STI College: Basic Accounting

Journalizing, Posting to T- Accounts and Preparing of Trial Balance

Alice Huerto opened her business called Arrow Janitorial and Maintenance Services. Analyze the
transactions given below as to what values are affected, whether the effect is an increase or decrease
and whether the account should be debited or credited.

Oct. 1 Miss Huerto made a cash investment of P200,000.

2 Purchased furniture and fixtures and paid P30,000 cash.
8 Purchased from Avesco office equipment on account, P15,000.
12 Borrowed from Prudential Bank P500,000 and signed a 90-day note.
15 Paid for salaries of clerks and janitors, P150,000 in cash.
18 Received a bill for printing of leaflets to promote her business, P5,000.
20 Received P30,000 in cash as payment for maintenance contracts.
21 Paid Avesco in full of account.
24 Billings for janitorial services, to date: M. Y. San for P50,000
25 Billings for janitorial services, to date: SPUM P50,000 of which 50% was collected.
26 Paid P17,500 for utilities
30 Paid for salaries of clerks and janitors.
31 SPUM paid 50% of the balance owing to Huerto.

Required:

1. Use the following accounts: Cash, Accounts Receivable, Furniture & Fixtures, Office Equipment,
Accounts Payable, Notes Payable, Huerto, Capital, Huerto, Drawing, Janiatorial and Maintenance
Service Fees, Advertising Expense, Salaries and Wages, Utilities Expense.

2. Record the transactions directly into the T- Accounts.

3. Prepare trial balance.

Reference: Basic Accounting Made Easy 16th edition by Win Ballada, CPA, MBA