Student Activity # 1

Provide answers or follow instructions as per below:

1. Journalize the following transactions of Excel Repair Shop for the month of May 2018 with
reference to the following chart of accounts.

Assets 100 Owner’s Equity 300

Cash 101 Ace, Drawing 310
Investment in Trading Securities 102 Ace, Capital 320
Date:

Accounts Receivable 103

Allowance for Doubtful Accounts 104 Income 400
Notes Receivable 105 Repair Service Income 410
Advances to Employees 106 Interest Income 420
Repair Supplies 107
Office Supplies 108 Expenses 500
Yr. & Sec.:

Land 109 Salaries & Wages Expense 510

Repair Equipment 110 Rent Expense 520
Office Equipment 111 Advertising & Promotion Expense 530
Building 120 Commission Expense 540
Accumulated Depreciation – Repai 130 Subscription Expense 550
Equipment
Accumulated Depreciation – Offic 131 Insurance Expense 560
Course:

Equipment
Accumulated Depreciation - Building 140 Travel Expense 570
Utilities Expense 580
Liabilities 200 Tax & License Expense 590
Accounts Payable 210 Depreciation Expense 591
Notes Payable 220 Interest Expense 592
Program:

Utilities Payable 230 Donation Expense 593

Unearned Income 240 Bad Debts Expense 594
Mortgage Payable 250 Miscellaneous Expense 595

Adam invested in his business the following: cash of 160,000.00, a repair

1 equipment with a fair market value of 230,000.00, and an office equipment
worth 80,000.00
Bought repair supplies from Seth Hardware for 70,000.00, on terms: 30% down
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payment and issued an interest-bearing note for the balance
8 Bought office supplies from Eden Book Store on credit, 13,400.00
11 Billed various customers for repair services rendered, 26,500.00
18 Ace withdraw cash amounting to 10,000.00
21 Granted cash advance to two employees at 3,000.00 each
24 Collected 70% of the accounts receivable from customers of May 11
Received 44,800.00 from customer representing an advance payment for repair
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services to be rendered within the second half of July
Name:

Repair services rendered for the day: cash 60,970.00; receipt of promissory
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notes amounting to 35,000.00; trade receivables of 46,770.00

MARINERS’ Legazpi
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 Paid employees’ salaries less the cash advance granted on May 21. Issued a chec
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amounting to 24,500.00
Paid various expenses for the month: rent of 10,000.00; advertising of 12,000.00
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utilities of 8,000.00; and interest of 2,0000.00

2. Post the journalized transactions in the General Ledger and compute the balance of each
account.

3. Using a worksheet, prepare the trial balance by referring to the ledger balances.

4. Prepare the necessary correcting entries for the following transactions for the month of

Date:
December 2019.
a. A 1,500.00 Purchase of supplies for cash was recorded as debit on Office Supplies for
150.00 and as a credit to Cash for 150
b. A purchase of a desktop computer on credit for 20,000.00 was recorded as a debit to
Office equipment for 200,000.00 and as a credit to Cash for 200,000.00
c. Sammy withdrew supplies worth 780.00 and recorded it as 870.00

Yr. & Sec.:

Course:
Program:
Name:

MARINERS’ Legazpi
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