Professional Documents
Culture Documents
3. Need information to help them determine whether they should buy, hold or
sell their investments.
4. Interested in the allocation of resources and, therefore, the activities of the
enterprise. Require information in order to regulate the activities of the
enterprise, determine taxation policies, and as the basis for national income
and similar statistics.
3. The company ordered raw materials for its production. Upon order, the raw
materials were listed as one of the assets of the business.
4. No financial statements were prepared by Sonia Santos for her business. She
explained that she will prepare the financial statements when she closes the
business which she predicted to take place after thirty years.
+ Asset
Cr
Real
Dr
CR
Dr
Dr
CR
Cr
DR
Cr
Cr
Dr
Real
Real
Real
Real
Real
CR
cr
DR
DR
Real
Real
Cr
Dr
Dr
Cr
Real
Nominal
Nominal
Cr
Dr
Nominal
Dr
Cr
Nominal
Nominal
Nominal
Nominal
Nominal
Nominal
3 Unpaid PLDT and Maynilad bills for the month of June are P270 and P130,
respectively.
Equipment
Accumulated Depc'n
Carrying value
BEFORE
250,000
0
250,000
Depreciation Expense
ADJUSTMENT
AFTER
Dr
Cr
2. Bad Debts
The company estimates that 2% of accounts receivable will prove to be uncollectible.
Accounts Receivable
Allowance for Bad Debts
BEFORE
300,000
4,500
295,500
ADJUSTMENT
AFTER
Dr
Cr
3. Accrued Expenses
***Accrued expenses are expenses already incurred but not yet paid.
Received a bill from Meralco on January 3, 2012 for the December 2011 energy consumption,
P3,000.
BEFORE
ADJUSTMENT
AFTER
Utilities Payable
0
29,700
Utilities Expense
Dr
Cr
4. Accrued Revenues
***Accrued revenues are revenues already earned but not yet received.
The company sublet its office for a P2,500 monthly rental to be paid on the 5th day of the following
month.
Rent Receivable
Rent Income
BEFORE
0
27,500
ADJUSTMENT
AFTER
Dr
Cr
5. Prepaid Expenses
***Prepaid Expenses are expenses already paid but not yet incurred.
asset method
Prepaid Insurance
Insurance Expense
BEFORE
12,000
0
ADJUSTMENT
AFTER
asset method
Dr
Cr
expense method
What if?
Prepaid Insurance
Insurance Expense
BEFORE
0
12,000
ADJUSTMENT
Dr
AFTER
Cr
6. Unearned Revenues
***Unearned revenues are revenues already received but not yet earned.
liability method
The company received advance rental payment for 6 months of P36,000 on September 1, 2011.
Unearned Rent Income
Rent Income
BEFORE
36,000
0
ADJUSTMENT
Dr
AFTER
Cr
revenue method
What if?
Unearned Rent Income
Rent Income
BEFORE
0
36,000
ADJUSTMENT
Dr
AFTER
Cr
ability of employers
of the enterprise to
opportunities.
nterprise especially
dependent on, the
should buy, hold or
velopments in the
whether their loans
D IN THE
h was immediately
e is 5 years.
om Europe. It was
os. All other assets
NTING ELEMENTS OF
Effects
Dr
Cash
+ Capital
Cr
Cruz , Capital
A, L, C or E
enses, Drawing
SFP
or SI
SFP
SFP
SFP
SFP
SFP
SFP
SFP
SFP
SFP
STATEMENT OF CHANGES IN EQUITY
SI
SI
SI
SI
SI
SI
SI
AFTER
AFTER
AFTER
AFTER
d November
General Journal
Date
Jun 2 Cash
Particulars
f
101
301
Dr
200,000.00
501
101
2,500.00
105
/201
25,000.00
101
401
7,000.00
10 Supplies
Accounts Payable - Aze Hardware
To record purchase of supplies.
104
/201
2,000.00
/201
104
500.00
/102
/102
/102
401
3,000.00
5,000.00
2,000.00
/201
101
1,500.00
/201
101
12,500.00
Cruz, Capital
To record initial investment.
3 Rent Expense
Cash
To record payment for monthly rent.
4 Equipment
Accounts Payable - Avenson
To record purchase of equipment.
7 Cash
Repairs Revenue
To record services rendered for cash.
General Journal
Date
Jun 22 Cash
Particulars
f
101
/102
Dr
3,000.00
101
/102
2,500.00
28 Cruz, Drawing
302
Cash
101
To record owner's withdrawal for personal use.
3,000.00
30 Utilities Expense
Cash
To record payment of MERALCO bill.
504
101
2,800.00
502
101
2,500.00
Salaries Expense
Cash
To record payment of employee's salaries.
General Journal
Date
Particulars
Dr
Page 1
Cr
200,000.00
2,500.00
25,000.00
7,000.00
2,000.00
500.00
10,000.00
Page 2
Cr
3,000.00
2,500.00
3,000.00
2,800.00
2,500.00
Page 3
Cr
GENERAL LEDGER
CASH
Date
Particulars
Jun 2 Investment
7 Services rendered
22 Collection of account
Collection of account
f
GJ1
GJ2
Dr
200,000
7,000
3,000
2,500.00
Date
Particulars
Jun 3 June rent
18 Supplies
Partial payment for equipment
28 Withdrawal
30 Meralco bill
Salaries
212,500
187,700
ACCOUNTS RECEIVABLE
Date
Jun 15
Particulars
Bartolome
Stefano
Mateo
f
GJ1
Dr
Date
3,000 Jun 22
5,000
2,000
10,000
4,500
Particulars
Bartolome
Stefano
Particulars
Dr
Date
Particulars
Dr
Date
2,000 Jun 12
1,500
Particulars
Returns
SUPPLIES
Date
Jun 10
Particulars
Purchase
f
GJ1
EQUIPMENT
Date
Jun 4
Particulars
Acquisition
f
GJ1
Dr
25,000
Date
Particulars
ACCUMULATED DEPRECIATION
Date
Particulars
Dr
Date
Particulars
ACCOUNTS PAYABLE
Date
Particulars
Dr
GJ1
18 Full payment
Date
500.00
1,500
Partial payment
Particulars
10 Purchase of supplies
12,500
14,500.00
UTILITIES PAYABLE
Date
Particulars
Dr
Date
Particulars
Date
Particulars
CRUZ, CAPITAL
Date
Particulars
Dr
Jun 2
Investment
CRUZ, DRAWING
Date
Jun 28
Particulars
Withdrawals
f
GJ2
Dr
3,000
Date
Particulars
Date
Particulars
Dr
Date
Particulars
REPAIRS REVENUE
Date
Particulars
Dr
Date
Particulars
Jun 7 Services for cash
15 Services on account
RENT EXPENSE
Date
Jun 3
Particulars
June rent
f
GJ1
Dr
2,500
Date
Particulars
SALARIES EXPENSE
Date
Jun 30
Particulars
Salaries for June
f
GJ2
Dr
2,500
Date
Particulars
SUPPLIES EXPENSE
Date
Particulars
Dr
Date
Particulars
UTILITIES EXPENSE
Date
Jun 30
Particulars
Meralco bill
f
GJ2
Dr
2,800
Date
Particulars
Particulars
Dr
Date
Particulars
DEPRECIATION EXPENSE
Date
Particulars
Dr
Date
Particulars
101
f
GJ1
GJ2
Cr
2,500
1,500
12,500
3,000
2,800
2,500
24,800
102
f
GJ2
Cr
3,000
2,500
5,500
103
f
Cr
104
f
GJ1
Cr
500.00
105
f
Cr
106
f
Cr
201
f
GJ1
Cr
P
25,000
2,000
27,000
12,500
202
f
Cr
301
f
GJ1
Cr
P
200,000
302
f
Cr
303
Cr
401
f
GJ1
Cr
7,000
10,000
17,000
501
f
Cr
502
f
Cr
503
f
Cr
504
f
Cr
505
f
Cr
506
f
Cr
Dr
187,700
4,500
1,500
25,000
Cr
12,500
200,000
3,000
17,000
2,500
2,500
2,800
229,500
229,500
2,500
2,000
4,500
12,500
SUBSIDIARY LEDGERS
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER OR CUSTOMERS' CARD
CUSTOMER'S NAME: BARTOLOME
Date
Particulars
Jun 15 Services on account
22 Collection of account
f
GJ1
GJ2
f
GJ1
GJ22
f
GJ1
Dr
P
3,000
P
Dr
P
5,000
P
Dr
P
2,000
f
GJ1
f
GJ1
Dr
P
P
12,500
Dr
P
P
500.00
1,500
Y LEDGERS
TOMERS' CARD
Cr
P
3,000
Balance
3,000
0
P
2,500
Balance
5,000
2,500
Cr
Cr
P
Balance
2,000
RS' CARD
Cr
25,000 P
Balance
25,000
12,500
Cr
Balance
2,000
1,500
0
2,000 P
Adjustments
Dr
Cr
Statement of Inc
Dr
ment of Income
Cr
Statement of Financial
Position
Dr
Cr
CURRENT LIABILITIES
Accounts Payable
Utilities Payable
EQUITY
Cruz, Capital
TOTAL LIABILITIES AND EQUITY