Rivera's Quality
Automotive
Chart of Accounts
101 Cash
102 Accounts Receivable
103 Office Supplies
104 Prepaid Insurance
105 Computer Equipment
106 Accumulated
Depreciation - Equipment
107 Furniture and Fixtures
108 Service Equipment
109 Accumulated
Depreciation - Service
Equipment
201 Accounts Payable
202 Notes Payable
203 Interest Payable
204 Loan Payable
205 Unearned Revenue
301 Capital
302 Withdrawal
303 Income Summary
Account
401 Service Revenue
601 Salaries Expense
602 Rent Expense
603 Utilities Expense
604 Supplies Expense
605 Insurance Expense
606 Taxes and Licenses
607 Advertising Expenses
608 Depreciation Expense
– Computer Equipment
609 Depreciation Expense
– Service Equipment
ADJUSTMENT DATA:
A. Office Supplies used
during the month, PHP
3,800.00
B. Depreciation of the
computer for the month,
PHP 2,400.00
C. Depreciation of the
service equipment for the
month, PHP 3,200.00
D. One-month insurance
was expired.
REQUIREMENTS:
1. Prepare the journal
entries and post to the T-
Accounts
2. Prepare unadjusted trial
balance
3. Prepare the adjusting
journal entries and post to
the T-Accounts
4. Prepare adjusted trial
balance
5. Prepare the Financial
Statements: (Income
Statements, Statement of
Owner’s Equity,
Balance Sheet)
6. Prepare the closing
entries and post to the T-
Accounts
7. Prepare post-closing
trial balance
Rivera's Quality Automotive
Chart of Accounts
101 Cash 205 Unearned Revenue
102 Accounts Receivable 301 Capital
103 Office Supplies 302 Withdrawal
104 Prepaid Insurance 303 Income Summary Account
105 Computer Equipment 401 Service Revenue
106 Accumulated Depreciation - Equipment 601 Salaries Expense
107 Furniture and Fixtures 602 Rent Expense
108 Service Equipment 603 Utilities Expense
109 Accumulated Depreciation - Service 604 Supplies Expense
Equipment 605 Insurance Expense
201 Accounts Payable 606 Taxes and Licenses
202 Notes Payable 607 Advertising Expenses
203 Interest Payable 608 Depreciation Expense – Computer Equipment
204 Loan Payable 609 Depreciation Expense – Service Equipment
ADJUSTMENT DATA:
A. Office Supplies used during the month, PHP 3,800.00
B. Depreciation of the computer for the month, PHP 2,400.00
C. Depreciation of the service equipment for the month, PHP 3,200.00 D. One-month insurance was
expired.
Completing the Accounting Cycle from Journal Entries to Post closing Trial balance with a provided
worksheet and answer keys.
On December 1, Mark Rivera began an AUTO REPAIR SHOP, Rivera’s Quality Automotive. The following
transactions occurred during December:
December 1 Rivera contributed PHP 200,000.00 cash to the business in exchange of shares of common
stocks.
December 1 Purchased PHP 12,000.00 of computer equipment paid thru cash.
December 1 Paid a 3 months insurance policy starting December 1,2020, PHP 9,000.00
December 5 Purchased Office Supplies on account, PHP 5,800.00
December 8 Borrowed PHP 80,000.00 from the bank for business use. Rivera prepared and signed
promissory notes payable to bank under the name of his business.
December 9 Paid advertising expenses for only PHP 1,580.00
December 10 Paid half of the supplies on account
December 13 Rivera’s Quality Automotive paid registration and licensing fees for the business, PHP
10,800.00
December 16 The company acquired tables, chairs, shelves, and other fixtures for a total of PHP
30,000.00 The entire amount was paid in cash.
December 17 The company acquired service equipment for PHP 16,000.00 The company paid a 50%
down payment and the balance will be paid after 60 days.
December 17 The company received PHP 10,900.00 for services rendered.
December 17 Rendered services on account, PHP 78,000.00. As per agreement with the Rapid
Automotive, the amount is to be collected after 10 days
December 19 Mr. Rivera invested an additional PHP 53,200.00 into the business
December 20 Rendered services to a big corporation on December 20. As per agreement, the PHP
33,400.00 amount due will be collected after 30 days
December 21 Paid in full the supplies on account
December 21 The owner withdrew cash due to an emergency need. Mr. Rivera withdrew PHP 60,000.00
from the company.
December 22 Paid rent for December, PHP 1,500.00
December 23 Paid salaries to its employees, PHP 3,500.00
December 27 Collected from the Rapid Automotive full amount.
December 28 Paid the bank 30% of loan payable
