Name:

Date:
PROBLEM 1

Queens Beauty Parlor was formed on June 1, of the current year by Johnny Bee.
The transactions for the first month of operations are listed below.
June 1

Johnny invested P120, 000 cash in his business

Paid the first months rent on the shop, P4, 500.

Purchased supplies for cash, P3, 800.

Purchased equipment on account, P17, 500.

Purchased furniture and fixtures for P24, 400, giving a down

payment of P4, 400 and a short-term note for the balance.

Renderered services to customer received cash, P3, 950.

10

Rendered services to customers on account, P8, 220.

13

Paid salaries of beauticians, P8, 900.

15

Paid one-half of the note issued on June 4.

17

The owner withdrew P2, 600 cash for his personal use.

19

Paid one-half of the note issued on June 6.

24

Paid mscellaneous expenses, P1, 120.

25

Rendered services to customers receiving cash, P4, 740.

30

Collected P4, 110 from customers on account

Instructions:
1. Record the transactions in the general journal that follows, and post to the
ledger using the following account titles: Cash (11); Accounts Recievables
(12); Supplies (13); Equipment (14); Furniture and fixtures (15); Accounts
Payable (21); Notes Payable (22); Johnny Bee, Capital(31); Johnny Bee,
Drawing(32); Service Sales (41); Salaries Expense(51); Rent Expenses
(52); Utilities Expense (53); and Miscellaneous Expense (59).
2. Prepare a trial balance.

PROBLEM 2
Jun Tandoc opened a real estate business and during a short period as an agent
completed these business transactions:
Jan. 1

Invested P750, 000 in cash and office equipment with a fair

value of P65, 000 in a real estate agency he called Reliable Agency.
2
Purchased land valued at P420, 000 and a small office building
valued at P1, 280,000, paying cash of P500, 000 cash and signing 5
notes payable for P240, 000 each due after every six months.
5
Purchased office supplies on credit, P2, 950.
6
Returned P570 worth of defective supplies purchased yesterday.
8
J. Tandoc contributed his personal automobile, which had a P150,
000 fair value, for exclusive use in the business.
13
Paid office salaries, P7, 350.
14
Sold a house and collected a P35, 000 commission on the sale.
19
Paid P2, 270 for newspaper adverstising.
20
Paid for the supplies purchased on credit on Jan.5.
21
Completed a real estate sale on credit and billed the client P32, 600
for the commission.
25
Paid the utility bills for the month, P3, 810.
27
Received payment in full for the commission on Jan.21.
29
J. Tandoc withrew P12, 500 from the business to pay personal
expenses.
30
Paid office salry, P7, 350.

Instructions:
1. Record the transactions in the general journal that follows, and post to the
ledger using the following account titles: Cash (11); Accounts Recievables
(12); Office Supplies (13); Office Equipment (14); Automobile (15);
Building (16); Land (17); Accounts Payable (21); Notes Payable (22);
J.Tandoc, Capital(31); ); J.Tandoc, Drawing(32); Commission Earned
(41); Office Salaries Expense(51); Advertising Expense (52); and Utilities
Expense (53).
2. Post the journal entries to the ledger.
3. Prepare a trial balance.