Exercise #1: Transactions of Bud’s Computer are as follows:

May 1 – Buddy Bungal invested P210,000 in an accounting entitled Bud’s Computer

Repair Shop.
May 3 – Purchased repair equipment from the Ocean Park for P30,000. Check was
issued in the amount of P18,000, with the balance being placed on account.
May 8 – Repaired a customer’s computer billing him for P5,000.
May10 – Repaired a customer’s computer for P8,800, of which 80% was collected,
with the balance placed on account.
May 12 – Received and paid the telephone bill by issuing check in the amount of
P3,000.
May 13 – Purchased repair supplies by issuing check in the amount of P2,500.
May 14 – Collected the amount due from the customer on May 8 transaction.
May 18 – Issued check in the amount of P9,000 to the Ocean Park as a partial
payment for the equipment purchased on May 3.
May 20 – Repaired a customer’s computer and collected P6,000.
May 21 – Received electric bill for the month of May in the amount of P1,500.
Required: Journalize the above transactions and determine the balances of the
T – accounts.

Assets, (Current Assets, Non-Current Assets); Liabilities (Current Liab., Non-current)

Owner's Equity (capital, withdrawal); Revenue; Expenses

DATE-
ACCOUNT TITLES DEBIT
2021
Cash P210,000
May-01 Buddy Bungal, Capital
# To record cash investment of the owner
Equipment P30,000
Cash
May-03 Accounts Payable
# To record the accounts payable of
equipment purchased
 Accounts Receivable P5,000
May-08 Service Income
#
Cash (80%) P7,040
Accounts Receivable (20%) P1,760
May-10
Service Income
#
Utilities expense P3,000
May-12 Cash
#
Supplies P2,500
Cash
May-13
#

Cash P5,000
May-14 Accounts Receivable
#
Accounts Payable P9,000
May-18
Cash
May-20 Cash P6,000
Service Income
#
Utilities Expense P1,500
Accounts Payable
May-21

#
Furniture and Fixtures P80,000
Cash
May-25
Accounts Payable
#
Accounts Payable (50% x P56,000) P28,000
May-27
May-27 Cash
# To record partial payment of the P56,000
accounts payable
Accounts Payable P28,000
Cash
May-30
#to record full payment of the balance of
A/P

BUD'S COMPUTER
TRIAL BALANCE
For the Month Ending May 31, 2021

ACCOUNT TITLES DEBIT

Cash ₱195,540
Accounts Receivable ₱1,760
Supplies ₱2,500
Equipment ₱30,000
Accounts Payable
Buddy Bungal, Capital
Service Income
Utilities Expense ₱4,500
TOTALS ₱234,300
 Computer

heck was
unt.

ollected,

ount of

,500.
on.
artial

00.
of the

ab., Non-current) CASH

date DEBIT date CREDIT

CREDIT
May-01 ₱210,000 May-03 ₱18,000
May-10 ₱7,040 May-12 ₱3,000
P210,000 May-14 ₱5,000 May-13 ₱2,500

May-20 ₱6,000 May-18 ₱9,000

₱228,040 ₱32,500
P18,000 ₱195,540
P12,000

ACCOUNTS RECEIVABLE
 date DEBIT date CREDIT
P5,000 May-08 ₱5,000 May-14 P5,000
May-10 ₱1,760
₱6,760 ₱5,000
₱1,760
P8,800

SUPPLIES
date DEBIT date CREDIT
P3,000 May-13 P2,500

P2,500 EQUIPMENT
date DEBIT date CREDIT
May-03 P30,000

P5,000

ACCOUNTS PAYABLE
date DEBIT date CREDIT
P9,000 May-18 ₱9,000 May-03 ₱12,000
May-21 ₱1,500
P6,000 ₱9,000 ₱13,500
₱4,500
BUDDY BUNGAL, CAPITAL
P1,500 May-01 P210,000

P24,000
P56,000 SERVICE INCOME
May-08 ₱5,000
May-10 ₱8,800
 P28,000 May-20 ₱6,000
₱19,800

P28,000

UTILITIES EXPENSE
May-12 ₱3,000
May-21 ₱1,500
₱4,500

CREDIT

₱4,500
₱210,000
₱19,800

₱234,300
Buddy Bungal, Withdrawal
Exercise #2: Alice Cruz opened her business called Arrow Delivery Services. Record the following transac

Sept. 1 – Miss Cruz made a cash investment of P4,000,000.

Sept. 2 – Paid three months rental for an office space, the monthly rental is
P20,000.
Sept. 2 – Purchased office supplies in cash, P8,000.
Sept. 3 – Purchased furniture and fixtures and paid P200,000 cash.
Sept. 7 – Paid insurance for one year amounting to P36,000.
Sept. 8 – Purchased from Avesco office equipment on account, P350,000.
Sept. 12 – Borrowed from Banco de Ginto P1,000,000 and signed a 90-day note.
Sept. 13 – Bought two delivery trucks for P3,000,000; made a down payment of
50% and the balance on account.
Sept. 15 – Paid for salaries of clerks, P30,000 in cash.
Sept. 18 – Received a bill for printing of leaflets to promote her business, P10,000.
Sept. 20 – Received P20,000 in cash as payment of packages delivered.
Sept. 21 – Paid Avesco account in full.
Sept. 24 – Billed M. Y. San for delivery of goods, P30,000; a down payment of 50%
was required from the client.
Sept. 30 – Paid P7,500 for utilities and P30,000 for salaries.

Required: Journalize the above transactions and post journal entries to ledger.
cord the following transactions in the general journal and general ledger:

0.

%
Exercises #4: On Dec. 1, 2020, Love Able ventured into a billiards recreation business, Balls and Sticks. D
Dec. 1- Able begun the business by depositing P200,000 cash in a bank account
in the name of the business.
Dec. 3- Purchased an existing billiard hall at a price of P210,000 for the land and
P300,000 for the building. Able paid the former owner P100,000 in cash and
issued a short-term notes payable for the balance of the purchase price.
Dec 10- Bought 10 billiard tables for P10,000 each, paying P60,000 cash and
agreeing to pay the balance in 30 days.
Dec. 14- Sold a billiard table to the owner for P10,000. The entity was paid P5,000
cash and the balance within 30 days.
Dec. 20- Paid P20,000 of the amount owed on the billiard tables.
Dec. 24- Collected P2,000 on the billiard table sold.
Dec. 30 - Purchased one used billiard table from another billiard hall, paying P6,000
cash.

Required: Record the transactions for the month of December 2010 using a financial transaction workshee
and

000

cial transaction worksheet. Indicate the new account balances after each transaction. Use the following accounts: Ca
he following accounts: Cash; Accounts Receivable; Land; Building; Billiard Tables; Notes Payable; Accounts Payable
ayable; Accounts Payable; and Able, Capital.
Exercise #3: Angelina Julie is a financial planning consultant. She completed the following transactions du
Dec. 1 Julie invested cash in the business, P200,000
3     Paid December office rent, P10,000.
4     Received P25,000 from a client for services rendered.
7     Received P20,000 from a client for services rendered.
12  Paid cash to Shell Super Service for gasoline purchases, P600.
14  Paid wages to assistant for the past two weeks, P6,000.
17  Bought office supplies on account, P2,800.
20    Paid telephone bills, P1,000.
21    Sicat withdrew cash for personal use, P11,000.
24    Donated cash to the Philippine National Red Cross, P11,000.
27    Received P20,000 from Brad Pitt, a client, for services rendered.
28    Paid wages to assistant for the past two weeks, P6,000.
29    Paid electric bill, P750.
31 Made partial payment on supplies purchased on account, P1,000.
Required:
1.    Prepare journal entries for the December transactions.
2.    Set up the following ledger accounts and post all the journal entries: Cash (001); Accounts Receivable
e following transactions during the month of December of the current year:

1); Accounts Receivable (002); Office Supplies (003); Accounts Payable (004); Julie, Capital (005); Julie, Withdrawa
al (005); Julie, Withdrawals (006); Salaries Expense (007); Rent Expense (008); Utilities Expense (009); Gasoline Ex
pense (009); Gasoline Expense (010); Charitable Contributions Expense (011); and Consulting Revenue (012).
ting Revenue (012).