobile.
Jan 12- Sent a bill for P9,500 to R. Fernandez for repair work done on his delivery truck

Jan 15- Paid for the tools ordered and received P4,550

Jan 17- Paid the wages of shop helper, P2,500

Jan 20- Bought repair supplies from ABC Trading worth P7,800 on credit

Jan 22- Collected P2,500 from R. Fernandez as partial settlement of his account.

Jan 25- Gave P2,800 cash to ABC Trding as partial settlement of the account due to it.

Jan 29-Received P25,000 from various customers for repair services rendered

Jan 30- Paid the rent of the shop P8,000

Jan 30- Paid the wages of the shop helper, P2,500