IIGAN CAPITOL COLLEGE

Mahayahay, Iligan City

FUNDAMENTALS OF ACCOUNTANCY, BUSINES, AND MANAGEMENT 1

NAME: ______________________________________________________________________ SCORE: _____________

GRADE & SECTION: _________________________
I. JOURNALIZING: M Santos Business transaction a sole proprietorship business and their corresponding journal
entries. Answer at the back of your paper.
Transaction #1:
April 23, 2019 M. Santos, invests Php250,000.00 to start an internet café business.
Transaction #2:
April 26, 2019 Santos purchase 5 sets of computer equipment on credit amounting to Php100,000.00
Transaction #3
April 27, 2019 Santos buys computer supplies for cash worth Php50,000.00
Transaction #4
May 16, 2019 Santos pay his taxes and licenses amounting to Php20,000.00
Transaction #5
June 3, 2019 Santos obtain a bank loan for business use and receives Php100,000.00
Transaction #6
June 25, 2019 Customers pay cash for internet rental amounted to Php5,000.00
Transaction #7
July 1, 2019 Customers render printing services on account amounted to Php4,000.00
Transaction #8
July 12, 2019 Santos paid in full the computer equipment he purchased on account (see transaction #2).
Transaction #9
July 30, 2019 Santos paid his monthly rental for the internet café shop space.
Transaction #10
August 1, 2019 Santos pays salaries and wages of his staff and employees, Php20,000.00
Transaction #11
August 13, 2019 Santos collects its accounts receivables amounted to Php4,000.00 from customers (see transaction #7).
Transaction #12
September 1, 2019 Supplies amounted to Php3,000.00 were used in business operation (see transaction #3).
Transaction #13
October 1, 2019 Santos withdraws Php25,000.00 cash for personal use.
Transaction #14
November 2, 2019 Santos invested additional cash capital amounting Php50,000.00

II. IDENTIFICATION
_____________________ 1. It is the obligation of the company payable in money, goods or services.
_____________________ 2. These are non-current tangible assets.
_____________________ 3. These assets are identifiable, non-monetary assets without physical substance.
_____________________ 4. It is the claim of the owner also known as the capital.
_____________________ 5. It is the most liquid assets and is the medium of exchange for business transactions.
_____________________ 6. It is an expense for leased office space, equipment or assets rented from others.
_____________________ 7. Examples of this are cash, account receivable and prepaid expenses.
_____________________ 8. It is a written promise from the customer to pay his receivables on a certain future date.
Transaction #1:
M. Santos, invests P250,000 to start an internet café business.
Journal entry #1:
Cash P250,000
M. Santos, capital P250,000
To record M. Santos initial capital.
Transaction #2:
Santos purchase 5 sets of computer equipment on credit amounting to P100,000.
Journal entry #2:
Computer equipment P100,000
Accounts payable P100,000
To record purchase of 5 sets of computer equipment on account worth P100,000
Transaction #3
Santos buys computer supplies for cash worth P50,000.
Journal entry #3:
Computer supplies P50,000
Cash P50,000
To record purchase of computer supplies on cash worth P50,000
Transaction #4
Santos pay his taxes and licenses amounting to P20,000.
Journal entry #4
Taxes and licenses P20,000
Cash P20,000
To record payment of taxes and licenses
Transaction #5
Santos obtain a bank loan for business use and receives P100,000.
Journal entry #5
Cash P100,000
Loans payable P100,000
To record bank loan received amounted to P100,000
Transaction #6
Customers pay cash for internet rental amounted to P5,000.
Journal entry #6
Cash P5,000
Internet service income P5,000
To record internet rental income received on cash
Transaction #7
Customers render printing services on account amounted to P4,000.
Journal entry #7
Accounts receivable P4,000
Printing service income P4,000
To record printing services income on customers account
Transaction #8
Santos paid in full the computer equipment he purchased on account (see transaction #2).
Journal entry #8
Accounts payable P100,000
Cash P100,000
To record full payment of computer equipment purchased on account
Transaction #9
Santos paid his monthly rental for the internet café shop space.
Journal entry #9
Rental expense P5,000
Cash P5,000
To record monthly rental expense paid
Transaction #10
Santos pays salaries and wages of his staff and employees, P20,000
Journal entry #10
Salaries and wages P20,000
Cash P20,000
To record salaries and wages of employees
Note: Journal entry #10 will become different when there are withholding taxes, SSS,
PHIC, HDMF and other employees benefits or deductions involved.
Transaction #11
Santos collects its accounts receivables amounted to P4,000 from customers (see
transaction #7).
Journal entry #11
Cash P4,000
Accounts receivable P4,000
To record collection of accounts receivable
Transaction #12
Supplies amounted to P3,000 were used in business operation (see transaction #3).
Journal entry #12
Computer Supplies expense P3,000
Computer supplies P3,000
To record used supplies
Transaction #13
Santos withdraws P25,000 cash for personal use.
Journal entry #13
Santos, drawing P25,000
Cash P25,000
To record cash drawn by Santos for his personal use
Transaction #14
Santos invested additional cash capital amounting P50,000.
Journal entry #14
Cash P50,000
Santos, Capital P50,000
To record additional cash capital invested to the business