MICROSOFT WORD: Exercise 2

E. FLORES PAINTING CONTRACTUAL BUSINESS

For the month of April 2023

E. Flores is a painting contractor. During the month of April of the current year, he completed the
following transactions:

Invested in the business painting equipment valued at P52,300 and placed P271,000 in a business
Apr. 2 checking account.
2 Acquired a service vehicle costing P280,000. Paid P50,000 cash and signed a note for the
balance.
3 Purchased painting supplies on account for P13,200.
4 Completed a painting job and billed the customer, P14,800.
7 Received a P12,500 cash for painting an apartment room.
10 Purchased painting supplies for P7,600 cash.
11 Received a P14,800 check from the customer billed on April 5.
12 Paid P4,000 for an insurance policy for a one-year coverage.
13 Billed a customer P16,200 for a painting job.
14 Paid the assistant P9,500 for twenty-five hours’ work.
15 Paid P1,400 for a tune-up of the service vehicle.
18 Paid for the painting supplies purchased on April 3.
20 Purchased a new ladder for P6,000 and painting supplies for P2,900 on account.
22 Received a telephone bill for P700, due next month.
23 Received P16,200 in cash from the customer billed on April 13.
24 Transferred P30,000 to a personal checking account.
25 Received P13,600 in cash for painting a two-room apartment.
27 Paid P72,000 on the note signed for the service vehicle.
29 Paid the assistant P8,700 for thirty hours’ work.

ACCOUNT ACCOUNT TITLES

NO.
110 Cash
120 Accounts Receivable
130 Supplies
140 Equipment
150 Service Vehicle
160 Equipment
170 Prepaid Insurance
210 Accounts Payable
220 Notes Payable
310 Flores, Capital
320 Flores, Withdrawings
410 Wage Expense
420 Maintenance Expense
430 Utilities Expense
510 Service Fee

Leah Marie G. Balgos 1

 MICROSOFT WORD: Exercise 2

E. FLORES' PAINTING CONTRACTUAL BUSINESS

GENERAL JOURNAL

GENERAL JOURNAL- PAGE 01

DATE ACCOUNT TITLE / EXPLANATION PR DEBIT CREDIT

Apr. 2 Painting Equipment 140 ₱ 52,300.00

Cash 110 ₱ 271,000.00
Flores, Capital 310 ₱ 323,300.00
to record the initial investment

2 Service Vehicle 150 ₱ 280,000.00

Cash 110 ₱ 50,000.00
Note's Payable 220 ₱ 230,000.00
to record the purchased of service vehicle signed on notes

3 Painting Supplies 130 ₱ 13,200.00

Accounts Payable 210 ₱ 13,200.00
to record the purchased of painting supplies on account

4 Accounts Receivable 120 ₱ 14,300.00

Service Fee 510 ₱ 14,300.00
to record the service fee billed on customer on account

7 Cash 110 ₱ 12,500.00

Service Fee 510 ₱ 12,500.00
to record the service fee from customer

10 Painting Supplies 130 ₱ 7,600.00

Cash 110 ₱ 7,600.00
to record the purchased of painting supplies paid in cash

11 Cash 110 ₱ 14,800.00

Accounts Receivable 120 ₱ 14,800.00
to record the payment received from customer

12 Prepaid Insurance 170 ₱ 4,000.00

Cash 110 ₱ 4,000.00
to record the payment for insurance policy for one-year coverage

13 Accounts Receivable 120 ₱ 16,200.00

Service Fee 510 ₱ 16,200.00
to record the service fee billed on customer on account

14 Wage Expense 410 ₱ 9,500.00

Cash 110 ₱ 9,500.00
to record wages expense paid

15 Maintenance Expenses 420 ₱ 1,400.00

Cash 110 ₱ 1,400.00
to record the maintenance expense of the vehicle

Leah Marie G. Balgos 2

 MICROSOFT WORD: Exercise 2

GENERAL JOURNAL - PAGE 02

DATE ACCOUNT TITLE / EXPLANATION PR DEBIT CREDIT

20 Painting Equipment 140 ₱ 6,000.00

Painting Supplies 130 ₱ 2,900.00
Accounts Payable 210 ₱ 8,900.00
to record the acquisition of painting equipment and supplies

20 Cash 110 ₱ 16,200.00

Service Fee 510 ₱ 16,200.00
payment received from a customer billed on April 13

21 Flores, Withdrawing 320 ₱ 30,000.00

Cash 110 ₱ 30,000.00
to record the drawing of the owner used for personal use

22 Utilities Expense 430 ₱ 700.00

Accounts Payable 210 ₱ 700.00
to record the owners withdrawing

22 Cash 110 ₱ 13,600.00

Service Fee 510 ₱ 13,600.00
to record the payment of customer paid in cash

27 Notes Payable 220 ₱ 72,000.00

Cash 110 ₱ 72,000.00
to record the payment of signed notes on service vehicle

29 Wage Expense 410 ₱ 8,700.00

Cash 110 ₱ 8,700.00
to record the wages paid to the assistant

Leah Marie G. Balgos 3

MICROSOFT WORD: Exercise 2

FLORES' PAINTING CONTRACTUAL BUSINESS

Preliminary Trial Balance
April 30, 2023

Acct. No. Account Titles Debits Credit

110 Cash ₱ 131,700.00

130 Prepaid Painting Supplies ₱ 23,700.00
170 Prepaid Insurance ₱ 4,000.00
150 Service Vehicle ₱ 280,000.00
160 Equipment ₱ 58,300.00
210 Accounts Payable ₱ 9,600.00
220 Notes Payable ₱ 158,000.00
310 Flores, Capital ₱ 323,300.00
320 Flores, Withdrawing’s ₱ 30,000.00
410 Wage Expense ₱ 18,200.00
420 Maintenance Expense ₱ 1,400.00
430 Utilities Expense ₱ 700.00
510 Service Fees ₱ 57,100.00

TOTALS: ₱ 548,000.00 ₱ 548,000.00

FLORES' PAINTING CONTRACTUAL BUSINESS

Statement of Financial Position
April 30, 2023

ASSETS
Current Assets
Cash ₱131,700.00
Prepaid Supplies ₱23,700.00
Prepaid Insurance ₱4,000.00
Non-Current Assets
Equipment ₱58,300.00
Service Vehicle ₱280,000.00
TOTAL ASSETS ₱497,700.00

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
Accounts Payable ₱9,600.00
Non-current Liability:
Notes Payable ₱158,000.00
TOTAL LIABILITIES ₱167,600.00

OWNER'S EQUITY:
Flores, Capital ₱330,100.00
TOTAL EQUITY ₱330,100.00

TOTAL LIABILITIES AND EQUITY ₱497,700.00

Leah Marie G. Balgos 4