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Assignment POSTING TO THE LEDGER

The document provides journal entries for transactions by Entity A from January 8 to January 12. It includes services rendered for cash and on account, cash disbursed for advertising expenses, collection of accounts receivable, and a temporary cash withdrawal by the owner. The requirements are to record the journal entries, post them to T-accounts to determine the ending account balances, and arrange the T-accounts in the order of assets, liabilities, equity, income and expenses.

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Jie Saporna
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114 views

Assignment POSTING TO THE LEDGER

The document provides journal entries for transactions by Entity A from January 8 to January 12. It includes services rendered for cash and on account, cash disbursed for advertising expenses, collection of accounts receivable, and a temporary cash withdrawal by the owner. The requirements are to record the journal entries, post them to T-accounts to determine the ending account balances, and arrange the T-accounts in the order of assets, liabilities, equity, income and expenses.

Uploaded by

Jie Saporna
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Posting to the Ledger

NAME: Date:
Professor: Score:

PROBLEM 1: JOURNALIZING & POSTING


The following were the transactions of Entity A during the period:

Date Transactions
Jan. 8 Services worth ₱150,000 were rendered for cash.
Jan. 9 Services worth ₱200,000 were rendered on account.
Jan. 10 Cash amounting to ₱25,000 was disbursed for advertising expense.
Jan. 11 Accounts receivable of ₱180,000 was collected.
Jan. 12 The owner made a temporary withdrawal of ₱10,000 cash from the
business.

Requirements:
a. Provide the journal entries.
b. Post the journal entries to the ledger then determine the ending balances of the accounts. Use T-
accounts for this purpose. Arrange your T-accounts in this order: Assets, Liabilities, Equity,
Income and Expenses.

1
PROBLEM 1: JOURNALIZING & POSTING

a.
DATE TRANSACTION RN DEBIT CREDIT
JAN. 8 Sales service ₧150,000
Cash ₧150,000
To record rendered service on cash

9 Sales service ₧200,000


Accounts receivable ₧200,000
To record rendered service on account

10 Expenses ₧25,000
Cash ₧25,000
To record disbursed advertising expenses on cash

11 Cash ₧180,000
Accounts Receivable ₧180,000
To record collected accounts

12 Owners Drawing ₧10,000


Cash ₧10,000
To record owner’s temporal withdrawal on cash

b.

2
PROBLEM 2: UNADJUSTED TRIAL BALANCE

The ledger accounts of Entity A have the following balances on December 31, 20x1:

Account titles Balances


Accounts payable 480,000
Accounts receivable 210,000
Accumulated depreciation - Bldg. 1,250,000
Accumulated depreciation - Equipt. 1,800,000
Advertising expense 70,000
Allowance for bad debts 30,000
Bad debt expense 20,000
Building 5,000,000
Cash 770,000
Depreciation expense 200,000
Equipment 3,600,000
Land 2,000,000
Miscellaneous expense 4,000
Notes receivable 420,000
Owner’s drawings 80,000
Owner’s equity 4,200,000
Prepaid supplies 40,000
Salaries expense 1,140,000
Salaries payable 120,000
Service fees 6,000,000
Supplies expense 60,000
Taxes and licenses 120,000
Transportation and travel expense 140,000
Utilities expense 46,000
Utilities payable 40,000

Requirement: Prepare the unadjusted trial balance. Be sure to provide a proper heading for the report
and arrange the accounts in the correct sequence.

3
4
PROBLEM 3: POSTING & UNADJUSTED TRIAL BALANCE
Mr. A opened a management consulting firm called “Alpha Consulting” on October 1, 20x1. The
following were the transactions during the first week of operations:

Oct. Transactions
1 Provided ₱300,000 cash as initial investment to the business.
2 Acquired furniture and fixture for ₱200,000 cash.
4 Purchased supplies for ₱30,000 cash.
5 Rendered services worth ₱20,000 on cash basis.
7 Paid ₱10,000 salaries of employees.

Requirements:
a. Provide the journal entries.
b. Post the entries to the ledger (use T-accounts).
c. Prepare the unadjusted trial balance on October 7, 20x1.

5
a.

DATE DESCRIPTION R DEBIT CREDIT


N
Oct. 1 Cash ₧300,000
Owners capital ₧300,000
To record owners initial investment to the business on cash

2 Furniture & Fixtures ₧200,000


Cash ₧2000,000
To record acquired furniture & Fixture on cash

4 Supplies ₧30,000
Cash ₧30,000
To record purchased supplies on cash

5 service ₧20,000
Cash ₧20,000
To record rendered service on cash

7 Salaries ₧10,000
Cash ₧10,000
To record the salaries of employees

6
“In some parts of the world, students are going to school every day. It's their
normal life. But in other part of the world, we are starving for education... it's like a
precious gift. It's like a diamond.” – Malala Yousafzai

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