CHART OF ACCOUNTS

JOURNAL ENTRIES
Date Accounts Code Debit Credit
2021

Feb. 3 Cash 101 80,000

Salonga, Capital 301 80,000

To record capital investment.

Feb. 4 Equipment 150 20,000

Cash 101 20,000
To record purchase of computer.

Feb. 5 Purchases 115 30,800

Accounts Payable 201 30,800

To record purchase of merchandise on account.
Feb. 6 Supplies 120 3,000
Cash 101 3,000
To record purchase of office supplies.

Feb. 7 Accounts Receivable 105 58,500

Sales 401 58,500
To record sales on account.

Feb. 10 Accounts Payable 201 400

Purchase Returns & Allowances 502 400

To record purchase returns.

Feb. 11 Accounts Payable 201 30,400

Purchase Discounts 503 608
Cash 101 29,792
To record payment of account.

Feb. 12 Cash 101 57,330

Sales Discount 410 1,170
Accounts Receivable 105 58,500
To record collection of payments.

Feb. 13 Purchases 501 38,900

Cash 101 38,900
To record cash purchase of merchandise.

Feb. 15 Salaries expense 530 7,000

Cash 101 7,000
To record payment of salaries.

Feb. 17 Cash 101 12,000

Notes Payable 202 12,000
To record borrowed money.

Feb. 18 Cash 101 500

Purchase Returns & Allowances 502 500
To record refund from supplier.

Feb. 19 Freight-in 504 800

Cash 101 800
To record freight charges on purchases.

Feb. 20 Cash 101 51,600

 Sales 401 51,600
To record cash sales.

Feb. 24 Salonga, Drawings 302 12,000

Cash 101 12,000
To record capital withdrawal.

Feb. 25 Sales Returns & Allowances 405 1,500

Cash 101 1,500
To record refunds to customers.

Feb. 28 Utilities expense 510 1,138

Rent expense 530 3,000
Salaries expense 540 7,000
Cash 101 11,138
To record payment of expenses.
GENERAL LEDGER

ACCOUNT 101 CASH

Description Post Balances
Date Debit Credit
Debit
Feb. 3 Capital investment GJ - 1
Feb. 4 Purchase of computer GJ - 1
Feb. 6 Purchase of supplies GJ - 1
Feb. 11 Payment of accounts. GJ - 1
Feb. 12 Collection of payments GJ - 1
Feb. 13 Purchase of merchandise GJ - 1
Feb. 15 Payment of salaries. GJ - 1
Feb. 17 Borrowed money. GJ - 1
Feb. 18 Refund from supplier GJ - 1
Feb. 19 Freight charges on purchases GJ - 1
Feb. 20 Cash sales GJ - 1
Feb. 24 Capital withdrawal GJ - 1
Feb. 25 Refunds to customers GJ - 1
Feb. 28 Payment of expenses GJ - 1

ACCOUNT 120 SUPPLIES

Description Post Balances
Date Debit Credit
Debit
Feb. 6 Purchase of Supplies GJ - 1
GJ - 1
GJ - 1

ACCOUNT 150 EQUIPMENT

Description Post Balances
Date Debit Credit
Debit
Feb. 4 Purchase of computer GJ - 1
GJ - 1
GJ - 1

ACCOUNT 501 PURCHASES

Description Post
Date Debit Credit Balances
Debit
Feb. 5 purchase of merchandise GJ - 1
Feb. 13 purchase of merchandise GJ - 1
GJ - 1
GJ - 1

GJ - 1

ACCOUNT 111 Accounts Receivable

Description Post Balances
Date Debit Credit
Debit

Feb. 7 Sales on account GJ - 1

Feb. 12 Collection of payments GJ - 1

ACCOUNT 201 Accounts Payable

Description Post Balances
Date Debit Credit
Debit
Feb. 5 Purchase of merchandise on ac GJ - 1
Feb. 10 Purchase returns. GJ - 1
Feb. 11 Payment of accounts. GJ - 1

ACCOUNT 202 Notes Payable

Description Post Balances
Date Debit Credit
Debit
Feb. 17 Borrowed money from bank. GJ - 1
GJ - 1

ACCOUNT 302 Salonga, Capital

Description Post Balances
Date Debit Credit
Debit
Feb. 3 Capital Investment. GJ - 1
GJ - 1

ACCOUNT 301 Salonga, Drawings

Description Post Balances
Date Debit Credit
Debit
Feb. 24 Capital withdrawal GJ - 1
GJ - 1

ACCOUNT 401 Sales

 Description Post Balances
Date Debit Credit
Debit
Feb. 7 Sales on account GJ - 1
Feb. 20 Cash sales GJ - 1
GJ - 1

ACCOUNT 405 Sales Returns & Allowances

Description Post Balances
Date Debit Credit
Debit
Feb. 25 Refunds to customers. GJ - 1
GJ - 1
GJ - 1

ACCOUNT 410 Sales Discount

Description Post Balances
Date Debit Credit
Debit
Feb. 12 Collection of payments. GJ - 1
GJ - 1
GJ - 1
ASH ACCOUNT 502 Purchase Returns & Allowances
Balances Description Post Balances
Date Debit Credit
Credit Debit
Feb. 10 Purchase returns. GJ - 1
Feb. 18 Refund from supplier. GJ - 1
GJ - 1

ACCOUNT 503 Purchase Discounts

Description Post Balances
Date Debit Credit
Debit
Feb. 11 Payment of account. GJ - 1
GJ - 1
GJ - 1

ACCOUNT 504 Freight-In

Description Post Balances
Date Debit Credit
Debit
PLIES Feb. 19 Freight charges on purchases. GJ - 1
Balances GJ - 1
Credit GJ - 1

ACCOUNT 510 Utilities Expense

Description Post Balances
Date Debit Credit
Debit
PMENT Feb. 28 Payment of expenses. GJ - 1
Balances GJ - 1

Credit GJ - 1

ACCOUNT 530 Rent Expense

Description Post Balances
Date Debit Credit
Debit
CHASES Feb. 28 Payment of expenses. GJ - 1

Balances GJ - 1
Credit GJ - 1
 ACCOUNT 540 Salaries Expense
Description Post Balances
Date Debit Credit
Debit
Feb. 28 Payment of expenses. GJ - 1
GJ - 1
Receivable GJ - 1
Balances
Credit

ACCOUNT 601 Income Summary

Description Post Balances
Date Debit Credit
Debit
GJ - 1
s Payable GJ - 1
Balances GJ - 1
Credit

Payable
Balances
Credit

a, Capital
Balances
Credit

Drawings
Balances
Credit

ales
 Balances
Credit

s & Allowances
Balances
Credit

Discount
Balances
Credit
 SALONGA MARKETING
Trial Balance
As of February 29, 2021
ns & Allowances
Balances Code Account Debit Credit
Credit 101 Cash 77,300
105 Accounts Receivable -
120 Supplies 3,000
150 Equipment 20,000
501 Purchases 69,700
201 Accounts Payable -
Discounts 202 Notes Payable 12,000
Balances 301 Salonga, Capital 80,000
Credit 302 Salonga, Drawings 12,000
401 Sales 110,100
405 Sales Returns and Allowances 1,500
410 Sales Discount 1,170
502 Purchase Returns and Allowances 900
503 Purchase Discounts 608
ght-In 504 Freight-In 800
Balances 506 Freight Out
Credit 510 Utilities Expense 1,138
530 Rent Expense 3,000
540 Salaries Expense 14,000
203,608 203,608

Expense
Balances
Credit

Expense
Balances
Credit
Expense
Balances

Credit

Summary
Balances
Credit
FABELLA BOOKKEEPING SERVICES FABELLA BOOKKEEPING SERVICES
Income Statement Statement of Financial Position
For the month ended February 28, 2021 As of February 28, 2021
ASSETS
Service Revenue 80,000 Current Assets
Less - Direct Cost of Services 15,000 Cash 111,000
Accounts Receivable 45,000
Gross Profit 65,000 Supplies 15,000
Less - Operating Expenses: Prepaid Insurance 5,500 176,500
Supplies Expense 3,000
Utilities Expense 3,000 Non-Current Assets
Insurance Expense 500 Equipment 32,500
Depreciation Expense 500 7,000 Accumulated Depreciation - 500 32,000

Net Income 58,000 Total Assets 208,500

LIABILITIES AND EQUITY

Liabilities
FABELLA BOOKKEEPING SERVICES Accounts Payable 12,500
Statement of Changes in Equity
For the month ended February 28, 2021 Equity
Fabella, Capital 196,000
Fabella, Capital, Feb 1 P0
Add: Total Liabilities and Equity 208,500
Capital Investment 150,000
Net income for the period 58,000 208,000
Statement of Cash Flows
Total 208,000
Less: FABELLA BOOKKEEPING SERVICES
Capital Withdrawal 12,000 Statement of Cash Flows
For the month ended February 28, 2021
Fabella, Capital, Feb 28 196,000
Cash Flow from Operating
Activities:
Cash received from:
Collection from customers 35,000
Cash payment for:
Direct costs -15,000
Operating Expenses -27,000 -42,000

Total cash flows from

-7,000
operations
Cash Flow from Investing
Activities:
Cash payment for:
Purchase of equipment -20,000

Cash Flow from Financing

Activities:
Cash received from:
Capital investment 150,000
Cash payment for:
Capital withdrawal -12,000 138,000

Net increase (decrease) in

111,000
cash
Cash, Feb 1 0

Cash, Feb 28 111,000

FABELLA BOOKKEEPING SERVICES
Post-Closing Trial Balance
As of February 28, 2021

Code Account Debit Credit

101 Cash P111,000
111 Accounts Receivable 45,000
121 Supplies 15,000
131 Prepaid Insurance 5,500
151 Equipment 32,500
152 Accumulated Depreciation - Equipment P 500
201 Accounts Payable 12,500
301 Fabella, Capital 196,000
TOTAL 209,000 209,000

CLOSING ENTRIES