The following transactions happened during the first year of operations of Excel Car Leasing Company

Date Particulars

1/1/2022 Mr. Ty invested P2,000,000 cash and a parcel of land with a FMV of P4,500,000.00 and cost of P3,500,000
1/1/2022 Mr. Ty hired his accountant Ms. Santos to assist him in setting up the business.
1/5/2022 Entered into agreement with Mr. X to lease out their facilities to be Excel Car Leasing Company's main office. Re
1/6/2022 Purchased Office Equipment worth 50,000 and Furnitures and Fixtures worth 70,000
1/6/2022 Purchased 2 units of car worth 700,000 each. Cash payment was made
1/7/2022 Obtain a loan from BPI. P 3,000,000 due in 2 years. Interest rate is at 12%. The company issued a promissory note
1/10/2022 Purchased office supplies on account, 30,000
1/12/2022 Arranged an advertising contract with Manila Bulletin. 5,000 per month to be paid every 10th day of the succeedin
1/15/2022 Acquired 5 more units of car P 2,000,000
1/16/2022 Agreed with Ms. Santos that the cars will be rented out at P4,000 per day rate
1/20/2022 Purchased an 18 month insurance plan with Malayan Insurance for all the cars. P 90,000
1/20/2022 Rented out all the cars to foreign visitors of customer A. payment to be made when the cars are returned after their
1/25/2022 Paid Ms. Santos' payroll from January 1-15, 2022, 15,000.
1/28/2022 Paid the purchases made on January 10, 2022. 10,000
1/30/2022 Cars are returned and collected P 200,000 from customer A

2/5/2022 Received rent bill from the lessor. P50,000

2/10/2022 Paid the salary of Ms. Santos, 15,000. This is for January 16-31 payroll period
2/10/2022 Received Electricity Bill amounting to 4,000, water bill amounting to 1,200 and internet bill amounting to 1,700
2/10/2022 Received a advertising bill from Manila Bulletin. 5,000
2/15/2022 Billed Customer B for the lease of 3 cars from Feb 1-15, 2022. 180,000
2/17/2022 Paid utilities expense 2,900
2/20/2022 Collected P 150,000 from Customer B
2/21/2022 Paid 13,000 for repairs and maintenance of the cars
2/23/2022 Mr. Ty withdraw 10,000 from his capital
2/25/2022 Paid Ms. Santos' payroll from February 1-15, 2022, 15,000.
2/25/2022 Customer C rented one unit of car paying 8,000 after returning it.
2/28/2022 Purchased office equipment worth 15,000
2/28/2022 Paid the bill due to lessor
2/28/2022 Mr. Ty paid the balance due to Manila Bulletin

3/1/2022 Extended 20,000 loan to Mr. Ty's brother. This is supported by 3-year note @ 8%
3/1/2022 Received an offer from a BPO company to rent all his units for the entire month of March. Mr. Ty accepted this of
3/5/2022 Received rent bill from the lessor. P50,000
3/8/2022 Paid the remaining balance of utilities
3/10/2022 Paid the salary of Ms. Santos, 13,000. This is for February 16-28 payroll period
3/10/2022 Received a advertising bill from Manila Bulletin. 5,000
3/15/2022 Customer A made a 40,000 down payment for his upcoming rent on April 1-10, 2022
3/16/2022 Received billing statement for utilities 3,500
3/18/2022 Ms. Santos requested Mr. Ty if she can advance 8,000 from her salary. Mr. Ty granted her request
3/20/2022 Paid the balance of rent bill
3/25/2022 Paid 5,000 for pest control for the leased facilities
3/26/2022 Purchased 8,000 worth of office supplies
3/27/2022 Received 200,000 advance payment from customer B. He will be renting one unit for 50 days starting May 1, 2022
3/28/2022 Mr. Ty invested 300,000 cash
Assuming you are Ms. Santos, you are asked to prepare a 3-month Financial Statement for the business of Mr. Ty

Use the following assumptions

- Accrual of expense is based on the most recent bill received
- Fixed assets purchased within the 1st fifteen days of the month will be depreciated on the month of purchased. O
- The company uses straight line method of depreciation
- Fixed assets are expected to have 60 months useful life and 20% salvage value
- As of the latest inventory, 5,000 worth of supplies is unused
- The company uses asset and liability methods
cost of P3,500,000

ompany's main office. Rent Fee is at 50,000 per month to be paid every 5th of the following month. Mr. Ty agreed to pay the full rent even

y issued a promissory note for this

10th day of the succeeding month

ars are returned after their 10-day contract

bill amounting to 1,700

h. Mr. Ty accepted this offer.

days starting May 1, 2022

ss of Mr. Ty

he month of purchased. Otherwise, it will be depreciated on the following month

ed to pay the full rent even if they will start occupying the office on January 7
Date Account Debit Credit
###
1/1/2022 Cash 2,000,000.00 ###
Land 3,500,000.00 ###
Capital 5,500,000.00
###
1/5/2022 Prepaid Rent 50,000.00 ###
Cash 50,000.00
###
1/6/2022 Office Equipment 50,000.00 ###
Furnitures and Fixtures 70,000.00 ###
Cash 120,000.00
###
1/6/2022 Transportation Equipment 1,400,000.00 ###
Cash 1,400,000.00
###
1/7/2022 Cash 3,000,000.00 ###
Notes Payable 3,000,000.00
###
1/10/2022 Office Supplies 30,000.00 ###
Accounts Payable 30,000.00
###
1/15/2022 Transportation Equipment 2,000,000.00 ###
Cash 2,000,000.00
###
1/20/2022 Prepaid Insurance 90,000.00 ###
Cash 90,000.00
###
1/25/2022 Salaries Expense 15,000.00 ###
Cash 15,000.00
###
1/28/2022 Accounts Payable 10,000.00 ###
Cash 10,000.00
###
1/30/2022 Cash 200,000.00 ###
Rent Income 200,000.00

2/5/2022 Rent Expense 50,000.00

Accounts Payable 50,000.00
###
2/10/2022 Salaries Expense 15,000.00 ###
Cash 15,000.00

2/10/2022 Utilities Expense 6,900.00 ###

Accounts Payable 6,900.00
###
2/10/2022 Advertising Expense 5,000.00 ###
Accounts Payable 5,000.00
###
2/15/2022 Accounts Receivable 180,000.00 ###
Rent Income 180,000.00
###
2/17/2022 Utilities Expense 2,900.00 ###
Cash 2,900.00
###
2/20/2022 Cash 150,000.00 ###
Accounts Receivable 150,000.00
###
2/21/2022 Repairs and Maintenance Expense 13,000.00 ###
Cash 13,000.00
###
2/23/2022 Withdrawals 10,000.00 ###
Cash 10,000.00
###
2/25/2022 Salaries Expense 15,000.00 ###
Cash 15,000.00
###
2/25/2022 Cash 8,000.00 ###
Rent Income 8,000.00
###
2/28/2022 Office Equipment 15,000.00 ###
Cash 15,000.00
###
2/28/2022 Accounts Payable 50,000.00 ###
Cash 50,000.00
###
2/28/2022 Accounts Payable 5,000.00 ###
Cash 5,000.00
###

3/1/2022 Notes Receivable 20,000.00 ###

Cash 20,000.00
###
3/5/2022 Rent Expense 50,000.00 ###
Accounts Payable 50,000.00
###
3/8/2022 Utilities Expense 4,000.00 ###
Cash 4,000.00
###
3/10/2022 Salaries Expense 13,000.00 ###
Cash 13,000.00
###
3/10/2022 Advertising Expense 5,000.00 ###
Accounts Payable 5,000.00
###
3/15/2022 Cash 40,000.00 ###
Rent Income 40,000.00
###
3/16/2022 Utilities Expense 3,500.00 ###
Accounts Payable 3,500.00
###
3/18/2022 Prepaid Salaries and Wages Expense 8,000.00 ###
Cash 8,000.00
###
3/20/2022 Accounts Payable 50,000.00 ###
 Cash 50,000.00
###
3/25/2022 Repairs and Maintenance Expense 5,000.00 ###
Cash 5,000.00
###
3/26/2022 Office Supplies 8,000.00 ###
Cash 8,000.00
###
3/27/2022 Cash 200,000.00 ###
Rent Income 200,000.00
###
3/28/2022 Cash 300,000.00 ###
Capital 300,000.00
###
13,647,300.00 13,647,300.00
Date Account Debit Credit
 Unadjusted Trial Balance Adjustments
Account Name Debit Credit Debit

Cash 1,979,100.00
Land 3,500,000.00
Office Equipment 65,000.00
Furnitures and Fixtures 70,000.00
Transportation Equipment 3,400,000.00
Office Supplies 38,000.00
Prepaid Insurance 90,000.00
Accounts Receivable 30,000.00
Notes Receivable 20,000.00
Unearned Rent Income
Prepaid Salaries and Wages Expense 8,000.00
Accrued Interest Income
Accumulated Depreciation- Transportation Equipment
Accumulated Depreciation-Furniture and Fixtures
Accumulated Depreciation-Office Equipment
Notes Payable 3,000,000.00
Accounts Payable 35,400.00
Accrued Advertising Expense
Accrued Interest Expense
Accrued Rent Expense
Accrued Rent Income
Accrued Salaries Expense
Accrued Utilities Expense
Capital 5,800,000.00
Withdrawals 10,000.00
Salaries Expense 58,000.00
Rent Expense 150,000.00
Utilities Expense 17,300.00
Advertising Expense 10,000.00
Repairs and Maintenance Expense 18,000.00
Depreciation Expense- Furniture and Fixtures
Depreciation Expense- Office Equipment
Depreciation Expense- Transportation Equipment
Insurance Expense
Interest Expense
Office Supplies Expense
Rent Income 628,000.00
Interest Income
9,463,400.00 9,463,400.00 -
Adjustments Adjusted Trial Balance
Credit Debit Credit

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