CONTINUATION OF WEEK 5:
ACTIVITY 2.3.
Required. Prepare the journal entries on the following transactions.
January 1. Maricar invested cash in the business amounting to P50,000.
January 3. Purchased office supplies for cash, P1,200.
January 5. Rendered services to a client for cash, P5,000.
January 8. Rendered services on account to Client A, P8,000.
January 10. Paid rent for the month, P2,500 and initially recorded as
expense.
January 12. Received cash from client A for services rendered on account
last January 8, P3,000.
January 15. Purchased office equipment on account, P6,500, Maricar
estimated that she will use the equipment for the next 10 years with a
salvage value of P1,500.
January 18. Paid salaries to employees, P4,000.
January 20. Paid utility bills for the month, P700.
January 22. Maricar withdrew cash for her personal use, P1,500.
January 24. Acquired advertising services to promote her own business,
P900.
January 26. Received a 12% promissory note from client B for services
rendered, P4,500.
January 29. Received P1,000 from client A.
January 30. Paid insurance premium for the next 6 months.
Required. Post the recorded journal entries on T-accounts
Required. Create the unadjusted trial balance in the worksheet.
Required. Record all adjustments needed along with the following unrecorded
adjustments.
Adjustment for one month of the expired insurance.
Inventory count of supplies shows that P700 worth of supplies was used.
Accrued salaries for the month were P1,500.
Required. Prepare the adjusted trial balance.
Required. Prepare the income statement column.
ACTIVITY 2.4.
ILY ABELLA SURVEYORS
UNADJUSTED TRIAL BALANCE
MAY 31, 20X4
Cash 210,000
Accounts Receivable 930,000
Prepaid Advertising 360,000
Supplies 270,000
Survey Equipment 1,890,000
Accumulated Depreciation – Survey Equipment 640,000
Accounts Payable 190,000
Unearned Survey Revenues 120,000
Notes Payable 500,000
Abella, Capital 1,120,000
Abella, Withdrawals 700,000
Survey Revenues 6,510,000
Salaries Expense 3,270,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Miscellaneous Expense 80,000
Total 9,080,000 9,080,000
The following information pertaining to the year-end adjustments is available:
The P360,000 prepaid advertising represents expenditure made on
November 1, 20X3 for monthly advertising over the next 18 months.
A count of the supplies on May 31, 20X3 amounted to P90,000.
Depreciation on the surveying equipment amounted to P160,000.
One-third of the unearned survey revenues has been earned at year-end.
AT year-end, salaries in the amount of P140,000 have accrued.
Interest of P60,000 on the notes payable has accrued at year end.
Required. Prepare the adjustments columns, adjusted trial balance columns,
and the income statement column.
