NAME: CONCEPCION, Jeizel V.

SCORE:
PROFESSOR: Ma’am Salve Dulong Cahilo BSAIS – 1A October 14, 2020

PROBLEM 4- 1 DEVELOPING A CHART OF ACCOUNTS

Rodrigo Lucena organized a new business and named it Lucena Business Consultancy. Listed
below are the accounts that will be needed in the ledger:

Consulting Revenues Lucena, Withdrawals

Accounts Receivable Income Summary
Building Office Supplies Expense
Cash Lucena, Capital
Rent Expense Notes Payable
Furniture and Fixtures Prepaid Rent
Land Interest Expense
Miscellaneous Expense Salaries Expense
Referral Revenues Unearned Consulting Revenues
Accu. Depreciation-Building Office Supplies
Accu. Depreciation-F/F Interest Payable
Depreciation Expense-Building Insurance Expense
Depreciation Expense-F/F Accounts Payable

Arrange these accounts in the order in which they would appear in the ledger. Assign each
account a number, using a three-digit numbering scheme: the 100 series for assets. 200 for
liabilities, etc. Use the second digit to indicate specific accounts within a major category; for
example, cash would be account number 110.

Account Account INCOME STATEMENT

BALANCE SHEET ACCOUNTS
Number Number ACCOUNTS
Assets Income
110 Cash 410 Consulting Revenues
120 Accounts Receivable 420 Referral Revenues
130 Offi ce Supplies
140 Prepaid Rent Expenses
150 Land 510 Salaries Expense
160 Building 520 Offi ce Supplies Expense
165 Accu. Depreciation-Building 530 Rent Expense
170 Furniture and Fixtures 540 Insurance Expense
175 Accu. Depreciation-F/F 550 Depreciation Expense-Building
Liabilities 560 Depreciation Expense-F/F
210 Notes Payable 570 Miscellaneous Expense
220 Accounts Payable 580 Interest Expense
230 Interest Payable
240 Unearned Consulting Revenues
Owner’s Equity
310 Lucena, Capital
320 Lucena, Withdrawals
330 Income Summary
Problem 4- 2 CHART OF ACCOUNTS AND RECORDING OF TRANSACTIONS

Jackielyn Magpantay organize Eterna mages, a photography and portrait studio, on 2015. The
studio completed the following transactions during the month:

Oct. 1 Deposited P350,000 in a bank account in the name of the business.

Oct. 3 Paid two month's rent deposit and one-month advance, P40,500.
Oct. 5 Transferred to the business personal photography equipment valued at P129,000
Oct. 7 Ordered additional photography equipment, P75,000.
Oct. 8 Purchased office equipment for cash, P54,000.
Oct. 10 Received and paid for the photography equipment ordered on Oct. 7, P75,000.
Oct. 12 Purchased photography supplies on credit, P21,000.
Oct. 13 Received cash for previously unbilled portraits, P11,400.
Oct. 17 Billed customers for portraits, P22,500.
Oct. 19 Paid fifty percent of the supplies purchased on Oct. 12, P10,500.
Oct. 25 Paid the electricity bill for Oct., P3,600.
Oct. 26 Paid the telephone bill for Oct., P2,100.
Oct. 28 Received payments from the customers billed on Oct. 17, P7,500
Oct. 29 Paid salaries to personnel 12, 000
Oct. 30 Received an advance payment from a customer, P1, 500.
Oct. 31 Withdrew a P16, 000 from the business for a personal emergency.

Required:

Read the transactions and develop a chart of accounts applicable to the business.
Record the transactions directly into T-accounts.
Determine the balance of each account.

Account BALANCE SHEET Account INCOME STATEMENT

Number ACCOUNTS Number ACCOUNTS
Assets Income
110 Cash 410 Service Revenue
120 Accounts Receivable
130 Photography Supplies Expenses
140 Prepaid Rent 510 Salaries Expense
150 Photography Equipment 520 Rent Expense
160 Offi ce Equipment 530 Utilities Expense
Liabilities
210 Accounts Payable
220 Unearned Service Revenue
Owner’s Equity
310 Magpantay, Capital
320 Magpantay, Withdrawals
 Cash
Oct. 1 350, 000 Oct. 3 40, 500
Oct. 13 11, 400 Oct. 8 54, 000
Oct. 28 7, 500 Oct. 10 75, 000
Oct. 30 1, 500 Oct. 19 10, 500
Oct. 25 3, 600
Oct. 26 2, 100 Accounts Payable
Oct. 29 12, 000 Oct. 10 75, 000 Oct. 7 75, 000
Oct. 31 16, 000 Oct. 19 10, 500 Oct. 12 21, 000
370, 400 213, 700 85, 500 96, 000
₱156, 700 ₱10, 500

Accounts Receivable
Oct. 17 22, 500 Oct. 13 11, 400
Oct. 28 7, 500 Unearned Service Revenue
22, 500 18, 900 Oct. 30 1, 500
₱3, 600 ₱1, 500

Magpantay, Capital
Photography Supplies Oct. 1 350, 000
Oct. 12 21, 000 Oct. 5 129, 000
₱21, 000 ₱479, 000

Prepaid Rent Magpantay, Withdrawals

Oct. 3 13, 500 Oct. 31 16, 000
₱13, 500 ₱16, 000

Photography Equipment
Oct. 5 129, 000 Service Revenue
Oct. 7 75, 000 Oct. 17 22, 500
₱204, 000 ₱22, 500

Offi ce Equipment Salaries Expense

Oct. 8 54, 000 Oct. 29 12, 000
₱54, 000 ₱12, 000

Rent Expense
Oct. 3 27, 000
₱27, 000

Utilities Expense
Oct. 25 3, 600
Oct. 26 2, 100
₱5, 700
Problem 4- 3 JOURNALIZE ENTRIES AND UNADJUSTED TRIAL BALANCE

a. Issued check for P200, 000 to pay the accounts payable.

b. Issued P43, 226 check to cash purchase of supplies.
c. Collected in cash P294, 200 of the accounts receivable
d. Issued P200, 000 check to the owner for his personal use.
e. Rendered service to customer, P35, 000 on account.
f. Collected in cash P198, 000 of the accounts receivable.
g. Issued P52, 478 check to pay the accounts payable.
h. Rendered services to a charge customer in the amount of P189, 300.
i. Received electric bill for the current period consumption amounting to P26, 143, payable next
month.
j. Received telephone bill of P18, 352, payable next month.

Account Name Amount

Cash 598,223
Accounts receivable 1,884,159
Supplies 193,200
Accounts payable 975,275
Pilo, Capital 1,132,946
Pilo, Drawing 1,300,000
Rent income 1,483,400
Professional fees 1,896,700
Rental expense 800,000
Salaries expense 400,000
Supplies expense 200,000
Telephone expense 63,587
Electric expense 49,152

 Prepare the journal entries to record the transactions.

 Prepare the unadjusted trial balance.
 Account Titles Debit Credit

a. Accounts payable 200, 000

Cash 200, 000

b. Supplies 43, 226

Cash 43, 226

c. Cash 294, 200

Accounts receivable 294, 200

d. Owner's withdrawals 200, 000

Cash 200, 000

e. Accounts receivable 35, 000

Service revenue 35, 000

f. Cash 198, 000

Accounts receivable 198, 000

g. Accounts payable 52, 478

Cash 52, 478

h. Accounts receivable 189, 300

Service Revenue 189, 300

i. Utilities expense 26, 143

Accounts payable 26, 143

j. Utilities expense 18, 352

Accounts payable 18, 352

Unadjusted Trial Balance

Account Titles Debit Credit

Cash 598, 223
Account Receivable 1, 884, 159
Supplies 193, 200
Accounts Payable 975, 275
Pilo, Capital 1, 132, 946
Pilo, Drawing 1, 300, 000
Rent Income 1, 483, 400
Professional fees 1, 896, 700
Rental Expense 800, 000
Salaries Expense 400, 000
Supplies Expense 200, 000
Telephone Expense 63, 587
Electric Expense 49, 152
₱5, 488, 321 ₱5, 488, 321
Problem 4- 4 PREPARING A TRIAL BALANCE

The accounts of Aristotle Go Advertising Agency follow with their normal balances as at Dec.
31, 2015:

Accounts Balances
Go, Capital 254, 700
Insurance Expense 9, 600
Accounts Payable 26, 400
Service Revenues 258, 000
Land 87, 000
Cash 21, 000
Salaries Expense 75, 000
Building 375, 000
Equipment Rentals Expense 15, 000
Go, Withdrawals 18, 000
Utilities Expense 30, 000
Accounts Receivable 28, 500
Notes Payable 135, 000
Supplies Expense 15, 000

ARISTOTLE ADVERTISING AGENCY

Trial Balance
December 15, 2015

Account Titles Debit Credit

Cash 21, 000
Accounts Receivable 28, 500
Land 87, 000
Building 375, 000
Accounts Payable 26, 400
Notes Payable 135, 000
Go, Capital 254, 700
Go, Withdrawals 18, 000
Service Revenues 258, 000
Salaries Expense 75, 000
Supplies Expense 15, 000
Equipment Rentals Expense 15, 000
Insurance Expense 9, 600
Utilities Expense 30, 000
₱674, 100 ₱674, 100
Problem 4- 5 CLASSIFICATION OF ACCOUNTS

The following are the existing accounts of Asunta Servicing:

Accounts Payable Interest Expense Interest Income

Accounts Receivable Land Rent deposit
Accrued interest payable Notes Payable Rent expense
Asunta, capital Prepaid Insurance SSS premium payable
Asunta, Drawings Utilities expense Supplies expense
Unused supplies Withholding tax payable Unearned revenues

Classify the following as to whether real, nominal, asset, liability, revenues and expense
accounts.

REAL ACCOUNTS
Assets Liabilities Owner's Equity
Accounts Receivable Accounts Payable Asunta, capital
Land Accrued interest payable Asunta, Drawings
Rent deposit Notes Payable
Prepaid Insurance SSS premium payable
Unused supplies Withholding tax payable
Unearned revenues

NOMINAL ACCOUNTS
Revenues Expenses
Interest Income Interest Expense
Rent expense
Utilities expense
Supplies expense