I.

Journal Entries - listed below are the journal entries of Juanito Cruz Repair Shop for the calendar year 2020
J.C Repair Shop
GENERAL JOURNAL
December
1 J.C Repair Shop started operations with a P150,000 cash investment received from Juanito Cruz, the sole proprietor.
Account Title: Debit (₱) Credit (₱)

2 The business paid P15,000 for a 3-month rental of office and shop space.

3 The business bought from Reyes Machines Corporation, several Car Repair Equipment at P50,000; half of which was
paid in cash. The company issued to Reyes Machines Corp. two promissory notes for P12,500 each for the balance.

4 On December 4, the business acquired for the cash, the following:

a typewriter and cash register worth 15,000
bond, paper, envelopes and other supplies for the office worth 4,200
repair tools invoiced at 28,000
materials and supplies for the shop, valued at 18,000

5 The business paid P5,000 to Metro Brodcasters for one-month radio spots.

8 On December 8, Office supplies worth P1,100 were found to have no application for office use and were sold in cash at cost.

12 The shop completed repairs of several cars, and billed their owners a total of P35,000, of which P10,000 billed Santiago Santos was not collected.
Santos promised to pay in 15 days.

15 The shop paid cash for the following:

permits and licenses to operate P1,200
transportation worth P600

15 Last December 3, the company hired three mechanics with montly wages of P7,500 each, and a bookkeeper secretary with a monthly salary of P6,000.
On December 15, the company paid one-half month salary of the bookkeeper-secretary and half-month wages of the three mechanics.

18 The company paid Reyes Machines Corporation for the promissory note due today.

23 On December 23, Juanito Cruz, withdrew P30,000 cash for his own personal use.

27 On December 27, Santiago Santos gave the company only P5,000 cash in payment of his account due today. He issued a promissory note
for the remaining unpaid balance.

30 The shop received a total of P48,500 cash for various car repairs finished and billed during the week.

31 The company paid the following: transportation P1,700, telephone bill P800, electricity bill P5,100 and other disbursements
for various small expenses P560.

31 The company paid the end of the month wages of the three mechanics and salary of the bookkeeper-secretary.
 I. Journal Entries - listed below are the journal entries of Juanito Cruz Repair Shop for the
J.C Repair Shop
GENERAL JOURNAL
December
1 J.C Repair Shop started operations with a P150,000 cash investment received from Juanito C
Account Title: Debit (₱)
Dr Cash 150,000
Cr Juanito Cruz, Capital
To record ***

2 The business paid P15,000 for a 3-month rental of office and shop space.
Dr Prepaid Rent 15,000
Cr Cash
To record ***

3 The business bought from Reyes Machines Corporation, several Car Repair Equipment at P50
paid in cash. The company issued to Reyes Machines Corp. two promissory notes for P12,50
Dr Repair Equipment 50,000
Cr Cash
Notes Payable
To record ***

4 On December 4, the business acquired for the cash, the following:

a typewriter and cash register worth 15,000
bond, paper, envelopes and other supplies for the office worth 4,200
repair tools invoiced at 28,000
materials and supplies for the shop, valued at 18,000
Dr Office Machines 15,000
Office Supplies 4,200
Tools 28,000
Furnitures and Fixtures 18,000
Cr Cash
To record ***

5 The business paid P5,000 to Metro Brodcasters for one-month radio spots.
Dr Prepaid Advertising 5,000
Cr Cash
To record ***

8 On December 8, Office supplies worth P1,100 were found to have no application for office u
Dr Cash 1,100
Cr Office Supplies
To record ***

12 The shop completed repairs of several cars, and billed their owners a total of P35,000, of wh
Santos promised to pay in 15 days.
 Dr Cash 25,000
Accounts Receivable 10,000
Cr Repair Income
To record ***

15 The shop paid cash for the following:

permits and licenses to operate P1,200
transportation worth P600
Dr Taxes and Licenses Expense 1,200
Transportation Expense 600
Cr Cash
To record ***

15 Last December 3, the company hired three mechanics with montly wages of P7,500 each, an
On December 15, the company paid one-half month salary of the bookkeeper-secretary and
Dr Salaries and Wages Expense 14,250
Cr Cash
To record ***

18 The company paid Reyes Machines Corporation for the promissory note due today.
Dr Notes Payable 12,500
Cr Cash
To record ***

23 On December 23, Juanito Cruz, withdrew P30,000 cash for his own personal use.
Dr Juanito Cruz, Drawing 30,000
Cr Cash
To record ***

27 On December 27, Santiago Santos gave the company only P5,000 cash in payment of his acc
for the remaining unpaid balance.
Dr Cash 5,000
Notes Receivable 5,000
Cr Accounts Receivable
To record ***

30 The shop received a total of P48,500 cash for various car repairs finished and billed during th
Dr Cash 48,500
Cr Repair Income
To record ***

31 The company paid the following: transportation P1,700, telephone bill P800, electricity bill P
for various small expenses P560.
Dr Transportation Expense 1,700
Utility Expense 5,900
Miscellaneous Expense 560
Cr Cash
 To record ***

31 The company paid the end of the month wages of the three mechanics and salary of the boo
Dr Salaries and Wages Expense 14,250
Cr Cash
To record ***
s of Juanito Cruz Repair Shop for the calendar year 2020
Repair Shop
ERAL JOURNAL

h investment received from Juanito Cruz, the sole proprietor.

Credit (₱) Required Task:
1. Complete the journal entries for the following transa
150,000 2. Post the following transactions to the general ledger
3. Prepare the worksheet as of December 31, 2020
4. Use the Chart of Accounts for the basis of what acco
e and shop space.

15,000

, several Car Repair Equipment at P50,000; half of which was

orp. two promissory notes for P12,500 each for the balance.

25,000
25,000

or the office worth 4,200

65,200

month radio spots.

5,000

nd to have no application for office use and were sold in cash at cost.

1,100

heir owners a total of P35,000, of which P10,000 billed Santiago Santos was not collected.
 35,000

1,800

with montly wages of P7,500 each, and a bookkeeper secretary with a monthly salary of P6,000.
ary of the bookkeeper-secretary and half-month wages of the three mechanics.

14,250

promissory note due today.

12,500

for his own personal use.

30,000

nly P5,000 cash in payment of his account due today. He issued a promissory note

10,000

r repairs finished and billed during the week.

48,500

, telephone bill P800, electricity bill P5,100 and other disbursements

8,160
hree mechanics and salary of the bookkeeper-secretary.

14,250
ntries for the following transactions.
sactions to the general ledger/t-accounts
as of December 31, 2020
nts for the basis of what account title to be used.
 J.C Repair Shop
CHART OF ACCOUNTS
Acccount Title Account Number
Cash 1000
Accounts Receivable 1100
Notes Receivable 1200
Prepaid Rent 1300
Prepaid Advertising 1400
Office Machines 1500
Office Supplies 1600
Tools 1700
Furniture and Fixture 1800
Repair Equipment 1900
Notes Payable 2000
Juanito Cruz, Capital 3000
Juanito Cruz, Drawing 3100
Repair Income 4000
Taxes and License Expense 5000
Transportation Expense 5100
Salaries and Wages Expense 5200
Utilities Expense 5300
Miscellaneous Expense 5400
 Account No: 1000 Account No:
CASH ACCOUNTS RECEIVABLE
150,000 15,000 10,000 10,000
1,100 25,000
25,000 65,200
5,000 5,000
48500 1,800
14,250
12,500
30,000
14,250
8,160
Total 229,600 191,160 Total 10,000 10,000
Balance 38,440 Balance 0

Account No: 1700 Account No:

TOOLS FURNITURE AND FIXTURES
28,000 18,000

Total 28,000 0 Total 18,000 0

Balance 28,000 Balance 18,000

Account No: 5000 Account No:

TAXES AND LICENSES EXPENSE TRANSPORTATION EXPENSE
1,200 600
1,700
 Total 1,200 0 Total 2,300 0
Balance 1,200 Balance 2,300
 J.C Repair Shop
T-ACCOUNTS

1100 Account No: 1200

NOTES RECEIVABLE PREPAID RENT
5,000 15,000

Total 5,000 0 Total 15,000

Balance 5,000 Balance 15,000

1800 Account No: 1400

PREPAID ADVERTISING NOTES PAYABLE
5,000 12,500

Total 5,000 0 Total 12,500

Balance 5,000 Balance 12,500

5100 Account N5200 Account No:

SALARIES & WAGES EXPENSE UTILITIES EXPENSE
14,250 5,900
14,250
 Total 28,500 0 Total 5,900 0
Balance 28,500 Balance 5,900
 Account No: 1300 Account No: 1900
PREPAID RENT REPAIR EQUIPMENT OFFICE MACHINES
50,000 15,000

0 Total 50,000 0 Total 15,000

Balance 50,000 Balance 15,000

Account No: 2000 Account No: 3000

NOTES PAYABLE JUANITO CRUZ, CAPITAL JUANITO CRUZ, DRAWING
25,000 150,000 30,000

25,000 Total 0 150,000 Total 30,000

12,500 Balance 150,000 Balance 30,000

5300 Account No: 5400

MISCELLANEOUS EXPENSE
560
 Total 560 0
Balance 560
 Account No: 1500 Account No: 1600
FFICE MACHINES OFFICE SUPPLIES
4,200 1,100

0 Total 4,200 1,100

Balance 3,100

Account No: 3100 Account No: 4000

NITO CRUZ, DRAWING REPAIR INCOME
35,000
48,500

0 Total 0 83,500
Balance 83,500
 J.C Repair Shop
Trial Balance
December 31, 2020

Account Titles: Debit

Cash ₱ 38,440.00
Accounts Receivable 0
Notes Receivable 5,000
Prepaid Rent 15,000
Prepaid Advertising 5,000
A
Office Machines 15,000
Office Supplies 3,100
Tools 28,000
Furniture and Fixture 18,000
Repair Equipment 50,000
L Notes Payable
Juanito Cruz, Capital
C
Juanito Cruz, Drawing 30,000
R Repair Income
Taxes and License Expense 1,200
Transportation Expense 2,300
E Salaries and Wages Expense 28,500
Utilities Expense 5,900
Miscellaneous Expense 560
Total ₱ 246,000.00
DR
p

20

Credit
*The amounts is when you perform T-Accounts per account title

₱ 12,500.00
150,000

83,500

₱ 246,000.00
= CR
nts per account title
 INCOME STATEMENT

J.C Repair Shop

Income Statement
For the calendar year of 2020

Revenue (Repair Income)

Less: Expenses
Office Supplies Expense
Bad Debts Expense
Taxes and License Expense
Transportation Expense
Salaries and Wages Expense
Utilities Expense
Miscellaneous Expense
Depreciation Expense-Repair Equipment
Total Expenses
Net Income
 FINANCIAL
STATEMENT OF CHANGES IN OWNER'S EQUITY

J.C Repair Shop

Statement of Changes in Owner's Equity
020 For the calendar year of 2020

₱ 83,500.00 Owner's Capital, Beginning

Add: Profit
₱ 1,400 Total
5,000 Less: Withdrawals
1,200 Owner's Capital, Ending
3,300
28,500
5,800
560
5,000
50,760.00
₱ 32,740.00
 FINANCIAL STATEMENTS
S IN OWNER'S EQUITY STATEMENT OF

Shop
in Owner's Equity
year of 2020

₱ 150,000.00 ASSETS
32,740.00 Cash
₱ 182,740.00 Accounts Receivable
30,000.00 Notes Receivable
₱ 152,740.00 Allowance For Bad Debts
Prepaid Rent
Prepaid Advertising
Office Supplies
Tools
Total Current Assets

Office Machines
Furniture and Fixture
Repair Equipment
Accumulated Depn. - Repair Equipment
Total Non-Current Assets

TOTAL ASSETS

ASSETS = L
 STATEMENT OF FINANCIAL POSITION / BALANCE SHEET

J.C Repair Shop

Statement of Financial Position
Deccember 31, 2020

LIABILITIES AND OWNER'S EQUITY

₱ 37,540.00 Notes Payable
₱ -
₱ 5,000.00 TOTAL LIABILITIES
₱ 5,000.00
₱ 15,000.00
₱ 5,000.00
₱ 1,700.00 OWNER'S EQUITY
₱ 28,000.00
₱ 87,240.00

₱ 15,000.00
₱ 18,000.00
₱ 50,000.00
₱ 5,000.00
₱ 78,000.00

₱ 165,240.00 TOTAL LIABILITIES AND OWNER'S EQUITY

ASSETS = LIABILITIES + OWNER'S EQUITY

 ₱ 12,500.00

₱ 12,500.00

₱ 152,740.00

NER'S EQUITY ₱ 165,240.00

Adjusting Entries - listed below are the adjustments for J.C Repair Shop at end of the calendar year 2020

A. 10% depreciation is to be provided on Repair Equipment.

Dr. Depreciation Expense-Repair Equipment 5,000
Cr. Accumulated Depreciation-Repair Equipment

B. Deferred Expense: Office Supplies used for the year is P1,400.

Dr. Office Supplies Expense 1,400
Cr. Office Supplies

C. Bad Debts: After repeated attempts, the company was unable to collect the payment (N/R) a
hence, it will be considered as bad debt.
Dr. Bad Debts Expense/Doubtful Accounts Expense 5,000
Cr. Allowance for Bad Debts/Doubtful Accounts

D. The total payment of Transportation Expense amounting to 3,300 was erroneously recorded
2,300.
Dr. Transportation Expense 1,000
Cr. Cash

E. Payment of the month's electricity bill of 5,000 was erroneously recorded at 5,100.
Dr. Cash 100
Cr. Utility Expense
at end of the calendar year 2020

5,000

1,400

e to collect the payment (N/R) and

5,000

3,300 was erroneously recorded at

1,000

usly recorded at 5,100.

100
 J.C Repair Shop
Worksheet
For the Calendar Year 2020

Unadjusted Trial Balance Adjustments

Account Titles: Debit Credit Debit

Cash 38,440 100
Accounts Receivable 0
Notes Receivable 5,000
Allowance for Bad Debts
Prepaid Rent 15,000
Prepaid Advertising 5,000
Office Machines 15,000
Office Supplies 3,100
Tools 28,000
Furniture and Fixture 18,000
Repair Equipment 50,000
Accumulated Depreciation-Repair Equipment
Notes Payable 12,500
Juanito Cruz, Capital 150,000
Juanito Cruz, Drawing 30,000
Repair Income 83,500
Office Supplies Expense 1,400
Bad Debts Expense 5,000
Taxes and License Expense 1,200
Transportation Expense 2,300 1,000
Salaries and Wages Expense 28,500
Utilities Expense 5,900
Miscellaneous Expense 560
Depreciation Expense-Repair Equipment 5,000
Total ₱ 246,000.00 ₱ 246,000.00 ₱ 12,500.00
Profit
Grand Total
 J.C Repair Shop
Worksheet
For the Calendar Year 2020

Adjustments Adjusted Trial Balance Income Statement Statement of Financial Position

Credit Debit Credit Debit Credit Debit
1,000 37,540 37,540
- -
5,000 5,000
5,000 5000 - 5,000
15,000 15,000
5,000 5,000
15,000 15,000
1,400 1,700 1,700
28,000 28,000
18,000 18,000
50,000 50,000
5,000 5,000 -5000
12,500
150,000
30,000
83,500 83,500
1,400 1,400
5,000 5,000
1,200 1,200
3,300 3,300
28,500 28,500
100 5,800 5,800
560 560
5,000 5,000
₱ 12,500.00 ₱ 256,000.00 ₱ 256,000.00 50,760 83,500 165,240
₱ 32,740.00
₱ 83,500.00 ₱ 83,500.00 ₱ 165,240.00
ement of Financial Position
Credit

12,500
152,740

165,240
-
₱ 165,240.00