COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION

The following transactions were completed during June of this year:

June 1 Danilo Cabulay deposited P832,000 in a bank account for the purpose of buying
Metro Sails, a business offering the use of small sailboats to the public at a large
indoor pool with a fan system that provides wind.
2 Bought Metro Sails for a total price of P2,133,000. The assets include sailboats,
P208,000; fan system, P85,000; pool structure, P1,440,000; land, P400,000. Paid
P644,000 downpayment and signed a mortgage note for the balance.
3 Received and paid bill for newspaper advertising, P14,800.
3 Received and paid bill for property insurance for the year, P10,800.
3 Bought additional boats from TY Manufacturing Co. for P65,200, paying P32,000
down and the remainder due in 30 days.
3 Signed a contract with a vending machine service to lease them space for their
vending machines. The rental income agreed upon is 10% of the sales generated
from their machines, with the total rental income payable in advance. Received
estimated cash payment for June, P3,500.
3 Received bill from Quick Printing for promotional handouts, P3,680.
3 Signed a contract for leasing sailboats from Eulogio Boat Co. and paid rental fee for
June, P6,320.
5 Paid cash for miscellaneous expenses, P924.40.
8 Received P26,325 cash as rent for the use of boats.
9 Bought additional fans on account from Pabustan Pool Supply, P8,360.
15 Paid salaries to employees for the period ending June 15, P42,000.
16 Paid the bill for promotional handouts recorded on June 3.
16 Cabulay withdrew cash for personal use, P10,520.
16 Bought additional sails from Narvaez Products Inc., P8,450; payment due in 30 days.
16 Received P30,430 cash for the use of boats.
19 Paid cash for miscellaneous expenses, P426.40.
20 Paid cash to TY Manufacturing Co. as partial payment on account, P4,800.
22 Received P50,820 cash for boat rentals.
23 Received a reduction in the outstanding bill from TY Manufacturing Co. for a boat
received in a damaged condition, P4,520.
24 Received and paid telephone bill, P840.
29 Paid salaries for the period ending June 29, P46,520.
30 Paid cash to Pabustan Pool Supply to apply on account, P4,180.
30 Received and paid electric bill, P14,200.

FINANCIAL ACCOUNTING AND REPORTING 1

 COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION

30 Made an installment payment on the mortgage, P18,800. Of this amount, P6,800

represents a reduction in the principal and the remainder is interest.
30 Received and paid water bill, P4,320.
30 Bought additional boats from Santos and Sons for P48,520, paying P4,520 down,
with the remainder due in 30 days.
30 Cabulay withdrew cash for personal use, P11,560.
30 Received P46,320 in cash for boat rentals.
30 Sales from vending machines for the month amounted to P53,200.

In an Excel Sheet, do the accounting cycle with the following requirements:

1. Create a Chart of Accounts with corresponding codes to be used as posting reference.
2. Record the transactions for the month of June in the journal format and
3. Post the transactions to the ledger.
4. Prepare a 10-column worksheet and use the following information:
a. Insurance expired during the month, P900.
b. Depreciation of fan system for the month, P1,630.
c. Depreciation of pool structure for the month, P6,000.
d. Depreciation of sailboats for the month, P8,040.
e. Salaries accrued as at June 30, P6,960.
5. Prepare the statement of financial performance, statement of changes in equity, cash
flow statement and statement of financial position.
6. Journalize the adjusting entries.
7. Prepare the closing entries for the month of June.
8. Prepare the post-closing trial balance.

FINANCIAL ACCOUNTING AND REPORTING 2