PROBLEM SOLVING NO.

Mr. and Mrs PALA U. TANG put up a company named PALA U. TANG Services with Office Address at
Commonwealth Quezon City, The company agreed to pay their employees: Bet – The Welder Php 800/day; Mel –
The Frontliner Php 500/day; Mark – The Field Worker 300/day; each employee is entitled to 4 days off a month, no
work no pay and their transactions for the month of July to August 2021 are as follows:

July 28: The spouses invested in their company Php 700,000 cash and Php 250,000 worth of equipments.
July 29: The company was able to find a building in which they can convert into an office and started leasing
and constructing it. The total expenses that were made for the leasehold are Php 234,800 And the
rental fee is at Php 1,000/ day payable every 5th, 10th, 15th, 20th, 25th and end of the month whatever
date it falls, commencing August 1, 2021 until August 31, 2021
August 1: The company bought welding machine for Php 54,000 in cash.
August 2: The company completed a work from Mr.Taliban and collected Php 87,000 in cash while Php 34,000
on account.
August 5: The company paid the 1st 5 days rent of Php 5,000 in cash.
August 10: The company paid the lessor Php 30,000 for August 6 to 10 rent fee and advance rent.
August 12: The company was able to collect from Mr. Taliban 14,000 pesos but the remaining has been put in the
promissory note which is to be paid on the 17th.
August 14: The company completed work at La Casas De Castellana and was able to bill in the amount of Php
87,200.
August 15: The company paid 13 days work of Bet, Mel and Mark, the 2 days were for days-off
August 17: The company collected Php 56,000 from La Casas De Castellana
August 18: Received Telephone Bill 6,000; Electric Bill: 15,900; Water Bill: 1,900
August 19: Paid Php 5,000 for Utilities.
August 20: Salaries for Bet and Mel were released for August 16 to 20.
August 21: Completed work at Nirvana Subdivsion and was able to collect 44,000 and 56,000 on account.
August 22: The company bought furnitures and fixtures in the amount of Php 99,000 on account from Sam Yang.
August 23: The company bought office cubicles and chairs in the amount of Php 146,700 on account from
Mandaue.
August 25: The company settled their account of Php 75,000 from Mandaue
The company settled their account of Php 59,000 from Sam Yang
August 28: Mark resigned from the company, but his salaries for August 16 to 20 until to date have not been paid,
August 31: The spouses withdrew 250,000 from their business.

Required:
Prepare the journal entries, T accounts and trial balance for this business.
USE PENCIL so your can erase and master your work.

A. Journal Entries
Start here:
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B. T- Accounts

C. Trial Balance
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