AS

DEBIT (DR) INCREASE

TRANSACTIONS CASH
ACCOUNTS
RECEIVABLE

1 Atty. Apolinario Mabini invested INCREASE

P1,500,00 to establish Mabini Law Firm 1,500,000
DEBIT
2 Acquired office furniture on account
worth P140,000.

3 The business got a loan from a bank INCREASE

amounting to P300,000. A promissory
note was issued to the bank for the 300,000
said loan.
DEBIT

4 Purchased dental laptops and desktop DECREASE

computers and printers, P250,000.
- 250,000
CREDIT
5 Paid P 20,000 for the office furniture DECREASE
acquired on account.
- 20,000
CREDIT
6 Paid in advance twelve months rent, DECREASE
P80,000.
- 80,000
CREDIT
7 Paid one year insurance premium, DECREASE
P15,000.
- 15,000
CREDIT
8 Purchased office supplies on account,
P5,200.
8 Purchased office supplies on account,
P5,200.

9 Sent a bill to client for legal services INCREASE

rendered, P220,000.
220,000
DEBIT
10 Paid P7,000 for purchase made on Aug DECREASE
8,
- 7,000
CREDIT
11 Received initial payment of P160,000 INCREASE DECREASE
from client billed on Aug 9.
160,000 - 160,000
DEBIT CREDIT
12 Atty. Mabini, withdrew P56,000 from DECREASE
the business for his personal use.
- 56,000
CREDIT
13 Received advance payment from INCREASE
corporate client, P400,000.
400,000
DEBIT
14 Received P90,000 from clients for INCREASE
services rentered.
90,000
DEBIT
15 Paid salary of employees, P80,000. DECREASE
- 80,000
CREDIT
16 Paid water and electricity bills for the DECREASE
month, P24,040.
- 24,040
CREDIT
1,917,960 60,000

INSTRUCTION (PANUTO):
1. BASAHIN AT SAGUTAN ANG BAWAT TRANSACTION. (A) ALAMIN KUNG ANO
2. HALIMBAWA NG SAGOT AY KAGAYA NG SA AUGUST 1
3. SAGUTAN ANG JOURNALIZATION
4. I-POST SA LEDGER ANG MGA TRANSACTIONS MULA SA JOURNALIZATION
5. SA LEDGER KUTUYIN ANG BALANCES NG BAWAT ACCOUNT
6. AYON SA MGA ACCOUNT BALANCES SA LEGDER, GUMAWA NG TRIAL BALAN
7. KUMPLETUHIN ANG WORKSHEET
8. SA WORKSHEET, TUKUYIN ANG NET INCOME O NET LOSS SA STATEMENT OF
9. SA WORKSHEET TUKUYIN ANG BALANCE AMOUNT NG STATEMENT OF FINAN
 ASSET
IT (DR) INCREASE CREDIT (CR) DECREASE

ASSET

PREPAID
OFFICE FURNITURE OFFICE EQUIPMENT OFFICESUPPLIES INSURANCE

INCREASE
140,000
DEBIT

INCREASE
250,000
DEBIT

INCREASE
15,000
DEBIT
INCREASE
5,200
 DEBIT

140,000 250,000 5,200 15,000

2,468,160

(A) ALAMIN KUNG ANONG ELEMENT (B) TUKUYIN KUNG ANONG ACCOUNT ( C) TUKUYIN K

SA JOURNALIZATION
MAWA NG TRIAL BALANCE

OSS SA STATEMENT OF COMPREHENSIVE INCOME

G STATEMENT OF FINANCIAL POSITION
 LIABILITY
DEBIT (DR) CREDIT (CR)
DECREASE INCREASE

LIABILITIES

UNEARNED
PREPAID RENT ACCOUNTS PAYABLE NOTES PAYABLES INCOME

INCREASE
140,000
CREDIT
INCREASE
300,000

CREDIT

DECREASE
- 20,000
DEBIT
INCREASE
80,000
DEBIT

INCREASE
5,200
 CREDIT

DECREASE
- 7,000
DEBIT

INCREASE
400,000
CREDIT

80,000 118,200 300,000 400,000

2,468,160 818,200

G ACCOUNT ( C) TUKUYIN KUNG INCREASE O DECREASE (D) TUKUYIN ANG AMOUNT ( E) TUK

Note: Sa ASSETS at LIABILITIES, lagyan ng minus (-) si

amount kung ito ay decrease. Halimbawa "-50,000"
decrease at "50,000" naman kung increase.
Note: Sa ASSETS at LIABILITIES, lagyan ng minus (-) si
amount kung ito ay decrease. Halimbawa "-50,000"
decrease at "50,000" naman kung increase.

ASSET = LIABILITIES + OWNER'S EQUITY

2,468,160 = 818,200 + 1,649,960
 OWNER'S EQUITY
DEBIT (DR) DECREASE / CREDIT (CR)
EXPENSE AND DRAWING INCREASE / REVENUE,
CAPITAL

OWNER'S EQUITY

A. Mabini,
CAPITAL A. Mabini, DRAWING LEGAL FEES SALARY EXPENSE

INCREASE
1,500,000
CREDIT
 INCREASE
220,000
CREDIT

INCREASE
56,000
DEBIT

INCREASE
90,000
CREDIT
INCREASE
80,000
DEBIT

1,500,000 56,000 310,000 80,000

1,649,960
2,468,160

KUYIN ANG AMOUNT ( E) TUKUYIN KUNG DEBIT O CREDIT

S, lagyan ng minus (-) sign ang

e. Halimbawa "-50,000" kung
naman kung increase.
 S, lagyan ng minus (-) sign ang
e. Halimbawa "-50,000" kung
naman kung increase.

+ OWNER'S EQUITY
,200 + 1,649,960
Y
CREDIT (CR)
REASE / REVENUE,
CAPITAL

UTILITY EXPENSE
 INCREASE
24,040
DEBIT
24,040
1,649,960
 GJ1

DATE PARTICULARS P.R. DEBIT CREDIT

2020
August 1 Cash 110 1,500,000.00
A. Mabini, Capital 310 1,500,000.00
Invested cash

2 Office Furniture 130 140,000.00

Account Payable 210 140,000.00
Acquired Furnitures

3 Cash 110 300,000.00

Notes Payable 220 300,000.00
Got A Loan From a Bank Issued with Promissory Note

4 Office equipment 140 250,000.00

Cash 110 250,000.00
Purchased Office Equipment

5 Accounts Payable 210 20,000.00

Cash 110 20,000.00
Initial Payment on Furniture

6 Prepaid Rent 170 80,000.00

Cash 110 80,000.00
Paid Advance in Rent

7 Prepaid Insurance 160 15,000.00

Cash 110 15,000.00
Paid Insurance Premium

8 Office Supplies 150 5,200.00

Accounts Payable 210 5,200.00
Purchase Office Supplies on account

9 Account Receivable 120 220,000.00

Legal Fees 410 220,000.00
Sent Bill to Client for Legal Services Rendered

10 Account Payable 210 7,000.00

Cash 110 7,000.00
Paid Purchase made on Aug. 8

11 Cash 110 160,000.00

Account Receivable 120 160,000.00
Received Initial Payment for Aug. 9
12 A. Mabini, Drawing 320 56,000.00
Cash 110 56,000.00
Personal Use

13 Cash 110 400,000.00

Unearned Income 230 400,000.00
Advance Payment from Client

14 Cash 110 90,000.00

Legal Fees 410 90,000.00
Client for Service Rentered

15 Salary Expense 510 80,000.00

Cash 110 80,000.00
Paid salaries

16 Utility Expense 520 24,040.00

Cash 110 24,040.00
Water and Electricity Bills

3,347,240.00 3,347,240.00

Correct amount for debit and credit is 3,347,240.00 3,347,240.00

 CHART OF ACCOUNTS

110 Cash
120 Accounts Receivable
130 Office Furniture
140 Office Equipment
150 Office Supplies
160 Prepaid Insurance
170 Prepaid Rent
210 Accounts Payable
220 Notes Payable
230 Unearned Income
310 A. Mabini, Capital
320 A. Mabini, Drawing
410 Legal Fees
510 Salary Expense
520 Utilities Expense
Account: CASH Account No.: 110
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug-01 Invested cash GJ1 1,500,000.00 1,500,000.00
Aug 3 Got A Loan From A Bank Issu GJ1 300,000.00 1,800,000.00
Aug 4 Purchased Office Equipment GJ1 250,000.00 1,550,000.00
Aug 5 Initial Payment on Furniture GJ1 20,000.00 1,530,000.00
Aug 6 Paid Advance in Rent GJ1 80,000.00 1,450,000.00
Aug 7 Paid Insurance Premium GJ1 15,000.00 1,435,000.00
Aug 10 Paid Purchase made on Aug. GJ1 7,000.00 1,428,000.00
Aug 11 Received Initial Payment for GJ1 160,000.00 1,588,000.00
Aug 12 Personal Use GJ1 56,000.00 1,532,000.00
Aug 13 Advance Payment from ClienGJ1 400,000.00 1,932,000.00
Aug 14 Client for Service Rendered GJ1 90,000.00 2,022,000.00
Aug 15 Paid Salaries GJ1 80,000.00 1,942,000.00
Aug 16 Water and Electicity Bills GJ1 24,040.00 1,917,960.00

1,917,960.00

Account: ACCOUNTS RECEIVABLE Account No.: 120

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 9 Sent Bill to Client for Legal GJ1 220,000.00 220,000.00
Aug 11 Received Initial Payment for GJ1 160,000.00 60,000.00

60,000.00

Account: OFFICE FURNITURE Account No.: 130

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 2 Acquired Furniture GJ1 140,000.00 140,000.00

140,000.00

Account: OFFICE EQUIPMENT Account No.: 140

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
 Aug 4 Purchased Office Equipment GJ1 250,000.00 250,000.00

250,000.00

Account: OFFICESUPPLIES Account No.: 150

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 8 Sent Bill to Client for Legal GJ1 5,200.00 5,200.00

5,200.00

Account: PREPAID INSURANCE Account No.: 160

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 7 Paid Insurance Premium GJ1 15,000.00 15,000.00

15,000.00

Account: PREPAID RENT Account No.: 170

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 6 Paid Advance in Rent GJ1 80,000.00 80,000.00
80,000.00
Account: ACCOUNTS PAYABLE Account No.: 210
DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 2 Acquired Furniture GJ1 140,000.00 140,000.00
Aug 5 Initial Payment on Furniture GJ1 20,000.00 120,000.00
Aug 8 Purchase Office Supplies on GJ1 5,200.00 125,200.00
Aug 10 Paid Purcahse made on Aug. GJ1 7,000.00 118,200.00

118,200.00

Account: NOTES PAYABLES Account No.: 220

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 3 Got A Loan From A Bank IssuGJ1 300,000.00 300,000.00

300,000.00

Account: UNEARNED INCOME Account No.: 230

DATE EXPLANATION J.R. DEBIT CREDIT BALANCE
Aug 13 Advance Payment from ClienGJ1 400,000.00 400,000.00

400,000.00
Account: A. Mabini, CAPITAL Account No.:
DATE EXPLANATION J.R. DEBIT CREDIT
Aug-01 Invested cash GJ1 1,500,000.00

Account: A. Mabini, DRAWING Account No.:

DATE EXPLANATION J.R. DEBIT CREDIT
Aug 12 Personal Use 56,000

Account: LEGAL FEES Account No.:

DATE EXPLANATION J.R. DEBIT CREDIT
Aug 9 Sent Bill to Client for Legal Services GJ1 220,000.00
Aug 14 Client for Service Rendered GJ1 90,000.00
 310 Account: SALARY EXPENSE Account No.:
BALANCE DATE EXPLANATION J.R. DEBIT CREDIT
1,500,000.00 Aug 15 Paid Salaries GJ1 80,000.00

###

320
BALANCE Account: UTILITY EXPENSE Account No.:
56,000.00 DATE EXPLANATION J.R. DEBIT CREDIT
Aug-16 Water and Electricity BilGJ1 24,040.00

56,000.00

410
BALANCE
220,000.00
310,000.00

310,000.00
 510
BALANCE
80,000.00

80,000.00

520
BALANCE
24,040.00

24,040.00
 Mabini Law Firm
Worksheet
August 31, 2020

TRIAL BALANCE STATEMENT OF

COMPREHENSIVE INCOME
Account No. Account Titles
DEBIT CREDIT DEBIT
110 Cash 1,917,960.00
120 Accounts Receivable 60,000.00
130 Office Furniture 140,000.00
140 Office Equipment 250,000.00
150 Office Supplies 5,200.00
160 Prepaid Insurance 15,000.00
170 Prepaid Rent 80,000.00
210 Accounts Payable 118,200.00
220 Notes Payable 300,000.00
230 Unearned Income 400,000.00
310 A. Mabini, Capital 1,500,000.00
320 A. Mabini, Drawing 56,000.00
410 Legal Fees 310,000.00
510 Salary Expense 80,000.00 80,000.00
520 Utilities Expense 24,040.00 24,040.00
2,628,200.00 2,628,200.00 104,040.00
Net Income 205,960.00
310,000.00

Complete the Trial Balance and the two financial statements abo
 STATEMENT OF STATEMENT OF FINANCIAL
OMPREHENSIVE INCOME POSITION
CREDIT DEBIT CREDIT
1,917,960.00
60,000.00
140,000.00
250,000.00
5,200.00
15,000.00 statement of comprehensive income (income statement
80,000.00 revenue - expense
- 118,200.00
- 300,000.00 statement of financial position (balance sheet)
- 400,000.00 assets = liabilities + owner's equity
- 1,500,000.00
56,000.00
310,000.00

310,000.00 2,524,160.00 2,318,200.00

205,960.00
310,000.00 2,524,160.00 2,524,160.00

al statements above
ome (income statement)

balance sheet)
 Mabini Law Firm
STATEMENT OF COMPREHENSIVE INCOME
August 31, 2020

Gross Income:
Legal Fees 310,000.00
Total Gross Income: 310,000.00
Less: Expenses
Salary Expense 80,000.00
Utilities Expense 24,040.00
Net Income: 205,960.00
 Mabini Law Firm
STATEMENT OF FINANCIAL POSITION
August 31, 2020

ASSETS

Cash 1,917,960.00
Accounts Receivable 60,000.00
Office Furniture 140,000.00
Office Equipment 250,000.00
Office Supplies 5,200.00
Prepaid Insurance 15,000.00
Prepaid Rent 80,000.00
TOTAL ASSETS 2,468,160.00

LIABILITIES
Accounts Payable 118,200.00
Notes Payable 300,000.00
Unearned Income 400,000.00
TOTAL LIABILITIES 818,200.00
OWNER'S EQUITY
A. Mabini, Capital 1,500,000.00
Less: A. Mabini, Drawing 56,000.00

TOTAL: 1,444,000.00
ADD: Net Income 205,960.00
TOTAL LIABILITIES & OWNER'S EQUITY: 2,468,160.00