GROUP WORK

ASSIGNMENT

Comprehensive Problem

Gala’s Tour & Travel Company has the following account balances as of December 1, 2021:
Cash, P5,000; Accounts Receivable, P2,000; Prepaid Rent P1,500; Supplies, P850; Equipment, P6,000;
Tourist Bus, P15,000; Accounts Payable, P2,500; Gala, Capital, P27,850

Business transactions during December are presented as follows:

Dec. 5 Company received cash from clients for services, P4,500

6 Gala paid to creditors P500,
10 Paid office rent for the month of December, P750,
15 Company billed client for travel services on account, P5,200
Supplies were purchased on account, P650,
20 Company received cash from clients billed previously, P6,000
Gala received an invoice for office equipment repair services from Office Extra for December
(the invoice will be paid next month), P850,
28 Gala paid monthly salaries, P2,700,
29 Utilities expense were paid, P280,
30 Miscellaneous expense were paid, P350,
Personal cash withdrawal of Gala, P550.

Required:
1) Use the table below to record transactions
2) Prepare income statement for Gala’s Tour & Travel Co.
3) Prepare statement of financial position for Gala’s Tour & Travel Co.
Galas’
Assets      Liabilities +R
Equity

Transacti Accounts Accounts Gala,

Cash Prepaid Rent Supplies Equipment Tourist Bus
ons Receivable Payable Capital

Balances
Dec 1

Dec. 5