ACTIVITY FOR FUNDAMENTALS OF ABM 1

Take Home Summative Test

Mr. Labugay opened his business LOVE BOO GAY Repair Shop last January 1, 2022 in La Castellana. The
following transactions occurred during the month of January 2022.

Date Transactions
1/1/2022 Invested PHP500,000 to his business. The trade name of the business was “LOVE BOO GAY
Repair Shop”.
1/2/2022 Paid permits and licenses, PHP10,000.
1/3/2022 Purchased store supplies PHP15,000 and Office supplies, PHP10,000 on account.
1/4/2022 Rendered repair services to customers, PHP8,000.
1/5/2022 Paid rent in advance for 5months, P6,000 per month.
1/10/2022 Purchased repair equipment, PHP55,000. A down payment was made P5,000 and an interest-
bearing note was issued payable in 60 days at 10%
1/15/2022 Rendered repair services to customers, P20,000.
1/18/2022 Received payment from a customer for a repair service to be completed on March 18, 2022
amounting to PHP12,500.
1/19/2022 Borrowed money, PHP50,000.
1/22/2022 Purchased Office equipment, PHP30,000 on account.
1/25/2022 Rendered service on credit, P20,000.
1/26/2022 Withdrew cash worth, P2,000.
1/27/2022 Paid various expenses for the month, utilities, PHP3,500; salaries, PHP4,500; and taxes,
PHP2,500.
1/28/2022 Received 50% of the January 25 account.
Paid 10% of the January 22 account.
1/29/2022 Rendered repair services to a customer, PHP30,000.
1/30/2022 Received a note from a customer for a service rendered, PHP10,000. Terms: 90-days, 12%
interest.
1/31/2022 Invested additional store equipment, P5,000

Adjustments: The accounting period of LOVE BOO GAY Repair Shop is on a monthly basis.
1. PHP300 of store supplies are on hand and PHP6,000 of the office supplies was used up.
2. One month of the rent has been consumed.
3. The interest of the note payable on January 10 have been accrued.
4. The interest of the note received on January 30 have been accrued.
5. The equipment of the business has been depreciated. The estimated useful life of the
equipment is 10 years with salvage value of PHP5,000.

Requirements:
1. Prepare the general journal entries for the above transactions (ignore giving explanations after every
entry).
2. Post the following transactions to the T-account.
3. Prepare the worksheet as of January 30, 2020.
4. Prepare the adjusting entries post them on your T-account.
5. Prepare the closing entries and post them on your T-account
6. Prepare the post-closing trial balance.
Mechanics:
1. All journal entries on the 2-column journal.
2. All ledgers on yellow pad.
3. Worksheet on 10-column worksheet or yellow pad.
4. Post-closing trial balance on yellow pad.

--- Goodluck ---

Prepared by: _______________________________________
Sign over printed name