Problem #3

Complete the following table by stating the accounting element of each account, and
whether increases and decreases in the accounts are represented by a debit or credit
entry. For example:
Accounts Element Increase Decrease
Supplies Asset Debit Credit

a. Service Revenues g. Salaries Expense

b. Withdrawals h. Office Equipment
c. Utilities Expense i. Fixtures and Fittings
d. Rent Expense j. Interest Expense
e. Cash in Bank k. Loans Payable
f. Trade Payables l. Capital
Accounts Element Increase Decrease
a. Service Revenues Income Credit Debit
b. Withdrawals Equity (Withdrawal) Debit Credit

c. Utilities Expense Expense Debit Credit

d. Rent Expense Expense Debit Credit
e. Cash in Bank Asset Debit Credit
f. Trade Payables Liabilities Credit Debit
g. Salaries Expense Expense Debit Credit
h. Office Equipment Asset Debit Credit
i. Fixtures and Fittings Asset Debit Credit
j. Interest Expense Expense Debit Credit
k. Loans Payable Liabilities Credit Debit
l. Capital Equity (Capital) Credit Debit

Problem #6
 Classification of Accounts
The following ledger accounts are used by Elizabeth Figueroa Tutorials:
a. Cash m. Figueroa, Withdrawals
b. Salaries Expense n. Salaries Payable
c. Accounts Receivable o. Unearned Revenues
d. Figueroa, Capital p. Office Equipment
e. Service Revenues q. Rent Payable
f. Prepaid Rent r. Notes Receivable
g. Accounts Payable s. Interest Payable
h. Land t. Notes Payable
i. Supplies Expense u. Supplies
j. Prepaid Insurance v. Interest Receivable
k. Utilities Expense w. Rent Expense
l. Service Revenues
Required: Indicate each account’s classification and normal balance by placing (/)
marks.
Type of Account
Normal Balance
Owner’s Equity
Asset Liability Figueroa, Figueroa,
s Capital Withdrawals Revenue Expense Debit Credit
s s
a. / /
b. / /
c. / /
d. / /
e. / /
f. / /
g. / /
h. / /
i. / /
j. / /
k. / /
l. / /
m. / /
n. / /
o. / /
p. / /
q. / /
r. / /
s. / /
t. / /
u. / /
v. / /
w. / /
Problem #8
Recoding Transactions in T-accounts and Preparing a Trial Balance
Jay Omotoy opened a plumbing service, Alabang Plumbing. Operations began on April
1, 2020, and the following transactions were completed during the month:
Apr. 1 Withdrew P67,000 from a personal savings account and used it to open a new
account in the name of Alabang Plumbing.
2 Acquired a service vehicle costing P81,000. A payment of P17,500 in cash was
made and a note payable given for the P63,500 remainder.
3 Paid rent for the month, P7,150.
6 Acquired plumbing supplies on account P15,700.
7 Paid for three months of advertising and recorded Prepaid Advertising in the
amount of P6,000.
8 Cash in the amount of P18,350 was received for plumbing services rendered.
9 Acquired additional plumbing supplies for cash, P8,050.
11 Paid salaries, P11,600.
15 Rendered plumbing services and billed the customer, P42,200.
16 Paid P5,700 of the amount owed from the transaction of Apr. 6.
19 Paid miscellaneous expenses, P4,300.
20 Collected P21,000 from the customer on the Apr. 15 transaction.
21 Withdrew P14,500 from the business.
22 Paid salaries, P14,100.
24 Paid the first installment of the note payable, P3850.
25 Paid the telephone expense, P1250.
27 Billed the Clement Resort for plumbing services rendered, P14,150.

Required:
1. Establish the following T-accounts: Cash; Accounts Receivable; Plumbing
Supplies; Prepaid Advertising; Service Vehicle; Notes Payable; Accounts
Payable; Omotoy, Capital; Omotoy, Withdrawals; Plumbing Revenues; Salaries
Expense; Rent Expense; Telephone Expense; and Miscellaneous Expense.
2. Record the transactions directly into the T-accounts using the dates to identify
each transaction.
3. Prepare a trial balance.
 Alabang Plumbing Service
General Journal
April 2020
Page 1
Date Account Title and Explanation PR Debit Credit
2020
Apr. 1 Cash ₱ 67000-
Omotoy, Capital ₱ 67000-
To record investment.

2 Service Vehicle 81000-

Cash 17500-
Notes Payable 63500-
To record purchased service vehicle.

3 Rent Expense 7150-

Cash 7150-
To record payment for rent expense.

6 Plumbing Supplies 15700-

Accounts Payable 15700-
To record purchased plumbing supplies on account.

7 Prepaid Advertising 6000-

Cash 6000-
To record payment for prepaid advertising.

8 Cash 18350-
Plumbing Revenues 18350-
To record purchased service rendered.

9 Plumbing Supplies 8050-

Cash 8050-
To record payment for plumbing supplies.

11 Salaries Expense 11600-

Cash 11600-
To record payment for salaries expense.

15 Accounts Receivable 42200-

Plumbing Revenues 42200-
To record service rendered.

16 Accounts Payable 5700-

Cash 5700-
To record payment on account.
 Alabang Plumbing Service
General Journal
April 2020
Page 2
Date Account Title and Explanation PR Debit Credit
2020
Apr. 19 Miscellaneous Expense ₱ 4300-
Cash ₱ 4300-
To record payment for miscellaneous expense.

20 Cash 21000-
Accounts Receivable 21000-
To record collection from customer.

21 Otmoy, Withdrawals 14500-

Cash 14500-
To record withdrawals.

22 Salaries Expense 14100-

Cash 14100-
To record payment for salaries expense.

24 Notes Payable 1250-

Cash 1250-
To record partial payment.

25 Telephone Expense 1250-

Cash 1250-
To record payment for telephone expense.

27 Accounts Receivable 14150-

Plumbing Revenues 14150-
To record service rendered.
 General Ledger (T-Accounts)
Cash

Apr. 1 ₱67,000 Apr. 2 ₱17,500

8 18,350 3 7,150
20 21,000 7 6,000
9 8,050
11 11,600
16 5,700
19 4,300
21 14,500
22 14,100
24 3,850
________ 25 1,250_
₱106,350_ ₱94,000_

Balance ₱12,350

Accounts Receivable

Apr. 15 ₱42,200 Apr. 20 ₱21,000

27 _14,150_ ___________
₱56,350_ ₱ 21,000_

Balance ₱35,350

Plumbing Supplies

Apr. 6 ₱15,700
9 _ 8,050_
₱23,750_

Balance ₱ 23,750

Prepaid Advertising

Apr. 7 ₱6,000
Balance ₱6,000
 Service Vehicle

Apr. 2 ₱81,000
Balance ₱81,000

Notes Payable

Apr. 24 ₱3,850_ Apr. 2 ₱63,500

₱3,850 ₱63,500
Balance ₱59,650

Accounts Payable

Apr. 16 ₱5,700_ Apr. 6 ₱15,700

₱5,700 ₱15,700
Balance ₱10,000

Omotoy, Capital

Apr. 2 ₱67,000
Balance ₱67,000

Omotoy, Withdrawals

Apr. 21 ₱14,500
Balance ₱14,500

Plumbing Revenues

Apr. 8 ₱18,350
15 42,200
27 14,150
₱74,700
Balance ₱74,700
 Salaries Expense

Apr. 11 ₱11,600
Balance ₱11,600

Rent Expense

Apr. 3 ₱7,150
Balance ₱7,150

Telephone Expense

Apr. 21 ₱14,500
Balance ₱14,500

Miscellaneous Expense

Apr. 19 ₱4,300
Balance ₱4,300

Alabang Plumbing Service

Trial Balance
April 30, 2020
Account Title Debit Credit
Cash ₱ 12,350
Accounts Receivable 35,350
Plumbing Supplies 23,750
Prepaid Advertising 6,000
Service Vehicle 81,000
Notes Payable ₱ 59,650
Accounts Payable 10,000
Omotoy, Capital 67,000
Omotoy, Withdrawals 14,500
Plumbing Revenues 74,700
Salaries Expense 11,600
Rent Expense 7,150
Telephone Expense 14,500
Miscellaneous Expense 4,300
₱211,350 ₱211,350
_
Problem #13
Journalizing, Posting and Preparing a Trial Balance
After several years with a large accounting firm, Joannemarie Uy decided to establish
her own accounting practice. The following transactions of Joannamarie Uy, CPA, were
completed during May 2019.

May 2 Transferred P92,500 cash from a personal savings account to a checking

account, Joannamarie Uy, CPA.
3 Acquired office equipment on account from Liboro Furniture, P36,800.
4 Acquired office supplies on account from Palatino Office Supply, P17,100.
6 Performed accounting services for Gabayan Computers and submitted a bill of
P29,200 for those services.
7 Paid for accounting and tax books for use in the practice, P19,500.
8 Paid Palatino Office Supply, P4,100 on account.
10 Acquired a condominium unit for the accounting practice, PP265,00. A down
payment of P38,000 was made and issued a note payable for the remaining
P227,000.
12 Paid salaries, P14,200.
13 Received P9,750 from Gabayan Computers, billed on May 6.
16 Paid telephone expense, P650.
19 Received cash in the amount of P14,600 from Mallari Books for accounting
services rendered for the month.
22 Acquired office supplies on account from Palatino Office Supply, P4,650.
23 Withdrew P8,150 for personal use.
25 Paid salaries, P10,300.
26 Billed Chua Exporters P31,600 for accounting services rendered.
27 Paid PICPA-Palawan P5,500 for professional dues.
28 Paid P3,250 rent on an office-copying machine.
Required:
1. Prepare the journal entries for the May transactions.
2. Post the entries to the ledger accounts, using account numbers for cross-
reference and using journal page number 1. The following accounts will be
needed: Cash (110); Accounts Receivable (120); Office Supplies (130); Office
Condominium (140); Office Equipment (150); Accounting Library (160); Notes
Payable (210); Accounts Payable (220); Uy, Capital (310); Uy, Withdrawals
(320); Accounting Revenues (410); Salaries Expense (510); Rent Expense (520);
Telephone Expense (530) and Professional Dues Expense (540).
3. Prepare a trial balance.
 Joannamarie Uy, CPA
General Journal
May 2019
Page 1
Date Account Title and Explanation PR Debit Credit
2019
May 2 Cash 110 ₱ 92500-
Uy, Capital 310 ₱ 92500-
To record investment.

3 Office Equipment 150 36800-

Accounts Payable 220 36800-
To record purchased office equipment on account.

4 Office Supplies 130 17100-

Accounts Payable 220 17100-
To record purchased office supplies on account.

6 Accounts Receivable 120 29200-

Accounting Revenues 410 29200-
To record service rendered.

7 Accounting Library 160 19500-

Cash 110 19500-
To record payment for accounting and tax books.

8 Accounts Payable 220 4100-

Cash 110 4100-
To record purchased office supplies on account.

10 Office Condominium 140 265000-

Cash 110 38000-
Notes Payable 210 227000-
To record purchased office condominium.

12 Salaries Expense 510 14200-

Cash 110 14200-
To record payment for salaries expense.

13 Cash 110 9750-

Accounts Receivable 120 9750-
To record collection from customer.

16 Telephone Expense 530 650-

Cash 110 650-
To record payment for telephone expense.
 Joannamarie Uy, CPA
General Journal
May 2019
Page 2
Date Account Title and Explanation PR Debit Credit
2019
May 19 Cash 110 ₱ 14600-
Accounting Revenues 410 ₱ 14600-
To record service rendered.

22 Office Supplies 130 4650-

Accounts Payable 220 4650-
To record purchased office supplies on account.

23 Uy, Withdrawals 320 8150-

Cash 110 8150-
To record withdrawals.

25 Salaries Expense 510 10300-

Cash 110 10300-
To record payment for salaries expense.

26 Accounts Receivable 120 31600-

Accounting Revenues 410 31600-
To record service rendered.

27 Professional Dues Expense 540 5500-

Cash 110 5500-
To record payment for professional dues expense.

28 Rent Expense 520 3250-

Cash 110 3250-
To record payment for rent expense.

General Ledger
Account Title: Cash Account Number: 110
Date Item Ref Balance
 2019 Debit Credit Debit Credit
May 2 Investment GJ-1 ₱92500- ₱92500-
7 Payment for accounting and tax books GJ-1 ₱19500- 73000-
8 Payment for office supplies GJ-1 4100- 68900-
10 Payment for office condominium GJ-1 38000- 30900-
12 Payment for salaries expense GJ-1 14200- 16700-
13 Collection from customer GJ-1 9750- 26450-
16 Payment for telephone Expense GJ-1 650- 25800-
19 Collection from customer GJ-2 14600- 40400-
23 Withdrawal GJ-2 8150- 32250-
25 Payment for salaries expense GJ-2 10300- 21950-
27 Payment for professional dues expense GJ-2 5500- 16450-
28 Payment for Rent Expense GJ-2 3250- 13200-

General Ledger
Account Title: Accounts Receivable Account Number: 120
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 6 GJ-1 ₱29200- ₱29200-
13 GJ-1 ₱9750- 19450-
26 GJ-2 31600- 51050-

General Ledger
Account Title: Office Supplies Account Number: 130
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 4 GJ-1 ₱17100- ₱17100-
22 GJ-2 4650- 21750-

General Ledger
Account Title: Office Condominium Account Number: 140
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 10 GJ-1 ₱265000- ₱265000
-

General Ledger
Account Title: Office Equipment Account Number: 150
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 3 GJ-1 ₱36800- ₱36800-
 General Ledger
Account Title: Accounting Library Account Number: 160
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 7 GJ-1 ₱19500- ₱19500-

General Ledger
Account Title: Notes Payable Account Number: 210
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 10 GJ-1 ₱227000- ₱227000-

General Ledger
Account Title: Accounts Payable Account Number: 220
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 3 GJ-1 ₱36800- ₱36800-
4 GJ-1 17100- 53900-
8 GJ-1 ₱4100- 49800-
22 GJ-2 4650- 54450-

General Ledger
Account Title: Uy, Capital Account Number: 310
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 2 GJ-1 ₱92500- ₱92500-

General Ledger
Account Title: Uy, Withdrawals Account Number: 320
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 23 GJ-2 ₱8150- ₱8150-

General Ledger
Account Title: Accounting Revenues Account Number: 410
 Date Item Ref Balance
2019 Debit Credit Debit Credit
May 6 GJ-1 ₱29200- ₱29200-
19 GJ-2 14600- 43800-
26 GJ-2 31600- 75400-

General Ledger
Account Title: Salaries Expense Account Number: 510
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 12 GJ-1 ₱14200- ₱14200-
25 GJ-2 10300- 24500-

General Ledger
Account Title: Rent Expense Account Number: 520
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 28 GJ-2 ₱3250- ₱3250-

General Ledger
Account Title: Telephone Expense Account Number: 530
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 16 GJ-1 ₱650- ₱650-

General Ledger
Account Title: Professional Dues Expense Account Number: 540
Date Item Ref Balance
2019 Debit Credit Debit Credit
May 27 GJ-2 ₱5500- ₱5500-

Joannamarie Uy, CPA

 Trial Balance
May 31, 2019
Account Title Debit Credit
Cash ₱13,200-
Accounts Receivable 51,050-
Office Supplies 21,750-
Office Condominium 265,000-
Office Equipment 36,800-
Accounting Library 19,500-
Notes Payable ₱227,000-
Accounts Payable 54,450-
Uy, Capital 92,500-
Uy, Withdrawals 8,150-
Accoounting Revenues 75,400-
Salaries Expense 24,500-
Rent Expense 3,250-
Telephone Expense 650-
Professional Dues Expense 5,500-
₱449,350- ₱449,350-
_