Scribd
Upload
3K views9 pages

Basic Accounting Review Recording Business Transactions

Cardenas Delivery Service recorded various business transactions during its first month of operations in October 2018. Transactions included depositing startup capital, acquiring a vehicle, paying expenses, billing and collecting from customers. Journal entries were made and T-accounts were prepared for each account. A trial balance at month-end showed total debits equaling total credits.

Uploaded by

Jenny Altazar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
3K views9 pages

Basic Accounting Review Recording Business Transactions

Cardenas Delivery Service recorded various business transactions during its first month of operations in October 2018. Transactions included depositing startup capital, acquiring a vehicle, paying expenses, billing and collecting from customers. Journal entries were made and T-accounts were prepared for each account. A trial balance at month-end showed total debits equaling total credits.

Uploaded by

Jenny Altazar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 9

BASIC ACCOUNTING REVIEW

RECORDING BUSINESS TRANSACTIONS

POST TEST PROBLEM 1

STEP 1 IDENTIFYING

Loida Cardenas recently established her own business, which she called Cardenas Delivery Service.
During the first month of business in October 2018, the following transactions were completed:

Oct 1 Deposited P19,500 of personal savings in an account at the Tarlac Development


Bank in the name of Cardenas Delivery Service.
2 Acquired a second-hand service vehicle costing P63,000, paying P7,000 in cash,
and financed the remaining balance by issuing a note payable.
3 Paid rent for the month, P2,950.
5 Acquired supplies on account P8,200.
6 Paid for three months' insurance and recorded prepaid insurance in the amount
of P4,500.
9 Received P13,900 cash for delivery work done for the Pascua Corporation.
10 Acquired additional supplies for cash, P2,050.
11 Paid salaries, P3,900.
12 Completed an assignment for Luisita Inc. and billed the entity P15,250.
14 Paid P2,300 of the amount owed from the Oct. 5 transaction.
16 Paid miscellaneous expenses, P1,700.
17 Withdrew cash from the business, P6,150.
20 Collected P9,500 on account from Luisita Inc.
21 Paid salaries, P4,200.
25 Paid utilities expense, P800.
29 Billed the Cojuangco Corp. for delivery services rendered, P13,400.
30 Received 50% payment from Luisita Inc. for services completed last Oct. 16.

Required:

1 Journalize the above transactions using the following account titles:

Cash; Accounts Receivable; Supplies; Prepaid Insurance; Service Vehicle;


Notes Payable; Accounts Payable;
Cardenas, Capital; Cardenas, Withdrawals;
Delivery Revenues;
Salaries Expense; Rent Expense; Utilities Expense; and Miscellaneous Expense.

2 Prepare the T-accounts for each of the following account titles.

3 Prepare a trial balance.


nas Delivery Service.
were completed:

the Tarlac Development

paying P7,000 in cash,

nsurance in the amount

scua Corporation.

entity P15,250.

, P13,400.
mpleted last Oct. 16.

count titles:

; Service Vehicle;

Miscellaneous Expense.
STEP 2 JOURNALIZING

1 CASH 19,500
CAPITAL;CARDENAS 19,500
2 SERVICE VEHICLE 63,000
CASH 7,000
NOTES PAYABLE 56,000
3 RENT EXPENSE 2,950
CASH 2,950
5 SUPPLIES 8,200
ACCOUNTS PAYABLE;CARDENAS 8,200
6 PREPAID INSURANCE 4,500
CASH 4,500
9 CASH 13,900
DELIVERY REVENUE 13,900
10 SUPPLIES 2,050
CASH 2,050
11 SALARIES EXPENSE 3,900
CASH 3,900
12 ACCOUNTS RECEIVABLE 15,250
DELIVERY REVENUE 15,250
14 ACCOUNTS PAYABLE; CARDENAS 2,300
CASH 2,300
16 MISCELLANEOUS EXPENSE 1,700
CASH 1,700
17 WITHDRAWALS 6,150
CASH 6,150
20 CASH 9,500
ACCOUNTS RECEIVABLE 9,500
21 SALARIES EXPENSE 4,200
CASH 4,200
25 UTILITIES EXPENSE 800
CASH 800
29 ACCOUNTS RECEIVABLE 13,400
DELIVERY REVENUE 13,400
30 CASH 2,875
ACCOUNTS RECEIVABLE 2,875
STEP 3 POSTING

CASH CAPITAL; CARDENAS


1-Oct 19,500 7,000 2-Oct 19,500
9-Oct 13,900 2,950 3-Oct 19,500
20-Oct 9,500 4,500 6-Oct
30-Oct 2,875 2,050 10-Oct
3,900 11-Oct
2,300 14-Oct
1,700 16-Oct
6,150 17-Oct
4,200 21-Oct
800 25-Oct
45,775 35,550
10,225
NOTES PAYABLE RENT EXPENSE
56000 2-Oct 3-Oct 2950
56000 2950

ACCOUNTS PAYABLE; CARDENAS PREPAID INSURANCE


14-Oct 2,300 8,200 5-Oct 6-Oct 4500
5,900 4,500

SALARIES EXPENSE ACCOUNTS RECEIVABLE


11-Oct 3900 12-Oct 15,250 9,500
21-Oct 4200 29-Oct 13,400 2,875
8100 16275
WITHDRAWAL UTILITIES EXPENSE
17-Oct 6150 25-Oct 800
6150 800
DENAS SERVICE VEHICLE
1-Oct 2-Oct 63,000
63,000

NSE SUPPLIES
5-Oct 8200
10-Oct 2050
10250

RANCE DELIVERY REVENUE


13900 9-Oct
15,250 12-Oct
13,400 29-Oct
42,550

EIVABLE MISCELLANEOUS EXPENSE


20-Oct 16-Oct 1700
30-Oct 1700
ENSE
STEP 4 TRIAL BALANCE

CARDENAS DELIVERY SERVICE


TRIAL BALANCE
FOR THE MONTH ENDING OCTOBER 31

ACCOUNT TITLES DEBIT CREDIT


CASH 10,225
SERVICE VEHICLE 63,000
SUPPLIES 10,250
PREPAID INSURANCE 4,500
ACCOUNTS RECEIVABLE 16,275
NOTES PAYABLE 56,000
ACCOUNTS PAYABLE 5,900
CAPITAL 19,500
WITHDRAWAL 6,150
DELIVERY REVENUE 42,550
RENT EXPENSE 2,950
UTILITY EXPENSE 800
SALARIES EXPENSE 8,100
MISCELLANEOUS EXPENSE 1,700

TOTALS 123,950 123,950

You might also like