526198286

On December 1, 2009 Ramil Sarabia opened a videotape rental store, Kalibo Video, by investing
₱250,000 cash from his personal savings account. During the month of December, the following
transactions took place:
Dec. 1, Acquired supplies on account ₱67,000.
4, Acquired Videotapes costing ₱235,000 on account.
5, Paid ₱85,000 to creditors.
8, Received ₱78,000 cash from ACA Video for rental fees.
11, Billed Video city for video rentals, ₱105,000.
16, Paid salaries ₱67,000.
17, Collected ₱77,000 from video city
23, Sarabia withdrew ₱47,000 from the business
24, Paid rent for the month ₱41,500
30, Paid utilities for the month, ₱17,500.
This study source was downloaded by 100000848616065 from CourseHero.com on 09-04-2022 12:09:27 GMT -05:00
https://www.coursehero.com/file/148014595/526198286docx/
DOUBLE-ENTRY BOOKKEEPING
Account Accounts
Cash Supplies Videotapes Capital
Receivable Payable
₱250,000 ₱250,000
₱67,000 ₱67,000
₱250,000 ₱67,000 ₱67,000 ₱250,000
₱235,000 ₱235,000
₱250,000 ₱67,000 ₱235,000 ₱302,000 ₱250,000
-₱85,000 ₱85,000
₱165,000 ₱67,000 ₱235,000 ₱217,000 ₱250,000
₱78,000 ₱78,000
₱165,000 ₱78,000 ₱67,000 ₱235,000 ₱217,000 ₱328,000
₱105,000 ₱105,000
₱270,000 ₱78,000 ₱67,000 ₱235,000 ₱217,000 ₱433,000
₱65,000 ₱65,000
₱205,000 ₱78,000 ₱67,000 ₱235,000 ₱217,000 ₱368,000
₱77,000 ₱77,000
₱282,000 ₱78,000 ₱67,000 ₱235,000 ₱217,000 ₱445,000
₱47,000 ₱47,000
₱235,000 ₱78,000 ₱67,000 ₱235,000 ₱217,000 ₱398,000
₱41,500 ₱41,500
₱193,500 ₱78,000 ₱67,000 ₱235,000 ₱217,000 ₱356,500
₱17,500 ₱17,500
₱179,000 ₱78,000 ₱67,000 ₱235,000 ₱217,000 ₱339,000
Total Asset: ₱556,000
DEBIT AND CREDIT
Name of Accounts Debit (effect) Credit (effect)

A. Cash ₱250,000 (increase in asset)
Sarabia’s Capital ₱250,000(increase in capital)
B. Supplies ₱67,000(increase in asset)
Accounts Payable ₱67,000(increase in liabilities)
C. Video tapes ₱235,000(increase in asset)
Accounts Payable ₱235,000(increase in liabilities)
D. Payment ₱85,000(decrease in liabilities)
Cash ₱85,000(decrease in asset)
E. Account Receivable ₱78,000(increase in asset)
F. Cash ₱105,000(increase in asset)
G. Sarabia’s Capital ₱65,000(decrease in capital)
Salary Payable ₱65,000(decrease in asset)
H. Cash ₱77,000(increase in asset)
I. Withdrawal ₱47,000(increase in
Cash withdrawal) ₱47,000(decrease in asset)
J. Rent ₱41,500(increase in expenses)
K. Utilities ₱17,500(increase in expenses)
JOURNAL
Debit Credit
Date 2009 Name of the Accounts and Explanation
(effect) (effect)
A. December 1 Cash ₱250,000
Sarabia’s Capital ₱250,000
To record investment
B. 1 Supplies ₱67,000
Accounts Payable ₱67,000
To record an account
C. 4 Video Tapes ₱235,000
To record an account
D. 5 Payment ₱85,000
Cash ₱85,000
To record a payment
E. 8 Account Receivable ₱78,000
To record the account received
F. 11 Cash ₱105,000
To record the money
G. 16 Sarabia’s Capital ₱65,000
Salary Payable ₱65,000
To record the salary of employee
H. 17 Cash ₱77,000
To record the collections
I. 23 Withdrawal ₱47,000
Cash ₱47,000
To record the withdrawal
J. 24 Rent ₱41,500
Cash ₱41,500
To record the expenses
K. 30 Utilities ₱17,500
Cash ₱17,500
To record the expenses
LEDGER
CASH
Date 2009 Particulars Debit Date 2009 Particulars Credit
Dec. 1 ₱250,000 Dec. 5 ₱85,000
11 ₱105,000 23 ₱47,000
17 ₱77,000 24 ₱41,500
30 ₱14,500
= = ₱191,000
₱432,000
Debit Balance ₱241,000
₱432,000 = ₱432,000
SUPPLIES
Dec. 1 ₱67,000
VIDEO TAPES
Dec. 4 ₱235,000
ACCOUNT RECEIVABLE
Dec. 8 ₱78,000
WITHDRAWAL
Dec. 23 ₱47,000
ACCOUNTS PAYABLE
Dec. 5 ₱85,000 Dec. 1 ₱67,000
4 ₱235,000
= ₱85,000 = ₱302,000
Credit Balance ₱217,000
=
₱302,000
SALARY PAYABLE
Dec. 16 ₱65,000
SARABIA’S CAPITAL
Dec. 16 ₱65,000 Dec. 1 ₱250,000
8 ₱78,000
11 ₱105,000
17 ₱77,000
= ₱65,000 = ₱510,000
Credit Balance ₱445,000
= ₱510,000
₱510,000
RENT EXPENSE
Dec. 24 ₱41,500
UTILITIES EXPENSE
Dec. 30 ₱17,500
TRIAL BALANCE
SARABIA’S RENTAL STORE

TRIAL BALANCE
31 DECEMBER 2009
Name of Accounts Debit Credit
Cash ₱241,000
Supplies ₱67,000
Video tapes ₱235,000
Account Receivable ₱78,000
Withdrawal ₱47,000
Salary Payable ₱65,000
Rent ₱41,500
Utilities ₱17,500
Total ₱727,000 ₱727,000
INCOME STATEMENT
SARABIA’S RENTAL STORE

INCOME STATEMENT
31 DECEMBER 2009
Revenue
Service and Fees ₱78,000
Collection ₱77,000
Other Income ₱105,000
Total Revenue: ₱260,000
Less Expense
Salary Expense ₱65,000
Rent Expense ₱41,500
Utilities Expense ₱17,500
Total Expense: ₱124,000
Net Income: ₱136,000
Powered by TCPDF (www.tcpdf.org)

526198286

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

526198286

Uploaded by

Copyright:

Available Formats

On December 1, 2009 Ramil Sarabia opened a videotape rental store, Kalibo Video, by investing

Dec. 1, Acquired supplies on account ₱67,000.

4, Acquired Videotapes costing ₱235,000 on account.

5, Paid ₱85,000 to creditors.

8, Received ₱78,000 cash from ACA Video for rental fees.

11, Billed Video city for video rentals, ₱105,000.

16, Paid salaries ₱67,000.

17, Collected ₱77,000 from video city

23, Sarabia withdrew ₱47,000 from the business

24, Paid rent for the month ₱41,500

30, Paid utilities for the month, ₱17,500.

Total Asset: ₱556,000

Name of Accounts Debit (effect) Credit (effect)

SARABIA’S RENTAL STORE

SARABIA’S RENTAL STORE

Total Revenue: ₱260,000

Total Expense: ₱124,000

Net Income: ₱136,000

You might also like