Chapter 7

Posting to the Ledger

NAME: Grace Beloy Date: 02/03/23
Professor: Mr. Dela Cruz Section: FIN222 Score:

QUIZ 1: JOURNALIZING & POSTING

The following were the transactions of Entity A during the period:

Date Transactions
Jan. 8 Services worth ₱150,000 were rendered for cash.
Jan. 9 Services worth ₱200,000 were rendered on account.
Jan. Cash amounting to ₱25,000 was disbursed for advertising expense.
10
Jan. Accounts receivable of ₱180,000 was collected.
11
Jan. The owner made a temporary withdrawal of ₱10,000 cash from the
12 business.

Requirements:
a. Provide the journal entries.
b. Post the journal entries to the ledger then determine the ending balances of the accounts. Use T-
accounts for this purpose. Arrange your T-accounts in this order: Assets, Liabilities, Equity,
Income and Expenses.

A. Journal Entries
Debit Credit
Jan. 8 Cash ₱150,000.00
Service Fees ₱150,000.00
To record service revenue

Jan. 9 Accounts Receivable ₱200,000.00

Service Fees ₱200,000.00
To record service revenue on account

Jan.
10 Advertising Expense ₱25,000.00
Cash ₱25,000.00
To record cash payment for advertising

Jan.
11 Cash ₱180,000.00
Accounts Receivable ₱180,000.00
To record collection of accounts
receivable

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 Jan.
12 Owner's Drawings ₱10,000.00
Cash ₱10,000.00
To record owner's withdrawal

B. Ledger
Asset
Cash Accounts Receivable
Jan.
Jan. 8 ₱150,000.00 ₱25,000.00 Jan. 10 9 ₱200,000.00 ₱180,000.00 Jan. 11
Jan.
11 ₱180,000.00 ₱10,000.00 Jan. 12 ₱200,000.00 ₱180,000.00
₱330,000.00 ₱35,000.00 ₱20,000.00 Ending Balance
₱295,000.00 Ending Balance ₱200,000.00 ₱200,000.00
₱330,000.00 ₱330,000.00

Equity Income
Owner's Drawings Service Fees
Jan. Jan.
12 ₱10,000.00 ₱150,000.00 8
Jan.
₱10,000.00 ₱200,000.00 9
₱10,000.00 Ending Balance ₱350,000.00
₱10,000.00 ₱10,000.00 Ending Balance ₱350,000.00
₱350,000.00 ₱350,000.00
Expense
Advertising Expense
Jan.
10 ₱25,000.00
₱25,000.00
₱25,000.00 Ending Balance
₱25,000.00 ₱25,000.00

“There is no end to education. It is not that you read a book, pass an examination, and finish with
education. The whole of life, from the moment you are born to the moment you die, is a process
of learning.” - Jiddu Krishnamurti
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 NAME: Beloy, Grace Date: 02/03/23
Professor: Mr. Dela Cruz Section: FIN222 Score:

QUIZ 2: UNADJUSTED TRIAL BALANCE

The ledger accounts of Entity A have the following balances on December 31, 20x1:

Account titles Balances

Accounts payable 480,000
Accounts receivable 210,000
Accumulated depreciation - Bldg. 1,250,000
Accumulated depreciation - Equipt. 1,800,000
Advertising expense 70,000
Allowance for bad debts 30,000
Bad debt expense 20,000
Building 5,000,000
Cash 770,000
Depreciation expense 200,000
Equipment 3,600,000
Land 2,000,000
Miscellaneous expense 4,000
Notes receivable 420,000
Owner’s drawings 80,000
Owner’s equity 4,200,000
Prepaid supplies 40,000
Salaries expense 1,140,000
Salaries payable 120,000
Service fees 6,000,000
Supplies expense 60,000
Taxes and licenses 120,000
Transportation and travel expense 140,000
Utilities expense 46,000
Utilities payable 40,000

Requirement: Prepare the unadjusted trial balance. Be sure to provide a proper heading for the report
and arrange the accounts in the correct sequence.

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 Entity A
Unadjusted Trial Balance
December 31, 20x1
Debit Credit
Cash ₱770,000.00
Accounts Receivable ₱210,000.00
Allowance for Bad Debts ₱30,000.00
Notes Receivable ₱420,000.00
Prepaid Supplies ₱40,000.00
Land ₱2,000,000.00
Building ₱5,000,000.00
Accumulated Depreciation - Bldg. ₱1,250,000.00
Equipment ₱3,600,000.00
Accumulated Depreciation - Equipt. ₱1,800,000.00
Accounts Payable ₱480,000.00
Salaries Payable ₱120,000.00
Utilities Payable ₱40,000.00
Owner's Equity ₱4,200,000.00
Owner's Drawings ₱80,000.00
Service Fees ₱6,000,000.00
Salaries Expense ₱1,140,000.00
Utilities Expense ₱46,000.00
Supplies Expense ₱60,000.00
Bad Debts Expense ₱20,000.00
Depreciation Expense ₱200,000.00
Advertising Expense ₱70,000.00
Taxes and Licenses ₱120,000.00
Transportation and Travel Expense ₱140,000.00
Miscellaneous Expense ₱4,000.00
₱13,920,000.00 ₱13,920,000.00

“In some parts of the world, students are going to school every day. It's their
normal life. But in other part of the world, we are starving for education... it's like a
precious gift. It's like a diamond.” – Malala Yousafzai

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NAME: Beloy, Grace Date: 02/03/23
Professor: Mr. Dela Cruz Section: FIN222 Score:

QUIZ 3: POSTING & UNADJUSTED TRIAL BALANCE

Mr. A opened a management consulting firm called “Alpha Consulting” on October 1, 20x1. The
following were the transactions during the first week of operations:

Oct. Transactions

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 1 Provided ₱300,000 cash as initial investment to the business.
2 Acquired furniture and fixture for ₱200,000 cash.
4 Purchased supplies for ₱30,000 cash.
5 Rendered services worth ₱20,000 on cash basis.
7 Paid ₱10,000 salaries of employees.

Requirements:
a. Provide the journal entries.
b. Post the entries to the ledger (use T-accounts).
c. Prepare the unadjusted trial balance on October 7, 20x1.

A. Journal
Debit Credit
Oct. 1,
20x1 Cash ₱300,000.00
Owner's Capital ₱300,000.00
To record initial investment

Oct. 2, Furnitures and

20x1 Fixtures ₱200,000.00
Cash ₱200,000.00
To record acquisition of furnitures and
fixtures

Oct. 4,
20x1 Supplies ₱30,000.00
Cash ₱30,000.00
To record purchase of supplies

Oct. 5,
20x1 Cash ₱20,000.00
Service Fees ₱20,000.00
To record service revenue

Oct. 7,
20x1 Salaries Expense ₱10,000.00
Cash ₱10,000.00
To record payment of salaries

B. Ledger
Asset
Cash Furnitures and Fixtures
Oct. 1, Oct. 2,
20x1 ₱300,000.00 ₱200,000.00 Oct. 2, 20x1 20x1 ₱200,000.00
Oct. 5,
20x1 ₱20,000.00 ₱30,000.00 Oct. 4, 20x1 ₱200,000.00

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 Ending
₱10,000.00 Oct. 7, 20x1 ₱200,000.00 Balance
₱320,000.00 ₱240,000.00 ₱200,000.00 ₱200,000.00
Ending
₱80,000.00 Balance
₱320,000.00 ₱320,000.00

Supplies
Oct. 4,
20x1 ₱30,000.00
₱30,000.00
₱30,000.00 Ending Balance
₱30,000.00 ₱30,000.00
Equity Income
Owner's Capital Service Fees
Oct. 1, Oct. 5,
₱300,000.00 20x1 ₱20,000.00 20x1
₱300,000.00 ₱20,000.00
Ending Ending
Balance ₱300,000.00 Balance ₱20,000.00
₱300,000.00 ₱300,000.00 ₱20,000.00 ₱20,000.00
Expense
Salaries Expense
Oct. 7, 20x1 ₱10,000.00
₱10,000.00
₱10,000.00 Ending Balance
₱10,000.00 ₱10,000.00

Alpha Consulting
Unadjusted Trial Balance
October 7, 20x1
Debit Credit
Cash ₱80,000.00
Furnitures and Fixtures ₱200,000.00
Supplies ₱30,000.00
Owner's Capital ₱300,000.00
Service Fees ₱20,000.00
Salaries Expense ₱10,000.00
₱320,000.00 ₱320,000.00

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“So do not fear, for I am with you; do not be dismayed, for I am your God. I will strengthen you and help you;
I will uphold you with my righteous right hand.”
(Isaiah 41:10)
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