CJG Business Solutions (Service)

CJG opened its consultancy company on June 1, 2017.
For the first month of operations, it had the following

transactions. The proprietor is Ms. Ginete.
1-Jun Invested P750,000 cash and hired three office staff.

Opened bank account with BDO account number 0123456789 for P200,000.
2-Jun Paid P30,000 for business permits and other licenses.
5-Jun Paid six months advanced rental for the office for P90,000 and P45,000 rent deposit.
Purchased furnitures for P40,000 cash.
Purchased office tables and airconditioning unit for P37,000 cash.
Purchased office supplies for P10,000
6-Jun Purchased computer units for P30,000 and printer for P12,000 with terms of 30 days.
Paid P10,000 for utility installation (50% electricity, 30% water, 10% phone and 10% internet).
7-Jun Provided consultancy services to Apple Company for P40,000 in cash.

Paid one year insurance premium for P12,000.
8-Jun Purchased service vehicle costing P250,000 issuing a 2-year promissory note @ 8% interest per annum.
Provided consultancy services to Bernardo Company for P20,000 cash and P30,000 balance to be paid on or before July 3, 2017.
9-Jun Purchased a motorcycle as service vehicle of the messenger for P60,000 cash.
Provided consultancy services to Charlie Company for P40,000 to be paid within 30 days.
Withraw P25,000 cash from BDO account.
12-Jun The driver incurred gasoline expenses worth P3,000.

Denis Company asked for consultancy service and paid P25,000 cash.
Provided consultancy services to Edward Company. Paid P40,000 cash as 50% partial payment.
The messenger advanced P1,500 for personal use to be paid in August 2017.
13-Jun Rendered accounting services to a Fatima Company for P50,000. Payable within 30 days.
Provided legal services to Gregorio Company worth P75,000. The customer issued a notes payable in three months with 10% interest per annum.
14-Jun Collected the amount due from Bernardo Company.

Purchased P5,000 worth of miscellaneous expenses paid in cash.
Rendered consultancy services to Heidi Company for P35,000 cash.
15-Jun One of the staff incurred P550 for transporation expense with regards to meeting the client.
Deposited P75,000 to BDO account.
Paid salaries of the three employees as follows:
Gross Salary (P8,000 x 3) P24,000
SSS (P200 x 3) 600
PhilHealth (P100 x 3) 300
PAG-IBIG (P100 x 3) 300
WHT (P1000 x 3) 3,000
Net Pay (P6,600 x 3) P19,800
16-Jun Collected the balance from Charlie Company.

Bernardo Company paid P100,000 as advanced payment for services that will be rendered the following month.
19-Jun Rendered consultancy services for Denis Company worth P30,000, payable within 15 days.
Bought additional office supplies for P3,000 cash.
20-Jun Rendered accounting services to Apple Company for P40,000 payable on August 7.
Rendered legal services to Edward Company for P35,000 payable in July 31.
21-Jun Paid P5,000 for the representation expenses for meeting new client.
Owner invested additional P100,000 cash.
22-Jun Received telephone bill for P3,500 due within 30 days.

Received electricty bill for P5,000 due within 30 days.
Received water bill for P1,500 paid in cash.
23-Jun Received internet bill for P2,500 paid in cash.

Incurred P5,000 for the maintenance of the vehicles. Paid in cash.
26-Jun Rendered services to Charlie Company for P25,000 paid in cash.
27-Jun Paid advertising expense of P5,000 in cash.
28-Jun Bought miscellaneous items for P2,050 in cash.

Deposited P50,000 to BDO Account.
29-Jun Rendered services to Ignacio Company for P175,000. to be paid within 30 days.
30-Jun Paid salary to the staff for the period June 16-30 as follows:
Gross Salary (P8,000 x 3) P24,000
SSS (P200 x 3) 600
PhilHealth (P100 x 3) 300
PAG-IBIG (P100 x 3) 300
WHT (P1000 x 3) 3,000
Net Pay (P6,600 x 3) P19,800
Owner withdraws P25,000 cash.
Additional information:
1 On hand count of supplies at the end of the month revelead P4,250 worth of unused supplies.
Computation:
2 Compute depreciation expense for the following assets as of Aug 31:
Salvage Salvage Depreciation Per day Days Total
Purchase Date Asset Cost Value Life Cost Value Net Life per year (365 days) Used Depreciation
5-Jun Furnitures P40,000 NONE 4 years 40,000 NONE 40,000 4 10,000 27.40 26 712.40
5-Jun Office Tables P20,000 NONE 4 years 20,000 NONE 20,000 4 5,000 13.70 26 356.20 1,068.60
5-Jun Aircon P17,000 P2,000 2 years 17,000 2,000 15,000 2 7,500 20.55 26 534.30
6-Jun Computers P30,000 P2,000 3 years 30,000 2,000 28,000 3 9,333.33 25.57 25 639.25
6-Jun Printer P12,000 NONE 3 years 12,000 NONE 12,000 3 4,000 10.96 25 274.00 1,447.55
8-Jun Vehicle P250,000 P10,000 5 years 250,000 10,000 240,000 5 48,000 131.51 23 3,024.73
9-Jun Motor P60,000 P5,000 5 years 60,000 5,000 55,000 5 11,000 30.14 22 663.08 3,687.81
6,203.96 6,203.96
3 Compute interest expense on promissory note issued in June 8 for the purchase of service vehicle at 8% per annum, P250,000 2-year note.
4 Compute interest receivable issued by a customer in June 13 at 10% per annum, P75,000 three month note.
Company Name: CJG BUSINESS SOLUTIONS Page No. 0 1
GENERAL JOURNAL
DATE Account Title & Explanation PR DEBIT CREDIT
2017
June 1 Cash on Hand 100-01 75 0 0 00
Ms. Ginete, Capital 300 7 5 0 000
To record initial investment of the
owner to the business
1 Cash in Bank 100-02 20 0 0 00

Cash on Hand 100-01 2 0 0 000
To record opening of bank account.
2 Taxes and Licenses 500-02 3 0 0 00

Cash on Hand 100-01 3 0 000
To record payment for registration
and licenses.
5 Prepaid Rent 100-10 9 0 0 00

Rental Deposit 101-08 4 5 0 00
Cash on Hand 100-01 1 3 5 000
To record payment for rent and
rental deposit.
5 Furniture and Fixtures 101-04 4 0 0 00

Cash on Hand 100-01 4 0 000
To record purchase of furnitures.
5 Furniture and Fixtures 101-04 2 0 0 00

Office Equipment 101-01 1 7 0 00
Cash on Hand 100-01 3 7 000
To record purchase of office tables and
airconditioning units.
Company Name: BAA ACCOUNTING FIRM Page No. 0 2

GENERAL JOURNAL
2017
June 5 Office Supplies 100-06 1 0 0 00
Cash on Hand 100-01 1 0 000
To record purchase of office supplies.
6 Office Equipment 101-01 4 2 0 00

Accounts Payable 200-01 4 2 000
To record purchase of computer units
and printer payable in 30 days.
6 Light and Water Expense 500-05 8 0 00

Communication Expense 500-13 2 0 00
Cash on Hand 100-01 1 0 000
To record installation fee for utilities.
7 Cash on Hand 100-01 4 0 0 00

Service Revenue 400-01 4 0 000
To record revenue earned from
Apple Company.
7 Prepaid Insurance 100-07 1 2 0 00

Cash on Hand 100-01 1 2 000
To record payment for one year
insurance.
8 Service Vehicle 101-07 25 0 0 00

Notes Payable 200-08 2 5 0 000
To record purchase of service vehicle
by issuing a promissory note payable in
two years with 8% interest per annum.

GENERAL JOURNAL
2017
June 8 Cash on Hand 100-01 2 0 0 00
Accounts Receivable 100-03 3 0 0 00
Service Revenue 5 0 000
To record revenue from Bernardo
Company, balance payable until July 3.
9 Service Vehicle 101-07 6 0 0 00

Cash on Hand 100-01 6 0 000
To record purchase of motorcycle
to be used by the messenger.
9 Accounts Receivable 100-03 4 0 0 00

Charlie Company payable in 30 days.
9 Cash on Hand 100-01 2 5 0 00

Cash in Bank 100-02 2 5 000
To record withdrawal from BDO
bank account.
12 Gasoline Expense 500-08 3 0 00

Cash on Hand 100-01 3 000
To record incurrence of gasoline.
12 Cash on Hand 100-01 2 5 0 00

Denis Company.

GENERAL JOURNAL
2017
June 12 Cash on Hand 100-01 4 0 0 00
Accounts Receivable 100-03 4 0 0 00
Edward Company.
12 Advances to Employees 100-05 1 5 00

To record advances by the messenger.

Fatima Company.
13 Notes Receivable 100-04 7 5 0 00

Gregorio Company, payable in three
months, 10% interest per annum.
14 Cash on Hand 100-01 3 0 0 00

Accounts Receivable 100-03 3 0 000
To record collection from
Bernardo Company for balance last June 8.
14 Miscellaneous Expense 500-15 5 0 00

To record purchase of miscellaneous
espenses.

GENERAL JOURNAL
2016
June 14 Cash on Hand 100-01 3 5 0 00
Heidi Company.
15 Transportation Expense 500-14 5 50

Cash on Hand 100-01 550
To record transportation expense
by the staff.
15 Cash in Bank 100-02 7 5 0 00

Cash on Hand 100-01 7 5 000
To record deposit to BDO bank
account.
15 Salaries, Wages & Benefits Expense 500-07 2 4 0 00

Cash on Hand 100-01 1 9 8 0 0
SSS Premium Payable 200-04 6 0 0
Philhealth Payable 200-05 3 0 0
Pag-Ibig Payable 200-06 3 0 0
Withholding Tax Payable 200-03 3 0 0 0
To record salaries of the three
employees for the first half of month.
16 Cash on Hand 100-01 4 0 0 00

Accounts Receivable 100-03 4 0 000
To record collection from
Charlie Company for balance last June 9.

GENERAL JOURNAL
2016
June 16 Cash on Hand 100-01 10 0 0 00
Unearned Income 200-02 1 0 0 000
To record advance payment from
Bernardo Company.

Denis Company.
19 Office Supplies 100-06 3 0 00

To record purchase of office supplies.

Apple Company.

Edward Company.
21 Representation Expense 500-10 5 0 00

To record representation expenses.
21 Cash on Hand 100-01 10 0 000

Ms. Ginete, Capital 300 10 0000
To record additional investment.

GENERAL JOURNAL
2016
June 22 Communication Expense 500-13 3 5 00
Accounts Payable 200-01 3 500
To record telephone bill.

Accounts Payable 200-01 5 000
To record electricity bill.

To record water consumption bill.
23 Communication Expense 500-13 2 5 00

To record internet bill.
23 Repairs and Maintenance 500-11 5 0 00

To record maintenance paid for the
vehicles.
26 Cash on Hand 100-01 2 5 0 00

Charlie Company.
27 Advertising Expense 500-01 5 0 00

To record advertising expenses
paid.

GENERAL JOURNAL
2016
June 28 Miscellaneous Expense 500-15 2 0 50
To record purchase of miscellaneous
items.
28 Cash in Bank 100-02 5 0 0 00

Cash on Hand 100-01 5 0 000
To record deposit to BDO bank
account.

Service Revenue 400-01 1 7 5 000
Ignacio Company.
30 Salaries, Wages & Benefits Expense 500-07 2 4 0 00

Cash on Hand 100-01 1 9 8 0 0
SSS Premium Payable 200-04 6 0 0
Philhealth Payable 200-05 3 0 0
Pag-Ibig Payable 200-06 3 0 0
Withholding Tax Payable 200-03 3 0 0 0
To record salaries of the three
employees for the first half of month.
30 Ms. Ginete, Drawing 301 2 5 0 00

Cash on Hand 100-01 2 5 000
To record withdrawal of the owner.
COMPANY'S NAME: CJG BUSINESS SOLUTIONS GENERAL LEDGER
Account Title: CASH ON HAND Account No. 100-01
DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 1 Owners investment GJ1 750000
1 Deposit to bank GJ1 200000
2 Licenses GJ1 30000
5 Rent payment GJ1 135000
5 Furnitures GJ1 40000
5 Office supplies GJ2 10000
6 Utilities installation GJ2 10000
7 Service revenues GJ2 40000
7 Prepaid insurance GJ2 12000
9 Service vehicle GJ3 60000
9 Withdrawal from bank GJ3 25000
12 Gasoline expense GJ3 3000
12 Advances to employee GJ4 1500
14 Collection GJ4 30000
14 Miscellaneous GJ4 5000
15 Transportation GJ5 550
15 Salaries GJ5 19800
16 Unearned income GJ6 100000
21 Representation expense GJ6 5000
21 Investment GJ6 100000
22 Utilities expense GJ7 1500
23 Maintenance GJ7 5000
27 Advertising GJ7 5 0 0 0
28 Miscellaneous GJ8 2 0 5 0
28 Deposit to bank GJ8 50 0 0 0
30 Salaries GJ8 19 8 0 0
30 Drawing GJ8 25 0 0 0
30 Balance 472300
Account Title: CASH IN BANK Account No. 100-02

2017
June 1 Initial deposit GJ1 200000
9 Withdrawal GJ3 25000
15 Deposit GJ5 75000
30 Balance 300000
Account Title: ACCOUNTS RECEIVABLE Account No. 100-03

2017
June 8 Service Revenue GJ3 3 0 0 0 0
9 Service Revenue GJ3 4 0 0 0 0
29 Service Revenue GJ8 1 7 5 0 0 0
30 Balance 370000
Account Title: NOTES RECEIVABLE Account No. 100-04

2017
June 13 Service Revenue GJ4 75000
30 Balance 75000
Account Title: ADVANCES TO EMPLOYEES Account No. 100-05

2017
June 12 Advances GJ4 1500
30 Balance 1500
Account Title: OFFICE SUPPLIES Account No. 100-06

2017
June 5 Purchase GJ2 10000
19 Additional GJ6 3000
30 Balance 13000
Account Title: PREPAID INSURANCE Account No. 100-07

2017
30 Balance 12000
Account Title: PREPAID RENT Account No. 100-10

2017
June 5 Rental GJ1 90000
30 Balance 90000
Account Title: OFFICE EQUIPMENT Account No. 101-01

2017
June 5 Aircon GJ1 17000
6 PC and printer GJ2 42000
30 Balance 59000
Account Title: FURNITURE AND FIXTURES Account No. 101-04

2017
June 5 Furnitures GJ1 40000
9 Office Table GJ1 20000
30 Balance 60000
Account Title: SERVICE VEHICLE Account No. 101-07

2017
June 8 Purchase of vehicle GJ2 250000
9 Purchase of vehicle GJ2 60000
30 Balance 310000
Account Title: RENTAL DEPOSIT Account No. 101-08

2017
30 Balance 45000
Account Title: ACCOUNTS PAYABLE Account No. 200-01

2017
June 6 Office equipment GJ2 42000
22 Telephone GJ7 3500
22 Light and water GJ7 5000
30 Balance ( 5 0 5 0 0)
Account Title: UNEARNED INCOME Account No. 200-02

2017
June 16 Advance payment GJ6 100000
30 Balance ( 1 0 0 0 0 0)
Account Title: WITHHOLDING TAX PAYABLE Account No. 200-03

2017
June 15 Salary for first half GJ5 3000
30 Salary for second half GJ8 3000
30 Balance ( 6 0 0 0)
Account Title: SSS PREMIUM PAYABLE Account No. 200-04

2017
30 Balance ( 1 2 0 0)
Account Title: PHILHEALTH PAYABLE Account No. 200-05

2017
30 Balance ( 6 0 0)
Account Title: PAG-IBIG PAYABLE Account No. 200-06

2017
30 Balance ( 6 0 0)
Account Title: NOTES PAYABLE Account No. 200-08

2017
June 8 Vehicle GJ2 250000
30 Balance ( 2 5 0 0 0 0)
Account Title: MS. GINETE, CAPITAL Account No. 300

2017
June 1 Owner investment GJ1 750000
21 Additional investment GJ6 100000
30 Balance ( 8 5 0 0 0 0)
Account Title: MS. GINETE, DRAWING Account No. 301

2017
June 30 Drawing GJ8 25000
30 Balance 25000
Account Title: SERVICE REVENUE Account No. 400-01

2017
June 7 Revenue GJ2 4 0 0 0 0
8 Revenue GJ3 5 0 0 0 0
9 Revenue GJ3 4 0 0 0 0
12 Revenue GJ3 2 5 0 0 0
12 Revenue GJ4 8 0 0 0 0
13 Revenue GJ4 5 0 0 0 0
13 Revenue GJ4 7 5 0 0 0
14 Revenue GJ5 3 5 0 0 0
19 Revenue GJ6 3 0 0 0 0
20 Revenue GJ6 4 0 0 0 0
20 Revenue GJ6 3 5 0 0 0
26 Revenue GJ7 2 5 0 0 0
29 Revenue GJ8 17 5 0 0 0
30 Balance ( 7 0 0 0 0 0)
Account Title: ADVERTISING EXPENSE Account No. 500-01

2017
June 27 Advertising GJ7 5000
30 Balance 5000
Account Title: TAXES AND LICENSES Account No. 500-02

2017
June 2 Permits GJ1 30000
30 Balance 30000
Account Title: LIGHT AND WATER EXPENSE Account No. 500-05

2017
June 6 Installation GJ1 8000
22 Bill GJ7 5000
22 Bill GJ7 1500
30 Balance 3000
Account Title: SALARIES, WAGES & BENEFITS EXPENSE Account No. 500-07

2017
June 15 First half GJ5 24000
30 Second half GJ8 24000
30 Balance 48000
Account Title: GASOLINE EXPENSE Account No. 500-08

2017
June 12 Gasoline GJ3 3000
30 Balance 3000
Account Title: REPRESENTATION EXPENSE Account No. 500-10

2017
June 21 Representation GJ6 5000
30 Balance 5000
Account Title: REPAIRS AND MAINTENANCE Account No. 500-11

2017
June 23 Maintenance GJ7 5000
30 Balance 5000
Account Title: COMMUNICATION EXPENSE Account No. 500-13

2017
22 Bill GJ7 3500
23 Bill GJ7 2500
30 Balance 8000
Account Title: TRANSPORTATION EXPENSE Account No. 500-14

2017
June 15 Transportation GJ5 550
30 Balance 550
Account Title: MISCELLANEOUS EXPENSE Account No. 500-15

2017
June 14 Miscellaneous GJ4 5000
30 Balance 7050
DEBIT CREDIT
1,230,000.00 757,700.00 472,300.00

325,000.00 25,000.00 300,000.00
440,000.00 70,000.00 370,000.00
75,000.00 - 75,000.00
1,500.00 - 1,500.00
13,000.00 - 13,000.00
12,000.00 - 12,000.00
90,000.00 - 90,000.00
59,000.00 - 59,000.00
60,000.00 - 60,000.00
310,000.00 - 310,000.00
45,000.00 - 45,000.00
- 50,500.00 50,500.00
- 100,000.00 100,000.00
- 6,000.00 6,000.00
- 1,200.00 1,200.00
- 600.00 600.00
- 600.00 600.00
- 250,000.00 250,000.00
- 850,000.00 850,000.00
25,000.00 - 25,000.00
- 700,000.00 700,000.00
5,000.00 - 5,000.00
30,000.00 - 30,000.00
14,500.00 - 14,500.00
48,000.00 - 48,000.00
3,000.00 - 3,000.00
5,000.00 - 5,000.00
5,000.00 - 5,000.00
8,000.00 - 8,000.00
550.00 - 550.00
7,050.00 - 7,050.00
1,958,900.00 1,958,900.00
CJG BUSINESS SOLUTIONS
Trial Balance
June 30, 2017
Debit Credit
100-01 Cash on Hand Php 472,300.00
100-02 Cash in Bank 300,000.00
100-03 Accounts Receivable 370,000.00
100-04 Notes Receivable 75,000.00
100-05 Advances to Employees 1,500.00
100-06 Office Supplies 13,000.00
100-07 Prepaid Insurance 12,000.00
100-08 Prepaid Rent 90,000.00
101-01 Office Equipment 59,000.00
101-04 Furniture & Fixtures 60,000.00
101-07 Service Vehicle 310,000.00
101-08 Rental Deposit 45,000.00
200-01 Accounts Payable Php 50,500.00
200-02 Unearned Income 100,000.00
200-03 Withholding Tax Payable 6,000.00
200-04 SSS Payable 1,200.00
200-05 Philhealth Payable 600.00
200-06 PAG-IBIG Payable 600.00
200-08 Notes Payable 250,000.00
300 Ms. Ginete, Capital 850,000.00
301 Ms. Ginete, Drawing 25,000.00
400-01 Service Revenue 700,000.00
500-01 Advertising Expense 5,000.00
500-02 Taxes and Licenses 30,000.00
500-05 Light and Water Expense 14,500.00
500-07 Salaries, Wages & Benefits Expense 48,000.00
500-08 Gasoline Expense 3,000.00
500-10 Representation Expense 5,000.00
500-11 Repairs and Maintenance 5,000.00
500-13 Communication Expense 8,000.00
500-14 Transportation Expense 550.00
500-15 Miscellaneous Expense 7,050.00
Php 1,958,900.00 Php 1,958,900.00
Worksheet
June 30, 2017
Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
100-01 Cash on Hand 472,300.00 c) 890.41 471,409.59 471,409.59
100-02 Cash in Bank 300,000.00 300,000.00 300,000.00
100-03 Accounts Receivable 370,000.00 370,000.00 370,000.00
100-04 Notes Receivable 75,000.00 75,000.00 75,000.00
100-05 Advances to Employees 1,500.00 1,500.00 1,500.00
100-06 Office Supplies 13,000.00 a) 8,750.00 4,250.00 4,250.00
100-07 Prepaid Insurance 12,000.00 d) 1,000.00 11,000.00 11,000.00
100-10 Prepaid Rent 90,000.00 e) 15,000.00 75,000.00 75,000.00
101-01 Office Equipment 59,000.00 59,000.00 59,000.00
101-011 Accumulated Depreciation - OE b) 1,447.55 1,447.55 1,447.55
101-04 Furniture & Fixtures 60,000.00 60,000.00 60,000.00
101-041 Accumulated Depreciation - F&F b) 1,068.60 1,068.60 1,068.60
101-07 Service Vehicle 310,000.00 310,000.00 310,000.00
101-071 Accumulated Depreciation - SV b) 3,687.81 3,687.81 3,687.81
101-08 Rental Deposit 45,000.00 45,000.00 45,000.00
200-01 Accounts Payable 50,500.00 50,500.00 50,500.00
200-02 Unearned Income 100,000.00 100,000.00 100,000.00
200-03 Withholding Tax Payable 6,000.00 6,000.00 6,000.00
200-04 SSS Payable 1,200.00 1,200.00 1,200.00
200-05 Philhealth Payable 600.00 600.00 600.00
200-06 PAG-IBIG Payable 600.00 600.00 600.00
200-08 Notes Payable 250,000.00 250,000.00 250,000.00
300 Ms. Ginete, Capital 850,000.00 850,000.00 850,000.00
301 Ms. Ginete, Drawing 25,000.00 25,000.00 25,000.00
400-01 Service Revenue 700,000.00 700,000.00 700,000.00
40-02 Interest Income c) 369.86 369.86 369.86
500-01 Advertising Expense 5,000.00 5,000.00 5,000.00
500-02 Taxes and Licenses 30,000.00 30,000.00 30,000.00
500-03 Rent Expense e) 15,000.00 15,000.00 15,000.00
500-04 Insurance Expense d) 1,000.00 1,000.00 1,000.00
500-05 Light and Water Expense 14,500.00 14,500.00 14,500.00
500-06 Office Supplies Expense a) 8,750.00 8,750.00 8,750.00
500-07 Salaries, Wages & Benefits Expense 48,000.00 48,000.00 48,000.00
500-08 Gasoline Expense 3,000.00 3,000.00 3,000.00
500-09 Interest Expense c) 1,260.27 1,260.27 1,260.27
500-10 Representation Expense 5,000.00 5,000.00 5,000.00
500-11 Repairs and Maintenance 5,000.00 5,000.00 5,000.00
500-12 Depreciation Expense b) 6,203.96 6,203.96 6,203.96
500-13 Communication Expense 8,000.00 8,000.00 8,000.00
500-14 Transportation Expense 550.00 550.00 550.00
500-15 Miscellaneous Expense 7,050.00 7,050.00 7,050.00
1,958,900.00 1,958,900.00 32,214.23 32,214.23 1,965,473.82 1,965,473.82 158,314.23 700,369.86 1,807,159.59 1,265,103.96
Net Income 542,055.63 - - 542,055.63
700,369.86 700,369.86 1,807,159.59 1,807,159.59
GENERAL JOURNAL
2016
June 30 Office Supplies Expense 500-06 8 750 13,000 - 4,250 = 8,750
Office Supplies 100-06 8 750
To record used supplies.
30 Depreciation Expense 500-12 1 0 6 8 60

Accumulated Depreciation - F&F 101-041 1 0 6 8 60 712.40 + 356.20 = 1,068.60
To record depreciation of furniture
and fixtures.

Accumulated Depreciation - OE 101-011 1 4 4 7 55 534.30 + 639.25 + 274 = 1,447.55
To record depreciation of office
equipment.

Accumulated Depreciation - SV 101-071 3 6 8 7 81 3,024.73 + 663.08 = 3,687.81
To record depreciation of service
vehicle.
30 Interest Expense 500-09 1 2 6 0 27

Cash on Hand 100-01 1 2 6 0 27 250,000*8% = 20,000*(23/365) = 1,260.27
To record interest on notes payable.
30 Cash in Hand 100-01 3 6 9 86

Interest Income 400-02 3 6 9 86 75,000*10% = 7,500*(18/365) = 369.86
To record interest on notes receivable.
30 Insurance Expense 500-04 1 000

Prepaid Insurance 100-07 1000 12,000 / 12 = 1,000
To record expired insurance of one
month (June 2017).

GENERAL JOURNAL
2016
June 30 Rent Expense 500-03 15 000
Prepaid Rent 100-10 15 000 90,000 / 60 = 15,000
To record expired rent of one month.

2017
30 Drawing GJ8 25 0 0 0
30 Adjustment GJ9 1 2 6 0 27
30 Adjustment GJ9 3 6 9 86
30 Balance 472300

2017
30 Balance 300000

2017
30 Balance 370000

2017
30 Balance 75000

2017
30 Balance 1500

2017
30 Adjustment GJ9 8750
30 Balance 4250

2017
30 Balance 11000

2017
30 Balance 75000

2017
30 Balance 59000
Account Title: ACCUMULATED DEPRECIATION - OE Account No. 101-011

2017
June 30 Adjustment GJ9 1 4 4 7 55
30 Balance ( 1 4 4 7 55)

2017
30 Balance 60000
Account Title: ACCUMULATED DEPRECIATION - F&F Account No. 101-041

2017
30 Balance ( 1 0 6 8 60)

2017
30 Balance 42000
Account Title: ACCUMULATED DEPRECIATION - SV Account No. 101-071

2017
30 Balance ( 3 6 8 7 81)

2017
30 Balance 45000

2017
30 Balance ( 5 0 5 0 0)

2017
30 Balance ( 1 0 0 0 0 0)

2017
30 Balance ( 6 0 0 0)

2017
30 Balance ( 1 2 0 0)

2017
30 Balance ( 6 0 0)

2017
30 Balance ( 6 0 0)

2017
30 Balance ( 2 5 0 0 0 0)

2017
30 Balance ( 8 5 0 0 0 0)

2017
30 Balance 25000

2017
8 Revenue GJ3 5 0 0 0 0
9 Revenue GJ3 4 0 0 0 0
12 Revenue GJ3 2 5 0 0 0
12 Revenue GJ4 4 0 0 0 0
13 Revenue GJ4 5 0 0 0 0
13 Revenue GJ4 7 5 0 0 0
14 Revenue GJ5 3 5 0 0 0
16 Revenue GJ6 3 0 0 0 0
20 Revenue GJ6 4 0 0 0 0
20 Revenue GJ6 3 5 0 0 0
26 Revenue GJ7 2 5 0 0 0
29 Revenue GJ8 17 5 0 0 0
30 Balance ( 6 1 0 0 0 0)
Account Title: INTEREST INCOME Account No. 400-02

2017
June 30 Adjustment GJ9 3 6 9 86
30 Balance ( 3 6 9 86)

2017
30 Balance 5000

2017
30 Balance 30000
Account Title: RENT EXPENSE Account No. 500-03

2017
June 30 Adjustment GJ10 15000
30 Balance 15000
Account Title: INSURANCE EXPENSE Account No. 500-04

2017
30 Balance 1000

2017
22 Bill GJ7 5000
22 Bill GJ7 1500
30 Balance 3000
Account Title: OFFICE SUPPLIES EXPENSE Account No. 500-06

2017
30 Balance 8750
2017
30 Balance 48000

2017
30 Balance 3000
Account Title: INTEREST EXPENSE Account No. 500-09

2017
30 Balance 1 2 6 0 27

2017
30 Balance 5000

2017
30 Balance 5000
Account Title: DEPRECIATION EXPENSE Account No. 500-12

2017
30 Balance 6 2 0 3 96

2017
22 Bill GJ7 3500
23 Bill GJ7 2500
30 Balance 8000

2017
30 Balance 550

2017
30 Balance 7050
DEBIT CREDIT
1,230,369.86 758,960.27 471,409.59

325,000.00 25,000.00 300,000.00
440,000.00 70,000.00 370,000.00
75,000.00 - 75,000.00
1,500.00 - 1,500.00
13,000.00 8,750.00 4,250.00
12,000.00 1,000.00 11,000.00
90,000.00 15,000.00 75,000.00
59,000.00 - 59,000.00
- 1,447.55 1,447.55
60,000.00 - 60,000.00
- 1,068.60 1,068.60
310,000.00 - 310,000.00
- 3,687.81 3,687.81
45,000.00 - 45,000.00
- 50,500.00 50,500.00
- 100,000.00 100,000.00
- 6,000.00 6,000.00
- 1,200.00 1,200.00
- 600.00 600.00
- 600.00 600.00
- 250,000.00 250,000.00
- 850,000.00 850,000.00
25,000.00 - 25,000.00
- 700,000.00 700,000.00
- 369.86 369.86
5,000.00 - 5,000.00
30,000.00 - 30,000.00
15,000.00 - 15,000.00
1,000.00 - 1,000.00
14,500.00 - 14,500.00
8,750.00 - 8,750.00
48,000.00 - 48,000.00
3,000.00 - 3,000.00
1,260.27 - 1,260.27
5,000.00 - 5,000.00
5,000.00 - 5,000.00
6,203.96 - 6,203.96
8,000.00 - 8,000.00
550.00 - 550.00
7,050.00 - 7,050.00
1,965,473.82 1,965,473.82
Income Statement
For the Month Ended June 30, 2017
Service Revenue Php 700,000.00

Less: Expenses
Advertising Expense Php 5,000.00
Taxes and Licenses 30,000.00
Rent Expense 15,000.00
Insurance Expense 1,000.00
Light and Water Expense 14,500.00
Office Supplies Expense 8,750.00
Salaries, Wages & Benefits Expense 48,000.00
Gasoline Expense 3,000.00
Representation Expense 5,000.00
Repairs and Maintenance 5,000.00
Depreciation Expense 6,203.96
Communication Expense 8,000.00
Transportation Expense 550.00
Miscellaneous Expense 7,050.00 157,053.96
Net Income Php 542,946.04
Add (deduct): Other income/expenses
Interest Income Php 369.86
Interest Expense (1,260.27) (890.41)
Net Income for the month Php 542,055.63
Statement of Changes in Owner's Equity
Initial Investment Php 750,000.00

Add (Deduct):
Additional investment Php 100,000.00
Net income for the month 542,055.63
Drawings (25,000.00)
Net Increase (Decrease) in Capital 617,055.63
Total Capital, August 31 Php 1,367,055.63
Statement of Financial Position
As of June 30, 2017
ASSETS
Current Assets:
Cash Php 771,409.59
Accounts Receivable 370,000.00
Notes Receivable 75,000.00
Advances to Employees 1,500.00
Office Supplies 4,250.00
Prepaid Insurance 11,000.00
Prepaid Rent 75,000.00
Total Current Assets
Non-current Assets:
Office Equipment Php 59,000.00
Accumulated Depreciation (1,447.55) Php 57,552.45
Furniture & Fixtures Php 60,000.00
Accumulated Depreciation (1,068.60) 58,931.40
Service Vehicle Php 310,000.00
Accumulated Depreciation (3,687.81) 306,312.19
Rental Deposit 45,000.00
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities:
Accounts Payable Php 50,500.00
Unearned Income 100,000.00
Withholding Tax Payable 6,000.00
SSS Payable 1,200.00
Philhealth Payable 600.00
PAG-IBIG Payable 600.00
Total Current Liabilities
Non-current Liabilities:
Notes Payable Php 250,000.00
Total Liabilities
OWNER'S EQUITY
Ms. Ginete, Capital Php 1,367,055.63
Total Liabilities and Capital
Php 1,308,159.59
467,796.04
Php 1,775,955.63
Php 158,900.00
250,000.00
Php 408,900.00
1,367,055.63
Php 1,775,955.63
Statement of Cash Flow
Cash Flow from Operating Activities:

Cash received from customers Php 355,000.00
Cash received for interest 369.86
Cash paid for advances of employee (1,500.00)
Cash paid for rental (135,000.00)
Cash paid for salaries (39,600.00)
Cash paid for licences (30,000.00)
Cash paid for supplies (13,000.00)
Cash paid for insurance (12,000.00)
Cash paid for transportation (550.00)
Cash paid for gasoline (3,000.00)
Cash paid for representation (5,000.00)
Cash paid to utilities (14,000.00)
Cash paid for maintenance (5,000.00)
Cash paid for advertising (5,000.00)
Cash paid for interest (1,260.27)
Cash paid for miscellaneous (7,050.00)
Net cash flow for operating activities Php 83,409.59
Cash Flow from Investing Activities:
Cash paid for purchase of office assets Php (77,000.00)
Cash paid for purchase of vehicle (60,000.00)
Net cash flow for investing activities (137,000.00)
Cash Flow from Financing Activities:
Cash investment of owner Php 850,000.00
Cash withdrawal by owner (25,000.00)
Net cash flow from financing activities 825,000.00
Net Increase in Cash Php 771,409.59
Cash balance, beginning -
Cash Balance, end Php 771,409.59
GENERAL JOURNAL
2016
June 30 Rent Expense 500-03 1 5 0 00
Prepaid Rent 100-10 1 5 000
To record expired rent of one month.
30 Service Revenue 400-01 70 0 0 00

Interest Income 400-02 3 6 9 86
Income Summary 400 7 0 0 3 6 9 86
To record closing of revenues.
30 Income Summary 400 1 5 8 3 1 4 23

Advertising Expense 500-01 5 0 0 0
Taxes and Licenses 500-02 3 0 0 0 0
Rent Expense 500-03 1 5 0 0 0
Insurance Expense 500-04 1 0 0 0
Light and Water Expense 500-05 1 4 5 0 0
Office Supplies Expense 500-06 8 7 5 0
Salaries, Wages & Benefits Expense 500-07 4 8 0 0 0
Gasoline Expense 500-08 3 0 0 0
Representation Expense 500-10 5 0 0 0
Repairs and Maintenance 500-11 5 0 0 0
Depreciation Expense 500-12 6 2 0 3 96
Communication Expense 500-13 8 0 0 0
Transportation Expense 500-14 5 0 0
Interest Expense 500-09 1 2 6 0 27
Miscellaneous Expense 500-15 7 0 5 0
To record closing of expenses.
30 Income Summary 400 2 5 0 00

Ms. Ginete, Drawing 301 2 5000
To record closing of drawing.

GENERAL JOURNAL
2016
June 30 Income Summary 400 5 1 7 0 5 5 63
Ms. Ginete, Capital 300 5 1 7 0 5 5 63
To record closing of income summary.

2017
30 Drawing GJ8 25 0 0 0
30 Adjustment GJ9 3 6 9 86
30 Balance 472300
July 1 Opening balance 472300


2017
30 Balance 300000

2017
30 Balance 370000

2017
30 Balance 75000

2017
30 Balance 1500


2017
30 Balance 4250

2017
30 Balance 11000

2017
30 Balance 75000

2017
30 Balance 59000
Account Title: ACCUMULATED DEPRECIATION - OE Account No. 101-011

2017
30 Balance ( 1 4 4 7 55)
July 1 Opening balance 1 4 4 7 55

2017
30 Balance 60000
Account Title: ACCUMULATED DEPRECIATION - F&F Account No. 101-041

2017
30 Balance ( 1 0 6 8 60)

2017
30 Balance 310000
Account Title: ACCUMULATED DEPRECIATION - SV Account No. 101-071

2017
30 Balance ( 3 6 8 7 81)

2017
30 Balance 45000


2017
30 Balance ( 5 0 5 0 0)

2017
30 Balance ( 1 0 0 0 0 0)

2017
30 Balance ( 6 0 0 0)

2017
30 Balance ( 1 2 0 0)

2017
30 Balance ( 6 0 0)

2017
30 Balance ( 6 0 0)

2017
30 Balance ( 2 5 0 0 0 0)

2017
30 Closing GJ11 5 1 7 0 5 5 63
30 Balance (1 3 6 7 0 5 5 63)
July 1 Opening balance 1 3 6 7 0 5 5 63

2017
30 Closing GJ10 25000
30 Balance 000000
Account Title: INCOME SUMMARY Account No. 400

2017
June 30 Closing GJ10 7 0 0 3 6 9 86
30 Closing GJ10 1 5 8 3 1 4 23
30 Closing GJ11 5 1 7 0 5 5 63
30 Balance 000000

2017
8 Revenue GJ3 5 0 0 0 0
9 Revenue GJ3 4 0 0 0 0
12 Revenue GJ3 2 5 0 0 0
12 Revenue GJ4 4 0 0 0 0
13 Revenue GJ4 5 0 0 0 0
13 Revenue GJ4 7 5 0 0 0
14 Revenue GJ5 3 5 0 0 0
16 Revenue GJ6 3 0 0 0 0
20 Revenue GJ6 4 0 0 0 0
20 Revenue GJ6 3 5 0 0 0
26 Revenue GJ7 2 5 0 0 0
29 Revenue GJ8 17 5 0 0 0
30 Balance 000000
Account Title: INTEREST INCOME Account No. 400-02

2017
June 30 Adjustment GJ9 3 6 9 86
30 Closing GJ10 3 6 9 86
30 Balance 000000

2017
30 Balance 000000

2017
30 Balance 000000
Account Title: RENT EXPENSE Account No. 500-03

2017
30 Balance 000000
Account Title: INSURANCE EXPENSE Account No. 500-04

2017
30 Balance 000000

2017
22 Bill GJ7 5000
22 Bill GJ7 1500
30 Balance 000000
Account Title: OFFICE SUPPLIES EXPENSE Account No. 500-06

2017
30 Balance 000000

2017
30 Balance 000000

2017
30 Balance 000000
Account Title: INTEREST EXPENSE Account No. 500-09

2017
30 Closing GJ10 1 2 6 0 27
30 Balance 000000

2017
30 Balance 000000

2017
30 Balance 000000
Account Title: DEPRECIATION EXPENSE Account No. 500-12

2017
30 Closing GJ10 6 2 0 3 96
30 Balance 000000

2017
22 Bill GJ7 3500
23 Bill GJ7 2500
30 Balance 000000

2017
30 Closing GJ10 550
30 Balance 000000

2017
30 Balance 000000
DEBIT CREDIT
1,230,369.86 758,960.27 471,409.59

325,000.00 25,000.00 300,000.00
440,000.00 70,000.00 370,000.00
75,000.00 - 75,000.00
1,500.00 - 1,500.00
13,000.00 8,750.00 4,250.00
12,000.00 1,000.00 11,000.00
90,000.00 15,000.00 75,000.00
59,000.00 - 59,000.00
- 1,447.55 1,447.55
60,000.00 - 60,000.00
- 1,068.60 1,068.60
310,000.00 - 310,000.00
- 3,687.81 3,687.81
45,000.00 - 45,000.00
- 50,500.00 50,500.00
- 100,000.00 100,000.00
- 6,000.00 6,000.00
- 1,200.00 1,200.00
- 600.00 600.00
- 600.00 600.00
- 250,000.00 250,000.00
- 1,367,055.63 1,367,055.63
25,000.00 25,000.00 -
700,369.86 700,369.86 -
700,000.00 700,000.00 -
369.86 369.86 -
5,000.00 5,000.00 -
30,000.00 30,000.00 -
15,000.00 15,000.00 -
1,000.00 1,000.00 -
14,500.00 14,500.00 -
8,750.00 8,750.00 -
48,000.00 48,000.00 -
3,000.00 3,000.00 -
1,260.27 1,260.27 -
5,000.00 5,000.00 -
5,000.00 5,000.00 -
6,203.96 6,203.96 -
8,000.00 8,000.00 -
550.00 550.00 -
7,050.00 7,050.00 -
7,050.00 7,050.00 -
1,782,159.59 1,782,159.59
Post-Closing Trial Balance
June 30, 2017
Debit Credit
Cash 771,409.59
Accounts Receivable 370,000.00
Notes Receivable 75,000.00
Advances to Employees 1,500.00
Office Supplies 4,250.00
Prepaid Insurance 11,000.00
Prepaid Rent 75,000.00
Office Equipment 59,000.00
Accumulated Depreciation - OE 1,447.55
Furniture & Fixtures 60,000.00
Accumulated Depreciation - F&F 1,068.60
Service Vehicle 310,000.00
Accumulated Depreciation - SV 3,687.81
Rental Deposit 45,000.00
Accounts Payable 50,500.00
Unearned Income 100,000.00
Withholding Tax Payable 6,000.00
SSS Payable 1,200.00
Philhealth Payable 600.00
PAG-IBIG Payable 600.00
Notes Payable 250,000.00
Ms. Ginete, Capital 1,367,055.63
1,782,159.59 1,782,159.59

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CJG Business Solutions (Service)

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CJG opened its consultancy company on June 1, 2017.

For the first month of operations, it had the following

1-Jun Invested P750,000 cash and hired three office staff.

2-Jun Paid P30,000 for business permits and other licenses.

7-Jun Provided consultancy services to Apple Company for P40,000 in cash.

12-Jun The driver incurred gasoline expenses worth P3,000.

14-Jun Collected the amount due from Bernardo Company.

16-Jun Collected the balance from Charlie Company.

22-Jun Received telephone bill for P3,500 due within 30 days.

23-Jun Received internet bill for P2,500 paid in cash.

26-Jun Rendered services to Charlie Company for P25,000 paid in cash.

27-Jun Paid advertising expense of P5,000 in cash.

28-Jun Bought miscellaneous items for P2,050 in cash.

1 Cash in Bank 100-02 20 0 0 00

2 Taxes and Licenses 500-02 3 0 0 00

5 Prepaid Rent 100-10 9 0 0 00

5 Furniture and Fixtures 101-04 4 0 0 00

5 Furniture and Fixtures 101-04 2 0 0 00

Company Name: BAA ACCOUNTING FIRM Page No. 0 2

6 Office Equipment 101-01 4 2 0 00

6 Light and Water Expense 500-05 8 0 00

7 Cash on Hand 100-01 4 0 0 00

7 Prepaid Insurance 100-07 1 2 0 00

8 Service Vehicle 101-07 25 0 0 00

Company Name: BAA ACCOUNTING FIRM Page No. 0 3

9 Service Vehicle 101-07 6 0 0 00

9 Accounts Receivable 100-03 4 0 0 00

9 Cash on Hand 100-01 2 5 0 00

12 Gasoline Expense 500-08 3 0 00

12 Cash on Hand 100-01 2 5 0 00

Company Name: BAA ACCOUNTING FIRM Page No. 0 4

12 Advances to Employees 100-05 1 5 00

13 Accounts Receivable 100-03 5 0 0 00

13 Notes Receivable 100-04 7 5 0 00

14 Cash on Hand 100-01 3 0 0 00

14 Miscellaneous Expense 500-15 5 0 00

Company Name: BAA ACCOUNTING FIRM Page No. 0 5

15 Transportation Expense 500-14 5 50

15 Cash in Bank 100-02 7 5 0 00

15 Salaries, Wages & Benefits Expense 500-07 2 4 0 00

16 Cash on Hand 100-01 4 0 0 00

Company Name: BAA ACCOUNTING FIRM Page No. 0 6

19 Accounts Receivable 100-03 3 0 0 00

19 Office Supplies 100-06 3 0 00

20 Accounts Receivable 100-03 4 0 0 00

20 Accounts Receivable 100-03 3 5 0 00

21 Representation Expense 500-10 5 0 00

21 Cash on Hand 100-01 10 0 000

Company Name: BAA ACCOUNTING FIRM Page No. 0 7

22 Light and Water Expense 500-05 5 0 00

22 Light and Water Expense 500-05 1 5 00

23 Communication Expense 500-13 2 5 00

23 Repairs and Maintenance 500-11 5 0 00

26 Cash on Hand 100-01 2 5 0 00

27 Advertising Expense 500-01 5 0 00

Company Name: BAA ACCOUNTING FIRM Page No. 0 8

28 Cash in Bank 100-02 5 0 0 00

29 Accounts Receivable 100-03 17 5 0 00

30 Salaries, Wages & Benefits Expense 500-07 2 4 0 00

30 Ms. Ginete, Drawing 301 2 5 0 00

Account Title: CASH ON HAND Account No. 100-01

DATE EXPLANATION PR DEBIT CREDIT BALANCE

Account Title: CASH IN BANK Account No. 100-02

Account Title: ACCOUNTS RECEIVABLE Account No. 100-03