CONCEPTUAL FRAMEWORK AND ACCOUNTING STANDARDS

Name: Mariel Mae D. Morales BSAIS 1-A

MODULE 2: LESSON 6

LEARNING ACTIVITIES
ACTIVITY 1 (Participation): BE NORMAL! Indicate the normal balance of the
following accounts.
Account Type Normal Balance
1. Assets Debit
2. Liabilities Credit
3. Capital Debit
4. Revenues Credit
5. Expenses Debit
ASSESSMENT
ACTIVITY 2 (QUIZ):RECORD! RECORD!

Record the following transactions on the General Journal of Cyril Consulting Service. Key
transactions by date and include explanation for each entry. Post in the T-accounts and prepare
trial balance as of March 31,2020.
Use the following accounts: Cash; Accounts Receivable; Office Supplies; Building; Accounts
Payable; Cyril, Capital; Service Revenue; Salary Expense; and Rent Expense.
Cyril Consulting Service engaged in the following transaction during March 2020, its first month
of operation:

March 1 Cyril invested ₱59,000 of cash to start the business.

2 He purchased office supplies of ₱200 on account.
4 He paid ₱40,000 cash for a building to use as a future office.
6 He performed service for customers and received cash ₱2,000.
9 He paid ₱100 on accounts payable.
17 He performed service customers on account, ₱1,600.
23 He received ₱1,200 cash from a customer on account.
31 He paid the following expenses: salary, ₱1,200; rent, ₱1,500.

Cyril Consulting Service

General Journal

Page 1
DATE Description Post Debit Credit
Ref
2020
March 1 Cash ₱59,000
 Cyril, Capital ₱59,000
Invested a cash to start the business.

2 Office supplies ₱200

Accounts Payable ₱200
Purchased office supplies on account.

4 Building ₱40,000
Cash ₱40,000

6 Cash ₱2,000
Service Revenue ₱2,000
Performed service and received cash.

9 Accounts Payable ₱100

Cash ₱100
Partial payment on account.

17 Accounts Receivable ₱1,600

Service Revenue ₱1,600
Performed service on account.

23 Cash ₱1,200
Accounts Payable ₱1,200
Received cash from customer on
account.

31 Salary Expense ₱1,200

Rent Expense ₱1,500
Cash ₱2,700
Paid cash expenses.
₱106,800 ₱106,800

Summary of T-Accounts and their Corresponding Balances:

 ASSETS LIABILITIES OWNER'S EQUITY
Cash Accounts Payable Cyril, Capital
₱ 59,000.00 ₱ 40,000.00 ₱ 100.00 ₱ 200.00 ₱ 59,000.00
₱ 2,000.00 ₱ 100.00 ₱ 1,200.00
₱ 1,200.00 ₱ 2,700.00 ₱ 100.00 ₱ 1,400.00 Service Revenue
₱ 62,200.00 ₱ 42,800.00 ₱ 1,300.00 ₱ 2,000.00
₱ 19,400.00 ₱ 1,600.00
₱ 3,600.00

Accounts Receivable Salary Expense

₱ 1,600.00 ₱ 1,200.00

Office Supplies Rent Expense

₱ 200.00 ₱ 1,500.00

Building
₱ 40,000.00

Cyril Consulting Service

Trial Balance
March 31,2020

Balance
Debit Credit
Cash ₱ 19,400
Accounts Receivable 1,600
Office Supplies 200
Building 40,000
Accounts Payable ₱ 1,300
Cyril, Capital 59,000
Service Revenue 3,600
Salary Expense 1,200
Rent Expense 1,500
Total ₱ 63,900 ₱ 63,900

ACTIVITY 3 (ASSIGNMENT): RECORD AND BALANCE 😊

Required:
1. Record the following transactions in the General Journal (same as in Page 44-45)
2. Post the entries from the general journal to the T-accounts. Determine the ending
balance of each account.
3. Prepare the trial balance as of June 30, 2020.

Use the following accounts: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts
Payable; Fred, Capital; Commission Income; Wages Expense; Advertising Expense; Telephone
Expense; Utilities Expense.
In June 2020, Fred Placement Agency had the following transactions.

June 1 Fred invested ₱60,000 in the new placement agency.

2 Bought Equipment for cash ₱3,500.
3 Earned placement fee commission of ₱21,000 but payment from Aaron Co. will not be
received until July.
5 Paid wages expense, ₱4,000.
7 Fred paid his home utility bill from the company check book, ₱690.
9 Placed Joe Diaz on a national TV Show, receiving ₱9,000 cash.
15 Paid cash for supplies, ₱3,500.
28 Telephone bill received but not paid, ₱1,850.
29 Advertising bill received but not paid, ₱2,000.

Fred Placement Agency

General Journal
Page 1
DATE DESCRIPTION Post Debit Credit
Ref
2020
June 1 Cash ₱60,000
Fred, Capital ₱60,000
Initial investment by owner.

2 Equipment ₱3,500
Cash ₱3,500
Bought equipment for cash.

3 Commission Income ₱21,000

Accounts Payable ₱21,000
Earned fee commission.

5 Wages Expenses ₱4,000

Cash ₱4,000
Paid wages expense.

7 Utilities Expense ₱690

Accounts Payable ₱690
Paid utility bill.

9 Cash ₱9,000
Advertising Expense ₱9,000
Received cash on a national TV
show.

15 Office Supplies ₱3,500

Cash ₱3,500
Paid cash for supplies.

28 Telephone Expense ₱1,850

Accounts Payable ₱1,850
 Received telephone bill.

29 Advertising Expense ₱2,000

Accounts Payable ₱2,000
Received advertising bill.
₱105,540 ₱105,540

Summary of T-Account and their Corresponding Balances:

Cash Accounts Payable Fred, Capital
₱ 60,000.00 ₱ 3,500.00 ₱ 21,000.00 ###
₱ 9,000.00 ₱ 4,000.00 ₱ 690.00
₱ 3,500.00 ₱ 1,850.00 Commission Income
₱ 69,000.00 ₱ 11,000.00 ₱ 2,000.00 ₱ 21,000.00
₱ 58,000.00 ₱ 25,540.00
Wages Expenses
Equipment ₱ 4,000.00
₱ 3,500.00
Utilities Expense
Office Supplies ₱ 690.00
₱ 3,500.00
Advertising Expense
₱ 2,000.00 ₱ 9,000.00
₱ 7,000.00

Telephone Expense
₱ 1,850.00

Fred Placement Agency

Trial Balance
June 30,2020
Balance
Debit Credit
Cash ₱ 58,000
Equipment 3,500
Office Supplies 3,500
Accounts Payable ₱ 25,540
Fred, Capital 60,000
Commission Income 21,000
Wages Expenses 4,000
Utilities Expense 690
Advertising Expense 7,000
Telephone Expense 1,850
Total ₱ 92,540 ₱ 92,540