Module 1

Assignment

Problem 1. Presented below are the transactions of Juan Tuna Painting Services for the month of
January.

Date Transaction
January 5 Juan Tuna invested P 120,000 cash and an equipment in the amount of P 80,000
January 7 Received P 30,000 painting revenue on account.
January 8 Juan Tuna invested Furniture valued at P 25,000 and painting supplies worth P 5,000
January 10 Paid P 5,000 rent for the month
January 11 Bought air condition for the office paying cash P 22,000
January 12 Received P 12,000 check for painting services rendered.
January 15 Received P 500 bill from Maynilad
January 19 Paid painter’s salary for the month P 4,500

Required:
1. Prepare the journal entries.
2. Prepare the T-Accounts.

Problem 2. Perform what is required.

On March 1, Ms. Ann Joy established AJ Beauty Salon. She invested P 750,000 in the business
and a laptop worth P 60,000. She paid rent of P 10,000 and bought equipment for P 30,000 cash. Cash
collections from walk-in customers amounted to P 150,000. She bought beauty supplies for P 7,000 cash
and bought salon furniture worth P 80,000 on account. Ms. Ann had major rep airs in her residence
amounting to P 550,000 which was paid by the business. Collections of accounts receivables totaled P
90,000 and accounts payable paid totaled P 45,000. At the end of the month, salaries of beauticians paid
amounted to P 30,000. Payments made to MERALCO and MAYNILAD are P 12,000 and P 3,400
respectively. Salon income in account is P 280,000.

Required: Prepare the Trial Balance of AJ Beauty Salon

Quiz

On April 1, 2021, Eudora organized a business called ML Trucking. During April, the company entered the
following transactions.

Date Transaction
April 1 Eudora deposited P 500,000 cash in bank account in the name of the business
April 1 Purchased for P 250,000 a transportation equipment to be used in the business.
Eudora paid 50% as down payment while the balance will be paid on May 16, 2021.
April 1 Paid rental for the month of April, P 5,000
April 5 Earned and collected trucking income from Aldous, P 8,000
April 8 Earned trucking income from Hanabi P 30,000 on account. Hanabi will pay on May 8,
2021
 April 10 Paid salaries of drivers P 10,000
April 15 Rented the vehicle to Ling for P 35,000. Ling paid P 20,000 on that date and the
balance on April 20
April 18 Paid electric bills for the month, P 2,000
April 20 Collected from Ling the balance of his April 15 account
April 25 Purchased office supplies, P 2,300
April 29 Earned and collected trucking income from Selena, P 18,000

Required:
1. Prepare the journal entries.
2. Prepare the T-Accounts.
3. Prepare the unadjusted Trial Balance, as of April 30, 2021