ASSESSMENT QUIZ JOURNALIZING AND PREPARATION OF TRIAL BALANCE

E. Escudero, a dentist, opens a clinic in the name of Escudero Clinic. His accountant prepared the
following chart of accounts:

Assets Revenue
Cash Professional Fees Income
Accounts Receivable
Office Equipment Expenses
Office Furniture Rent Expense
Salary Expense
Liabilities Utilities Expense
Account Payable Miscellaneous Expense

Owner’s Equity
E. Escudero, Capital
E. Escudero, Drawing

The following transactions occurred during August of this year:

August

1 Escudero deposited ₱560,000 in a bank account in the name of the business.

2 Bought a facsimile/copier/telephone combination from Vilaga’s Equipment for ₱20,000,

paying ₱2,000 in cash and placing the balance on account, Check No. 10001.

05 Bought waiting room chairs and tables (Office Furniture), paying cash, ₱24,000, Check No.
10002.

10 Bought an intercom system on account from Regal Office Supply (Office Equipment),
₱25,000.

11 Escudero infused an additional ₱20,000 cash and office equipment into the business.
Escudero previously purchased the equipment for ₱50,000 but has a current second-
hand value of ₱30,000.

15 Received and paid the telephone bill, ₱1,200, Check No. 10003.

17 Billed patients for professional services rendered, ₱25,000.

19 Received and paid electric bill, ₱3,000, Check No. 10004.

19 Received and paid the bill for the Regional Dental Convention, ₱6,000, Check No. 10005
(Miscellaneous Expense).

20 Received cash from patients for professional services rendered, ₱30,000.

21 E. Escudero withdrew cash for personal use, ₱4,000, Check No. 10006.
 22 Collected ₱10,000 from patients who were previously billed.

25 Paid on account to Regal Office Supply, a creditor, ₱2,000, Check No. 10007.

31 Paid the rent for the current month, ₱11,000, Check No. 10008.

31 Paid salary of the receptionist, ₱9,000, Check No. 10009.

Required:
1. Prepare all the necessary journal entries. (Use the correct journal entries that you prepared in
Problem 8-13) in Chapter 8.
2. Post the transactions in the T accounts. Write the date of each entry to identify the transaction. 3.
Foot the T accounts and show the balances
4. Prepare a trial balance as of August 31.

Escudero Clinic
Journal Entries
 DATE ACCOUNT TITLE AND DR CR
EXPLANATIONS
August 01 Cash ₱560,000
E. Escudero, Capital ₱560,000
Deposited in a bank account in
the name of the business.
02 Office Equipment ₱20,000
Cash ₱2,000
Account Payable ₱18,000
Bought Office Equipment in cash
05 Office furniture ₱24,000
Cash ₱24,000
Bought Office furniture in cash
10 Office Equipment ₱25,000
Account Payable ₱25,000

Cash Bought Office Equipment on

Account
11 Cash ₱20,000
Office Equipment ₱30,000
E. Escudero Capital ₱50,000
15 Utilities Expense ₱1,200
Cash ₱1,200
=₱25,000 =₱10,000
Paid Utilities Expense
17 Account receivable ₱25,000 =₱15,000
Professional Fees Income ₱25,000
Billed patients for professional
services
19 Utilities Expense ₱3,000 Office Equipment
Cash ₱3,000
₱560,000
Received and paid electric bill
₱2,000
19 Miscellaneous Expense
₱24,000 ₱6,000
₱20,000 Cash ₱6,000
₱1,200
Received and paid Miscellaneous ₱20,000
₱3,000
Expense ₱25,000
20 ₱6,000
Cash ₱30,000 ₱30,000
₱30,000 Professional Fees Income ₱30,000
₱4,000
₱10,000 Received cash from patients for
professional services
₱2,000
21 E. Escudero, Drawing
₱11,000 ₱4,000
Cash
₱9,000 ₱4,000
E. Escudero withdrew cash for
=₱620,000 =₱62,200
personal use
22 Cash ₱10,000
=₱557,800
Accounts Receivable ₱10,000
=₱75,000
Collected from patients
Accounts Receivable
25 Account Payable ₱2,000
Cash ₱2,000 ₱25,000
Office Furniture
Paid on account to Office Supply ₱10,000
31 Rent Expense ₱11,000
Cash ₱11,000
Paid the rent
31 Salary Expense ₱9,000
Cash ₱9,000
Paid the salary
 ₱24,000 =₱55,000

Account Payable
Rent Expense
₱18,000
₱25,000
₱2,000
₱11,000

=₱2,000 =₱43,000

=₱41,000 Salary Expense

E. Escudero, Capital
₱9,000
₱560,000
₱50,000

=₱610,000

Utilities Expense

E. Escudero, Drawing ₱1,200

₱3,000
₱4,000 =₱4,200

Miscellaneous Expense

₱6,000
Professional Fees Income

₱25,000
₱30,000
 Trial balance
as of August 31

ACCOUNT TITLE DR CR
Cash ₱557,800
Accounts Receivable ₱15,000
Office Equipment ₱75,000
Office Furniture ₱24,000
Account Payable ₱41,000
E. Escudero, Capital ₱610,000
E. Escudero, Drawing ₱4,000
Professional Fees Income ₱55,000
Rent Expense ₱11,000
Salary Expense ₱9,000
Utilities Expense ₱4,200
Miscellaneous Expense ₱6,000
TOTAL ₱706,000 ₱706,000