COMPREHENSIVE PROBLEM

Activity 3-2
Juan de la Cruz began professional practice as a system analyst on July 1. He plans to
prepare a monthly financial statement. During July, the owner completed these
transactions :
1. July 1 Juan de la Cruz invested cash P500,000 along with computer equipment that had a market value
of P120,000 two years ago but was now worth P100,000 only
2. July 2 Paid P15,000 for the rent of office space for the month
3. July 4 Purchased P12,000 of additional computer equipment on credit (due within 30
days)
4. July 8 Completed work for a client and immediately collected P32,000 cash
5. July 10 Completed work for a client and sent a bill for P27,000 to be paid within 30 days
6. July 12 Purchased additional equipment for P8,000 in cash.
7. July 15 Paid an assistant for P6,200 cash as payment for wages for 15 days
8. July 18 Collected P15,000 on the amount owed by the client
9. July 25 Paid P12,000 cash to settle the liability on the equipment purchased
10.July 28 Owner withdrew P500 cash for personal use.
11.July 31 Received PLDT bill P1,800 and Meralco bill P3,000.
 JOURNAL

Date Account PR Debit Credit

July 1 Cash 110 500,000

Computer Equipment 140 100,000
Cruz, Capital 310 600,000
Initial investment

July 2 Rent Expense 520 15,000

Cash 110 15,000
Payment for office space rent for the month

July 4 Computer Equipment 140 12,000

Accounts Payable 210 12,000
Purchase computer equipment on account

July 8 Cash 110 32,000

Service Revenue 410 32,000
To record service rendered
 JOURNAL

Date Account PR Debit Credit

July 10 Accounts Receivable 120 27,000

Service Revenue 410 27,000
To record service revenue on account due within 30 days

July 12 Computer Equipment 130 8,000

Cash 110 8,000
Purchase of equipment in cash

July 15 Salaries and Wages Expense 510 6,200

Cash 110 6,200
Payment for wages of assistant for 15 days

July 18 Cash 110 15,000

Accounts Receivable 120 15,000
Collection of receivable from a client
 JOURNAL

Date Account PR Debit Credit

July 25 Accounts Payable 210 12,000

Cash 110 12,000
Payment for accounts payable on equipment

July 28 Cruz, Drawing 320 500

Cash 110 500
To record the owner’s withdrawal of cash

July 31 Utilities Expense 530 4,800

Accounts Payable 210 4,800
To record telephone and electricity bills
 Cash (110)
Accounts Payable (210)
July 1 500,000 July 1 15,000
8 12 July 4 12,000
32,000 8,000 July 25 12,000 31 4,800
18 15
15,000 6,200 12,000 16,800
25
547,000 41,700
12,000 4,800
28
500
505,300
Cruz, Capital (310)
Accounts Receivable (120)
July 1 600,000
July 10
27,000 July 18 15,000 600,000
12,000

Computer Equipment (140) Cruz, Drawing (320)

July 1 100,00 July 28 500
4 12,000
12 8,000 500

120,000
 Service Revenue (410) Rent Expense (520)
July 8 32,000 July 2 15,000
10
27,000 15,000
59,000

Utilities Expense (530) Salaries and Wages Expense (510)

July 31 4,800 July 15 6,200

4,800 6,200
 Juan de la Cruz
Trial Balance
July 31, 2023

Acct No. Account Title Dr

Cr
110 Cash
505,300
120 Accounts Receivable
12,000
140 Computer Equipment
120,000
210 Accounts Payable
4,800
310 Owner’s Capital
600,000
320 Owner’s Drawing
500
410 Service Revenue
59,000
530 Utilities Expense
12.The balance of Cash in the ledger of Juan De la Cruz on July 31, 2020 is
a. 500,500
b. 505,300
c. 600,000
d. None of these

13.The balance of Accounts Receivable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 15,000
c. 27,000
d. None of these

14.The balance of Accounts Payable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 4,800
c. 0
d. None of these

15.The balance of Service Revenue on July 31, 2021 is

a. 27,000
b. 32,000
c. 59,000
d. None of these
12.The balance of Cash in the ledger of Juan De la Cruz on July 31, 2020 is
a. 500,500
b. 505,300
c. 600,000
d. None of these

13.The balance of Accounts Receivable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 15,000
c. 27,000
d. None of these

14.The balance of Accounts Payable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 4,800
c. 0
d. None of these

15.The balance of Service Revenue on July 31, 2021 is

a. 27,000
b. 32,000
c. 59,000
d. None of these
12.The balance of Cash in the ledger of Juan De la Cruz on July 31, 2020 is
a. 500,500
b. 505,300
c. 600,000
d. None of these

13.The balance of Accounts Receivable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 15,000
c. 27,000
d. None of these

14.The balance of Accounts Payable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 4,800
c. 0
d. None of these

15.The balance of Service Revenue on July 31, 2021 is

a. 27,000
b. 32,000
c. 59,000
d. None of these
12.The balance of Cash in the ledger of Juan De la Cruz on July 31, 2020 is
a. 500,500
b. 505,300
c. 600,000
d. None of these

13.The balance of Accounts Receivable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 15,000
c. 27,000
d. None of these

14.The balance of Accounts Payable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 4,800
c. 0
d. None of these

15.The balance of Service Revenue on July 31, 2021 is

a. 27,000
b. 32,000
c. 59,000
d. None of these
12.The balance of Cash in the ledger of Juan De la Cruz on July 31, 2020 is
a. 500,500
b. 505,300
c. 600,000
d. None of these

13.The balance of Accounts Receivable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 15,000
c. 27,000
d. None of these

14.The balance of Accounts Payable in the ledger of Juan De la Cruz on July 31, 2020 is
a. 12,000
b. 4,800
c. 0
d. None of these

15.The balance of Service Revenue on July 31, 2021 is

a. 27,000
b. 32,000
c. 59,000
d. None of these
16.The balance of Salaries Expense
a. 6,200
b. 4,800
c. 15,000
d. None of these

17.Marco Cruz opened a frame shop and completed these transactions:

1. Marco started the shop by investing P40,000 cash and equipment valued at
P18,000.
2. Purchased P70 of office supplies on credit.
3. Paid P1,200 cash for the receptionist's salary.
4. Sold a custom frame service and collected P1,500 cash on the sale.
5. Completed framing services and billed the client P200.

What was the balance of the cash account after these

Transactions were posted?
a. P300.
b. P41,500.
c. P40,300.
d. P38,500.
e. P38,700.
16.The balance of Salaries Expense
a. 6,200
b. 4,800
c. 15,000
d. None of these

17.Marco Cruz opened a frame shop and completed these transactions:

1. Marco started the shop by investing P40,000 cash and equipment valued at
P18,000.
2. Purchased P70 of office supplies on credit.
3. Paid P1,200 cash for the receptionist's salary.
4. Sold a custom frame service and collected P1,500 cash on the sale.
5. Completed framing services and billed the client P200.

What was the balance of the cash account after these

Transactions were posted?
a. P300.
b. P41,500.
c. P40,300.
d. P38,500.
e. P38,700.
16.The balance of Salaries Expense
a. 6,200
b. 4,800
c. 15,000
d. None of these

17.Marco Cruz opened a frame shop and completed these transactions:

1. Marco started the shop by investing P40,000 cash and equipment valued at
P18,000.
2. Purchased P70 of office supplies on credit.
3. Paid P1,200 cash for the receptionist's salary.
4. Sold a custom frame service and collected P1,500 cash on the sale.
5. Completed framing services and billed the client P200.

What was the balance of the cash account after these

Transactions were posted?
a. P300.
b. P41,500.
c. P40,300.
d. P38,500.
e. P38,700.
18.During the month of March, Eric's Computer Services made purchases on account
totaling P43,500. Also during the month of March, Eric was paid P8,000 by a customer for
services to be provided in the future and paid P36,900 of cash on its accounts payable
balance. If the balance in the accounts payable account at the beginning of March was
P77,300, what is the balance in accounts payable at the end of March?
a. P83,900.
b. P91,900.
c. P6,600.
d. P75,900.
e. P4,900.
18.During the month of March, Eric's Computer Services made purchases on account
totaling P43,500. Also during the month of March, Eric was paid P8,000 by a customer for
services to be provided in the future and paid P36,900 of cash on its accounts payable
balance. If the balance in the accounts payable account at the beginning of March was
P77,300, what is the balance in accounts payable at the end of March?
a. P83,900.
b. P91,900.
c. P6,600.
d. P75,900.
e. P4,900.
 THE END
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