144 Chapter 8 Dec Accountant 2 Invested P120000 to start an accounting practice Emily Cruz 2 Paid monthly office rent P5000 3 Paid cash for an Apple computer P30000 The computer is expected to remain…
Question
144 Chapter 8 Dec. Accountant. 2 Invested P120,000 to start an accounting practice, Emily Cruz, 2 Paid monthly office rent, P5,000. 3 Paid cash for an Apple computer, P30,000. The computer is expected to remain in service for 5 years. 4 Purchased office furniture on account, P36,000. The furniture should last for five years. 5 Purchased supplies on account, P3,000. 9 Performed tax service for a client and received cash for the full amount of P8,000. 12 Paid utility expenses, P2,000. 18 Performed consulting service for a client on account, P17,000. 21 Received P9,000 in advance tax work to be performed evenly over the next 30 days. 21 Hired a secretary to be paid P15,000 on the 20th day of each month. 26 Paid for the supplies purchased on December 5. 28 Collected P6,000 from the consulting client on December 18. 30 Withdrew P16,000 for personal use. Required: 1. Journalize the transactions of December 31 through 30. 2. Post to the T-accounts, keying all items by date. 3. Prepare a trial balance at December 31. Also set up columns for the adjustments for the adjusted trial balance. 4. Prepare the adjusting entries at December 31 from the following information: a. Accrued service revenue, P4,000. b. Earned a portion of the service revenue collected in advance on December 21. c. Supplies on hand, P1,000. d. Depreciation expense – equipment, P500; furniture, P600. e. Accrued expense for secretary salary. 5. Prepare the Adjusted Trial Balance.
Basic Answer
Step 1: Journal Entries
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 2 | Cash | 120,000 | |
| Emily Cruz, Capital | 120,000 | ||
| To record investment in the business | |||
| Dec. 2 | Rent Expense | 5,000 | |
| Cash | 5,000 | ||
| To record monthly office rent | |||
| Dec. 3 | Computer | 30,000 | |
| Cash | 30,000 | ||
| To record purchase of computer | |||
| Dec. 4 | Office Furniture | 36,000 | |
| Accounts Payable | 36,000 | ||
| To record purchase of office furniture | |||
| Dec. 5 | Supplies | 3,000 | |
| Accounts Payable | 3,000 | ||
| To record purchase of supplies | |||
| Dec. 9 | Cash | 8,000 | |
| Service Revenue | 8,000 | ||
| To record cash received for tax service | |||
| Dec. 12 | Utilities Expense | 2,000 | |
| Cash | 2,000 | ||
| To record utility expenses | |||
| Dec. 18 | Accounts Receivable | 17,000 | |
| Service Revenue | 17,000 | ||
| To record consulting service on account | |||
| Dec. 21 | Cash | 9,000 | |
| Unearned Service Revenue | 9,000 | ||
| To record advance payment for tax work | |||
| Dec. 26 | Accounts Payable | 3,000 | |
| Cash | 3,000 | ||
| To record payment for supplies | |||
| Dec. 28 | Cash | 6,000 | |
| Accounts Receivable | 6,000 | ||
| To record collection from client | |||
| Dec. 30 | Emily Cruz, Drawing | 16,000 | |
| Cash | 16,000 | ||
| To record withdrawal for personal use |
Step 2: T-accounts (Partial Example – Cash Account)
| Date | Item | Debit | Credit | Balance |
|---|---|---|---|---|
| Dec. 2 | Investment | 120,000 | 120,000 | |
| Dec. 2 | Rent Expense | 5,000 | 115,000 | |
| Dec. 3 | Computer | 30,000 | 85,000 | |
| … | … | … | … | … |
(Repeat this process for all accounts: Cash, Accounts Receivable, Supplies, Computer, Office Furniture, Accounts Payable, Emily Cruz, Capital, Emily Cruz, Drawing, Service Revenue, Unearned Service Revenue, Rent Expense, Utilities Expense)
Step 3: Trial Balance (Partial Example)
| Account Name | Debit | Credit |
|---|---|---|
| Cash | (Amount) | |
| Accounts Receivable | (Amount) | |
| Supplies | (Amount) | |
| Computer |
Posting Komentar