DE LA SALLE ARANETA UNIVERSITY

Senior High School

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT
Finalterm Performance Task – Bart M. Manuel, Architect

Transactions:
Feb. 01 Architect Bart M. Manuel acquired the assets listed below from Andres A. Vergara before the latter
left for Canada. Manuel paid Vergara the amount of P128,500. This amount came from the personal
savings of Manuel; it represents his original investment in the architectural firm. (It is equally
appropriate to prepare a compound entry for the original investment)
Furniture and fixture (drawing table and chair, other worktables and chairs, counter, cabinets, sofa,
etc.), P35,800
Office equipment (airbrush and compressor, computer with CADD and other design software,
electric fans, etc.), P75,000
Tools (scales, T-squares, curves, and other architectural gadgets), P10,000
Unused supplies (tracing paper, pens, pencils, cartridges, folders, binders, coloring materials, etc.),
P5,200
Telephone deposit (PLDT investment/deposit under the name of Andres A. Vergara, which he
endorsed to Manuel), P2,500
Feb. 01 Manuel opened a checking account with Metro Bank (Kalaw Hill Branch). He made a deposit of
P8,000. This deposit came from the personal savings of Manuel and is considered as his additional
investment. (Debit Cash in bank – Metro Bank account for this deposit.) Issued OR No. 0001 for this
cash investment of Manuel.
Feb. 01 Metro Bank gave Manuel two checkbooks containing checks 157201 to 157400. Manuel paid for the
cost of the checkbooks from his personal funds, P720. (Debit Bank service charges account.)
Feb. 01 Cost of bookkeeping supplies (columnar books, ledgers, etc.) paid by Manuel from his personal funds,
P210.75.
Feb. 01 Cost incurred in registering the business with the various government agencies, P3,200, paid by
Manuel from his personal funds. (Debit Accounting and legal expenses account.)
Feb. 01 Issued Check No. 157201 for P1,500, payable to Meralco, representing the refundable deposit for the
new electrical connection under the name of Bart M. Manuel, Architect.
Feb. 02 Issued Check No. 157202 for P4,015, payable to the Office of the Mayor, Quezon City, for the
required permits and licenses for the calendar year.
Feb. 02 Issued Check No. 157203 for P20,000, payable to Fame Realty, representing office rent for February
and March, as required in the 5-year lease contract.
Feb. 03 Manuel increased his investment by putting in additional cash of P10,000. This amount will be used
for payments that are not practical to pay by issuance of checks. (Debit Cash on hand account.) Issued
OR No. 0002.
Feb. 03 Professional services rendered to various customers, on credit, P15,700.
Feb. 05 Collected P10,000 from Myrna Grospe, a client. This is a partial payment for the professional services
in connection with the renovation of the kitchen of Grospe. Deposited the collection to Metrobank.
Issued OR No. 0003.
Feb. 06 Bought additional office supplies from Corona Supplies, P5,250. Term: n/20. (n/20 means that the
buyer is given 20 days from February 6 to settle the account with the seller.)
Feb. 07 Manuel transferred his personal automobile to the firm, to become a part of his investment. At the
time of the transfer, the automobile has a reliable appraised value of P210,000.
Feb. 08 Paid P650.20 from the cash on hand. This payment represents the gasoline consumption during the
week. (Debit Travel and transportation account.)
Feb. 09 Issued Check No. 157204 for P7,500, payable to Abba Insurance Company. This is for one-year TPL
insurance premium of the automobile. Insurance coverage is from February 10, 2019 until February
9, 2020.
Feb. 10 Collected additional professional fees due from Myrna Grospe, P15,000. Manuel deposited the
collection to Metro Bank. Issued OR No. 0004.
Feb. 10 Issued Check No. 157205 for P2,000, payable to Acropolis Gasoline Station, for the tune-up and other
minor repairs and maintenance jobs on the automobile.
Feb. 12 Issued Check No. 157206 for P15,000, payable to Nick Mallari, a contractor, for the cost of improving
the leased office space.
Feb. 13 Cost of snacks served during a conference with a client, P510.50. This expense was paid from the
cash on hand.
Feb. 14 Received a statement of account from Printer's Art for ordered stationery business cards, and other
office supplies, P2,820. Term: n/30.
Feb. 15 Paid from the cash on hand the salary of the part-time office clerk, Lourdes Aquino, P3,500.
Feb. 15 Paid from the cash on hand the amount of P540.60. This payment represents the gasoline consumption
during the week.
Feb. 16 Cost of snacks served during a conference with a client, P625.50. This expense was paid from the
cash on hand.
Feb. 16 Issued Check No. 157207 for the personal expenses of Bart M. Manuel, P8,000.
Feb. 17 Issued Check No. 157208 for P1,150.75 payable to Meralco, in payment for the electrical
consumption until Feb. 14.
Feb. 17 Bought additional office supplies from Corona Supplies, P4,210. Term: n/20
Feb. 17 Billed Estella Flores for professional services rendered, P25,000. Term: n/30
Feb. 19 Bought a modem, external hard drive, and other computer accessories from ProData Corporation,
P9,500. Term: n/20 (Debit Office equipment account.)
Feb. 20 Paid from the cash on hand the amount of P778.50, representing the cost of various office supplies.
Feb. 20 Withdrew P3,000 from Metro Bank. Issued Check No. 157209.
Feb. 21 Paid from the cash on hand the amount of P850, representing gasoline consumption during the week.
Feb. 21 Issued Check No. 157210 for P4,500, payable to Atty. Amado Malvar, a lawyer, for legal services he
rendered in relation to the transfer of the assets from Vergara.
Feb. 21 Acquired shares of stock of Petron for speculation purposes. Issued check No. 157211 for P22,000,
the acquisition cost of this investment.
Feb. 22 Cost of snacks served during a conference with a client, P685.50. This expense was paid from the
cash on hand.
Feb. 23 Collected P10,000 for various professional services rendered to clients. These collections were
deposited to Metro Bank. Issued OR No. 0005 to 0008.
Feb. 24 Received a check for P25,000, from Enterprise Capital Bank, for professional services rendered in
redesigning the interior of its new branch office in Taguig City. This collection was deposited to
Metro Bank. Issued OR No. 0009.
Feb. 26 Issued Check No. 157212, payable to Corona Supplies, to settle the purchase on Feb. 06.
Feb. 26 Issued Check No. 157213 for P5,000, payable to Engineer Lambert Valerio, for engineering and
structural consultancy services he rendered in connection with one of the projects.
Feb. 27 Collected cash of P5,000 for professional services rendered to a client. Issued OR No. 0010.
Feb. 27 Issued Check No. 157214 for P725.30, as payment for the PLDT bill covering Feb. 1 to 18.
Feb. 27 Cost of snacks served during a conference with a potential client, P250.50. This expense was paid
from the cash on hand.
Feb. 27 Paid from the cash on hand the amount of P650.00, representing gasoline consumption during the
week.
Feb. 27 Paid ProData Corporation for the full obligation. Issued Check No. 157215.
Feb. 27 Issued Check No. 157216 representing personal withdrawal of Manuel, P12,000.
Feb. 27 Sold Petron shares for P23,500. Deposited the proceeds of the sale to Metro Bank. Issued OR No.
0011.
Feb. 28 Issued Check No. 157217 in payment for the salary of Lourdes Aquino, a part-time office clerk,
P4,500
Feb. 28 Issued Check No. 157218 for P20,000, salary of Marlon Cabrera and Venancio Castro, draftsmen, for
services rendered to the on-going renovation projects
Feb. 28 Miscellaneous expenses paid from the cash on hand, P377.75.
Feb. 28 Bought the following from Modern Designs, term: on account:
Conference table, with chairs, P16,000
Computer table, P2,800
Feb. 28 Bought a brand new computer printer from ProData Corporation. The list price of the printer is
P13,500. However, ProData agreed to final purchase price of P12,000. Issued Check No. 157219 for
the balance due
Feb. 28 Armando Vargas, a new client, made an advance payment of P10,000. This is a renovation job that is
scheduled to begin at the end of March. Deposited this collection to Metro Bank. Issued OR No. 0012.

Details for Adjustments:

1. (5 Adjusting Entries, a to e) Depreciations of fixed assets are computed with the use of straight-line method.
The estimated useful lives of the fixed assets are as follows:
• Furniture and fixtures, 5 years
• Office equipment, 4 years
• Automobile, 6 years
• Leasehold improvements, 5 years
• Tools, 2 years
Because of the rapid change in technology, ignore the residual values of the fixed assets.
For the purpose of computing for the depreciation, the business decided to adopt the following policy:
Fixed assets acquired in the first half of the month (Feb. 01 to 14) are depreciated for a full month
while the fixed assets acquired in the second half of the month are depreciated beginning the following month.

2. (4 Adjusting Entries, f to i) Expenses already paid for but not yet incurred are the following:
• Rent, the portion pertaining to March.
• Insurance, pertaining to 11 1/3 months.
• Permits and licenses, pertaining to the months of March to December 2019 (10/11)
• Unused supplies, approximately 50% of the balance per ledger.
3. (5 Adjusting Entries, j to n) Expenses already incurred but not yet paid foe are the following:
• Electricity, approximately P1,200.
• Telephone, approximately P280.
• Consultancy fees due to an affiliated engineer, P8,000.
• Bookkeeping fee for February, P1,500.
• Maintenance and repairs, P2,000.

4. (1 Adjusting Entry, o) Income already earned but not yet billed are the following:
• Project 5 – Contract price, P30,000, 1/6 earned
• Project 6 – Contract price, P20,000, 1/4 earned
• Project 7 – Contract price, P24,000, 1/3 earned
Debit Professional fees receivable – others account

5. (1 Adjusting Entry, p) Professional fees collected in advance from Armando Vargas.

6. (1 Adjusting Entry, q) About 25% of the unadjusted balance of the professional fees receivable – others is
doubtful of collection