Name:

a) Bought for cash one new truck, P 230,000, from Ford Motors, Inc. for use in
the business.
b) Paid cash, 850,000, to Goodwill Book Store for the purchase of stationery and
supplies for use in business.
c) Paid the rent for the month on the space occupied by the business P 20,000.
d) Received cash, P 5,000 from Mariano Casas in payment of our commission as
the agent in selling his house and lot.
e) Purchased on account a new typewriter, P 8,000 from Erlanger and Galinger,
Inc. for use in business.
f) Sold for cash our old combi used in the business, P 50,000 to Alfredo Noriega.
g) Sold on account the old tables and chairs used in the business, P 1,200 to
Candido Lazcano.
h) Paid in full out account with Erlanger and Galinger, Inc. P 8,000.
i) Collected in full the account of Candido Lazcano, P 1,200.
j) Bought on account gasoline, oils, and greases, P 740, from.0 Recto Gasoline
Station for use by our delivery truck.

Transaction
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
TOTAL

Assets

Liabilities

Owners Equity

Name:

a) Received cash, P 10,000 from the proprietor to increase his capital.

b) Paid the rent for the month on the space used by the business, P 7,000
c) Received the bill of Atty. Miguel Calimbas, P 5,000, for legal services he
rendered to us which we promised to pay at the end of the month.
d) Paid the store payroll for the week, P 19,800
e) Paid cash, P 600 to Mobil Auto Repair Shop for the repair of our delivery truck.
f) Paid in full our account with Atty. Miguel Calimbas, P 5,000.
g) Received cash, P 8,000 from Mrs. Mila Clark in full payment of her account
with us.
h) Bought on account from the Central Furniture tables and chairs, P 11,500, for
use in the office of the proprietor.
i) Sold on account one old delivery truck, P 60,000, to Ilaya Trading Co.
j) Paid in full our account with the Central Furniture, P 11,500.
k) Collected in full the account of Ilaya Trading Co., P 60,000.

Transaction
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
TOTAL

Assets

Liabilities

Owners Equity

Akko catered a party, charging $2,000. At the party, she gave the customer an invoice
that had to be paid in 30 days. How do we record this?
Akko purchases an ad for $1,000, and instead of paying for it right away, receives a
bill giving her 30 days to pay.

a.
b.
c.
d.
e.
f.
g.
h.
i.

Bought goods for cash 70,000

Sold good to Steve Co. on account, 38,000
Sold goods for cash 9,000
Steve co. paid by cheque 35,000
Stationery bill paid by chq 2,000
Telephone bill by cash 500
Paid rent by cash 2,000
Paid salaries by cash 3,000
Withdrew cash personal use 5,000

July 1. Owner invested Php 500,000 cash.

July 2. Paid php. 15,000 cash for the rent of office space for the month.
July 4. Purchased php. 12,000 of additional equipment on account (due within 30 days).
July 8. Completed a work for a client and immediately collected the php. 32,000 cash.
July 10. Completed work for a client and sent a bill for php. 27,000 to be paid within 30
days.
July 12. Purchased additional equipment for php. 8,000 in cash.
July 15. Paid an assistant php. 6,200 cash as wages for 15 days.
July 18. Collected php. 15,000 on the amount owed by the client.
July 25. Paid php. 12,000 cash to settle the liability on the equipment purchased.
July 28. Owner withdrew php. 500 cash for personal use.
July 30. Completed work for another client who paid only php. 40,000
July 31. Paid salary of assistant php. 700.
July 31. Received PLDT bill, php. 1,800 and Meralco bill php. 3,800.

Transaction

Assets

Liabilities

Owners Equity

Date
January 2
January 3
January 3
January 4
January 5
January 6
January 7
January 8
January 9
January 10
January 11
January 12
January 13
January 14
Janaury 15
January 16
January 17
January 18
January 19
January 20
January 21
January 22
January 23
January 24
January 25
January 26
January 27
January 28
January 29
January 30
January 31
January 31
January 31

Transaction
Rent was paid in advance for a full year totaling 750,000.
Equipment costing 830,000 was purchased. 310,000 was paid in cash, and the
remaining amount of 520,000 was a one year note payable with an interest rate of
4.6%.
Office supplies were purchased on account totaling 34,000.
Services were provided to customers, and the company received 57,000 in cash.
Sales were made, and the company received 350,000 in cash.
The accounts payable for office supplies purchased on January 3 was paid.
Sales were made totaling 475,000. Customers paid 235,000 in cash and promised
to pay the remaining 240,000 in the future.
Services were provided to customers totaling 654,000. Customers paid 300,000 in
cash and promised to pay the remaining 354,000 in the future.
Office supplies were purchased on account totaling 115,000.
Customers paid 25,000 for sales made on January 7 leaving a balance of 215,000.
Employees were paid wages totaling 457,000 for the first two weeks of January
2014.
The accounts payable for office supplies purchased on January 9 was paid.
Customers paid 65,000 for services rendered on January 8 leaving a balance of
289,000.
The company paid 35,000 to the note payable for equipment purchased January 3
leaving a balance of 485,000.
Customers paid 53,000 for sales made on January 7 leaving a balance of 162,000.
Customers paid 43,000 for services rendered on January 8 leaving a balance of
246,000.
Office supplies were purchased on account for 75,000.
Customers paid 35,000 for services rendered on January 8 leaving a balance of
211,000.
The company paid 75,000 for equipment purchased January 3 leaving a balance of
410,000.
The accounts payable for office supplies purchased on January 17 was paid.
Customers paid 100,000 for sales made on January 7 leaving a balance of 62,000.
Sales were made, and the company received 235,000 in cash.
Customers paid 211,000 for services rendered on January 8.
Customers paid 65,000 in advance for services to be rendered.
Employees were paid wages totaling 545,000 for the third and fourth weeks of
January 2014.
Customers paid 62,000 for sales made on January 7.
Sales were made, and the company received 345,000 in cash.
Office supplies were purchased on account totaling 215,000.
The accounts payable for office supplies purchased on January 28 was paid.
Services were provided to customers, and the company received 765,000 in cash.
Electricity bill totaling 15,450 was received.
Phone bill totaling 17,850 was received.
Miscellaneous expenses for the month totaled to 650,000.

Income Statement Exercise:

Bambi Sands owns the New Wave Beauty Parlor. From the information listed below, prepare
an income statement for the month ending January 31, 2016
Revenue from Sales
Salaries Expense
Service Revenue

135,000
50,000
458,000

Rent Expense
Supplies Expense
Advertising Expense

17,500
30,000
85,000

Statement of Capital Exercise:

Albert Bradley owns the Bradley Cleaning Service. On January 1, 2016, Mr. Bradleys capital
balance is P200,500. During the year the following activities affected his ownership (equity)
in the business: net income for the year was 183,000; on March 23, 2017, the proprietor
made an additional permanent investment in the business of 50,000; during the year the
proprietor withdrew assets worth 156,000 from the business. Prepare a statement of capital
for the year ended December 31, 2016.

Balance Sheet Exercise:

The New Wave Beauty Parlor had the following assets, liabilities, and proprietors capital as
of January 31, 2015: Cash, 2,380; Accounts Receivable, 1,400; Beauty Equipment, 15,000;
Bambi Sands Capital, ?; Notes Payable, 2,275; Beauty Supplies, 800; Accounts Payable,
300. Prepare an account-form Balance Sheet for the New Wave Beauty Parlor. Note that the
proprietors capital account balance is not provided. Using the accounting equation will
enable you to determine the capital balance.

Financial Statement Exercise:

Betty Brody is the owner of the City-Wide Tax Service. For the year ended April 30, 2016,
this service business had the following information; Cash, 12,500; Accounts Receivable,
3,700; Office Furniture and Fixtures, 11,300; Office Machines and Computers, 15,000;
Automobile, 9,500; Revenue from monthly clients, 43,800; Salaries Expense, 12,500;
Advertising Expense, 900; Rent Expense, 6,000; Automobile Expense, 1,300; General Office
Expense, 7,500. Prepare the City-Wide Tax Services income statement, statement of
capital, and balance sheet for the year ended April 30,2016

Balance Sheet:
From the list of account balances below, prepare in good form a balance sheet for Reyna's
Department Store at December 31, 2015.
Debit
Credit
Balances Balances
Cash

3,000

Accounts Receivable

28,500

Building

37,500

Notes Payable (due in one year)

Patent

16,500
6,000

Accumulated Depreciation Building

9,000

Property Taxes Payable

6,000

Accounts Payable

21,750

Bonds Payable

60,000

Inventory

22,500

Land

75,000

Prepaid Insurance

750

Reynas, Capital
Goodwill
Totals

71,250
11,250
184,500

184,500

The following items were taken from the accounting records of ABC company for the month ended
October 31, 2016.
Prepare an income statement.

Account Title
Cash
Accounts Receivable
Office Supplies
Trucks
Accumulated Depreciation Trucks
Land
Accounts Payable
Interest Payable
Long-Term Notes Payable
J. Reso, Capital
J. Reso, Withdrawals
Trucking fees Earned
Depreciation Expense Trucks
Salaries Expense
Office Supplies Expense
Repairs Expense Trucks
Totals

Debit
6,000.00
16,500.00
2,000.00
191,000.00

Credit

39,346.00
75,000.00
10,000.00
3,000.00
52,000.00
188,137.00
19,000.00
111,000.00
25,378.00
52,059.00
7,000.00
9,546.00
403,483.00

403,483.00

Prepare M. Santos Cafs income statement, statement of capital, and balance sheet for the
year ended December 31, 2016

Account Title
Cash
Accounts Receivable
Computer Supplies
Computer Equipment
Accounts Payable
Loans Payable
M. Santos, Capital
M. Santos, Drawings
Internet Service Income
Printing Service Income
Salaries and Wages
Rental
Computer Supplies Expense
Taxes and Licenses Expense

Debit
Php. 189,000.00
47,000.00
100,000.00
25,000.00
20,000.00
5,000.00
3,000.00
20,000.00
409,000.00

TOTAL

Credit
100,000.00
300,000.00
5,000.00
4,000.00
409,000.00

Prepare A Traders Companys income statement, statement of capital, and balance sheet for
the year ended December 31, 2016

Account Title
Cash on Hand
Cash in Bank

Debit

Credit
4,500.00
3,700.0
0
2,500.00
1,500.00
2,700.0
0
4,000.0
0
8,000.00
2,600.00
1,200.0
0
500.00

Accounts Receivable
Prepaid Rent
Furniture
Machinery
Land
Supplies Expense
Advertisement Expense
Salaries Expense
Accounts Payable
Notes Payable
Accumulated Depreciation
Allowance for Bad Debts
Bank Borrowings
Unearned Revenue
A Traders Capital
Revenue
Commision Revenue
TOTAL

31,200.00

1,000.00
2,000.00
500.00
100.00
2,000.00
3,000.00
18,000.0
0
3,800.00
800.00
31,200.00

November 6
November 7
November 10
November 12

Jason Taylor withdrew 90,000 from personal savings and invested it in his new
business JT Consulting Service.
JT Consulting Service paid 10,000 for computer equipment purchased.
JT Consulting Service purchased office equipment on account.
JT Consulting Service purchased supplies for 3,000 cash.

From the following transactions for Rolo Company, complete the entire accounting cycle for the
month of January 2015. The chart of accounts include:

Assets

Owners Equity

111

Cash

311

Rolo, Capital

112

Accounts Receivable

312

Rolo, Drawings

114

Prepaid Rent

115

Office Supplies

Revenue

121 Office Equipment

122 Accumulated Depreciation Office
Equipment

411

Fees Earned

Expenses
511

Salaries Expense

Liabilities

512

Advertising Expense

211

Accounts Payable

513

Rent Expense

212

Salaries Payable

514 Office Supplies Expense

515 Depreciation Expense Office
Equipment

January 2

Rolo invested 120,000 cash and 10,000 worth of office equipment to Rolo
Company.

January 2

Paid rent for three months in advance 30,000

January 4

Purchased office equipment on account, 5,000

January 6

Bought office supplies for cash 4,000

January 8

Collected 40,000 for services rendered

January 12

Rolo paid his home electricity bill from the company asset account, 2,000.

January 14

Provided 10,000 worth of services to clients who will not pay until next month

January 16

Paid Salaries 6,000.

January 18

Advertising bill 7,000 was received but will not be paid until next month.

Adjustment Data on January 31, 2015

a)
b)
c)
d)

Supplies on hand
Rent Expired
Depreciation Office Equipment
Salaries Accrued

600
10,000
2,000
5,000