SORSOGON STATE UNIVERSITY

Department of Business and Management Education

ACCOUNTANCY AND ACCOUNTING INFORMATION SYSTEM
Bulan Campus
Zone 8, Bulan, Sorsogon, 4706
FINANCIAL ACCOUNTING AND REPORTING
FIRST Semester, Academic Year 2023-2024

NOVEMBER
 On November 1, Chris Clark opens a new business and deposits P25,000 in a bank account in the
name of NetSolutions.
 On November 5, NetSolutions aid P20,000 for the purchase of land as a future building site.
 On November 10, NetSolutions purchased supplies on account for P1,350.
 On November 18, NetSolutions received cash of P7,500 from customers for services provided.
 On November 30, NetSolutions incurred the following expenses: wages, P2,125; rent, P800;
utilities, P450; and miscellaneous, P275.
 On November 30, NetSolutions aid creditors on account, P950.
 NetSolutions purchased P1,350 of supplies on November 10. Chris Clark determined that the cost
of supplies on hand on November 30 was P550.
 On November 30, Chris Clark withdrew P2,000 from NetSolutions for personal use.
Instructions:
1. Prepare journal entries for the November transactions. (Use journal note book)
2. Post the entries in the T-account(ledger).
3. Prepare a trial balance.

DECEMBER
 On December 1, NetSolutions paid a premium of $2,400 for an insurance policy for liability,
theft, and fire. The policy covers a one-year period.
 On December 1, NetSolutions aid rent for December, P800. The company from which
NetSolutions is renting its store space now requires the payment of rent on the first of each
month, rather than at the end of the month.
 On December 4, NetSolutions purchased office equipment on account from Executive Suly Co.
for P1,800.
 On December 6, NetSolutions aid P180 for a newspaper advertisement.
 On December 11, NetSolutions aid creditors P400.
 On December 13, NetSolutions aid a receptionist and a art-time assistant P950 for two weeks’
wages.
 On December 16, NetSolutions received P3,100 from fees earned for the first half of December.
 Fees earned on account totaled P1,750 for the first half of December.
 On December 20, NetSolutions aid P900 to Executive Suly Co. on the P1,800 debt owed from the
December 4 transaction.
 On December 21, NetSolutions received P650 from customers in payment of their accounts.
 On December 23, NetSolutions aid P1,450 for supplies.
  On December 27, NetSolutions aid the receptionist and the art-time assistant P1,200 for two
weeks’ wages.
 On December 31, NetSolutions aid its P310 telephone bill for the month.
 On December 31, NetSolutions aid its P225 electric bill for the month.
 On December 31, NetSolutions received P2,870 from fees earned for the second half of
December.
 On December 31, fees earned on account totaled P1,120 for the second half of December.
 On December 31, Chris Clark withdrew P2,000 for personal use.

Additional information:
 NetSolutions’ supplies account has a balance of P2,000 on the unadjusted trial balance. Some of
these supplies have been used. On December 31, a count reveals that the amount of supplies on
hand is P760.
 The debit balance of P2,400 in NetSolutions’ prepaid insurance account represents the December
1 repayment of insurance for 12 months.
 The credit balance of P360 in NetSolutions’ unearned rent account represents the receipt of three
months’ rent on December 1 for December, January, and February. At the end of December, one
month’s rent has been earned.
 NetSolutions signed an agreement with Danker Co. on December 15 to provide services at a rate
of P20 er hour. As of December 31, NetSolutions had provided 25 hours of services. The revenue
will be billed on January 15.
 NetSolutions pays it employees biweekly. During December, NetSolutions aid wages of P950 on
December 13 and P1,200 on December 27. As of December 31, NetSolutions owes P250 of
wages to employees for Monday and Tuesday, December 30 and 31.
 NetSolutions aid wages of P1,275 on January 10. This payment includes the P250 of accrued
wages recorded on December 31.
 NetSolutions estimates the depreciation on its office equipment to be P50 for the month of
December.

Instructions:
1. Prepare journal entries for the December transactions. (Use journal note book)
2. Post the entries in the T-account(ledger).
3. Prepare a trial balance.
4. Prepare adjusting entries using the additional information given above.
5. Prepare worksheet.
6. Prepare income statement, balance sheet, statement of changes in equity and statement of cash
flow.