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Activity Chapter 3

Here are the steps to prepare a trial balance from the provided account balances: 1. List all the accounts and their balances in columns with "Debit" and "Credit" columns. 2. Total the debit and credit columns. If they are equal, the trial balance is in balance. The trial balance for Rhianna Cueto Advertising Agency as at Dec. 31, 2019 is: Accounts Debit Credit Cueto, Capital 254,700.00 Insurance Expense 9,600.00 Accounts Payable 26,400.00 Service Revenues 258,000.00 Land 87,000.00 Cash 21,000

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76 views

Activity Chapter 3

Here are the steps to prepare a trial balance from the provided account balances: 1. List all the accounts and their balances in columns with "Debit" and "Credit" columns. 2. Total the debit and credit columns. If they are equal, the trial balance is in balance. The trial balance for Rhianna Cueto Advertising Agency as at Dec. 31, 2019 is: Accounts Debit Credit Cueto, Capital 254,700.00 Insurance Expense 9,600.00 Accounts Payable 26,400.00 Service Revenues 258,000.00 Land 87,000.00 Cash 21,000

Uploaded by

Rhoana Vienna Custodio
Copyright
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We take content rights seriously. If you suspect this is your content, claim it here.
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I.

Classification of Accounts

The following ledger accounts are used by Mavel Cueto Tutorials:


a. Cash m. Salaries Payable
b. Salarie Expense n. Unearned Revenues
c. Acount Rceivables o. Office Equipment
d. Cueto, Capital p. Rent Payable
e. Service Revenues q. Notes Rceivable
f. Prepaid Rent r. Interest Expense
g. AccountsPayale s. Notes Payabe
h. Land t. Supplies
i. Supplies Expense u. Interest Receivable
j. Prepaid Insurance v. Rent Expense
k. Utilities Expense
l. Cueto, Withdrawal

Required: Indicate each account's classification and normal balance by placing ( / ) marks.

Type of Account
Normal Balance
Asset Liabiity
Cueto, Capital Cueto, Withdrawal Revenues Expenses Debit Credit
a. / /
b. / /
c. / /
d. / /
e. / /
f. / /
g. / /
h. / /
i. / /
j. / /
k. / /
l. / /
m. / /
n. / /
o. / /
p. / /
q. / /
r. / /
s. / /
t. / /
u. / /
v. / /
II. Developing a Chart of Accounts and Recording Transactions in T - Accounts

Edward Cueto organized ernal IMAges, a photography and portrat studio, on Oct. 1,2020. The studio completed
the following transaction duringthe month:

Oct 1 Deposited 350,000 in a bank account in the name of the business.


3 Paid two months rent deposit and one-month advance, P40,500
5 Transferred the business personal photogra[phy equipment valued at P129,000.
7 Ordered additional photography equipment, P75,000 on account
8 Purchased office equipment on cash, P54,000.
10 Received and paid for the photography equipment ordered on Oct. 7, 75,000.
12 Purchased photography supplies on credit, 21,000.
13 Received cash for previously unbilled portraits, 11,400.
17 Billed customers for portraits, P22,500.
19 Paid fifty percent of the supplies purchased on OCt. 12, P10,500.
25 Paid the electricity bill for Oct., P3,600.
26 Paid the telephone bill for Oct., P2,100.
28 Received payments from the customers billed on Oct., 17, P7,500.
29 Paid salaries to personnel, P12,000.
30 Received an advance payment from a customer, P1,500.
31 Withdrew P16,000 from the business for a personal emergency.

Required:
1. Read the transactions and develop a chart of accounts applicable to the business.
2. Record the transactions directly into T-account.
3. Determine the balance of each account.
III. Journalizing Transactions

Renzo Cueto Review School enterd into the following transactions during October 2020:

Oct. 1 Cueto made aditional investments of P50,000 in the business


2 Bought liabilty insurance for one year, P14,500
3 Received a bill for advertising from SouthMIN News, P3,200.
4 Paid rent for the month, P8,900.
7 Received a bill for equipment repair from E. HIpolito, P2,880.
10 Received and deposited tuition from students, P62,500.
11 Received and aid the telephone bill, P2,300.
15 Bought chairs from E. Awayan Furniture, P18,800, paying P8,800 in cash and the balance on account.
18 Paid accounts to SouthMINe News, 3,200.
21 Cueto withdrew 8,000 for personal use.
24 Received a bill for gas and oil from MIndanao OIl Corp. P1,800.
25 Received and deosited tuition from students, P61,400.
27 PAid salaries of the assistants, 12,000.
28 Bought a photocopier on account from Dadiagas Office Machines, P7,500.
29 Received P7,000 tuition from a student who had charged the tuition on account last month.
30 Received and paid the water utilities bill, P3,600.
31 Paid for flower arrangements for front office, P620.
31 Cueto invested personal computer, with a fair market value of P12,30, in the business.

Required:
Prepare journal entries for the October transactions. USe thefollowing accounts: Cash, Account Receivable; PRepaid Insurance; Equipment;
Furniture; Accounts PAyable; CUETo, Capital; Cueto, Withdrawals; School Fees; Salaries Expense; Rent Expnse Gas and OIL Expense; Advertiing Expense;
Repair Expense; Supplies Expense; UTilities Expense; Telecommunications Expense and MIscellaneous Expense.
IV. PREparing a Trail Balance

The account of Rhianna Cueto Advertising Agency follow with their normal balances as at Dec. 31, 2019.

Accounts Balances
Cueto, Capital 254,700.00
INsurance Expense 9,600.00
Acounts PAYAble 26,400.00
Service Revenues 258,000.00
Land 87,000.00
Cash 21,000.00
Salaries Expense 75,000.00
Building 375,000.00
Equipment Rentals Expense 15,000.00
Cueto, Withdrawas 18,000.00
UTilities xpenses 30,000.00
Accounts Receivable 28,500.00
NOtes PAyable 135,000.00
Supplies Expense 15,000.00

Required:
PRepare a trail balance

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