JOURNALIZING

EXERCISES
EXERCISE 3.1
EXERCISE 3.1
Chart of Accounts: Cash, Accounts Receivable, Supplies, Prepaid Advertising,
Service Vehicle, Accounts Payable, Entienza, Capital, Entienza, Withdrawals,
Service Revenue, Rent Expense, Salaries Expense, Communication Expense
EXERCISE 3.1
Nelson Entienza formed the ADS Sign Company on April 1, 2022. He deposited
P350,000 at the UCPB under the name of the new business entity. During the
month of April 2022, the following transaction occurred:

Apr 1 Cash P350,000

Entienza, Capital P350,000
*to record investment of owner*
EXERCISE 3.1
Apr 2 - Acquired a service vehicle in the amount of P250,000 on account.

Apr 2 Service Vehicle P250,000

Accounts Payable P250,000
*to record the purchase of service vehicle*
EXERCISE 3.1
Apr 3 - Acquired supplies for cash, P32,000.

Apr 3 Supplies P32,000

Cash P32,000
*to record the purchase of supplies*
EXERCISE 3.1
Apr 8 - Received P90,000 cash for signs painted.

Apr 8 Cash P90,000

Service Revenue P90,000
*to record service rendered*
EXERCISE 3.1
Apr 11 - Paid the month’s rent, P25,000.

Apr 11 Rent Expense P25,000

Cash P25,000
*to record payment of rent*
EXERCISE 3.1
Apr 12 - Painted signs for KSJ Company on account, P200,000.

Apr 12 Accounts Receivable P200,000

Service Revenue P200,000
*to record service rendered*
EXERCISE 3.1
Apr 13 - Paid P75,000 on account from April 2.

Apr 13 Accounts Payable P75,000

Cash P75,000
*to record payment of liability*
EXERCISE 3.1
Apr 15 - Withdrew P30,000 for personal use.

Apr 15 Entenzia, Withdrawal P30,000

Cash P30,000
*to record withdrawal of owner*
EXERCISE 3.1
Apr 19 - Collected P75,000 from KSJ Company.

Apr 19 Cash P75,000

Accounts Receivable P75,000
*to record collection from KSJ company*
EXERCISE 3.1
Apr 24 - Paid salaries of P85,000 for the month.

Apr 24 Salaries Expense P85,000

Cash P85,000
*to record salaries*
EXERCISE 3.1
Apr 28 - Paid PLDT P3,000 for communications services for the month.

Apr 28 Communication Expense P3,000

Cash P3,000
*to record communication expense*
EXERCISE 3.1
Apr 30 - Paid a bill from Panaflex for P120,000 for 6 months advertising.

Apr 30 Prepaid Advertising P120,000

Cash P120,000
*to record advance payment for advertising*
EXERCISE 3.2
EXERCISE 3.2
Chart of Accounts: Cash in Bank, Notes Receivable, Accounts Receivable,
Shop Supplies Inventory, Accounts Payable, P. Pulgar, Equity, P. Pulgar,
Drawing, Service Revenue, Rental Expense, Salaries Expense, Utilities
Expense, Taxes and Licenses
EXERCISE 3.2
Paco Pulgar invests in a Shoe and Bag Repair Shop. The following took place in
May 2022.
May 1 - The owner invested P70,000 which he deposited in the bank.

May 1 Cash in Bank P70,000

P. Pulgar, Equity P70,000
*to record investment of owner*
EXERCISE 3.2
May 5 - Bought various shop supplies on account, P15,000.

May 5 Shop Supplies Inventory P15,000

Accounts Payable P15,000
*to record purchase of supplies*
EXERCISE 3.2
May 7 - Rendered repair services to various customers on account, P5,500.

May 7 Accounts Receivable P5,500

Service Revenue P5,500
*to record service rendered*
EXERCISE 3.2
May 10 - Partially paid the May 5 account, P15,000.

May 10 Accounts Payable P15,000

Cash in Bank P15,000
*to record payment of liability*
EXERCISE 3.2
May 14 – Received payment from customer on May 7.

May 14 Cash in Bank P5,500

Accounts Receivable P5,500
*to record collection from customer*
EXERCISE 3.2
May 15 – Paid space rental for the month, P3,000.

May 15 Rental Expense P3,000

Cash in Bank P3,000
*to record payment of rent*
EXERCISE 3.2
May 18 - Rendered repair services for cash, P25,000.

May 18 Cash in Bank P25,000

Service Revenue P25,000
*to record service rendered*
EXERCISE 3.2
May 20 - Rendered repair services, P45,000. Customer paid P35,000 and issued
a promissory note for the remaining.

May 20 Cash in Bank P35,000

Notes Receivable P10,000
Service Revenue P45,000
*to record service rendered*
EXERCISE 3.2
May 23 - The owner withdrew cash of P10,000 for his personal use.

May 23 P. Pulgar, Drawing P10,000

Cash in Bank P10,000
*to record withdrawal of owner*
EXERCISE 3.2
May 25 - Paid taxes and licenses, P1,500.

May 25 Taxes and Licenses P1,500

Cash in Bank P1,500
*to record payment of taxes and licenses*
EXERCISE 3.2
May 27 - Paid salaries for the month, P21,000.

May 27 Salaries Expense P21,000

Cash in Bank P21,000
*to record payment salaries*
EXERCISE 3.2
May 29 - Paid light and water bills, P2,300.

May 27 Utilities Expense P2,300

Cash in Bank P2,300
*to record payment of water and light bills*
EXERCISE 3.2
May 31- Additional cash invested by the owner, P50,000.

May 31 Cash in Bank P50,000

P. Pulgar, Equity P50,000
*to record additional investment of owner*
EXERCISE 3.3
EXERCISE 3.3
Chart of Accounts: Cash, Accounts Receivable, Office Supplies, Office
Equipment, Office Furniture, Notes Payable, Accounts Payable, Unearned
Professional Fee, Dalangin, Capital, Dalangin, Withdrawals, Professional
Fees, Rent Expense, Salaries Expense, Utilities Expense
EXERCISE 3.3
John Karlo Dalangin, a dentist, established Dalangin Clinic. The following
transactions occurred during June of this year.

a. Dalangin deposited P280,000 in a bank account in the name of the business.

Cash P280,000
Dalangin, Capital P280,000
*to record investment of owner*
EXERCISE 3.3
b. Bought an equipment for P4,950, paying P1,000 in cash and the balance in
account.

Office Equipment P4,950

Cash P1,000
Accounts Payable P3,950
*to record purchase of equipment*
EXERCISE 3.3
c. Bought waiting room chairs and tables, P12,300. Amount to be paid after
thirty days as stated in the promissory note issued by Dalangin Clinic.

Office Furniture P12,300

Notes Payable P12,300
*to record purchase of chairs and tables*
EXERCISE 3.3
d. Bought office supplies for cash, P4,700.

Office Supplies P12,300

Cash P12,300
*to record purchase office supplies*
EXERCISE 3.3
e. Paid the telephone bill, P1,080.

Utilities Expense P1,080

Cash P1,080
*to record payment of telephone bill*
EXERCISE 3.3
f. Performed professional service on account, P12,940

Accounts Receivable P12,940

Professional Fees P12,940
*to record service rendered on account*
EXERCISE 3.3
g. Paid the electric bill, P1,850.

Utilities Expense P1,850

Cash P1,850
*to record payment of electric bill*
EXERCISE 3.3
h. Received P14,000 from a client for services to be performed next month.

Cash P14,000
Unearned Professional Fees P14,000
*to record cash received in advance form client*
EXERCISE 3.3
i. Performed professional service for cash P17,650

Cash P17,650
Professional Fees P17,650
*to record service rendered*
EXERCISE 3.3
j. Partially settled accounts on the purchase of equipment, P1,000

Accounts Payable P1,000

Cash P1,000
*to record partial settlement of account*
EXERCISE 3.3
i. Paid rent for the month, P8,400.

Rent Expense P8,400

Cash P8,400
*to record payment of rent*
EXERCISE 3.3
j. Paid salaries of receptionist for the month, P3,500.

Salaries Expense P3,500

Cash P3,500
*to record payment of salaries*
EXERCISE 3.3
k. Dalangin withdrew cash for personal use, P8,500

Dalangin, Withdrawal P8,500

Cash P8,500
*to record withdrawal of owner*
EXERCISE 3.3
l. Received P5,500 from patients who were previously billed,

Cash P5,500
Accounts Receivable P5,500
*to record collection from previously billed client*
EXERCISE 3.4
EXERCISE 3.4
Chart of Accounts: Cash, Accounts Receivable, Office Equipment, Medical
Equipment, Accounts Payable, Gamolo, Capital, Gamolo, Withdrawals,
Service Revenues, Rent Expense, Salaries Expense, Utilities Expense
EXERCISE 3.4
Clyde Gamolo opened Cagayan Chiropatric Clinic. The following transactions
occurred during May this year

a. Gamolo invested P350,000 in the professional practice.

Cash P350,000
Gamolo, Capital P350,000
*to record investment of owner*
EXERCISE 3.4
b. Bought computer on account, P23,260.

Office Equipment P23,260

Accounts Payable P23,260
*to record purchase of computer*
EXERCISE 3.4
c. Bought a medical equipment for P15,400 paying P7,400 down and the
balance due in thirty days.

Medical Equipment P15,400

Cash P7,400
Accounts Payable P8,000
*to record purchase of medical equipment*
EXERCISE 3.4
d. Paid the telephone bill, P990.

Utilities Expense P990

Cash P990
*to record payment of telephone bill*
EXERCISE 3.4
e. Billed patients for professional service performed, P16,120

Accounts Receivable P16,120

Service Revenues P16,120
*to record billing of customer for service rendered*
EXERCISE 3.4
f. Paid the electric bill, P910.

Utilities Expense P910

Cash P910
*to record payment of electric bill*
EXERCISE 3.4
g. Received P6,900 from client previously billed on e.

Cash P6,900
Accounts Receivable P6,900
*to record collection from previously billed client*
EXERCISE 3.4
h. Paid in full the account related in the purchase of the computer.

Accounts Payable P23,260

Cash P23,260
*to record full payment on the account related to computer*
EXERCISE 3.4
i. Received P2,420 cash from walk-in patients

Cash P2,420
Service Revenues P2,420
*to record service rendered*
EXERCISE 3.4
j. Paid office rent for the month, P5,000.

Rent Expense P5,000

Cash P5,000
*to record payment of rent*
EXERCISE 3.4
k. Paid salaries nurse assistant, P8,250.

Salaries Expense P8,250

Cash P8,250
*to record payment of salaries*
EXERCISE 3.4
l. Gamolo withdrew cash for personal use, P11,500

Gamolo, Withdrawal P11,500

Cash P11,500
*to record withdrawal of owner*