Practice Set

September 1, 2023
Virginia Yacapin is a cultured woman from the South. She is into a lot of interesting causes. Her fine
taste is preeminent such that she is considered an authority in planning weddings. Upon the advice of a
trusted associate, Marco Ilano, Yacapin decided to organize her wedding consultancy. She invested
P250,000 into this entity called, Weddings “R” Us. Yacapin rented office space and paid two month’s
rent in advance, P8,000.

September 2
Virginia Yacapin, issued a promissory note for P210,000 loan from Metrobank. This availment will be
used for the acquisition of a service vehicle. The note carries a 20% interest per annum. The
arrangement with the bank is that both the interest and the principal are payable in full in one year.
Hired an office assistant and an account executive each with a P300 per day salary. Each employee is
given a Sunday break per week.

September 4
Acquired service vehicle for P420,000, paid downpayment of 20,000 and the remaining balance of
credit to Mitsubishi, Phil. The vehicle has a 5 year useful life without salvage value.
Paid Prudential Guarantee and Assurance, Inc. P14,400 for one-year comprehensive insurance coverage
on the service vehicle.

September 5
Acquired office equipment from Fair and Square Emporium for P60,000; paying P15,000 in cash and the
balance next month. The equipment has a 5 year useful life without salvage value.

September 8
Purchased supplies on credit for P18,000 from San Jose Merchandising.

September 9
Paid San Jose Merchandising P10,000 of the amount owed.

September 10
Coordinated and finalized simple bridal arrangement for three couples and collected fees of P8,800 per
couple. Services include prospecting and selecting the church and reception location, couturier, caterer,
car services, flowers, souvenirs and invitations.

September 13
Paid salaries, P6,000. The entity pays salaries every other two Wednesday.

September 15
The entity is earning additional revenues by referring consulting clients to friendly hotels, caterers,
printers, couturiers. Received P10,000 advance fees for three clients referred.

September 19
Coordinated and finalized elaborate bridal arrangements for three couples and billed fees of P12,000
per couple, Additional services include documents preparation, consultation with feng shui experts as
to the ideal wedding date for prosperity and harmony, provision for limousine service and honeymoon
trip.

September 25
Yacapin withdrew P14,000 for personal expenses.

September 27
Paid salaries, P7,200.

September 30
Received the BayanTel Telephone bill, P1,400.
Received P24,000 from two clients for services billed last September 19.

September 30
Received and settled the electricity bill of P3,000 for the month.

Additional Information:
1. Expiration of one month’s rent. The recorded prepaid rent of P8,000 covers two months.
2. Expiration of one month’s insurance.
3. Based on physical count, P15,000 worth of supplies are still on hand.
4. The Service Vehicle has a useful life of 5 years without salvage value, depreciated using straight
line method.
5. The Office Equipment has a useful life of 5 years without salvage value, depreciated using
straight line method.
6. A couple who paid referral fees in advance worth P4,000 has already celebrated their wedding
day today.
7. Accrual of unrecorded salaries for two employees who worked from September 28 to 30.
8. The Notes Payable borrowed from Metrobank incurred an interest for the month.
9. A rushed simple civil wedding in the afternoon of September 31 was accommodated. The
couple were charged P5,300 for the event. Both parties agreed to settle the account on a later
date.

Required:
1. Journal entries.
2. Post entries to T-Accounts.
3. Prepare a 10-column Worksheet with Trial Balance columns, Adjustment columns, Adjusted Trial
Balance Column, Income Statement columns, and Balance Sheet Columns.
4. Adjusting entries.
5. Post adjusting entries to T-Accounts.