Transaction Type of Effect Journal Entry

Transaction
Feb 1 – Deposited SA Inc. in Asset (Cash) Cash P162,000
P162,000 cash in bank L, Capital P162,000
account in the name Inc. in OE (L, Capital) Initial investment
of the business
Feb 3 – Purchased SA (asset Inc. in Asset (Cleaning Cleaning Supplies P21,400
cleaning supplies on approach) Supplies) Accounts Payable P21,400
account P21, 400 Bought cleaning supplies on credit
Inc. in Liab (A/P)

EC (expense Dec. in OE (Cleaning Cleaning Supplies Exp P21,400

approach) Supplies Expense) Accoounts Payable P21,400
Bought cleaning supplies on credit
Inc. in Liab (A/P)

Feb 5 – Acquired SA Inc. in Asset (Cleaning Cleaning Equipment P15,600

cleaning equipment Equipment) Accounts Payable P15,600
on account P15,600 Bought cleaning equipment on credit
Inc. in Liab (A/P)

Feb 5 – Paid P10,000 EA Inc. in Asset Advances of Employees P10,000

to an employee who (Advances of Cash P10,000
made a cash advance Employee) Cash advance of employee
to be repaid in 4 equal
installments from Dec. in Asset (Cash)
salaries of the
employee
Feb 6 – Acquired a SA Inc. in Asset (Service Service Vehicle P80,000
second hand service Vehicle) Cash P30,000
vehicle costing Notes Payable P50,000
P80,000 for the Dec. in Asset (Cash) Bought 2nd hand service vehicle w/
business paying downpayment of P30,000, balance
P30,000 cash and Inc. in Liab (A/P) issued a note
issued a note for the
balance
Feb 7 – Paid the UA Dec. in Asset (Cash) Taxes & Licenses P10,500
registration to BIR and Cash P10,500
business permit Dec. in OE (Taxes & Paid BIR registration and business
P10,5000 Licenses) permit

Feb 8 – Paid rent of EC Dec. in OE (Rent Rent Expense P10,000

the space for the Expense) Withholding Tax Payable P500
month amounting to Cash P9,500
P10,000 less: 5% Inc. in Liab Payment of rent expense and
Withholding tax (Withholding Tax withholding tax
Payable)
 Dec. in Asset (Cash)

Feb 9 – Received SA Inc. in Asset (Cash) Cash P51,800

P51,800 cash for Cleaning Revenue P51,800
cleaning services Inc. in OE (Cleaning Received cash for services rendered
rendered Revenue)

Feb 10 – Paid for a UA Dec. in Asset (Cash) Advertising Expense P2,000

newspaper Cash P2,000
advertisement P2,000 Dec. in OE Payment of newspaper
(Advertising Expense) advertisement

Feb 12 – Paid for a EA Dec. in Asset (Cash) Prepaid Insurance P12,000

one-year insurance Cash P12,000
premium P12,000 Inc. in Asset (Prepaid Payment of one-year insurance
Insurance) expense

Feb 13 – Paid partial UA Dec. in Liab (A/P) Accounts Payable P10,000

for the account on Cash P10,000
Feb. 3 P10,000 Dec. in Asset (Cash)

Feb 14 – Paid UA Dec. in Asset (Cash) Miscellaneous Expense P2,200

miscellaneous Cash P2,200
expenses amounting Dec. in OE Payment of miscellaneous expense
to P2,200 (Miscellaneous
Expense)

Feb 15 – Paid first half UA Dec. in OE (Salaries Salaries Expense P15,000

salaries of workers Expense) Advances of Employees P2,500
P15,000; less: Cash P12,500
advances of Dec. in Asset First half payment of salaries
employees P2,500 (Advances of expense less advances of employees
Employees)

Dec. in Asset (Cash)

Feb 16 – Billed SA Inc. in Asset (Accounts Accounts Receivable P28,600

customers P28,600 Receivable) Cleaning Revenues P28,600
for cleaning services Billed customers for services
Inc. in OE (Cleaning rendered
Revenues)

Feb 20 – Received EA Dec. in Asset Cleaning Revenues P10,000

P10,000 from (Accounts Receivable) Salaries Income P10,000
customers billed on Received income for services
Feb. 16 Inc. in OE (Salaries rendered
 Income)

Feb 22 – Paid in full UA Dec. in Liab (Notes Notes Payable P50,000

the notes issued on Payable) Cash P50,000
Feb. 6 Full payment of notes payable issued
Dec. in Asset (Cash) on Feb 6

Feb 25 – Paid UA Dec. in Asset (Cash) Communication Expense P900

telephone bills P900 Cash P900
Dec. in OE Payment of communication expense
(Communication
Expense)

Feb 28 – Paid second EC Dec. in OE (Salaries Salaries Expense P15,000

half salaries of Expense) SSS/PHIC/ HDMF Payable P2,800
workers P15,000; less: Withholding Tax Payable P300
SSS P1,500; PHIC Inc. in Liab (SSS/PHIC/ Cash P11,900
P800; HDMF P500; HDMF premium Second half payment of salaries
and Withholding tax payable) expense less SSS/PHIC/HDMF
P300 premium payable and Withholding
Inc. in Liab Tax Payable
(Withholding Tax
Payable)

Dec. in Asset (Cash)

Feb 28 – Billed SA Inc. in Asset (Accounts Accounts Receivable P22,500

customers for Receivable) Cleaning services P22,500
cleaning services Billed customers for services
rendered P22,500 Inc. in OE (Cleaning rendered
services)

Feb 28 – The owner SA Inc. in OE (L, Cash P5,000

withdrew cash from Withdrawals) L, Withdrawals P5,000
the business for Withdraw cash for personal use
personal use P5,000 Inc. in Asset (Cash)

Feb 28 – Received bill EC Dec. in OE (Utilities Utilities Expense P5,500

from Davao Light and Expense) Notes Payable P5,500
DCWD for light and Received bill for utilities expense
water consumption to Inc. in Liab (Notes
be paid next month Payable)
amounting to P5,500
 CHART OF ACCOUNTS

Cash Cleaning Revenues

Accounts Receivable Salaries Income

Cleaning Supplies Rent Expense

Prepaid Insurance Advertising Expense

Advances of Employees Insurance Expense

Cleaning Equipment Cleaning Supplies Expense

Service Vehicle Communication Expense

Notes Payable Miscellaneous Expense

Accounts Payable Taxes and Licenses

SSS/PHIC/HDMF Premium Payable

Withholding Tax Payable

Laurente Capital

Laurente Withdrawals