1 BSA WORKBOOK PS Service 3

Ang Salon ng Bayan
BY: GIL O. ANASIN, C.P.A.
Casinillo, Noneto Jr.

NAME OF STUDENT
BSA 1-1
COURSE/YEAR & SECTION
_______
Page 1 of 34
PREFACE
In order to have a strong foundation in basic accounting, this
practice set has been designed for students taking up accounting course
with the following objectives:
1. To illustrate the application of general accounting principles and

procedures affecting a sole proprietorship engaged in small service-type
enterprise
2. To provide the students the experience of going through the series of

activities involved in a service-type business.
3. To have a full grasp of the accountant’s work.
4. To serve as a vital tool to fully understand and appreciate the processes

from the first step of the accounting cycle up to the presentation of the
financial statements.
With this material, it is the author’s intention to arouse the student’s

interest in accounting as a career as he believes that accounting is still
the most in demand job for all kinds of organizations.
Good luck and welcome to the world of accountants.
Gil Ortua Anasin,

C.P.A.
Page 2 of 34
Table of contents
I Introduction 4
Ii Chart of Accounts 5
III Narrative of Transactions for December 6
IV Additional Information for Adjustments 9
V General Journal 10
VI General Ledger 15
VII Trial Balance 24
X Adjusting Entries 25
XI Adjusted Trial Balance 26
XII Worksheet 28
XIII Statement of Comprehensive Income 30
XIV Statement of Changes in Owner’s Equity 31
XV Statement of Financial Position 33
XVI Statement of Cash Flows 33
XVII Closing Entries 34
XVIII Post Closing Trial Balance 35
XIX Reversing Entries 36
XX Acknowledgement 37
Page 3 of 34
Introduction
Ms. Gemma R. Angeles decided to put up her business, GEMS

HAIRCUTTERS. She hired you to help her start her business and provide her all
the necessary records: general journal, general ledgers, worksheet, and financial
statements.
Chart of accounts have been provided to you for reference. Specific

instructions on how to continue working with this practice set will be given to you
by your teacher or you can follow the steps of accounting cycle.
Upon completion of this practice set, you should be able to submit to your
teacher the following:
1. General Journals
2. General Ledgers
3. Trial Balance
4. Adjusting Entries
5. Worksheet
6. Payroll
7. Statement of Comprehensive Income
8. Statement of Financial Position
9. Statement of Changes in Equity
10. Statement of Cash Flows
11. Closing Journal Entries
12. Post-Closing Trial Balance
13. Reversing Journal Entries
Good luck and may your self-discovery learning be a productive journey
Gil Ortua Anasin, C.P.A.
Page 4 of 34
GEMS HAIRCUTTERS
CHART OF ACCOUNTS
ACCOUNTS NUMBERS ACCOUNT TITLES
ASSETS
101 Cash on Hand
102 Cash in Bank
103 Accounts Receivable
103A Allowance for Doubtful Account
104 Notes Receivable
105 Shop Supplies
106 Prepaid Rent
107 Prepaid Insurance
108 Shop Equipment
108A Accumulated Depreciation – Shop Equipment
109 Furniture and Fixture
109A Accumulated Depreciation- Furniture & Fixture
LIABILITIES
201 Accounts Payable
206 Notes Payable
207 Interest Payable
OWNER’S EQUITY
301 Gemma R. Angeles, Capital
302 Gemma R. Angeles, Drawing
REVENUE
401 Service Revenue
EXPENSES
501 Taxes and Licenses
502 Salaries Expense
503 Shop Supplies Expense
504 Rent Expense
505 Utilities Expense
506 Insurance Expense
507 Advertising Expense
508 Interest Expense
509 Employee’s Benefits
510 Doubtful Account Expense
511 Depreciation Expense
512 Income and Expense Summary
Page 5 of 34
NARRATIVE OF TRANSACTIONS FOR DECEMBER
Ms. Gemma R. Angeles opened a business in the name of GEMS Haircutters by investing
P500,000 cash on December 1, 2012. The following transactions have occurred during the
month of December, 2012
December 1 Rented a space for her beauty parlor for P12,000 per month by paying P36,000
for 3 month’s rent
1 Hired 1 Supervisor and 4 Beauticians.
2 Secured business permits and other municipal licenses and paid P10,000
3 Deposited P50,000 with Delmont Bank from the cash investment
3 Paid P3,500 cash for billboard and signage
3 Purchased Shop Equipment for P100,000 on cash
4 Purchased Shop Supplies for P50,000 cash
6 Purchased the following Furniture
Tables and Chairs – P6,500

Sofa – P15,000
Aircon – P25,000
Note: Paid 50% by issuing check no. 1501 and the balance after 30 days
6 Secured insurance for her parlor for P500,000 and issued Check No. 1502
amounting to P36,000 representing annual premium
7 Got a contract from GMA Talent Centers. Rendered service for P100,000 and
received 50% down payment and the balance after 30 days.
Page 6 of 34
8 Deposited P50,000 with Delmont Bank
8 Bought additional supplies for P10,000 cash
14 The customer’s logbook showed total cash receipts of P55,000 for services
rendered to walk-in customers for week 1 of operation
15 Rendered service on account to the following customers:
Zeny Alviar – P3,000

Elisa Lopez – P2,500
Samuel Barros – P5,000
15 Paid the semi-monthly salaries of Employees, P30,000.00
16 Rendered service to Ms. Imelda Dela Peña wedding for P50,000 on account
16 Purchase additional tables and chairs and issued a 60-day 6% promissory note
to City Appliance Store, P15,000
16 Paid P15,000 for advertisements and other promotional materials
17 Ms. Gemma R. Angeles withdrew cash for her personal use, P10,000
18 Collected the account of Ms. Imelda Dela Peña
22 Paid the following bills: Meralco for electricity – P16,250,Ccheck No. 1503,
PLDT for Telephone service – P2,400, Check No. 1504
23 Collected the account of Ms. Zeny Alviar
23 Rendered service to Ms. May Manuel and received a promissory note of

P5,000
Page 7 of 34
24 Made the following purchases on account: Shop Supplies – from HBC -
Amount – P31,250, Terms: 30 days
26 Rendered service to Ms. Arlene Dela Paz for cash – P3,500
27 Rendered service on account to the following customers:
Angel Lora – P1,500

Janet Fuentes – P3,500
Jeffrey Reyes – P3,000
27 Ms. Gemma R. Angeles made an additional withdrawal for her personal use,
P5,000
29 Collected half of the balance in December 7 transaction.
30 Received the bill from Maynlad Water Company for water consumption for
the month of December, P3,570
30 Paid salaries of employees, P30,000.00
rendered to walk-in customers for 3 days.
31 Additional information:
 The expense method of recording prepayments is followed
 Three percent (3%) of doubtful accounts are allowed on accounts

receivable
 Shop Equipment are expected to last for 5 years with no salvage value
 Furniture and Fixture are expected to have a useful life of 5 years with
a salvage value of P5,000
 It is the company’s policy to take full month’s depreciation on the

Page 8 of 34
month fixed asset was purchased
 The 2 depreciation expense may be combined
 Unused supplies amounted to P35,000
 The rent paid is for 3 months
 The insurance paid is for 1 year
 The notes payable is to be accrued for an interest of 6% for 15 days
PAGE 1
GENERAL JOURNAL
DATE DESCRIPTION PR DEBIT CREDIT
1 2012 1
2 Dec 1 Cash on hand 101 5 0 0 0 0 0 2
3 Gemma R. Angeles, Capital 301 5 0 0 0 0 0 3
4 To record investment 4
5 5
6 1 Rent Expense 504 3 6 0 0 0 6
7 Cash on hand 101 3 6 0 0 0 7
8 To record payment for rent 8
9 9
10 2 Taxes and Licenses 501 1 0 0 0 0 10
11 Cash on hand 101 1 0 0 0 0 11
12 To record payment for business permits 12

and municipal licenses
13 13
Page 9 of 34
14 3 Cash in Bank 102 5 0 0 0 0 14
15 Cash on hand 101 5 0 0 0 0 15
16 To record deposit with Delmont Bank 16
17 17
18 3 Advertising Expense 507 3 5 0 0 18
19 Cash on hand 101 3 5 0 0 19
20 To record payment for signage and 20

billboard
21 21
22 3 Shop Equipment 108 1 0 0 0 0 0 22
23 Cash on hand 101 1 0 0 0 0 0 23
24 To record purchase of shop equipment 24
25 25
26 4 Shop Supplies Expense 503 5 0 0 0 0 26
27 Cash on hand 101 5 0 0 0 0 27
28 To record purchase of shop supplies 28
29 29
30 6 Furniture and fixture 109 4 6 5 0 0 30
31 Cash in Bank 102 2 3 2 5 0 31
32 Accounts Payable 201 2 3 2 5 0 32
33 To record purchase of furniture 33
34 34
35 6 Insurance Expense 506 3 6 0 0 0 35
36 Cash in Bank 102 3 6 0 0 0 36
37 To record payment for insurance 37
PAGE 2
GENERAL JOURNAL
1 7 Cash on hand 101 5 0 0 0 0 1
2 Accounts Receivable 103 5 0 0 0 0 2
3 Service Revenue 401 1 0 0 0 0 0 3
4 To record service rendered 4
5 5
6 8 Cash in Bank 102 5 0 0 0 0 6
7 Cash on hand 101 5 0 0 0 0 7
8 To record additional deposit with Delmont 8

Bank
9 9
11 Cash on hand 101 1 0 0 0 0 11
12 To record additional purchase of shop supplies 12
13 13
14 14 Cash on hand 101 5 5 0 0 0 14
Page 10 of 34
15 Service Revenue 401 5 5 0 0 0 15
17 17
18 15 Accounts Receivable 103 1 0 5 0 0 18
21 21
22 15 Salaries Expense 502 3 0 0 0 0 22
23 Cash on hand 101 3 0 0 0 0 23
24 To record salary for employees 24
25 25
26 16 Accounts Receivable 103 5 0 0 0 0 26
28 To record service rendered on account 28
29 29
30 16 Furniture and Fixture 109 1 5 0 0 0 30
31 Notes Payable 206 1 5 0 0 0 31
32 To record purchase of tables and chairs 32
33 33
34 16 Advertising Expense 507 1 5 0 0 0 34
35 Cash on hand 101 1 5 0 0 0 35
36 To record payment for advertisements and 36

promotional materials
37 37
PAGE 3
GENERAL JOURNAL
1 17 Gemma R. Angeles, Drawings 302 1 0 0 0 0 1
2 Cash on hand 101 1 0 0 0 0 2
3 To record withdrawal 3
4 4
5 18 Cash on hand 101 5 0 0 0 0 5
7 To record service rendered on account 7
8 8
9 21 Cash on hand 101 4 7 0 0 0 9
12 12
13 22 Utilities Expense 505 1 8 6 5 0 13
14 Cash in Bank 102 1 8 6 5 0 14
15 To record payment for bills 15
Page 11 of 34
16 16
17 23 Cash on hand 101 3 0 0 0 17
18 Accounts Receivable 103 3 0 0 0 18
19 To record collected account 19
20 20
21 23 Notes Receivable 104 5 0 0 0 21
22 Service Revenue 401 5 0 0 0 22
23 To record service issued for promissory notes 23
24 24
26 Accounts Payable 201 3 1 2 5 0 26
27 To record purchase of shop supplies on 27

account
28 28
29 26 Cash on hand 101 3 5 0 0 29
32 32
33 27 Accounts Receivable 103 8 0 0 0 33
35 To record service rendered on accounts 35
36 36
PAGE 4
GENERAL JOURNAL
1 27 Gemma R. Angeles, Drawings 302 5 0 0 0 1
2 Cash on hand 101 5 0 0 0 2
3 To record withdrawal 3
4 4
5 28 Cash on hand 101 8 4 0 0 0 5
8 8
9 29 Cash on hand 101 2 5 0 0 0 9
11 To record service rendered in Dec 7 11

transaction
12 12
13 30 Utilities Expense 505 3 5 7 0 13
14 Accounts Payable 201 3 5 7 0 14
15 To record payment for water bill 15
16 16
17 30 Salaries Expense 502 3 0 0 0 0 17
Page 12 of 34
18 Cash on hand 101 3 0 0 0 0 18
19 To record salaries for employees 19
20 20
21 31 Cash on hand 101 2 8 0 0 0 21
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
GENERAL LEDGER
CASH ON HAND Account No. 101
Date Items PR Debit Date Items PR Credit
2012 2012
Dec 1 To record investment GJ1 500,000 Dec 1 To record payment for rent GJ1 36,000
7 To record service rendered GJ2 50,000 2 To record payment for GJ1 10,000
business permits and
municipal licenses
14 To record service rendered GJ2 55,000 3 To record deposit with GJ1 50,000
Delmont Bank
on account signage and billboard
21 To record service rendered GJ3 47,000 3 To record purchase of shop GJ1 100,000
equipment
23 To record collected GJ3 3,000 4 To record purchase of shop GJ1 50,000
account supplies
26 To record service rendered GJ3 3,500 8 To record additional GJ2 50,000
deposit with Delmont Bank
28 To record service rendered GJ4 84,000 8 To record additional GJ2 10,000
purchase of shop supplies
29 To record service rendered GJ4 25,000 15 To record salary for GJ2 30,000
in Dec 7 transaction employees
advertisements and
845,500 17 To record withdrawal GJ3 10,000
446,000 27 To record additional GJ4 5,000
withdrawal
30 To record salaries for GJ4 30,000
employees
399,500
CASH IN BANK Account No. 102

Page 13 of 34
2012 2012
Dec 3 To record deposit with GJ1 50,000 Dec 6 To record purchase of GJ1 23,250
Delmont Bank furniture
8 To record additional GJ2 50,000 6 To record payment for GJ1 36,000
deposit with Delmont Bank insurance
100,000 22 To record payment for bills GJ3 18,650
22,100 77,900
ACCOUNTS RECEIVABLE Account No.103

2012 2012
Dec 7 To record service rendered GJ2 50,000 Dec 18 To record service rendered GJ3 50,000
15 To record service rendered GJ2 10,500 23 To record collected GJ3 3,000
account
16 To record service rendered GJ2 50,000 29 To record service rendered GJ4 25,000
on account in Dec 7 transaction
27 To record service rendered GJ3 8,000 78,000
on accounts
118,500
40,500
ALLOWANCE FOR DOUBTFUL ACCOUNTS Account No. 103A

2012
Dec 31 To record doubtful account ADJ1 1,215
NOTES RECEIVABLE Account No. 104

2012
Dec 23 To record service issued for GJ3 5,000
promissory notes
SHOP SUPPLIES Account No. 105

2012
Dec 31 To record unused supplies ADJE1 35,000
Page 14 of 34
PREPAID RENT Account No. 106
2012
Dec 31 To record prepaid rent ADJE1 24,000
PREPAID INSURANCE Account No. 107

2012
Dec 31 To record prepaid ADJE1 33,000
insurance
SHOP EQUIPMENT Account No. 108

2012
Dec 3 To record purchase of shop GJ1 100,000
equipment
ACCUMULATED DEPRECIATION – SHOP EQUIPMENT Account No. 108A

2012
Dec 31 To record depreciation ADJE1 1666.66
Page 15 of 34
FURNITURE AND FIXTURE Account No. 109
2012
Dec 6 To record purchase of GJ1 46,500
furniture
16 To record purchase of GJ2 15,000
tables and chairs
61,500
ACCUMULATED DEPRECIATION- FURNITURE AND FIXTURE Account No. 109A

2012
Dec 31 To record depreciation ADJE1 941.66
ACCOUNTS PAYABLE Account No. 201

2012
furniture
24 To record purchase of shop GJ3 31,250
supplies on account
30 To record payment for GJ4 3,570
water bill
58,070
NOTES PAYABLE Account No. 206

2012
tables and chairs
Page 16 of 34
INTEREST PAYABLE Account No. 207
2012
Dec 31 To record accrued interest ADJE1 900
GEMMA R. ANGELES, CAPITAL Account No. 301

2012
Dec 1 To record investment GJ1 500,000
GEMMA R. ANGELES, DRAWING Account No. 302

2012 2012
Dec 17 To record withdrawal GJ3 10,000 Dec 31 Closing drawing account CE1 15,000
27 To record additional GJ4 5,000
withdrawal
15,000
SERVICE REVENUE Account No. 401

2012
Dec 7 To record service rendered GJ1 100,000
14 To record service rendered GJ2 55,000
16 To record service rendered on GJ2 50,000
account
23 To record service issued for GJ3 5,000
Page 17 of 34
promissory notes
27 To record service rendered on GJ3 8,000
accounts
391,000
TAXES AND LICENSES Account No. 501

2012 2012
Dec 2 To record payment for GJ1 10,000 Dec 31 Closing expense account CE1 10,000
business permits and
municipal licenses
SALARIES EXPENSE Account No. 502

2012
Dec 15 To record salary for GJ2 30,000
employees
30 To record salaries for GJ4 30,000
employees
60,000
SHOP SUPPLIES EXPENSE Account No. 503

2012 2012
Dec 4 To record purchase of shop GJ1 50,000 Dec 31 To record unused supplies ADJE1 35,000
supplies
8 To record additional GJ2 10,000 Closing expense account CE1 91, 250
purchase of shop supplies
24 To record purchase of shop GJ3 31,250
supplies on account
91,250
Page 18 of 34
RENT EXPENSE Account No. 504
2012 2012
Dec 1 To record payment for rent GJ1 36,000 Dec 31 To record rent ADJE1 24,000
Closing expense account CE1 12,000
UTILITIES EXPENSE Account No. 505

2012 2012
Dec 22 To record payment for bills GJ3 18,650 Dec 31 Closing expense account CE1 22,220
water bill
22,220
INSURANCE EXPENSE Account No. 506

2012 2012
Dec 6 To record payment for GJ1 36,000 Dec 31 To record prepaid ADJE1 33,000
insurance insurance
Closing expense account CE1 3,000
ADVERTISING EXPENSE Account No. 507

2012 2012
Dec 3 To record payment for GJ1 3,500 Dec 31 Closing expense account CE1 18,500
signage and billboard
advertisements and
18,500
INTEREST EXPENSE Account No. 508
Page 19 of 34
2012 2012
Dec 31 To record accrued interest ADJE1 900 Dec 31 Closing expense account CE1 900
EMPLOYEES BENEFITS Account No. 509

DOUBTFUL ACCOUNT EXPENSE Account No. 510

2012 2012
Dec 31 To record doubtful ADJE1 1,215 Dec 31 Closing expense account CE1 1,215
account expense
DEPRECIATION EXPENSE Account No. 511

2012 2012
Dec 31 Monthly depreciation of ADJE1 1,666.66 Dec 31 Closing expense account CE1 2,608.32
shop equipment
Monthly depreciation of ADJE1 941.66
furniture and fixture
INCOME AND EXPENSE SUMMARY Account No. 512

2012 2012
Dec 31 Closing expense account CE1 186,693.32 Dec 31 Closing revenue acoount CE1 391,000
Closing income and CE1 204,306.68
expense summary
Page 20 of 34
GEMS HAIRCUTTERS
TRIAL BALANCE
DECEMBER 31, 2012
ACCOUNT ACCOUNT DEBIT CREDIT
NUMBER TITLES
1 Cash on hand 4 4 6 0 0 0 1
2 Cash in Bank 2 2 1 0 0 2
3 Accounts Receivable 4 0 5 0 0 3
4 Notes Receivable 5 0 0 0 4
5 Shop Equipment 1 0 0 0 0 0 5
6 Furniture and Fixture 6 1 5 0 0 6
7 Accounts Payable 5 8 0 7 0 7
Notes Payable 1 5 0 0 0 8
8
9 Gemma R. Angeles, Capital 5 0 0 0 0 0 9
10 Gemma R. Angeles, Drawing 1 5 0 0 0 10
12 Taxes and Licenses 1 0 0 0 0 9 6 4 0 7 0 12
13 Salaries Expense 6 0 0 0 0 13
14 Shop Supplies Expense 9 1 2 5 0 14
15 Rent Expense 3 6 0 0 0 15
16 Utilities Expense 2 2 2 2 0 16
17 Insurance Expense 3 6 0 0 0 17
18 Advertising Expense 1 8 5 0 0 18
19 9 6 4 0 7 0 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
Page 21 of 34
35 35
36 36
GEMS HAIRCUTTERS
ADJUSTING ENTRIES
DECEMBER 31, 2012

1 2012 1
2 Dec 31 Doubtful Account Expense 510 1 2 1 5 2
3 Allowance for Doubtful Account 103 1 2 1 5 3
A
4 4
5 Depreciation Expense 511 1 6 6 6 .66 5
6 Accumulated Depreciation Expense- 108 1 6 6 6 .66 6
Shop Equipment A
7 7
8 Depreciation Expense 511 9 4 1 .66 8
9 Accumulated Depreciation Expense- 109 9 4 1 .66 9
Furniture and Fixture A
10 10
11 Shop Supplies 105 3 5 0 0 0 11
12 Shop Supplies Expense 503 3 5 0 0 0 12
13 13
14 Prepaid Rent 106 2 4 0 0 0 14
15 Rent Expense 504 2 4 0 0 0 15
16 16
17 Prepaid Insurance 109 3 3 0 0 0 17
18 Insurance Expense 506 3 3 0 0 0 18
19 19
20 Interest Expense 508 9 0 0 20
21 Interest Payable 207 9 0 0 21
22 9 6 7 2 3 .32 9 6 7 2 3 .32 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
Page 22 of 34
37 37
GEMS HAIRCUTTERS
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2012
NUMBER TITLES
1 101 Cash on Hand 4 4 6 0 0 0
2 102 Cash in Bank 2 2 1 0 0
3 103 Accounts Receivable 4 0 5 0 0
4 103A Allowance for Doubtful Account 1 2 1 5
5 104 Notes Receivable 5 0 0 0
6 105 Shop Supplies 3 5 0 0 0
7 106 Prepaid Rent 2 4 0 0 0
8 107 Prepaid Insurance 3 3 0 0 0
9 108 Shop Equipment 1 0 0 0 0 0
10 108A Accumulated Depreciation – Shop Equipment 1 6 6 6 .66
11 109 Furniture and Fixture 6 1 5 0 0
12 109A Accumulated Depreciation- Furniture & Fixture 9 4 1 .66
13
14 201 Accounts Payable 5 8 0 7 0
15 206 Notes Payable 1 5 0 0 0

16 207 Interest Payable 9 0 0
17
18 301 Gemma R. Angeles, Capital 5 0 0 0 0 0
19 302 Gemma R. Angeles, Drawing 1 5 0 0 0
20
21 401 Service Revenue 3 9 1 0 0 0
22 9 6 8 7 9 3 .32
23 501 Taxes and Licenses 1 0 0 0 0

24 502 Salaries Expense 6 0 0 0 0
25 503 Shop Supplies Expense 5 6 2 5 0
26 504 Rent Expense 1 2 0 0 0
27 505 Utilities Expense 2 2 2 2 0
28 506 Insurance Expense 3 0 0 0
29 507 Advertising Expense 1 8 5 0 0
30 508 Interest Expense 9 0 0
31 510 Doubtful Account Expense 1 2 1 5
32 511 Depreciation Expense 2 6 0 8 .32
33 9 6 8 7 9 3 .32
34
35
36
37
Page 23 of 34
WORKSHEET
FOR THE MONTH ENDED
DECEMBER 31, 2012
Page 24 of 34
TRIAL BALANCE ADJUSTMENTS ADJUSTED INCOME STATEMENT OF
-
TRIAL BALANCE STATEMENT FINANCIAL
POSITION
ACCOUNT ACCOUNT TITLES DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDI DEBIT CREDI
NO T T
Page 25 of 34
FINANCIAL STATEMENTS
FOR THE MONTH ENDED
DECEMBER 31, 2012
Page 26 of 34
GEMS HAIRCUTTERS
STATEMENT OF COMPREHENSIVE INCOME
FOR THE MONTH ENDED DECEMBER 31, 2012
Service Revenue 391,000
Less: Expenses
Taxes and Licenses 10,000
Salaries Expense 60,000
Shop Supplies Expense 56,250
Rent Expense 12,000
Utilities Expense 22,220
Insurance Expense 3,000
Advertising Expense 18,500
Interest Expense 900
Doubtful Account Expense 1,215
Depreciation Expense 2,608.32
Total Expenses 186,693.32
Net Income 204,306.68
Page 27 of 34
GEMS HAIRCUTTERS
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2012
Gemma R. Angeles, Capital - December 1, 2012 500,0000
Net Income 204,306.68
Total 704,306.68
Less: Gemma R. Angeles, Drawings (15,000)
Gemma R. Angeles, Capital- December 31, 2012 689,306.68
Page 28 of 34
GEMS HAIRCUTTERS
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2012
ASSETS
CURRENT ASSETS
Cash on hand 446,000
Cash in Bank 22,100
Accounts Receivable 40,500
Allowance for Doubtful Account (1,215)
Notes Receivable 5,000
Shop Supplies 35,000
Prepaid Rent 24,000
Prepaid Insurance 33,000
TOTAL CURRENT ASSETS 604,385
NON-CURRENT ASSETS
Shop Equipment 100,000
Accumulated Depreciation – Shop Equipment
(1,666.66)
Furniture and Fixture 61,500
Accumulated Depreciation- Furniture & Fixture (941.66)
TOTAL NON-CURRENT ASSETS 158.891.68
TOTAL ASSETS 763,276.68
LIABILITY
CURRENT LIABILTY
Accounts Payable 58,070
Notes Payable 15,000
Interest Payable 900
TOTAL LIABILITY 73,970
Page 29 of 34
OWNER’S EQUITY
Gemma R. Angeles, Capital 689,306.68
TOTAL LIABILITY and OWNER’S EQUITY 763,276.68
GEMS HAIRCUTTERS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED DECEMBER 31, 2012
Cash Flow from Operating Activities:
Cash receipts from customers ₱345,500

Payment for Taxes and Licenses (10,000)
Payment for Advertisement (18,500)
Payment for Shop Supplies (60,000)
Payment for Salaries (60,000)
Payment for Utilities (18,650)
Payment for Rent (36,000)
Payment for Insurance (36,000)
Total Operating Inflow ₱106,350
Cash Flow from Investing Activities:

Payment for Shop Equipment (100,000)
Payment for Furniture and Fixture (23,250)
Total Investing Outflow ₱(123,250)
Cash Flow from Financing Activities:
Investment from the owner ₱500,000

Withdrawal of the owner (15,000)
Total Financing Inflows 485,000
Net Increase ₱468,100
Beginning Balance - December 1,2012 -
Page 30 of 34
Ending Balance - December 31, 2012 ₱468,100
GEMS HAIRCUTTERS
CLOSING ENTRIES
DECEMBER 31, 2012
2 Income and Expense Summary 512 3 9 1 0 0 0
3 Closing for revenue account
4
5 Income and Expense Summary 512 1 8 6 6 9 3 .32
6 Taxes and Licenses 501 1 0 0 0 0
7 Salaries Expense 502 6 0 0 0 0
8 Shop Supplies Expense 503 5 6 2 5 0
9 Rent Expense 504 1 2 0 0 0
10 Utilities Expense 505 2 2 2 2 0
11 Insurance Expense 506 3 0 0 0
12 Advertising Expense 507 1 8 5 0 0
13 Interest Expense 508 9 0 0
14 Doubtful Account Expense 510 1 2 1 5
15 Depreciation Expense 511 2 6 0 8 .32
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Page 31 of 34
31
GEMS HAIRCUTTERS
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2012
NUMBER TITLES
1 101 Cash on Hand 4 4 6 0 0 0
2 102 Cash in Bank 2 2 1 0 0

3 103 Accounts Receivable 4 0 5 0 0
4 103A Allowance for Doubtful Account 1 2 1 5
5 104 Notes Receivable 5 0 0 0
6 105 Shop Supplies 3 5 0 0 0
7 106 Prepaid Rent 2 4 0 0 0
8 107 Prepaid Insurance 3 3 0 0 0
9 108 Shop Equipment 1 0 0 0 0 0
10 108A Accumulated Depreciation – Shop Equipment 1 6 6 6 .66
11 109 Furniture and Fixture 6 1 5 0 0

12 109A Accumulated Depreciation- Furniture & 9 4 1 .66
Fixture
13 201 Accounts Payable 5 8 0 7 0
14 206 Notes Payable 1 5 0 0 0

15 207 Interest Payable 9 0 0
16 301 Gemma R. Angeles, Capital 6 8 9 3 0 6 .68
17 TOTAL BALANCE 7 6 7 1 0 0 7 6 7 1 0 0
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
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GEMS HAIRCUTTERS
REVERSING ENTRIES
DECEMBER 31, 2012

1 2013
2 Jan 1 Shop Supplies Expense 503 3 5 0 0 0
3 Shop Supplies 105 3 5 0 0 0
4 Reversing shop supplies adjustment
5
6 Rent Expense 504 2 4 0 0 0
7 Prepaid Rent 106 2 4 0 0 0
8 Reversing rent adjustment
9
10 Insurance 506 3 3 0 0 0
11 Prepaid Insurance 107 3 3 0 0 0
12 Reversing insurance adjustment
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14 Interest payable 207 9 0 0
15 Interest Expense 508 9 0 0
16 Reversing Interest adjustment
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ACKNOWLEDGEMENT
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STUDENT’s SIGNATURE
Page 34 of 34

1 BSA WORKBOOK PS Service 3

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1 BSA WORKBOOK PS Service 3

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Ang Salon ng Bayan

BY: GIL O. ANASIN, C.P.A.

Casinillo, Noneto Jr.

1. To illustrate the application of general accounting principles and

2. To provide the students the experience of going through the series of

3. To have a full grasp of the accountant’s work.

4. To serve as a vital tool to fully understand and appreciate the processes

With this material, it is the author’s intention to arouse the student’s

Good luck and welcome to the world of accountants.

Gil Ortua Anasin,

III Narrative of Transactions for December 6

IV Additional Information for Adjustments 9

VII Trial Balance 24

XI Adjusted Trial Balance 26

XIII Statement of Comprehensive Income 30

XIV Statement of Changes in Owner’s Equity 31

XV Statement of Financial Position 33

XVI Statement of Cash Flows 33

XVII Closing Entries 34

XVIII Post Closing Trial Balance 35

XIX Reversing Entries 36

Ms. Gemma R. Angeles decided to put up her business, GEMS

Chart of accounts have been provided to you for reference. Specific

7. Statement of Comprehensive Income

8. Statement of Financial Position

9. Statement of Changes in Equity

10. Statement of Cash Flows

11. Closing Journal Entries

12. Post-Closing Trial Balance

13. Reversing Journal Entries

Good luck and may your self-discovery learning be a productive journey

Gil Ortua Anasin, C.P.A.

ACCOUNTS NUMBERS ACCOUNT TITLES

1 Hired 1 Supervisor and 4 Beauticians.

3 Deposited P50,000 with Delmont Bank from the cash investment

3 Paid P3,500 cash for billboard and signage

3 Purchased Shop Equipment for P100,000 on cash

4 Purchased Shop Supplies for P50,000 cash

6 Purchased the following Furniture

Tables and Chairs – P6,500

8 Bought additional supplies for P10,000 cash

15 Rendered service on account to the following customers:

Zeny Alviar – P3,000

15 Paid the semi-monthly salaries of Employees, P30,000.00

16 Paid P15,000 for advertisements and other promotional materials

18 Collected the account of Ms. Imelda Dela Peña

23 Collected the account of Ms. Zeny Alviar

23 Rendered service to Ms. May Manuel and received a promissory note of

26 Rendered service to Ms. Arlene Dela Paz for cash – P3,500

27 Rendered service on account to the following customers:

Angel Lora – P1,500

29 Collected half of the balance in December 7 transaction.

30 Paid salaries of employees, P30,000.00

 Three percent (3%) of doubtful accounts are allowed on accounts

 It is the company’s policy to take full month’s depreciation on the

 The 2 depreciation expense may be combined

 Unused supplies amounted to P35,000

 The rent paid is for 3 months

 The insurance paid is for 1 year

 The notes payable is to be accrued for an interest of 6% for 15 days

2 Dec 1 Cash on hand 101 5 0 0 0 0 0 2

3 Gemma R. Angeles, Capital 301 5 0 0 0 0 0 3

6 1 Rent Expense 504 3 6 0 0 0 6