FUNDAMENTALS OF

ACCOUNTING 1
Mathematics
4 pag.

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Name: Terrence John A. Gonzales Section: ABM 11-Weber

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT I

Journalizing, Posting and Preparing Trial Balance

The chart of accounts for Jerome Gelacio Pest Control is as follows:

Assets Income
110 Cash 410 Landscaping Revenues
120 Accounts Receivable Expenses
130 Prepaid Insurance 510 Salaries Expense
140 Equipment 520 Gas and Oil Expense
150 Service Vehicle 530 Rent Expense
Liabilities 540 Utilities Expense
210 Accounts Payable 550 Supplies Expense
Owner’s Equity 560 Miscellaneous Expense
310 Gelacio, Capital
320 Gelacio, Drawing

The entity completed the following transactions in July 2016

July 2 Paid rent for the month, P10,000.

7 Received cash on account from Crown Peak Condos, P21,800.
9 Bought equipment on account from Bay Equipment, P61,000.
12 Received and paid telephone bill, P2,500.
15 Billed City Hall for services performed, P35,000.
20 Paid cash for liability insurance (six months), P16,000.
21 Gelacio invested in the business a personal equipment having a fair market value of
P49,500.00
23 Paid P20,000 on account to Bay Equipment.
31 Paid salaries to part time employees, P14,800
31 Received cash for service performed, P72,300.
31 Gelacio withdrew cash for personal use P21,500.

Required:

1. Prepare Journal Entries

2. Post the journal entries using the T-accounts.
3. Prepare an unadjusted trial balance.

JOURNAL ENTRIES

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Date Account Title and Explanation PR Debit Credit

2016

July 2 Rent Expense 530 10,000.00

Cash 110 10,000.00

to record payment of rent

July 7 Cash 110 21,800.00

Account Receivable 120 21,800.00

to record sales on account collected

July 9 Equipment 140 61,000.00

Accounts Payable 210 61,000.00

to record purchased equipment

July 12 Utilities Expense 540 2,500.00

Cash 110 2,500.00

to record the payment of the telephone bill

July 15 Accounts Receivable 120 35,000.00

Landscaping Revenues 410 35,000.00

to record service revenue

July 20 Prepaid Insurance 130 16,000.00

Cash 110 16,000.00

to record payment insurance for six months

July 21 Equipment 140 49,500.00

Gelacio, Capital 310 49,500.00

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 to record personal equipment

July 23 Accounts Payable 210 20,000.00

Cash 110 20,000.00

to record payment of equipment

July 31 Salaries Expense 510 14, 800.00

Cash 110 14,800.00

to record payment of part time employees

Cash 110 72,300.00

Landscaping Revenues 410 72,300.00

to record service revenues

Gelacio, Withdrawals 320 21,500.00

Cash 110 21,500.00

to record Gelacio Withdrawals

T – ACCOUNTS

ASSETS LIABILITIES CAPITAL

Cash Accounts Payable Gelacio, Capital
21,800.00 10,000.00 20,000.00 61,000.00 49,500.00
72,300.00 2,500.00 41,000.00 49,500.00
16,000.00
20,000.00
Gelacio, Withdrawals
14,800.00
21,500.00 21,500.00
94,100.00 84,800.00 21,500.00

Rent Expense

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9,300.00
10,000.00
Accounts Receivable
10,000.00
35,000.00 21,800.00
13,200.00 Utilities Expense
2,500.00
Equipment 2,500.00
61,000 Salaries Expense
49,500
14,800.00
110,500
14,800.00
Prepaid Insurance Landscaping Revenues
16,000.00 35,000.00
16,000.00 72,300.00
107,300.00
Jerome Gelacio Pest Control
UNADJUSTED TRIAL BALANCE
July 31, 2016
Account Title Debit Credit
Cash P 9, 300.00
Accounts Receivable P 13, 200.00
Prepaid Insurance P 16, 000.00
Equipment P 110, 500.00
Accounts Payable P 41,000.00
Gelacio, Capital P 49,500.00
Gelacio, Withdrawals P 21, 500.00
Landscaping Revenue P 107,300.00
Salaries Expense P 14,800.00
Rent Expense P 10,000.00
Utilities Expense P 2,500.00
Total P 197,800.00 P 197,800.00

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