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Chapter 5 - Assignment (Journalizaing of Transactions)

This document provides instructions for an accounting assignment. It includes two practice problems to journalize business transactions from examples provided. For problem one, students are given selected transactions from November 2020 for LBD Delivery Service and asked to journalize them. For problem two, students are given transactions from March 2021 for Kate Manuel Company and asked to journalize them using the company's chart of accounts. They must record the transactions in a general journal.

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80 views

Chapter 5 - Assignment (Journalizaing of Transactions)

This document provides instructions for an accounting assignment. It includes two practice problems to journalize business transactions from examples provided. For problem one, students are given selected transactions from November 2020 for LBD Delivery Service and asked to journalize them. For problem two, students are given transactions from March 2021 for Kate Manuel Company and asked to journalize them using the company's chart of accounts. They must record the transactions in a general journal.

Uploaded by

Half Blood
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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BCA 001 Accounting Plus

Assignment

Note: To be submitted on Monday, October 3, 2022 during the face to face class.

Chapter 4-Theories
1. Accounting transactions and events are based on documents evidencing their occurrence. (1)
In your own words, explain why it is important to identify these source documents. (2) Give at
least five examples of source documents used in analyzing financial transactions

2. “Debit means increase and credit means decrease.” Is this statement always true? Explain

3. Identify whether each of the following transactions is a source of assets (SA), use of assets (UA),
exchange of assets (EA), or exchange of claims (EC) transaction.

a. Received cash from accounts receivable


b. Paid cash for utilities expense
c. Rendered services for clients on account
d. Purchased equipment with cash
e. Incurred repair and maintenance expenses on account

Chapter 5-Pre- Assessment Activity


Problem 1
The following selected transactions were completed by LBD Delivery Service during November
2020.

a. November 3- The owner invested P100,000 cash for the business


b. November 7- Purchased supplies for cash, P5,000
c. November 13- Purchased delivery vehicle on account, P50,000
d. November 22- Cash received for delivery services, P30,000
e. November 30- Paid advertising expense, P7,500

Required:
1. Journalize in good form the transactions listed above.

Problem 2
Problem 1 (Practice Activity)
Kate Manuel Company entered into the following transactions during March 2021:

a. Mar. 1. Kate invested her personal money to the account of her business amounting to
P500,000.
b. Mar. 12. Purchased machinery for cash amounting to P100,000.
c. Mar. 12. Paid 7,500 for salaries of employees.
d. Mar. 13. Purchased supplies on account, P6,000
e. Mar. 18. Paid advertising, P23,000.
f. Mar. 20. Paid insurance for the month, P 9,000
g. Mar. 20. Rendered service on account, P 150,000.
BCA 001 Accounting Plus
Assignment

h. Mar. 24. Bought office supplies for cash amounting to P19,000.


i. Mar. 27. Paid utilities, P 12,500
j. Mar. 27. Paid accounts payable, amounting to P 30,000.
k. Mar. 28. Received cash for services rendered, P 120,000
l. Mar. 30. Paid salaries, P 25,000.
m. Mar.30. Paid tax, P 7,000.
n. Mar. 30. Collected from credit clients, P 24,000

The company’s chart of accounts is presented below: (Use the following accounts in
journalizing the transactions)
Assets Income
101 Cash 401 Service Revenues
102 Accounts Receivable

103 Supplies Expenses


104 Prepaid Insurance 501 Salaries Expense

105 Machinery 502 Supplies Expense

106 Accumulated Depreciation 503 Tax Expense


Liabilities 504 Insurance Expense

201 Accounts Payable 505 Utilities Expense

202 Notes Payable 506 Advertising Expense

Equity

301 Manuel, Capital

302 Manuel, Withdrawals

303 Income Summary

Requirement:
1.In a general journal, prepare the necessary journal entries in good form.

-End-

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