NAS FA II FUNDAMENTALS OF ACCOUNTING

FINAL PERFORMANCE TASK

Rio Naguit, after five years of working abroad, finally decided to come home in her hometown in Manukan and pursue her
dream of running her own business. She invested some of her savings to open her rental car business which she called “Rio
Rides”.

Chart of Accounts

Assets Owner’s Equity

Cash in Bank Naguit, Capital
Accounts Receivable Naguit, Drawing
Estimated Uncollectible Accounts Income & Expense Summary
Office Supplies Inventory Income
Prepaid Insurance Rental Income
Transportation Equipment Expenses
Accumulated Depreciation Uncollectible Accounts
Liabilities Gasoline and Oil
Accounts Payable Taxes and Licenses
Notes Payable Commission Expense
Office Supplies Used
Repairs and Maintenance
Insurance Expense
The following are the transactions in the first month of the operations:

Year: 2023
December 1 Invested a brand new 1 unit Toyota van worth P1,000,000 and deposited P575,000 in Metrobank

December 2 Bought 1 unit Toyota van worth P1,000,000, paying P500,000 cash and the balance to be paid
monthly within a year as per promissory note

December 3 Paid a one year car insurance, P6,000

Paid business permits and licenses, P8,500

December 4 Rendered transportation service to various clients who roamed around Sergio Osmeña, P25,000

December 8 Rental revenue from the teachers attending a convention in Pagadian City, P45,000

December 9 Bought office supplies, P4,500

December 11 Paid drives’ commission for the week P14,500

December 13 Received a bill from Shell Petron for the gasoline withdrawn on account, P15,000

December 17 Rental revenue for the week:

Cash P30,000
On account 15,000

Paid drivers’ commission for the week, P6,500

December 20 Paid the check-up of Toyota van and replacement of exploded tire and repair of side mirror, P3,500

December 22 Paid the account with Shell Petron

December 26 Collected P5,000 from customers’ account on Dec. 17

December 30 Ms. Rio made a withdrawal from his bank account of P5,000 for her personal use

Additional Information:
a) The Toyota van is depreciated using the straight line method of depreciation, estimated life is 5 years, each with P10,000
scrap value
b) 5% of the outstanding receivable is estimated to be doubtful of collection
c) Supplies that were actually on hand when physical counting was made, P2,500
d) A portion of the insurance paid in advance is already expired

Required:
1. Journal Entries
2. Post journal entries to the ledgers
3. Unadjusted Trial Balance
4. Adjusting entries
5. Worksheet
6. Income Statement, Statement of Changes in Owner’s Equity, Statement of Financial Position
7. Closing Entries
8. Post Closing Trial Balance and Opening entries
9. Reversing Entries (when necessary)