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Mastering Accounting
in Service Business
…where the activity is to
complete the accounting cycle
from transaction analysis and
journal entries with brief
explanation, adjusting entries
and worksheet preparation,
closing entries and Financial
Statements presentation in each
case.
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Contents
1. DOLOR ACCOUNTING OFFICE ......................................................................................4
2. DITAN ................................................................................................................................5
3. ORIOL DELIVERY SERVICE ...........................................................................................7
4. OLIVERA DRESS SHOP ...................................................................................................8
5. OREJOLA SERVICES...................................................................................................... 10
6. SINANGOTE MAJESTIC SERVICES............................................................................. 11
7. JUAREZ - MUSIC DEPOT .............................................................................................. 13
8. RAMIREZ –HAIRCUTTING BUSINESS....................................................................... 14
9. MAYANG AUTO REPAIR SHOP .................................................................................... 16
10. YAP – DRY CLEANING BUSINESS .......................................................................... 18
11. SANTIA – ELECTRIC BUSINESS.............................................................................. 19
12. CONCON – PROFESSIONAL CONTRACTOR .......................................................... 21
13. PALOR COMPANY ...................................................................................................... 23
14. AGANA - BUSINESS SOLUTION COMPANY .......................................................... 24
15. MACEDA’S GARDENING SERVICES........................................................................ 25
16. ESTRADA ELECTRICAL SERVICES .......................................................................... 26
17. DATO-ON ..................................................................................................................... 28
18. IMACULATA TRAVEL SERVICES.............................................................................. 29
19. SAN MIGUEL – LODGE DESIGN .............................................................................. 31
20. PERALTA ...................................................................................................................... 32
21. TORRES........................................................................................................................ 33
22. THE BULANADI CO. ................................................................................................... 35
23. GONZAGA LAW PRACTICE ....................................................................................... 36
24. SALONGA ..................................................................................................................... 37
25. DIPATUAN – PROFESSIONAL PRACTICE ............................................................ 39
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26. ESPINO IHATAWMO STUDIO.................................................................................. 40

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27. BISDA COMPANY ....................................................................................................... 42
28. PIDLAOAN SPANESS ALA MAMA VA ...................................................................... 43
29. BERTES CONSULTING .............................................................................................. 44
30. QUINTO - ELECTRICAL CONTRACTOR .................................................................. 46
PROJECT REQUIREMENT to be submitted before MID-TERM Exam
1. Business Name Alteration, if you want.

2. Transaction additions, if needed, at least 30 transactions in each case
3. Account Amendments, if needed
4. Trial Balance
5. PROVIDE: Adjusting Transactions, at least 10 transactions in each case
6. Case Worksheet and Financial Statements
7. Additional Cases to be provided by the following on or before September 6,
2018:
1. GUITERREZ, Justine Joyce Sayas
2. MANSAN, Jane Catherine Pinigat
3. MAUNGCA, Reham Pandi
4. REYES, Jan Lyca Marie Mendigorin
5. TEMPORAL, Ann Louise Dillo
6. TEODOSIO, Apryl Rose Roble
7. VALDERAMA, Jhasmine Izabel Ortiz
8. VILLESIS, Adrian Lester Saenz
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1. DOLOR Accounting Office
Zyrielle owns an accounting and consultancy office. Record the following

transactions on March, 2016 using a two-column general journal:
Mar 1- Zyrielle, opens her accounting and consultancy office with the following
investments: cash, P300,000 and office equipment, P80,000
3- Paid various permits & licenses to operate, P3,500
3- Billed Ms. Aubrey for the bookkeeping services, P29,000
3- Bought furniture and fixture for cash, P40,000;
4- Billed the clients for the following services rendered: bookkeeping,

P5,000; consultancy, P25,000
5- Purchased office supplies on account, P3,000
7- Paid the rent for the month, P6,000
8- Paid the electricity and water bill for the month of march, P4,500
9- Received cash from walk-in clients for services provided, P5,000
10- Billed the consultancy services provided to Davao Partner’s Bank,

P60,000
12- Paid P1,500 on account for office supplies purchased on March 5
15- Paid the salaries of the employee, P8,000
16- Collected the billing made for Ms. Aubrey
18- Zyrielle withdrew P10,000 for her birthday celebration and personal
expense
19- Paid miscellaneous expense for the month, P2,000

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20- Collected 50% of the March 10 billing

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22- Hired an assistant with a monthly salary of P5,000
25- Received payments for the installation of accounting system, P30,000
29- Zyrielle made an additional investment in the business, P50,000
30- Settled in full the billing on March 10
Suggested Accounts:
Cash/ Accounts Receivable/ Office Supplies/ Office Equipment/ Furniture

and Fixture/ Accounts Payable/ Aceret, Capital/ Aceret, Drawings/ Service
Fee/ Salaries Expense/ Rent Expense/Permit and Licenses Expense/
Miscellaneous Expense
Comments/Suggestions? – That’s part of your report.
2. DITAN
Jennelyn Alabastro owns an accounting and consultancy office. Record the

following transactions on May ,2018 using a two column general journal:
May 1 – Jennelyn Alabastro, a certified public accountant, opens her accounting

and consultancy office with the following investments : cash, ₱ 300,000 and office
equipment ,₱80,000.
2 – Provide₱3,000, of consultancy service for a client on credit.
3 – Bought the following for cash: furniture and fixture,₱40,000; office

supplies,₱3,000.
4 – Billed the clients for the following service rendered: bookkeeping,₱5,000;

consultancy,₱25,000.
5 – Received cash from client on account,₱2,000.
6 – purchased ₱1,000 furniture and fixture on credit.

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7 – Paid the rent for the month,₱6,000.

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8 – Paid ₱800 cash for this month cleaning service.
9 – Received cash from walk-in client for service provided,₱5,000.
10 – Provide consultancy service for a client and immediately collected

₱5,000.
12 – Purchase ₱10,000 of office equipment on credit.
15 – Paid salaries of the staff,₱8,000.
16 – Collected in full the billing made on May 4.
17 –Paid ₱10,000 cash for the office equipment purchased on May 12.
18 –Paid ₱2,000 cash for this month telephone bill.
20 – Billed the consultancy services provided to Davao Partner’s Bank

₱60,000.
23 –Paid ₱3,000 cash for this month utilities.
25 –Received payment for the installation of accounting system,₱30,000.
28 –Ms. Jennelyn Alabastro made a cash withdrawal of ₱1,200.
30 – Collected 50% of the May 20 billing.
Suggested transaction accounts;
Cash / Accounts Receivable / Office Supplies/Furniture and Fixtures/ Accounts

Payable / J.Alabastro,Capital / J.Alabastro,Drawing / Service Fees / / Salaries
Expense/ Rent Expense / Utilities Expense / Maintenance Expense
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3. ORIOL Delivery Service
This is the transaction of Reigne Delivery Service of Reigne Asuncion on June.

The June transactions for Reigne Delivery Service are given below. Use the
following Chart of Accounts:
Assets Owner’s Equity
101 Cash 301 A, Capital
102 Accounts Receivable 302 A, Withdrawals
103 Office Supplies Revenue
104 Office Equipment 401 Delivery Fees
105 Delivery Van
Liabilities Expenses
201 Accounts Payable 501 Rent Expense
202 Loan Payable 502 Wages Expense
203 Notes Payable 502 Utilities Expense
June
1 Reigne Asuncion invested ₱300,000 to open a delivery service for the OFW’s.
2 Purchased a delivery van for ₱250,000 from Hi Ace. 50% down, balance on credit.
3 Purchased office supplies for ₱3,750.
5 Purchased ₱27,500 of office equipment on credit.
6 Received ₱15,000 for services provided to overseas contract workers.

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8 Settled the account for the purchased office equipment on June 5.

10 Billed a customer ₱27,000 as fees for provided services.
12 Paid the monthly rent for ₱15,000.
13 Collected ₱25,000 for the accounts of the customers.
15 Reigne Asuncion withdrew ₱1,000 from the company for personal use.
17 Issued a Note with 2% interest payable within 30 days to Hi Ace as settlement

for the account.
19 Gave an invoice to a customer for rendered services, ₱15,000.
20 Made an additional investment to the company of ₱200,000
20 Collected payments from billed customers, ₱5,000.
22 Paid the monthly bill for electricity and water consumption ₱5,000.
25 Received cash for the completed delivery service to a customer, ₱5,000.
27 Received ₱10,000 for the completed service to a customer.
28 Paid cash to Hi Ace as partial payment to the note.
29 Borrowed money from Union Bank, ₱50,000 for extra funds to be used in the
business.
30 Paid the salaries of workers for ₱15,000 as compensation for the services they
provided to the company.
4. OLIVERA Dress Shop
Sophia Bernabe opened a dress shop on April 20CY with the following transaction
accounts:
Assets: Cash On Hand/ Cash In Bank/ Accounts Receivable/ Notes Receivable/

Building/ Sewing Equipment
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Liabilities: Accounts Payable/ Mortgage Payable

Owner's Equity: S. Bernabe, Capital/ S. Bernabe, Drawing.
Revenue: Service Revenue
Expenses: Sewing Supplies Expense/ Gas and Oil Expense/ Salaries Expense
1 Invested the following:
Cash ₱400,000; Building ₱900,000
The building has been mortgaged by the Provincial Bank at ₱200,000 to be assumed
by the business.
2 Deposit the cash at the Provincial Bank.
3 Purchased the following on account:
Sewing Equipment ₱300,000; Sewing Supplies ₱50,000
5 Received cash for rendered services, ₱200,000
7 Billed the customers for services rendered for the week, ₱55,000.
9 Paid the following:
Sewing Equipment ₱100,000; Sewing Supplies ₱20,000; Gasoline & Oil ₱2,000
10 Completed a service on account, ₱100,000.
10 Received a check as a payment of April 7 billing which was deposited

immediately.
11 Sophia withdrew ₱20,000 cash to celebrate her successful business.
13 Completed a dress for a customer, ₱50,000.
14 Hired an assistant to help for many orders.
15 Paid the salaries of the workers, ₱10,000.
16 Collected ₱100,000 for various accounts from customers.
18 Received the following as payment of services rendered:

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Cash ₱100,000; Non-interest bearing note ₱50,000

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20 Deposited the collection on April 18.
23 Paid the sewing supplies in full.
24 Paid the sewing equipment in full.
25 Issued a check ₱100,000 as a payment of the mortgage.
28 Received cash for the note, ₱50,000.
30 Paid the salaries of the workers, ₱10,000.
5. OREJOLA Services
Kimberly Borras opened her business called Arrow Janitorial and Maintenance
Services in the month of March
1. Miss Borras made a cash investment of P200,000.
2. Purchased furniture and fixtures from less on account P30,000.
3. Purchased office supplies for cash, P2,500.
4. Completed wok from a client and immediately collected the P5,500 cash.
5. Paid for two months’ rent, P2,000.
6. Hired a messenger for a monthly salary of P10,000.
7. Billed customers P2,300 for service performed.
8. Purchased from Avesco office equipment was required to pay 50% for P15,000
the balance on account.
12. Borrowed P100,000 from Philippine bank and signed a 90-day note.
15. Paid for salaries of clerk and janitors,P80,000 in cash.

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16. Received P3,200 cash from customers billed on service performed.

17. Paid PLDT bill, P1,800.
18. Received a bill for printing leaflets to promote her business, P5,000.
19. Miss Borras made a withdrawal of P1,200 for personal use.
20. Received P30,000 in cash as a payment a maintenance contract.
21. Paid Avesco in full of account.
24. Billings for janitorial services, to date: M.Y.San for P50,000.
25. Billings for janitorial services , to date: SPUM P50,000 of which 50% was
collected.
26. Paid P17,500 for utilities.
30. SPUM paid 50% of the balance owing to Borras.
Suggested accounts:
Cash, Accounts Receivable, Office Supplies, Furniture and Fixtures, Office

Equipment, Accounts Payable, Notes Payable, Borras, Capital, Borras, Drawing,
Janitorial and Maintenance Service Fees, Advertising expense, Salaries and Wages,
Utilities Expense.
6. SINANGOTE Majestic Services
Edanna Briones owns a service business called Majestic Services. The following
business transactions occurred for the month of April,
1 – Edanna Briones invested $2,500.00 of her own money in the
business.
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3 – Used business cash to purchase supplies costing $105.00.

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4 – Paid for insurance costing $240.00
5 – Purchased supplies for $75.00 on account from Midwest Supplies.
7 – Cash sales of $200.00
11 – Paid the account to Midwest Supplies, $75.00
12 – Paid the electricity bill, $65.00.
15 – Ms. Briones withdraw $700.00 from the business for personal use
16 – Sold services for $358.00 to Frank Morris, who agreed to pay for them
within 10 days.
17 – Recorded cash sales of $1,287.00
18 – Paid $90.00 for advertising.
21 – Sold services to a client and sent a bill for $5,000.00 to be paid within
10 days.
22 – Purchased supplies to AJ Store on account $50.00
26 – Paid AJ Store in full
27 – Paid salaries of assistant, $2,400.00
28 – Paid rent expense, $1,800.00
29 – Sold services to a client and immediately collected $2,000.00 cash
30 – Collected the amount owed by the client in transaction no. 21
30 – Paid telephone bill, $600.00
Suggested Accounts:
Cash / Accounts Receivable / Supplies / Prepaid Insurance / E. Briones, Capital / E.

Briones, Drawing / Sales / Advertising Expense / Utilities Expense / Rent Expense /
Salaries Expense
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7. JUAREZ - Music depot
Ashley Kate established a proprietorship known as music depot on June 1, 2010.

Using an extensive collection of music CD's, Ashley Kate served as a disc jockey on a
fee basis for weddings, college parties, and other events. During June Ashley Kate
entered into the following transaction;
1 Ashley deposit a check under the name of music depot €8000
2 received a twenty five hundred from a local radio station for serving as the guest
disc jockey
2 agreed to share office space with a local real estate agency. upstair reality. Music
depot will pay one- fourth of the rent. In additional music depot agreed to pay a
portion of the salary of receptionist and to pay one-fourth of the utilities. Paid €750
for the rent of the office
4 purchase supplies (blank CD's, poster board, extension board, and etc.) From a
City office supplies Co. For €550 paying €250 and the balance on account
5 A. Cabuso Borrowed €50 000 to the unibank for additional investment
6 Paid €600 to local radio station to advertise Music depot twice a week
8 rent digital recording equipment to local electronic store and paid €500
12 paid €300 to cool music for the use of its current music demos to make various
music set this is under music expense
13 Paid city office supplies Co. €300 on account
16 provided €400 two music sets for the dentist to play for her patient on credit
22 served as a disc jockey for a wedding party. And the father of the bride agreed to
pay €1350 on 28 of June
25 received €700 from a friend for serving as disc jockey for a cancer charity ball
hosted by the local hospital
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29 paid €350 (music expense) to the Galaxy Music for the use of its library of music
demos
30 received €1000 for serving as a disc jockey of a local club's monthly dance
30 paid upstair reality €400 for Music Depot's share of the receptionist's salary for
June
30 determined the cost of supplies on hand is €330. Therefore, the cost of supplies
used during the month was €220.
30 paid miscellaneous expenses €200
30 paid €800 royalties (music expense) to National Music Clearing for use of various
artists music during the month.
30 Ashley withdrew €500 of cash for her personal use.
At the end of the month The account receivable on June 22 is recognize as

uncollectible account
Suggested accounts
Cash, Accounts receivable, Allowance for bad debt, Supplies, Accounts payable,
A.Cabuso, Capita, l A. Cabuso, Drawing, Service revenue, Advertising expense,
Equipment rental expense, Music expense, Salaries expense, Supplies expense,
Rent expense, Miscellaneous expense,
8. RAMIREZ –Haircutting Business
After several months of planning, Khaila Calinawan, starter a haircutting business

called Mae Calinawan. The following events occurred during the month of October
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1 Khaila Calinawan invested $3000 cash and $15000 of equipment in the

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business.
2 Mae Calinawan paid $600 for furniture for the shop.
3 Mae Calinawan paid $5500 cash to rent space in a strip mall for October.
4 Purchased $1200 equipment on credit for the shop (using a long term bank
payable).
5 Mae Calinawan grand opening. Cash received payment from haircutting

services in the first week and half of business ended October 15 was $825.
6 Received payment from Mr. Zamiel Mercadejas for hair cutting services
$1895.
7 Billed Ms. Astherielle Zaldua for service rendered $3858 to be paid in 30

days.
10 Mae Calinawan ordered equipment to be use in the shop $825
11 Paid Maynilad for water consumption amounting to $1000
12 Purchased a christmas decorations to be used in the shop worth $925 giving a

note payable to Christmas & Co.
14 Khaila Calinawan borrowed from the bank issuing a notes payable worth
$30,000 to invest in the business.
15 It provided $100 of haircutting services on account.
17 It received a $100 check for services rendered on October 15.
17 It paid $125 cash to an assistant for hours worked during the grand opening.
19 Cash received from services provided during the second half of October was
$9300.
20 Paid a $400 in 1st instalment for the equipment purchased on October 4.
20 Collected cash as partial payment for service rendered to Ms. Astherielle

Zaldua
22 Received payment ordered for the Shop.
28 Received payment settled its account in full.

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29 Khaila Calinawan paid a $2000 salary of yaya muning.

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30 Issue check for the payment on October 12
31 Mae Calinawan paid a $400 2nd Instalment toward principal on the note
payable entered into on October 4.
31 Khaila Calinawan made a $900 cash withdrawal from the company for
personal use.
Some accounts used
Assets - Cash. Accounts Receivable, Equipment, Furniture and fixtures
Liability - Notes Payable
Equity - K. C, Capital, K. C, Personal
Revenue - Service Fee
Expenses - Rent Expense, Wages Expense, Utility Expense
9. MAYANG Auto Repair Shop
Mr. Michael opened an auto repair shop with a trade name Michael Repair Shop for
the current year. The transactions during January, the first month of operation, are
as follows:
Assets
101 Cash
102 Accounts Receivable
103 Notes Receivable
104 Shop supplies
105 Shop tools
106 Office Equipment
Liabilities
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201 Accounts Payable

Owner’s Equity
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301 Michael, Capital

302 Michael, Drawing
Revenue
401 Repair’s Service Fee
Expenses
501 Rent Expense
502 Salaries Expense
503 Utilities Expense
504 Miscellaneous Expense
1-Michael invested the following items in the business: Cash, ₱100,000; Shop Tools
₱40,000
2-Purchased shop supplies on account, ₱4,000.
3-Rendered repair services on account, ₱5,000.
4-Rendered repair service on account, ₱10,000.
5-Paid the rent space for 2 months, ₱4,000
8-Purchased office equipment for cash, ₱10,000
9-Purchased Office Equipment on Account, ₱10,000
10-Rendered repair services for cash, ₱3,000.
12-Collected 40% of the account on January 3 transaction.
14-Billed various customers for repair services, ₱7,000.
16-Collected in full the accounts on January 14.
17-Paid in full transaction on January 9.
18-Michael Withdrew ₱2,000 for personal use.
19-Paid Water Bills, ₱2,000.
20-Collected the remaining balance during the January 3 transaction.
24-Paid in full the supplies purchased
26-Rendered Repair Services amounting to ₱5,000, and received a note from the
customer.
28-Paid the salary of the shop workers for the month, ₱5,000.
29-Paid the telephone bill to PLDT, ₱2,000.
30- Paid ₱1,500 for various miscellaneous of the company.
31- Hired a worker named Marls with monthly salary ₱100,000.
31- The Repair Shop Janitor Paul resigned.

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10. YAP – Dry Cleaning Business
A Dry cleaning business named “Coloma Dry Cleaners” is owned and

operated by Leila Coloma. A building equipment are currently rented, pending
expansion to new facilities. The actual work of dry cleaning is done by another
company at wholesale rates.
The assets and liabilities of the business on November 1, 2010, are as follows.
Cash P34,200
Accounts Receivable P40,000
Supplies P5,000
Land P50,000
Accounts Payable P16,400
Business transactions during November are summarizes as follows:
a. Leila Coloma invested additional cash in the business with a deposit of

P35,000 in the business bank account.
b. Purchased land for use as a parking lot, paying cash of P30,000.
c. Paid rent for the month, P4,500.
d. Charged customers for dry cleaning revenue on account, P18,250.
e. Paid creditors on account, P9,000.
f. Purchased supplies on account, P2,800.
g. Received cash from cash customer for dry cleaning revenue, P31,750.
h. Received cash from customer on account, P27,800.
i. Purchased P15,000 worth of dry cleaning equipment on credit, due in 30 days.
j. Paid P13,000 cash for this month’s water bill.
k. Paid an employee P650 cash as salary for the first half of this month.
l. Earned revenue for rendering services to Maban Tot on credit, P9,550
m. Paid for the supplies purchased in transaction f.
n. Paid the advertising for promoting the business, P850.
o. Leila Coloma withdrew P2,500 cash for personal use.
p. Settled in full for the equipment purchased in transaction i.
q. Paid an employee P650 cash as salary for the second half of this month.
r. Received and paid the bill for the month’s electricity, P7,000.
s. Received P550 in cash from Maban Tot for service performed.
t. Dry cleaning services for cash from customer, P15,000.
u. Bought additional supplies worth P12,000 and furniture and fixtures costing
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P17,000 on credit.
v. Billed Mr. Jo Lee for dry cleaning services, P12,000.
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w. Paid the maintenance and repair for equipment amounted P3,000.
Suggested transaction accounts:
Cash; Accounts Receivable; Supplies; Equipment; Furniture and Fixtures; Land;

Accounts Payable; L.C, Capital; L.C, Drawing; Dry Cleaning Revenue; Rent
Expense; Utilities Expense; Salaries Expense; Advertising Expense; Maintenance
Expense
11. SANTIA – electric business
Chryzelle De Leon started a new Electrical business named “Shubashushu Electric”

and completed these transactions during July 2x14.
July
01 – Chryzelle De Leon transferred $56,000 cash from a personal use savings

accountto a checking account in the name of Shubashushu Electric.
02 – The company rented office space and paid $800 cash for July rent.
03 – The company purchased $14,000 of electrical equipment from Isabel Trading by

paying $3,200 cash and agreeing to pay the $10,800 balance in 10 days.
04 – The company hired an employee with a monthly salary of $400.
05 – The company purchased office supplies by paying $900 cash.
06 – The company completed electrical work and immediately collected $1000 cash.
07 – The company purchased additional electrical equipment from Jenny Trading

amounting to $14,000 on account.
08 – The company purchased $3,800 of office equipment from Carl Trading on

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credit.
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09 – The company borrowed cash from Jeshua Bank to be paid after 10 days, $4,000.
10 – The company completed electrical service to Calinawan Company on account,

$4,000.
13 – The company issued a check in payment for electrical equipment purchased on

July 03.
14 – The company paid Carl Trading $1,900 as a partial payment of the account due
to him.
14 – The company collected receivables from Calinawan Company.
15 – The company completed electrical work to Zyrielle Company on credit in the

amount of $4,000.
18 – The company purchased $500 of office supplies from Chris Trading on credit.
19 – The company paid Jeshua Bank for the loan.
20 – The company settled its account to Carl Trading in full.
22 – The company completed electrical work for Edanna Company on account

amounting to $8,000.
24 – The company billed Chuchu Company $600 for electrical work completed, the
balance due in 7 days.
28 – The company received cash for the work completed on July 15.
29 – The company paid the assistant’s salary of $1,200 cash for this month.
30 – The company paid $440 cash for this month’s utility bill.
31 – The company received cash for the work completed on July 21.
31 – Chryzelle De Leon withdrew $700 cash from the company for personal use.
Suggested chart of accounts
Cash / Receivables / Office Supplies / Office Equipment / Electrical Equipment /

Payables / C. De Leon, Capital / C. De Leon, Drawings / Electrical Service Fee /
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Utility Expense / Rent Expense / Salaries Expense

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Subsidiary accounts
Receivables Payables
Customers: 01 Calinawan Suppliers: 01 Isabel
02 Zyrielle 02 Jenny
03 Edanna 03 Carl
04 Chuchu 04 Jeshua
05 Chris
12. CONCON – Professional Contractor
Isabel Dela Cruz began a professional practice on December 1, 2001 and plans to
prepare financial statements at the end of each month. During December, Dela Cruz
(the owner) completed the following transactions.
Dec. 1 Owner invested $50,000 in the company along with equipment that had
a$10,000 market value.
10 The company paid $1,600 cash for rent of office space for the month.
11 The company purchased $12,000 of additional equipment on credit
(payment due within 30 days)
12 The company completed work of a client and immediately collected the

$2,000 cash earned
14 The company completed work for a client and sent bill for $7,000 to
bereceived in 30 days.
15 The company purchased additional equipment for $8,000 cash.
15 The owner paid assistant $2,400 for cash as wages for the month.
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18 The company collected $5,000 cash as partial payment to the amount

owned by the client in transaction 14.
19 The company paid $12,000 cash to settle the liability in transaction 11.
20 Owner withdrew $500 cash from the company for personal use.
21 The company received a $14,000 cash on customer from service rendered.
22 The company purchased office supplies amounting $15,000 on account.
22 The company paid cash for the electricity bill, $8,500.
23 The company paid $9,350 for the advertisement in promoting thebusiness.
24 The company ordered some office table and chairs from Chuchu’s
Furniture Shop.
25 Purchased a three-year policy insurance amounting $7,600 in cash
(use prepaid insurance account)
26 Paid cash to settle the liability created in transaction 22 with an amount of

$15,000.
27 The company paid miscellaneous expense, $500.
29 The company paid telephone bill, $1,050.
31 Owner maid an additional investment to the company amounting
$70,000.
Suggested Chart of Accounts:
Cash / Accounts Receivable / Prepaid Insurance / Equipment / Office Supplies /

Accounts Payable / I. Dela Cruz, Capital / I. Dela Cruz, Drawings / Professional Fees
Earned / Wages Expense / Rent Expense / Utilities Expense / Advertising Expense /

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13. PALOR Company
The following are the transaction of M. Dela Cruz Company for the year ended June
30, 2016.
1. M. Dela Cruz invested cash of 520,000 and land of 1,195,000 and

equipment amounting to 200,000.
2. Paid for advertising expense worth 50,000.
3. Purchased office supplies by cash, 15,000.
4. Purchased machineries costing 100,000. Paid 50% and promised to pay the
balance after 20 days.
5. Purchased some machinery worth 120,000 on account.
6. Rendered services to clients worth 200,000 on account.
7. Made a 50% payment on the balance owed #5.
8. Rendered 500,000 worth of services and collected cash.
9. Rendered 100,000 worth of services on account.
10. Borrowed a loan amounting to 5,000,000 with a 12% interest annually.
11. Withdrew cash for personal use, 15,000.
12. Paid for the salaries of staff, 175,000.
13. Rendered services and collected cash 110,000.
14. Purchased office supplies on account worth 10,000.
15. Paid 50% of interest from the loan made during #10.
16. Paid the rent expense, 20,000.
17. Rendered services to clients worth 150,000 and collected cash.
18. Paid the water and electricity bills, 15,000.
19. Paid the telephone bill worth 5,000.
20. Paid the account because of the existing 50% balance for the interest in
transaction #10.
Suggested accounts:
Cash; Land; Equipment; M. Dela Cruz, Capital; Advertising Expense; Office

Supplies; Accounts Receivable; Accounts Payable; Service Fee; Bank Loan; M. Dela
Cruz, Drawing; Salaries Expense; Interest Expense; Rent Expense; Utilities
Expense; Telephone Expense.

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14. AGANA - Business Solution Company
On October 1, 2012, Ms. Kendall Nicole Jenner opened business Solution Company
that provides consulting services, computer system installation and custom program
development. The following are the business transactions for the month of October.
1- Ms. Jenner, invested P45,000 cash, a P20,000 computer system and a P80,000 of
office equipment
2- Paid business permits and licenses, P5,000
3- Purchased P1,420 of computer services on credit from Office Warehouse.
5- Invested additional cash, P30,000 and office equipment, P10,000
6- Billed easy internet P4,800 for services performed in installing a new Web
services.
8- Paid in full for the computer supplies purchased from Office Warehouse
10- Hired Austin Richard as a Part-time assistant for P250 per-day starting
immediately
12- Billed fast internet Shop P3,400 for services performed
15- Received cash from easy internet as a 50% partial payment due on it's account
15 - Rendered various computer services on account, P15,000
17- Paid P1,500 cash to repair the damage on the computer equipment when it was
relocated
20- Paid P1,750 cash for advertisement brochures ordered
22- Received cash from easy internet to apply on the balance on account
25 - Purchased additional computer system worth P20,000 with 20% down payment
and the balance on account
27 - Computer services for the week amounted to P30,000.
28- Billed IMC Company P5,200 for services performed. A 50% down payment was
received
29 - Collected P1,300 of Fast Internet's account.
30- Paid electric bill to MERALCO, P5,000

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31- Paid Austin Richard wages for work done this month for 20 days
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31- Ms. Jenner withdrew P3,000 cash from the company for personal use
Suggested transaction accounts;
Cash, Accounts receivable, Computer system, Equipment, Computer supplies,

Accounts Payable, Ms. Jenner, Capital, Ms. Jenner, Drawing, Service Income,
Permit and licenses expense, Utilities expense, Wages expense, Repair expense,
Advertising expense
15. MACEDA’s Gardening Services
In August of 2015, Jenny Elizalde started a company “Jen’s Gardening Services”.

The following are the transactions of Jen’s Gardening Services for the year of 2015.
1. The owner invested the following into the business:

Cash 500,000
Building 4,000,000
Equipment 500,000
2. Purchased supplies on account P50,000
3. Borrowed money from Percival Bank worth P600,000 and issued a
note.
4. Received cash P130,000 for the services rendered.
5. Rendered services to J. Alfonso worth P150,000 on account.
6. Ordered shop supplies from Vincent Hidalgo’s Co. P12,000
6. Purchased equipment worth P280,000. Terms: P80,000 cash, balance
payable in 4 equal installments.
7. Paid the liability owed on the purchased supplies.
8. Received the ordered shop supplies from Vincent Hidalgo’s Co. giving
a 15 day, 6% on a 360 day promissory note.
8 Collected P80,000 cash for the services rendered worth P280,000,
balance payable in 4 equal installments.
9 Owner withdrew P5,000 cash for personal use.
10 Invested shovel and rake in the business worth P100,000
25
11 Received bills worth P30,000 for utilities used.

12 Purchased furniture and fixtures from Jaemin’s Co. worth P200,000
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cash
13 Collected payment from J.Alfonso
14 Interviewed a security guard for the shop.
15 Rendered services to E. Saniel worth P70,000 and received a note.
16 Paid salaries of employees worth P40,000
17 Collected half of the amount owed to E. Saniel
18 P10,000 worth of supplies has been used up.
19 Paid for the advertising flyers and tarpaulin worth P20,000
20 Collected the first installment due in transaction dated August 8.
21 Hired a security guard with a minimum wage of P450.
22 Settled the promissory note on transaction dated August 8.
24 Took worth P5,000 of shovel in the business.
25 Paid the light and water bill P3,500.
Suggested chart of accounts:
Cash; Accounts receivable; Notes receivable; Supplies; Building;

Equipment; Furniture and Fixtures; Accounts payable; Notes payable;
Bank Loan; Utilities payable; J. Elizalde, Capital; J. Elizalde
Personal; Service fee; Advertising expense; Supplies expense; Interest
expense; Wages expense; Utilities expense
16. ESTRADA Electrical Services
Michelle Ferrer, On February 1 opened a business. The following are the business
transactions for the month of February.
1. Michelle Ferrer transferred P50,000 cash from a personal savings account to

a checking account in the name of Michelle’s Electrical Services.
2. Rented on office space and paid P2000 cash from rent.
3. Purchased P14,000 of electrical equipment by paying P4,000 cash and
agreeing to pay the balance in 30 days.
5. Purchased office supplies by paying P1,200 cash.

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6. Completed electrical work for Euro Hotel and receive P3,000 cash and
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3,000 more to be collected in 30 days.
8. Purchased P8,000 of office equipment from Abe Hardware on credit.
9. Paid business permit and licenses, P5,000.
10. Hired a part-time assistant to help on weekends.
11. Michelle acquired office supplies to be use for the office paying P20,000
From Luster Marketing on account.
12. Paid Luster Marketing in full.
13. Electrical Services rendered to various clients for cash P35,000.
14. Michelle Ferrer paid bill from Meralco P4,500 for cash.
15. Completed electrical work on credit for P4,000. Atty. Jim promised to
pay within 30 days.
16. Paid assistant P1,500 for weekends work.
18. The company purchased P5,000 of electrical supllies and paid cash.
20. Paid P3,000 cash for office equipment purchased from Abe Hardware.
24. Billed Jo’s Apartelle, a client, on P6,000 electrical work completed.
Client paid 50% with the balance due in 30 days.
28. Receive P4,000 cash from Atty. Jim.
29. Paid assitants salary of P6000 cash for this month.
30. Paid P1,440 cash for this month’s utility bill.
31. Michelle withdrew P5,500 cash from the company for personal use.
Suggested accounts:
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Cash; Electronic Equipment; Notes Receivable; Michelle, Capital; Rent Expense;

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Accounts Payable; Office Supplies; Accounts Receivable; Service Fee; Office

Equipment ; Electrical Supplies; Salary Expense; Utility Expense; Permit and
Licenses; Michelle, Drawings
17. DATO-ON
Mr. Zachary went into a service business and opened an office on December 1, 2016.
During the month, he had the following transactions:
1 Invested P 750,000 in the business.
2 Paid business registration fees and licenses for P 5,000 cash.
3 Purchased office equipment on account for P 40,000.
4 Paid P 15,000 rental for the month of December.
4 Purchased supplies for P 6,000.
5 Paid P 40,000 cash for the purchased of office equipment on December 3.
6 Received cash for services rendered, P 40,000.
7 Rendered services on account, P 50,000.
8 Bought supplies worth P 10,000 on account.
10 Paid P 12,000 for the office secretary’s salary.
12 Collected cash on the services of December 7.
13 Paid cash for the transaction of December 8.
14 Rendered services for which a promissory note was received, P 30,000.
Interest to be received at maturity P 300.
15 Paid the P 3,000 for isolated services of employee.
17 Purchased supplies and issued a promissory note with principal of P 10,000.

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Interest to be paid at maturity P 100.

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19 Collected the notes and interest on December 14.
22 Paid cash for miscellaneous expenses, P 400.
24 Billed customer P 20,000 for services rendered.
27 Purchased additional equipment on credit, P 25,000.
29 Collected p 20,000 cash from transaction on December 24.
30 Paid water and electricity, P 15,000.
31 The owner withdrew P 22,000 cash for personal use.
Suggested Accounts:
Cash; Accounts Receivable; Notes Receivable; Interest Receivable; Supplies; Office

Equipment; Accounts Payable; Notes Payable; Mc Zachary, Capital; Mc Zachary,
Drawings; Service Income; Interest Income; Rent Expense; Salaries Expense; Taxes
and Licenses Expense; Utilities Expense; Miscellaneous Expense
18. IMACULATA Travel Services
KG Travel Services, owned by Krishia Gonzales, engaged in the following

transactions for the month of April, 20CY.
1- Ms. Gonzales invested cash of P 100,000 and furniture of P 22,500.
3- Signed a contract of lease with Robinson’s Realty and made a cash deposit for
the rent of that business, P 30,000.
5- Paid P 5,000 for business brochures and calling cards.
6- Bought office equipment on account, P 12,500.
7- Bought office supplies and paid cash of P 1,500.

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8- The owner made an additional investment in that business, P 50,000.

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10- Collected P 3,000 from Mr. and Mrs. Ocampo for the processing of their travel
papers.
11- Paid P 1,200 for passport and other document fees.
12- Arranged a Palawan trip for Mr. and Mrs. Ocampo. Collected a commission of P
5,000 in cash from the airline and hotel.
13- Signed an agreement with Golden Talent Agency for the processing of travel
papers of their talents.
14- Billed DLSU professors P 15,000 for the processing of their travel papers.
15- Arranged a pilgrim trip for the DLSU professors. Billed Philippine Airlines P
10,000 as commission.
16- Paid for the salaries of employees, P 12,500.
18- Paid P 1,500 as transportation expenses for the processing of papers to and from
DFA, National Census and the airline companies.
19- Ms. Gonzales withdrew P 1,500 for personal use.
20- Paid for passports and other document fees, P 7,500.
24- Collected P 5,000 from Philippine Airlines.
27- Billed Golden Talent Agency for processing of papers, P 10,000.
30- Paid P 3,000 to PLDT and P 4,500 to Meralco.
30- Paid P 12,500 for salaries.
Suggested accounts:
Cash; Accounts Receivable; Office Supplies; Office Equipment; Furniture &

Fixtures; Accounts Payable; K. Gonzales, Capital; K. Gonzales, Drawing; Service
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Income; Commission Fees; Rent Expense; Salaries Expense; Passport Expense;

Utilities Expense; Advertising Expense; Transportation Expense
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19. SAN MIGUEL – Lodge Design
On July 1, 2010, Marichie Jandoc established an interior decorating business Lodge

Designs. During the month, Marichie completed the following transaction related to
the business during July
1 Marichie transferred cash from a personal bank account to an account to be used

for the business. $ 15, 000
2 Paid rent for period of July 2 to end of the month, $ 2,350
3 Paid assistant P480 for weekends work.
4 Hired a part-time assistant to help on weekends.
6 Purchased office equipment on account, $10, 000
8 Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable
for the remainder
10 Purchased supplies for cash, $1,200
12 Received cash for job completed, $8,500
15 Paid annual premiums on property and casualty insurance, $ 1,800
16 Billed customer for service performed, $2,500
17 Received cash from Juan Karlos, a client, for various service rendered P54,200.
18 Bought office tables and chairs for cash, $ 12000
19 Recorded jobs completed on account and sent invoices to customers, $6,000
21 Received an invoice for truck expenses, to be paid in April, $1,000
24 Paid utilities expense, $ 1,100
25 Paid miscellaneous expenses, $500
27 Received cash from customer on account, $3,500

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28 Paid wages of employees, $3,000

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29 Paid creditor a portion of the amount owed for equipment purchased on July 6,
$2,500
30 Owner’s withdrew cash for personal use, $1,750
31 Purchased land for use as a parking lot, paying cash of P30,000.
Cash, Accounts Receivable, Supplies, Prepaid Insurance, Land, Equipment, Office

Furniture and fixtures, Truck, Accounts Payable, Notes payable, Marichie Jandoc,
Capital, Marichie Jandoc, Drawing, Fees Earned, Wages Expense, Rent expense,
Utilities Expense, Truck Expense, Miscellaneous Expense
20. PERALTA
Jaimie Justalero began a professional practice on January 1 and plans to

prepare financial statements at the end of each month. During January, Justalero
(the owner) completed the following transactions:
1. Jaimie Justalero invested Ph50,000 cash along with equipment that had a
Ph10,000 market value.
2. Paid Ph1,600 cash for rent of office space for the month.
3. Purchased Ph12,000 additional equipment on credit.
4. Completed work for a client and immediately collected the Ph2,000 cash
earned.
5. Completed work for a client and sent a bill for Ph7,000 to be paid within
30 days.
6. Purchased additional equipment for Ph8,000 cash.
7. Paid an assistant Ph2,400 cash as wages for the month.
8. Collected Ph5,000 cash on the amount owed by the client described in
transaction 5.
9. Paid Ph12,000 cash to settle the liability created in transaction 3.
10. Jaimie Justalero withdrew Ph500 cash for personal use.
11. The Ph16,000 worth of supplies were delivered on account.
12. Purchased furniture costing Ph1,200 using cash.
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13. Issued a promissory note for a Ph100,000 from Ally Bank. The note carries a
12% interest per annum. The interest and the principal are payable after one
year.
14. Bought supplies for Ph3,500 cash.
15. Hired a part-time student helper with Ph1,300 monthly salary.
16. Paid Ph8,000 as partial payment for the supplies in transaction 11.
17. Completed work on credit for Ph6,000.
18. Paid electricity bill Ph4,000 for the month.
19. Paid helper’s salary for the month, Ph1,300.
20. Jaimie Justalero made a personal withdrawal of Ph1,000.
Cash; Accounts Receivable; Notes Receivable; Supplies; Equipment; Furniture and

Fixtures; Accounts Payable; Notes Payable; J. J, Capital; J. J, Personal; Professional
Fees Earned; Rent Expense; Utility Expense; Salaries and Wages Expense.
21. TORRES
Princess Lim started an interior decorating business, The Little Designs. During
September, Princess completed the following transactions related to the business.
1. Princess Lim, the owner invested, Ph3,000 in the business.
2. Paid taxes and licenses, Ph60
2. Purchased office supplies for cash, Ph50
3. Purchased office equipment on credit, Ph2,500
4. Earned revenue by rendering services for a customer for cash, Ph200
6. Paid for the office equipment purchased in September 3.

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8. Earned revenue by rendering services for a customer on credit, Ph750

Page
9. Purchased office supplies on account, Ph36

12. Princess Lim withdrew for personal purposes, Ph100
13. Collected Ph250 of the amount owed by the customer of transaction on

September 8
15. Paid half of purchased office supplies on September, 9.
17. Received cash for decorating jobs completed, Ph450
18. Paid rent in advance for three months, Ph300
20. Hired worker with salary of, Ph50
21. Paid the remaining balance of purchased supplies.
22. Earned revenue by rendering service on customer on account, Ph790
23. Bought furniture for on account, Ph500
24. Paid the monthly utility bills, Ph25
25. Princess made an additional investment for the business, Ph2000
26. Earned revenue for decorating services on account, Ph150
27. Paid Ph150 for the bought furniture on September 23.
28. Acquired office equipment on account, Ph380
29. Paid the hired worker.
30. Paid Ph90 on acquired office equipment on September 28.
30. Paid miscellaneous expenses, Ph10
Suggested Chart of Accounts: Cash, Accounts Receivable, Office Supplies,

Prepaid Rent, Furnitureand Fixtures, Office Equipment, Accounts Payable, Lim,
Capital, Lim, Drawing, Service Revenue, Salaries Expense, Taxes And Licenses
Expense, Utilities Expense, Miscellaneous Expense

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22. The BULANADI Co.
E. Manalo started The Manalo Co., a business that began operation on May 1, the
following transactions was completed during the first month.
1 E. Manalo invested $500000 cash in the business.
1 Rented a furnished office and paid $3000 cash for May’s rent.
2 Purchased office equipment on account, $4000.
4 Provided consulting service for cash, $700.
7 Purchased office supplies in cash, $300.
9 Provided $950 of consulting service on account.
12 Paid half of the office equipment purchased on May 2.
14 Purchased a car for business use, $200000.
15 Paid $1500 for an assistant’s salary for the first half of the month.
17 Paid advertising for the month of May, $300.
20 Received $950 cash for payment for the service provided on May 9.
20 Provided $1200 of consulting service on account.
21 Provided $1500 consulting service on account.
23 Purchased office supplies on account, $400.
25 E. Manalo withdraw $50000 for personal use.
26 Paid the office supplies purchased on May 23.
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28 Paid the electricity bill, $800.

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29 Paid the telephone bill, $1000.
30 Paid $1500 for an assistant’s salary for the first half of the month.
Suggested transaction account:
Cash; Accounts Receivable; Office Equipment; Office Supplies; Accounts payable; E.

Manalo, Capital; E. Manalo, Drawing; Consulting Service Fee; Rent Expense;
Utilities Expense; Advertising Expense; Salaries Expense
23. GONZAGA Law Practice
Carl Obenza began a new law practice and completed these transactions during
March of the current year: March 1 Transferred $5000 of his saving account to
checking account opened in the name of law practice Carl Obenza, Attorney.
1 Rented the furnished office of lawyer who was retiring and paid cash for
three months in advance, $1500.
1 Purchased the law library of the retiring lawyer for $3000 paying $1000 in
cash and agreeing to pay the balance in one year.
2 Purchased office supplies for cash, $50.
3 Paid ABS-GMA for promoting the business, $75.
8 Completed legal work for a client and immediately collected in $150 cash for
the work done.
9 Purchased law book on credit, $300.
14 Completed legal work for Guaranty bank on credit, $750.
18 Purchased office supplies on credit, $25.

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19 Paid for the law books purchased on March 9.

19 Interviewed a secretary.
20 Hired the secretary interviewed on March 19.
22 Completed legal work for Apex Reality on credit, $1000
23 Carl donated $1500 to Save the Children Charity.
24 Received $750 from Guaranty Bank for the work completed on March 14.
30 Paid the office secretary's salary, $950.
30 Paid monthly utility bills, $80.
30 Recognized that one month's rent on the office had expired and become an
expense (Reduce the prepaid rent and the owner's equity.)
30 Took an inventory of unused office supplies and determined that $25 of

supplies had been used and had become an expense.
30 Paid office supplies purchased on March 18.
Suggested Accounts: Cash; Accounts Receivable; Prepaid Rent; Office Supplies; Law
Library; Accounts Payable; Carl Obenza, Capital; Professional Fees Earned;
Advertising Expense; Utility Expense; Salaries Expense; Supplies Expense; Rent
Expense.
24. SALONGA
Joanna Payad, an architect, opened an office on November 1, 2010. During the

month she completed the following transactions connected with her professional
37
practice.
Page
1 Transferred cash from personal bank amount to an account to use for the
business, $50,000.
3 Paid rent for the office, $3,500.
4 Purchase used vehicle for $23,500, paying $6,000 cash and giving a note
payable for the remainder.
5 Paid salary for assistant, $2,000.
8 Purchase office computer on account, $6,000.
9 Paid cash for supplies $1,500.
11 Paid for miscellaneous expense $300.
15 Received cash from a client for plan delivered, $3,175.
16 Paid installment due on note payable $500.
17 Paid cash to creditors on account, $1,500
18 Record fees earned on plans delivered, payment to be received in December,

$2,150.
20 Purchase an architecture book on account $600.
21 Paid cash for annual insurance policies, $2,500.
23 Received invoice for blueprint service due in November 24, $700.
25 Paid repairs on automobile for this month, $310.
27 Collected cash from a client, $850.
28 Paid monthly electricity bill, $500.
29 Received an invoice for telephone bill, $350
30 Paid for the architecture book purchased on November 20.
30 Joanna withdrew cash for personal use, $3,500.
Suggested transaction account:

38
Cash, Accounts Receivable, Supplies, Prepaid Insurance, Vehicle, Architecture

Page
Book, Office Equipment, Accounts Payable, Notes Payable, Joanna Payad, Capital,
Joanna Payad, Withdrawal, Professional Fees, Rent Expense, Salaries Expense,
Automobile Expense, Blueprint Expense, Telephone & Telegram, Utility Expense,
25. DIPATUAN – PROFESSIONAL PRACTICE
Yanah Rivera began a professional practice on March 1 of the current year and
plans to prepare financial statements at the end of each month. During March,
Rivera completed the following transactions:
a. Invested $ 25,000 and equipment that had a $ 5,000 fair market (cash
equivalent) value.
b. Paid $800 rent for office space for the month.
c. Purchased $ 6,000 of additional equipment on credit.
d. Completed work for a client and immediately collected $1,000 cash.
e. Completed work for a client and sent a bill for $3,500 to be paid within 30
days.
f. Purchased $4,000 additional equipment for cash.
g. Paid an assistant $1,200 as wage for the month.
h. Collected $2,500 of amount owed by the client described in transaction.
i. Rendered service for cash $1,500.
j. Purchased $3,000 of additional equipment and issued promissory note.
k. Paid $800 rent for office space.
l. Completed work for a client and received $4,000 cash.
m. Additional investment of equipment $3,000.

39
n. Paid the issued note.

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o. Rendered service on account $1,500.
p. Collected $1,500 owed by the client in the past transaction.
q. Withdraw $10,000 cash for personal use.
r. Hired an assistant with $500 worth of salary.
s. Received $1,500 cash from a client.
t. Paid assistant $1,200 as wage.
26. ESPINO IHATAWMO STUDIO
Caca Sabar operates Caca Ihatawmo Studio. On November 1 of the current year,
her general ledger contained the following information:
Cash $ 12,600 Accounts Payable $ 450
Accounts Receivable 4,350 Notes Payable 3,000
Supplies on Hand 650 Caca, Capital 14,870
Prepaid Insurance 720
Total: $ 18,320 $ 18,320
The following transactions occurred in November:
2 Paid November rent for practice and performance studio, $825.
3 Paid the piano rental, $75.
6 Collected $2,450 from the students on account.
7 Hired a worker to maintain the studio, $300 a month.

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8 Bought speakers from Dada Appliances amounting $1,350, paying 50% and the
balance is promised to be paid within 15 days; with scrap value of $450 and 4
years of life.
10 Paid $1,000 installment on non-interest-bearing note owed to A. Jasmine.
11 Withdrew $200 worth of supplies for personal use.
15 Billed students for November instructional fees, $4,820.
16 Received $2,020 cash for dance choreography.
17 Paid the balance with a creditor, $450.
18 Purchased supplies (tickets, brochures, sheet music, and so on) on account,

$350.
20 Paid $180 for advertising ballet performance.
21 Paid costume rental, $325.
21 Paid the balance with Dada Appliances.
25 Collected $3,260 from performances.
27 Paid Tuwalyang Malinis Company for November services, $70.
28 Collected 25% from billed students on November 15.
30 Paid the compensation of the worker, $225.
30 Withdrew $700, $500 for personal expense the rest is for business expenses.
30 Paid utilities expense for November, $160.
30 Counted supplies on hand at November 30, $520 worth remained.
30 Determined that $120 insurance premiums had expired in November.
Suggested Accounts: Cash; Accounts Receivable; Notes Receivable; Supplies on

Hand; Prepaid Insurance; Speakers; Accounts Payable; Notes Payable; Caca,
Capital; Caca, Drawing; Service Fee; Studio Rent Expense; Rent Expense; Wages
41
Expense; Miscellaneous Expense

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27. BISDA COMPANY
M. Theresa Company begun on December 10, 2000, by Ms. Salvador. Transactions

for the first month of operations are listed below:
10 Ms. Salvador invested cash in the business, P3,000.
11 Paid taxes and licenses, P500.
12 Collected cash for services rendered to customers, P3,100.
13 Paid the rent for the first month of the office, P300.
14 Purchased office supplies, P140 from Marie Co, for cash.
15 Received P1,700 cash for the services provided.
16 Bought office supplies from Raven Enterprise on credit, P600.
17 Used P300 worth of supplies.
18 Paid P600 for salaries of janitors.
19 Borrowed cash from rural bank and signed a 30-day note, P800.
20 Paid miscellaneous expenses for cash, P300.
21 The business paid rural bank with interest, P810.
22 Paid salaries of clerks, P300.
23 Ms. Salvador invested another P70,000 cash and P30,000 furniture in the
business.
24 Acquired equipment from JC Merchandising paying 60% cash and the balance
on account. P6000.
25 Ms. Salvador withdrew furniture from the business, P500.
26 Rendered services to Mr. E. J. on account for P2,000.
27 Received a bill form Aqua Waters, P500.

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28 Purchased vehicle for cash, P4,000.

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29 Paid JC Merchandising in full.
30 Hired a secretary for a monthly pay of P15,000.
31 Paid the bill from Aqua Waters.
Chart of Accounts:
Cash; Accounts Receivable; Furniture and Fixtures; Office Supplies; Office

Equipment; Vehicle; Accounts Payable; Notes payable; MS, Capital; MS,
Drawing; Service Revenue; Rent Expense; Salaries and Wages Expense; Taxes
and Licenses; Utilities Expense; Supplies Expense; Interest Expense; and
Miscellaneous Expense.
28. PIDLAOAN SPANESS ALA MAMA VA
Tricia Vargas began operating Spaness Ala Mama Va on October 1, 2xJB.

Transactions for Spaness Ala Mama Va for the first month of operations appear
below:
1. Ms. Vargas invested $20,000 cash in the business.
2. Paid advertising expenses in cash $8,000.
3. Purchased supplies for $1,000 cash.
4. Purchased additional supplies from Fingor Spa Supplier for $900 promising
to pay for them after 30 days (Accounts Payable).
5. Paid $800 for employees’ salaries.
6. Spaness ala mama va borrowed $6,000 from Pabeeda Gurls.
7. Used $600 of supplies in running the business.
8. Paid Pabeeda Gurls Bank $35 for the first month’s interest (October). None
of the loan was repaid at this time.
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9. Ms. Vargas invested another $20,000 cash in the business.

10. Collected $10,000 in service revenue for the month.
11. Ms. Vargas withdrew $1,000 in cash for personal use.
12. Rendered a service to Mr. Jiang Chen and received $15,000 cash.
13. Paid the rent for the month $15,000.
14. Ms. Vargas invested an additional cash to the business $10,000.
15. Received cash from a customer $5,000 for the service that we rendered.
16. Purchased Aircondition for the Spaness Ala Mama Va for cash $10,000.
17. Ms. Vargas withdrew cash for personal expenses $10,000.
18. Purchased Bubble bath soap supplies on account $5,000.
19. Collected cash from Mr. Bieber for the service we rendered, $500
20. Paid the electric bill $5,000.
Suggested Accounts:
Cash; Supplies; Equipment; Accounts Payable; Notes Payable; Vargas, Capital;

Vargas, Drawing; Service Revenue; Rent Expense; Utility Expense; Advertising
Expense; Salaries Expense; Interest Expense.
29. BERTES CONSULTING
Nikki Villajin opened a consulting firm and completed these transactions during
January 20CY:
1 Nikki invested $40,000 cash and office equipment with $15,000 fair value in a
business called Villajin Consulting.
2 Purchased land and a small office building. The land was worth $15,000 and
the building was worth $85,000. The purchase price was paid with $20,000 cash and
44
a long-term note payable for $80,000.

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3 Purchased $1,200 of office supplies on credit.
4 Nikki Villajin transferred title of an automobile to the business. The car was
worth $9,000.
5 Purchased $3,000 of additional office equipment on credit.
6 Paid $750 salary to an assistant
7 Provided services to a client and collected $3,000 cash.
8 Paid $400 for the month`s utilities.
9 Paid account payable created in Jan. 3.
10 Purchased $10,000 of new equipment by paying $9,300 cash and trading in

old equipment with a recorded cost of $700.
11 Completed $7,600 of services for a client. This amount is to be paid within 30

days.
12 Paid $750 salary to an assistant.
13 Received $1,900 payment on the receivable created in January 11.
14 Nikki withdrew $2,000 cash from the business.
15 A client issues a note for services rendered $1,200
16 Paid rent for the month $700
17 Bought Office Supplies on account $1,000
18 Completed $2,000 Services for a client on account
19 Received $5,000 from Isa De Guzman a client for services rendered
20 Paid Miscellaneous Expenses $500
Suggested Accounts: Cash; Accounts Receivable; Notes Receivable; Office

Supplies; Office Equipment; Automobiles; Building; Land; Accounts Payable; Notes
Payable, Villajin Capital; Villajin Withdrawals; Fees Earned; Rent Expense;
Salaries Expense; Utilities Expense; and; Miscellaneous Expense.
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30. QUINTO - ELECTRICAL CONTRACTOR
Chris Brylden, electrical contractor, began business on February 1, 20x1. At the end
of the month there was an unrecorded purchase of supplies on cash $350 and
unrecorded investment of chris in the business, $540.
The following transactions occurred during February:
1. Chris invested $30,000 of his personal funds in the business.
2. Purchased equipment on account, $3,800.
3. Paid premium for a one-year liability insurance policy, $960.
4. Purchased supplies on account, $840.
5. Purchased a Truck for $12,500. Chris paid $5,000 and gave a notes payable
for the balance.
6. Paid rent for the month of February, $720.
7. Paid fuel bill for truck, $60.
8. Billed the customers for services rendered, $11,500.
9. Paid $2,000 on account for equipment purchased on transaction 2.
10. Paid utilities expense for February, $140.
11. Received invoice for February advertising expense, to be paid on March, $180.
12. Paid employees' wages, $2,850.
13. Collected $4,200 on accounts receivable.
14. Paid $450 cash for taxes and licenses for the business to operate.
15. Paid miscellaneous expenses, $450.
16. Recorded the insurance expired at February 28, $80.
17. Bought an equipment worth of $20,500 on credit.

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18. Chris made an additional investment in the business, $40,000.

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19. Received $4,500 check from a customer for the services rendered.
20. Paid the amount owed for the equipment bought on credit, transaction 17.
Chart Of Accounts:
Cash; Accounts Receivable; Prepaid Insurance; Supplies; Equipment; Truck;

Accounts Payable; Notes Payable; Taxes Payable; C.Villanueva, Capital;
C.Villanueva, Drawing; Service Revenue; Rent Expense; Wages Expense; Utilities
Expense; Truck Expense; Advertising Expense; Supplies Expense; Insurance
Expense; Miscellaneous Expense; Taxes and Licenses; Bad Debts Expense
47
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Mastering Accounting

26. ESPINO IHATAWMO STUDIO.................................................................................. 40

PROJECT REQUIREMENT to be submitted before MID-TERM Exam

1. Business Name Alteration, if you want.

Zyrielle owns an accounting and consultancy office. Record the following

3- Paid various permits & licenses to operate, P3,500

3- Billed Ms. Aubrey for the bookkeeping services, P29,000

3- Bought furniture and fixture for cash, P40,000;

4- Billed the clients for the following services rendered: bookkeeping,

5- Purchased office supplies on account, P3,000

7- Paid the rent for the month, P6,000

9- Received cash from walk-in clients for services provided, P5,000

10- Billed the consultancy services provided to Davao Partner’s Bank,

12- Paid P1,500 on account for office supplies purchased on March 5

15- Paid the salaries of the employee, P8,000

16- Collected the billing made for Ms. Aubrey

19- Paid miscellaneous expense for the month, P2,000

20- Collected 50% of the March 10 billing

25- Received payments for the installation of accounting system, P30,000

29- Zyrielle made an additional investment in the business, P50,000

30- Settled in full the billing on March 10

Cash/ Accounts Receivable/ Office Supplies/ Office Equipment/ Furniture

Comments/Suggestions? – That’s part of your report.

Jennelyn Alabastro owns an accounting and consultancy office. Record the

May 1 – Jennelyn Alabastro, a certified public accountant, opens her accounting

2 – Provide₱3,000, of consultancy service for a client on credit.

3 – Bought the following for cash: furniture and fixture,₱40,000; office

4 – Billed the clients for the following service rendered: bookkeeping,₱5,000;

5 – Received cash from client on account,₱2,000.

6 – purchased ₱1,000 furniture and fixture on credit.

7 – Paid the rent for the month,₱6,000.

9 – Received cash from walk-in client for service provided,₱5,000.

10 – Provide consultancy service for a client and immediately collected

12 – Purchase ₱10,000 of office equipment on credit.

15 – Paid salaries of the staff,₱8,000.

16 – Collected in full the billing made on May 4.

18 –Paid ₱2,000 cash for this month telephone bill.

20 – Billed the consultancy services provided to Davao Partner’s Bank

23 –Paid ₱3,000 cash for this month utilities.

25 –Received payment for the installation of accounting system,₱30,000.

28 –Ms. Jennelyn Alabastro made a cash withdrawal of ₱1,200.

30 – Collected 50% of the May 20 billing.

Suggested transaction accounts;

Cash / Accounts Receivable / Office Supplies/Furniture and Fixtures/ Accounts

Comments/Suggestions? – That’s part of your report.

This is the transaction of Reigne Delivery Service of Reigne Asuncion on June.

Assets Owner’s Equity

101 Cash 301 A, Capital

102 Accounts Receivable 302 A, Withdrawals

103 Office Supplies Revenue

104 Office Equipment 401 Delivery Fees

105 Delivery Van

201 Accounts Payable 501 Rent Expense

202 Loan Payable 502 Wages Expense

203 Notes Payable 502 Utilities Expense

3 Purchased office supplies for ₱3,750.

5 Purchased ₱27,500 of office equipment on credit.

6 Received ₱15,000 for services provided to overseas contract workers.

8 Settled the account for the purchased office equipment on June 5.

12 Paid the monthly rent for ₱15,000.

13 Collected ₱25,000 for the accounts of the customers.

17 Issued a Note with 2% interest payable within 30 days to Hi Ace as settlement

19 Gave an invoice to a customer for rendered services, ₱15,000.

20 Made an additional investment to the company of ₱200,000