Problem 1
To continue with the Happy and Tour Travel business, the following transactions took place for the
month of August.
August 3 Received P15,000 cash from clients for various trips around the country.
8 Mr. Gray paid the balance of his account in full.
16 Bills received and paid P8,000: utility, P3,000; gas and oil, P2,000; repair of cars, P3,000.
18 Paid P20,000 cash on the notes payable.
20 Billed SMB Cooperative for a trip to Tagaytay, P7,500.
25 Collected P5,000 from the Faculty Club of Angelicum.
27 Received the PLDT bill for August, P750.
29 Paid for rent, P10,000 and salaries, P9,000.
30 Gomez made another cash withdrawal of P5,000 for payment of a personal liability.
Required:
1. Give the necessary journal entries.
2. Post the journal entries to ledger. (Continue with the ledgers of July)
3. Prepare a Trial Balance.
4. Prepare Income Statement, Capital Statement and Statement of Financial Position.
Use the following chart of accounts.
101 Cash
102 Accounts Receivable
201 Cars
202 Furniture
203 Equipments
301 Accounts Payable
302 Notes Payable
401 Gomez, Capital
402 Gomez, Drawing
501 Service Income
601 Rent Expense
602 Salaries Expense
603 Repair Expense
604 Gas and Oil Expense
605 Utilities Expense
Problem 2
The following are the transaction of Khaye during its first month of operation.
1. Khaye invested P600,000 in the business.
2. Acquired supplies on account, P10,000.
3. Bought an equipment on account, P200,000.
4. Received P30,000 for services rendered.
5. Paid rent for the month, P15,000.
6. Acquired office table with chair P20,000 paying P12,000 and the balance on account.
7. Billed various customers, P50,000.
8. Paid utility expenses, P15,000.
9. Paid half of the balance due on the equipment bought on account.
10. Collected P30,000 from customers on account.
11. Paid Salaries, P10,000.
Give the journal entries using the following accounts.
Cash;
Accounts Receivable;
Supplies;
Table & Chair;
Equipment;
Accounts Payable;
Khaye, Capital;
Cleaning Revenues;
Salaries Expense;
Rent Expense;
Utilities Expense
Problem 3
Mabel Wong began a professional practice as system analyst on December 1, 2014. The following are
the transactions on its first month of operation.
Dec. 1 Owner invested P50,000 cash along with furniture and fixtures that had a P20,000 market
value when purchased two years ago but now worth P10,000 only.
2 Paid P25,000 cash for July rent of a fully furnished office space at the Madrigal Building.
4 Purchased a P120,000 worth of state of the art equipment on credit for thirty monthly
instalment payments.
6 Purchased office supplies for cash, P2,500.
8 Completed a work for a client and immediately collected the P32,000 cash earned.
10 Completed a work for a client and sent a bill for P27,000 to be paid within thirty days.
15 Paid an assistant P6,200 cash as wages for 15 days.
18 Collected P15,000 cash on the amount owed by the client.
24 Completed a work for another client who paid only P40,000 or 40% of the total
computerized system. The client gave a promissory note for the balance.
28 Paid the first instalment to settle the liability on the equipment purchased.
30 Paid the wages of assistant.
31 Received PLDT bill, P1,800 and Meralco bill, P3,800.
Give the journal entries using the following accounts.
Cash
Accounts Receivable
Office Supplies
Equipment
Accounts Payable
Notes Payable
Utilities Payable
Wong, Capital
Wong, Drawing
Service Income
Salaries Expense
Rent Expense
Utilities Expense
Miscellaneous Expense
