On December 1, 2009 Ramil Sarabia opened a videotape rental store, Kalibo Video, by investing

250,000 cash from his personal savings account. During the month of December, the following
transactions took place:
Dec.

1, Acquired supplies on account 67,000.

4, Acquired Videotapes costing 235,000 on account.
5, Paid 85,000 to creditors.
8, Received 78,000 cash from ACA Video for rental fees.
11, Billed Video city for video rentals, 105,000.
16, Paid salaries 67,000.
17, Collected 77,000 from video city
23, Sarabia withdrew 47,000 from the business
24, Paid rent for the month 41,500
30, Paid utilities for the month, 17,500.

DOUBLE-ENTRY BOOKKEEPING

Cash

Account
Receivable

Supplies

Videotapes

Accounts
Payable

250,000

250,000
67,000
67,000

250,000
250,000
-85,000
165,000
165,000
105,000
270,000
65,000
205,000
77,000
282,000
47,000
235,000
41,500
193,500
17,500
179,000

Capital

78,000
78,000

67,000

235,000
235,000

67,000

235,000

67,000

235,000

67,000
67,000
235,000
302,000
85,000
217,000
217,000

78,000

67,000

235,000

217,000

78,000

67,000

235,000

217,000

78,000

67,000

235,000

217,000

78,000

67,000

235,000

217,000

78,000

67,000

235,000

217,000

78,000

67,000

235,000

217,000

Total Asset: 556,000

250,000
250,000
250,000
78,000
328,000
105,000
433,000
65,000
368,000
77,000
445,000
47,000
398,000
41,500
356,500
17,500
339,000

DEBIT AND CREDIT

Name of Accounts
A. Cash
Sarabias Capital
B. Supplies
Accounts Payable
C. Video tapes
Accounts Payable
D. Payment
Cash
E. Account Receivable
Sarabias Capital
F. Cash
Sarabias Capital
G. Sarabias Capital
Salary Payable
H. Cash
Sarabias Capital
I. Withdrawal
Cash
J. Rent
Cash
K. Utilities
Cash

Debit (effect)
250,000 (increase in asset)

Credit (effect)
250,000(increase in capital)

67,000(increase in asset)
67,000(increase in liabilities)
235,000(increase in asset)
235,000(increase in liabilities)
85,000(decrease in liabilities)
85,000(decrease in asset)
78,000(increase in asset)
78,000(increase in capital)
105,000(increase in asset)
105,000(increase in capital)
65,000(decrease in capital)
65,000(decrease in asset)
77,000(increase in asset)
77,000(increase in capital)
47,000(increase in withdrawal)
47,000(decrease in asset)
41,500(increase in expenses)
41,500(decrease in asset)
17,500(increase in expenses)
17,500(decrease in asset)

JOURNAL

Date 2009

Name of the Accounts and Explanation

A. December 1

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

11

16

17

23

24

30

Cash
Sarabias Capital
To record investment

Debit
(effect)
250,000

Credit
(effect)
250,000

Supplies
Accounts Payable
To record an account

67,000

Video Tapes
Accounts Payable
To record an account

235,000

Payment
Cash
To record a payment
Account Receivable
Sarabias Capital
To record the account received

85,000

Cash
Sarabias Capital
To record the money
Sarabias Capital
Salary Payable
To record the salary of employee

105,000

Cash
Sarabias Capital
To record the collections
Withdrawal
Cash
To record the withdrawal
Rent
Cash
To record the expenses

77,000

Utilities
Cash
To record the expenses

17,500

67,000

235,000

85,000
78,000
78,000

105,000
65,000
65,000

77,000
47,000
47,000
41,500
41,500

17,500

LEDGER

Date 2009
Dec.
1
11
17

Particulars

CASH
Debit
Date 2009
250,000
Dec.
5
105,000
23
77,000
24
30
= 432,000

Particulars

Debit Balance
432,000

Credit
85,000
47,000
41,500
14,500
= 191,000
241,000
= 432,000

Date 2009
Dec. 1

Particulars

SUPPLIES
Debit
Date 2009
67,000

Date 2009
Dec. 4

Particulars

VIDEO TAPES
Debit
Date 2009
235,000

Particulars

Credit

Date 2009
Dec. 8

Particulars

ACCOUNT RECEIVABLE
Debit
Date 2009
78,000

Particulars

Credit

Date 2009
Dec. 23

Particulars

WITHDRAWAL
Debit
Date 2009
47,000

Particulars

Credit

Date 2009
Dec. 5

Particulars

Credit Balance

ACCOUNTS PAYABLE
Debit
Date 2009
85,000
Dec. 1
4
= 85,000
217,000
= 302,000

Particulars

Credit

Particulars

Credit
67,000
235,000
= 302,000

Date 2009

Particulars

Date 2009
Dec. 16

Particulars

Credit Balance

SALARY PAYABLE
Debit
Date 2009
Dec. 16

SARABIAS CAPITAL
Debit
Date 2009
65,000
Dec. 1
8
11
17
= 65,000
445,000
= 510,000

Particulars

Credit
65,000

Particulars

Credit
250,000
78,000
105,000
77,000
= 510,000
510,000

Date 2009
Dec. 24

Particulars

RENT EXPENSE
Debit
Date 2009
41,500

Particulars

Credit

Date 2009
Dec. 30

Particulars

UTILITIES EXPENSE
Debit
Date 2009
17,500

Particulars

Credit

TRIAL BALANCE

Name of Accounts
Cash
Supplies
Video tapes
Account Receivable
Accounts Payable
Withdrawal
Salary Payable
Sarabias Capital
Rent
Utilities
Total

SARABIAS RENTAL STORE

TRIAL BALANCE
31 DECEMBER 2009
Debit
241,000
67,000
235,000
78,000

Credit

217,000
47,000
65,000
445,000
41,500
17,500
727,000

727,000

INCOME STATEMENT

SARABIAS RENTAL STORE

INCOME STATEMENT
31 DECEMBER 2009
Revenue
Service and Fees
Collection
Other Income
Total Revenue:
Less Expense
Salary Expense
Rent Expense
Utilities Expense
Total Expense:
Net Income:

78,000
77,000
105,000
260,000
65,000
41,500
17,500
124,000
136,000