PART III. JOURNAL ENTRIES, T-ACCOUNT AND TRIAL BALANCE PROBLEM 1: Rocky Company May 1 Rocky Invested P250,000 into his Consulting business. 1 Rented office space and paid two months’ rent in advance for P10,000 per month. 2 Rocky issued a promissory note for a P210,000 loan from a bank. 2 Acquired service vehicle for P420,000. 4 Paid Prudential Guarantee and Assurance, Inc. P14,400 for a one-year comprehensive insurance coverage on the service vehicle. 5 Acquired office equipment for P60,000 paying P15,000 in cash and the balance next month. 8 Purchased supplies on credit for P18,000 from AB Trading. 9 Paid AB Trading P10,000 of the amount owed. 10 Performed Consulting Services and collected fees of P26,400. 13 Paid salaries, P6,600. 15 Received P10,000 advance fees from clients. 19 Billed clients for services rendered amounting to P36,000. 25 Rocky withdrew P14,000 for personal use. 27 Paid salaries, P7,200. 30 Received the telephone bill P1,400. 30 Received cash of P24,000 from two clients for services billed last may 19. 31 Settled the electricity bill of P3,000 for the month. Use the following accounts: Cash, Notes Receivable; Accounts Receivable; Office Supplies; Prepaid Rent; Prepaid Insurance; Office Equipment; Service Vehicle; Notes Payable; Accounts Payable; Unearned Consulting Revenues; Rocky, Capital; Rocky, Withdrawal; Consulting Revenues; Salaries Expense; Utilities Expense; Repairs and Maintenance. Instructions: 1. Prepare the journal entries of each transaction in a journal. 2. Post the journal entries to the T-Account. 3. From the balances of the T-Account of each account, prepare the Trial Balance as at May 31.
PART III.
PROBLEM 1: Rocky Company
May 1 Rocky Invested P250,000 into his Consulting business.
1 Rented office space and paid two months’ rent in advance for P10,000 per month.
2 Rocky issued a promissory note for a P210,000 loan from a bank.
2 Acquired service vehicle for P420,000.
4 Paid Prudential Guarantee and Assurance, Inc. P14,400 for a one-year
comprehensive insurance coverage on the service vehicle.
5 Acquired office equipment for P60,000 paying P15,000 in cash and the balance
next month.
8 Purchased supplies on credit for P18,000 from AB Trading.
9 Paid AB Trading P10,000 of the amount owed.
10 Performed Consulting Services and collected fees of P26,400.
13 Paid salaries, P6,600.
15 Received P10,000 advance fees from clients.
19 Billed clients for services rendered amounting to P36,000.
25 Rocky withdrew P14,000 for personal use.
27 Paid salaries, P7,200.
30 Received the telephone bill P1,400.
30 Received cash of P24,000 from two clients for services billed last may 19.
31 Settled the electricity bill of P3,000 for the month.
Use the following accounts:
Cash, Notes Receivable; Accounts Receivable; Office Supplies; Prepaid Rent; Prepaid Insurance; Office Equipment;
Service Vehicle; Notes Payable; Accounts Payable; Unearned Consulting Revenues; Rocky, Capital; Rocky, Withdrawal;
Consulting Revenues; Salaries Expense; Utilities Expense; Repairs and Maintenance.
Instructions:
1. Prepare the journal entries of each transaction in a journal.
2.
3. From the balances of the T-Account of each account, prepare the Trial Balance as at May 31.
PROBLEM 2: (Jones’ Programming Service)
May 2 Patrick Jones started a computer programming business, Jones’ Programming Service, by investing P50,000 cash.
5 Purchased a computer for P25,000 in cash.
7 Purchased supplies on credit for P3,000.
19 Received cash for programming services performed, P5,000.
22 Received cash for programming services to be performed, P6,000.
25 Paid the rent for May, P6,500.
31 Billed a customer for programming services performed, P2,500.
Use the following accounts:
Cash; Accounts Receivable; Supplies; Computer Equipment; Unearned Programming Revenue; Jones, Capital;
Programming Revenue; Rent Expense
Instructions:
1. Record the above transaction directly in the T-Account without using a journal. Indicate the date to identify the
transactions.
2. Prepare the Trial balance as at May 31.
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