ACCOUNTING 1

LESSON 4

NAME: VHETTY MAY C. POSADAS

YR & SECTION: BSHM 2-A
DATE: March 13, 2022

Activity # 4
Instruction: On a separate long white bond paper answer the following: (20 points)

1. What is the purpose of posting the journal entries to the general ledgers?
 The purpose of posting a journal entry to the general ledger is to match the debit or credit
to an account in the general ledger. This means that when an account goes up, there
needs to be a corresponding journal entry in order to balance the account. If there is no
corresponding entry, then it is a mistake.

2. What is the normal account balance of equity?

 The definition of account balance is the amount that is available to withdraw. It is what you
have after your current credit card debt and any outstanding checks are deducted. The
normal account balance of equity changes, but it usually stays around 10 percent of what
you have available to withdraw, which is your current liquid assets plus your savings.

3. What is the meaning of the posted account numbers in the folio column of the General
Journal?
 The posting reference in the journal cites the account number to which the entry was
posted. It indicates the source of the entry in the ledger, i.e. which journal (some
businesses keep a general journal and several special journals) and sometimes what
page of that journal the entry can be found on.

4. What is the other name of Folio?

 A numerical assigned numbers

Assignment : # 4 Using the a worksheet, Journalize the following transactions of Nathan

Cleaning Services owned by Nathan for the month of June 2020.

Date Transactions
June 1 Deposited P80,000 cash in a bank account using the name of the new company.

3 Acquired cleaning supplies on account P35,000

5 Acquired cleaning equipment on account P38,000

6 Acquired an old service vehicle for the business amounting to 58,000 by paying
P25,000 cash and by issuing a promissory note for the balance
7 Paid six months rent in advance for P60,000

9 Received P45,000 cash for cleaning services rendered

10 Paid for a newspaper advertisement P2,800

11 Rendered cleaning services to Lam Company for P14,000 cash

12 Paid Insurance for two years P 72,000

13 Made a partial payment on the June 5 transaction P5,000

14 Paid Miscellaneous expenses P3,500

15 Billed customers amounting to P30,000 for cleaning services rendered

16 Paid Business permits and other fees for P3,800

20 Received P10,000 from customers billed on June 15

22 Made a partial payment on the June 3 transaction, 30% of the account balance

25 Paid Telephone charges P1,000

26 Withdrew some cleaning supplies for home use P2,000

27 Purchased a desktop computer from ABC Company for P35,000 cash

28 Billed customers amounting to P25,000 for cleaning services rendered.

 Additional Instruction: You can create your own Chart of Accounts.

Assessment No. 4: Using a worksheet, Journalize the following transactions using a worksheet,
journalize the following transactions of Mcpower View Repair shop for the Month of August
2020 with reference to the following chart of Accounts.

Owner’s Equity
Assets 100 300

Pedro, Drawing
Cash 101 310

Investment in trading Securities Pedro, Capital

102 320

Accounts Receivable
103
Allowance for Doubtful Accounts
104 Income 400

Notes Receivable 105 Repair Service Income

410

Advances to Employees Interest Income

106 420

Repair Supplies
107

Office Supplies
108 Expenses 500
Salaries and Wages Expense
Land 109 510

Repair Equipment Rent Expense

110 520

Office Equipment Advertising & Promotion Expense

111 530

Commission Expense
Building 120 540

Accumulated depreciation-Repair Subscription Expense

Equipment 130 550

Accumulated Depreciation-Office Insurance Expense

Equipment 131 560
Accumulated Depreciation-Building Travel Expense
140 570

Utilities Expense
580

Liabilities Tax and License Expense

200 590

Accounts Payable Depreciation Expense

210 591

Notes Payable Interest Expense 592

220

Utilities Payable Donation Expense

230 593

Unearned Income Bad debts Expense

240 594

Mortgage Payable Miscellaneous Expense

250 595

Additional requirements using the above chart of accounts and transactions, post your entries
to their specific general ledger. After posting to their ledgers complete the assessment with a
trial balance.

Complete Requirement is equivalent to 120 points

Aug Transactions

1 Pedro invested in his business the following : cash of P160,000, a repair equipment with a fair market
value of P230,000 and an office equipment worth P 80,000

3 Bought repair supplies from sette hardware for P70,000on terms : 30%down payment issued an
interest bearing note for the balance

8 Bought office supplies from XYZ book store on credit P13,400

11 Billed various customers for repair services rendered P26,500

18 Pedro, withdrew cash amounting to P10,000

21 Granted cash advance to two employees at P3,000 each

24 Collected 70% of the accounts receivable from customers Aug. 11

26 Received P44,800 from a customer representing an advance payment for repair services to be
rendered within the second half of Sept.

27 Repair services rendered for the day: Cash P60,970; Receipt of promissory notes amounting to
P35,000; trade receivables of P46,770

30 Paid employees salaries less the cash advances granted on Aug. 21 issued a check amounting to
24,500

31 Paid various expenses for the month: rent of P10,000, advertising of P12,000; utilities of P8,000and
interest of P2,000