Mr. Andres Flores put up a computer shop business under the name Flores Computer Shop.

During the month of June, 2020, the following transactions occurred:

1 - The owner invested cash, P500,000
1 - Paid municipal licenses and permits, P 1,260.
1 - Bought office equipment on account, P 48,000
1 - Paid 3-month rent in advance, P45,000.
1 - Bought office supplies for cash, P 11,250
1 - Paid for the 2 months advertisement in the newspaper, P 10,000
1 – Rendered services on credit, P 222,000
5 – Collected partial payment of P 6,000 from a credit customer
5 - Bought office tables and chairs on account, P42,650
6 - Returned defective tables costing P 2,650. (see transaction dated June 5).
7 - The owner invested his computer in the business, P 75,000.
10 – Rendered services for cash, P 9,200.
11 – Collected cash from credit customer, P 12,500.
15 - Paid the employees’ salaries, P 12,000
25 - Borrowed money from the bank, P 200,000 at an interest rate of 6% per annum payable in 5 years.
27 - The owner withdrew cash P 10,000 for his personal use.
30 - Bought delivery van P 850,000 terms 20% down and the balance is payable in 12 equal month installments over a period of one year.
30 -Issued a 60-day 6% promissory note, P 18,000 for the purchase of supplies.
30 – Sent bill for the rendered services, P 46,000.
30- Signed a contract to repair the computers of the Angeles Law Firm, P90,000.
Adjustments to be made on June 30, 2020:

a. Supplies on hand, June 30, P 2,150.

b. Depreciation of 20% per annum is to be provided for the office equipment.

c. The tenant's payment is good for 3 months.

d. Accrued interest on the notes payable.

e. Prepaid advertising is one half of the amount paid.

REQUIRED: 10 points each

1. Record the transactions in the general journal.

2. Post to the T accounts.

3. Prepare the preliminary trial balance on June 30, 2020.

4. Prepare the adjusting entries.

5. Prepare a 10-clumn worksheet.

6. Prepare the Income Statement for the month ended June 30, 2020.

7. Prepare the Statement of Changes in Owner's Equity for the month ended June 30, 2020.

8 Prepare the Balance Sheet as at June 30, 2020

9. Prepare the closing entries.

10. Prepare the post-closing trial balance.

 GENERAL JOURNAL
Date Description P/R Debit Credit
2020
June 1 Cash 500,000
A. Flores, Capital 500,000
The owner invested cash.

1 Taxes and License Expense 1,260

Cash 1,260
Paid municipal licenses and permits.

1 Office Equipment 48,000

Accounts Payable 48,000
Bought office equipment on account.

1 Prepaid Rent 45,000

Cash 45,000
Paid 3-month rent in advance.

1 Office Supplies 11,250

Cash 11,250
Bought office supplies for cash.

1 Prepaid Advertising 10,000

Cash 10,000
Paid 2-month advertisement in the newspaper.

1 Accounts Receivable 222,000

Service Revenue 222,000
Renderes services on credit.

5 Cash 6,000
Accounts Receivable 6,000
Collected partial payment from a credit
customer.

5 Furniture and Fixtures 42,650

Accounts Payable 42,650
Bought office tables and chairs on account.

6 Accounts Payable 2,650

Office Equipment 2,650
Returned defective tables.
7 Office Equipment 75,000
A. Flores, Capital 75,000
The owner invested his computer in the
business.

10 Cash 9,200
Service Revenue 9,200
Rendered services for cash.

11 Cash 12,500
Accounts Receivable 12,500
Collected cash from credit customer.

15 Salaries Expense 12,000

Cash 12,000
Paid employees' salaries.

25 Cash 200,000
Loans Payable 200,000
Borrowed money from the bank.

27 A. Flores, Drawing 10,000

Cash 10,000
The owner withdrew cash for his personal use.

30 Motor Vehicle 850,000

Cash 170,000
Accounts Payable 680,000
Bought a delivery van.

30 Office Supplies 18,000

Notes Payable 18,000
Issued a promissory note for the purchase
of supplies.

30 Accounts Receivable 46,000

Service Revenue 46,000
Sent bill for the rendered services.
 GENERAL LEDGER GENERAL LEDGER
Cash Notes Payable
Jun-1 500,000 Jun-1 1,260 Jun-30 18,000
Jun-5 6,000 45,000 Credit Bal. 18,000
Jun-10 9,200 11,250
Jun-11 12,500 10,000
Jun-25 200,000 Jun-15 12,000 A. Flores, Capital
Jun-27 10,000 Jun-30 Closing 10,000 Jun-1 500,000
Jun-30 170,000 Jun-7 75,000
Total 727,700 Total 259,510 Jun-30 Closing 214,790
Debit Bal. 468,190 Total 10,000 Total 789,790
Credit Bal. 779,790

Accounts Receivable
Jun-1 222,000 Jun-5 6,000 A. Flores, Drawing
Jun-30 46,000 Jun-11 12,500 Jun-27 10,000 Jun-30 Closing 10,000
Total 268,000 Total 18,500 --- ---
Debit Bal. 249,500

Service Revenue
Furniture and Fixtures Jun-30 Closing 277,200 Jun-1 222,000
Jun-5 42,650 Jun-6 2,650 Jun-10 9,200
Total 42,650 Total 2,650 Jun-30 46,000
Debit Bal. 40,000 --- ---

Office Equipment Salaries Expense

Jun-1 48,000 Jun-15 12,000 Jun-30 Closing 12,000
Jun-7 75,000
Debit Bal. 123,000 --- ---

Office Supplies Taxes and License Expense

Jun-1 11,250 Jun-30 Adjusting 27,100 Jun-1 1,260 Jun-30 Closing 1,260
Jun-3 18,000 --- ---
Total 29,250 Total 27,100
Debit Bal. 2,150
Office Supplies Expense
Jun-30 Adjusting 27,100 Jun-30 Closing 27,100
Motor Vehicle --- ---
Jun-30 850,000
Debit Bal. 850,000
Depreciation Expense - Office Equipment
Jun-30 Adjusting 2,050 Jun-30 Closing 2,050
Prepaid Rent --- ---
Jun-1 45,000 Jun-30 Adjusting 15,000
Debit Bal. 30,000
Rent Expense
Jun-30 Adjusting 15,000 Jun-30 Closing 15,000
Prepaid Advertising --- ---
Jun-1 10,000 Jun-30 Adjusting 5,000
Debit Bal. 5,000
Advertising Expense
Jun-30 Adjusting 5,000 Jun-30 Closing 5,000
Accumulated Depreciation - Office Equipment --- ---
Jun-30 Adjusting 2,050
Debit Bal. 2,050

Accounts Payable
Jun-6 2,650 Jun-1 48,000
Jun-5 42,650
Jun-30 680,000
Total 2,650 Total 770,650
Credit Bal. 768,000

Loans Payable
Jun-25 200,000
Credit Bal. 200,000
 Flores Computer Shop
Trial Balance
June 30, 2020

Dr Cr
Cash 468,190
Accounts Receivable 249,500
Furniture and Fixtures 40,000
Office Equipment 123,000
Office Supplies 29,250
Motor Vehicle 850,000
Prepaid Rent 45,000
Prepaid Advertising 10,000
Accounts Payable 768,000
Loans Payable 200,000
Notes Payable 18,000
A. Flores, Capital 575,000
A. Flores, Drawing 10,000
Service Revenue 277,200
Salaries Expense 12,000
Taxes and License Expense 1,260
Total 1,838,200 1,838,200
 GENERAL JOURNAL
Date Description P/R Debit Credit
2020
June 30 Office Supplies Expense 27,100
Office Supplies 27,100
To take up the office supplies used
and adjust the Office Supplies account.

30 Depreciation Expense - Office Equipment 2,050.00

Accumulated Depreciation - Office Equipment 2,050.00
To take up the depreciation of office
equipment for the month of June.

30 Rent Expense 15,000

Prepaid Rent 15,000
To take up the expired portion of
prepaid rent.

30 Advertising Expense 5,000

Prepaid Advertising 5,000
To take up the expired portion of
prepaid advertising.
 Flores Computer Shop
Worksheet
For the month ended of June 30, 2020

Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet
Account Titles Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Cash 468,190 468,190 468,190
Accounts Receivable 249,500 249,500 249,500
Furniture and Fixtures 40,000 40,000 40,000
Office Equipment 123,000 123,000 123,000
Office Supplies 29,250 (a) 27,100 2,150 2,150
Motor Vehicle 850,000 850,000 850,000
Prepaid Rent 45,000 (c) 15,000 30,000 30,000
Prepaid Advertising 10,000 (e) 5,000 5,000 5,000
Accounts Payable 768,000 768,000 768,000
Loans Payable 200,000 200,000 200,000
Notes Payable 18,000 18,000 18,000
A. Flores, Capital 575,000 575,000 575,000
A. Flores, Drawing 10,000 10,000 10,000
Service Revenue 277,200 277,200 277,200
Salaries Expense 12,000 12,000 12,000
Taxes and License Expense 1,260 1,260 1,260
1,838,200 1,838,200
Office Supplies Expense (a) 27,100 27,100 27,100
Depreciation Expense - Office Equipment (b) 2,050 2,050.00 2,050.00
Accumulated Depreciation - Office Equipment (b) 2,050 2,050.00 2,050.00
Rent Expense (c) 15,000 15,000 15,000
Advertising Expense (e) 5,000 5,000 5,000
49,150.00 49,150.00 1,840,250.00 1,840,250.00 62,410.00 277,200 1,777,840.00 1,563,050
Net Income 214,790.00 214,790.00
277,200.00 277,200 1,777,840 1,777,840
 Flores Computer Shop
Statement of Comprehensive Income
For the month Ended June 30, 2020

Service Revenue ₱ 277,200

Less: Operating Expenses
Salaries Expense ₱ 12,000
Taxes and License Expense 1,260
Office Supplies Expense 27,100
Depreciation Expense - Office Equipment 2,050
Rent Expense 15,000
Advertising Expense 5,000
Total Operating Expenses 62,410
Net Income ₱ 214,790

Flores Computer Shop

Statement of Changes in Capital
For the month Ended June 30, 2020

A. Flores, Capital, Beg. ₱ 575,000

Add: Net Income for the month 214,790
Total ₱ 789,790
Less: A. Flores, Drawing 10,000
A. Flores, Capital, End ₱ 779,790

Flores Computer Shop

Statement of Financial Position
June 30, 2020

Assets
Current Assets:
Cash ₱ 468,190
Accounts Receivable 249,500
Furniture and Fixtures 40,000
Office Supplies 2,150
Motor Vehicle 850,000
Prepaid Rent 30,000
Prepaid Advertising 5,000
Total Current Assets ₱ 1,644,840
Fixed Assets:
Office Equipment 123,000
Less: Accumulated Depreciation 2,050 120,950
TOTAL ASSETS ₱ 1,765,790

Liabilities
Current Liabilities:
Accounts Payable ₱ 768,000
Notes Payable 18,000
Total Current Liabilities ₱ 786,000

Fixed Liabilities:
Loans Payable 200,000
TOTAL ₱ 986,000

Capital
A. Flores, Capital 779,790
TOTAL LIABILITIES AND CAPITAL ₱ 1,765,790
 GENERAL JOURNAL
Date Description P/R Debit Credit
2020
June 30 Service Revenue 277,200
Income Summary 277,200
To close the revenue account.

30 Income Summary 62,410

Salaries Expense 12,000
Taxes and License Expense 1,260
Office Supplies Expense 27,100
Depreciation Expense 2,050
Rent Expense 15,000
Advertising Expense 5,000
To close the expense accounts.

30 Income Summary 214,790

A. Flores, Capital 214,790
To close the net income to capital.

30 A. Flores, Capital 10,000

A. Flores, Drawing 10,000
To close the owner's drawing account.
 Flores Computer Shop
Post-Closing Trial Balance
June 30, 2020

Dr Cr
Cash 468,190
Accounts Receivable 249,500
Furniture and Fixtures 40,000
Office Equipment 123,000
Office Supplies 2,150
Motor Vehicle 850,000
Prepaid Rent 30,000
Prepaid Advertising 5,000
Accumulated Depreciation - Office Equipment 2,050
Accounts Payable 768,000
Loans Payable 200,000
Notes Payable 18,000
A. Flores, Capital 779,790
Total 1,767,840 1,767,840