SCHOOL OF ACCOUNTANCY, BUSINESS and HOSPITALITY

Accountancy Department

ACCT 1026- Financial Accounting and Reporting

First Semester, SY 2022-2023

ADDITIONAL EXERCISES
Transaction Analysis, Journalizing, Posting, and
Trial Balance Preparation

Make sure you have solved the following problems before looking into suggested asnwers. Please write your
complete solution in your Journal of Learnings (JoL). Volunteers for recitation are encouraged during the
discussion of the exercises.

PROBLEM 1 – Transaction Analysis

The following selected transactions were completed by Jedabel Marsiatin Delivery Service during August 2022:
1. Cash received from delivery services, P100,000.
2. Paid creditors on account, P40,000.
3. Received cash from owner as additional investment, P650,000.
4. Paid advertising expense, P4,000.
5. Billed customers for delivery services on account, P60,500.
6. Purchased supplies for cash, P7,500.
7. Paid rent for August, P25,000.
8. Received cash from customers on account, P25,440.
9. Determined that the cost of supplies on hand was P1,550 so P5,950 of supplies were used during
the month.
10. Owner withdrew cash for personal use, P25,000.

Indicate the effects of each transaction on the space provided:

a. Increase an asset, decrease another asset.
b. Increase an asset, increase a liability.
c. Increase an asset, increase owner’s equity.
d. Decrease an asset, decrease a liability.
e. Decrease an asset, decrease owner’s equity.

PROBLEM 2 – Transaction Analysis

Transactions:
a. Received P400,000 cash from clients for services rendered.
b. Paid P500,000 of salaries to employees.
c. Collected P150,000 from clients on account.
d. The owner, Mary Ann Bartolome, withdrew P90,000 cash for personal use.
e. Purchased P160,000 of supplies on account.
f. Billed clients P180,000 for services rendered.
g. Paid P120,000 to suppliers on account.

For each of the transactions for Mary Ann Bartolome Cagayan Restorer, a sole proprietorship, fill in the space to answer
the following questions:
1. What are the two accounts affected by the transaction?
2. What type of account is affected – asset, liability, owner’s capital, owner’s withdrawal, income or expense
account?
3. Should the account be increased or decreased?
4. Should the account be debited or credited?
Trans. Accounts Affected Type of Account Increase or Decrease Debit or Credit
a. 1.
2.

Problems lifted from Sir Ballada’s BASIC ACCOUNTING

 b. 1.
2.
c. 1.
2.
d. 1.
2.
e. 1.
2.
f. 1.
2.
g. 1.
2.

PROBLEM 3 – JOURNALIZING, POSTING, TRIAL BALANCE

Alicia Tuliao is an experienced events planner. The transactions and accounts for the business are as follows:

a. Invested P 150,000 in cash to start her own business.

b. Paid P6,000 for one month's rent.
c. Bought office furniture for P 25,000 in cash.
d. Received delivery of laptop computer, P45,000. Paid 50% down, balance due in 30 days.
e. Performed services for P 14,000 in cash.
f. Performed services for P 10,500 on credit.
g. Acquired a fax machine for P9,500; paid P3,000 in cash, balance due in 10 days.
h. Received P5,400 from clients on account.
i. Paid P 10,000 for salaries.
j. Settled in full the balance for the fax machine.
k. Received P7,000 in cash for services performed.
l. Performed services for P 12,000 on credit.
m. Paid P 1,350 for the monthly telephone bill.
n. Paid P2,400 for the electric and water bills.
o. Collected P2,000 from clients on account.
p. Tuliao withdrew P7,000 in cash for personal expenses.

Required:
1. With the aid of T-accounts, record the transactions listed above. Use the following accounts: Cash; Accounts
Receivable; Office Furniture; Office Equipment; Accounts Payable; Tuliao, Capital; Tuliao, Withdrawals;
Consulting Revenues; Salaries Expense; Rent Expense; Utilities Expense and Miscellaneous Expense.
2. Determine the balances of the T-accounts.
3. Prepare the unadjusted trial balance.

PROBLEM 4 - JOURNALIZING, POSTING, TRIAL BALANCE

The accounts and transactions of Camille Sera, Systems Consultant, are shown below:
a. Invested P 150,000 in cash to start the business.
b. Paid P 7,500 for one month's rent.
c. Bought office furniture for P26,000 in cash.
d. Performed services for PIO,500 in cash.
e. Performed services for P 12,750 on credit.
f. Bought a desktop computer for P55,000; paid 50% down, balance in 30 days.
g. Acquired a personal copier for P39,500 on credit; paid P9,500 cash, balance due in 30 days.
h. Received P 7,000 from credit clients.
i. Bought additional office chairs for P8,000 on credit.
j. Issued a check for P32,500 to pay for salaries.
k. Performed services for P 10,250 in cash.
l. Performed services for P 11,500 on credit.
m. Collected P6,000 on accounts receivable.
n. Issued a check for P4,000 in partial payment of the amount owed for office chairs.
o. Paid P2,250 for the monthly telephone bill.
p. Paid P2,500 for the monthly electric bill.
q. Sera withdrew P10,000 in cash for personal expenses.

Required:

Problems lifted from Sir Ballada’s BASIC ACCOUNTING

 1. With the aid of T-accounts, record the transactions listed above. Use the following accounts: Cash; Accounts
Receivable; Office Furniture; Office Equipment; Accounts Payable; Sera, Capital; Sera, Withdrawals; Consulting
Revenues; Salaries Expense; Rent Expense; Utilities Expense and Miscellaneous Expense.
2. Determine the balances of the T-accounts.
3. Prepare the unadjusted trial balance.

PROBLEM 5 - JOURNALIZING, POSTING, TRIAL BALANCE

Terry Gordovez is a painting contractor. During the month of April, she completed the following transactions:
Apr. 2 Invested in the business painting equipment valued at P12,300 and placed P71,000 in a business
checking account.
3 Acquired a service vehicle costing P80,000. Paid P50,000 cash and signed a note for the balance.
4 Purchased painting supplies on account for P3,200.
5 Completed a painting job and billed the customer P4,800.
7 Received PI,500 cash for painting an apartment room.
10 Purchased painting supplies for P 1,600 cash.
11 Received a P4,800 check from the customer billed on April 5.
12 Paid P4,000 for an insurance policy for a one-year coverage.
13 Billed a customer P6,200 for a painting job.
14 Paid the assistant PI,500 for twenty-five hours' work.
15 Paid P400 for a tune-up of the service vehicle.
18 Paid for the painting supplies purchased on April 4.
20 Purchased a new ladder for P6,000 and painting supplies for P2,900, on account.
22 Received a telephone bill for P600, due next month.
23 Received P3,300 in cash from the customer billed on April 13.
24 Transferred P3,000 to a personal checking account.
25 Received P3,600 in cash for painting a two-room apartment.
27 Paid P2,000 on the note signed for the service vehicle.
29 Paid the assistant P 1,800 for thirty hours' work.

Required:
1. Prepare the journal entries to record the April transactions.
2. Set-up the following ledger accounts and post all the journal entries: cash; Accounts Receivable; Painting
Supplies; Prepaid Insurance; Painting Equipment; Service Vehicle; Notes Payable; Accounts Payable;
Gordovez, Capital; Gordovez, Withdrawals; Painting Revenues; Wages Expense; Utilities Expense; and
Maintenance Expense.
3. Prepare a trial balance.

PROBLEM 6 - JOURNALIZING, POSTING, TRIAL BALANCE

Sherelyn Tama owns the Melchora Aquino Thunders, a collegite basketball team in the Filipina Basketbolista
Association. Presented below is the November 30, 2021, together with the account numbers and titles:
Melchora Aquino Thunders
Trial Balance
November 30, 2021
Acct No. Account Titles Debit Credit
110 Cash P 1,129,800
120 Accounts Receivable 3,712,500
130 Uniform Supplies 31,050
140 Prepaid Insurance -0-
150 Land 2,025,000
160 Training Facilities 12,750,000
170 Training Equipment 2,625,000
180 Player Contracts 11,250,000
210 Notes Payable P1,800,000
220 Accounts Payable 4,725,000
230 Mortgage payable 10,500,000
310 Tama, Capital 17,643,750
320 Tama, Withdrawals 1,875,000
410 Game Attendance Revenues 10,125,000
510 Salaries Expense 4,875,000
520 Advertising Expense 400,950
530 Travel Expense 1,532,400
540 Laundry Expense 528,000
Problems lifted from Sir Ballada’s BASIC ACCOUNTING
 550 Medical Expense 194,550
560 Utilities Expense 1,734,000
570 Miscellaneous Expense 130,500
Totals P 44,793,750 P 44,793,750

During the month of December 2021, the Thunders were participating in the 2021 playoffs and the following
transactions took place:
Dec. 1 Acquired the contract of Agustin Tiongco from the Negros Navigators for P1,875,000 paying
P225,000 in cash and financing the P1,650,000 by issuing a note payable.
2 Collected P2,809,500 on accounts receivable from season-ticket holders.
3 Settled accounts payable, P 1,657,500.
4 Paid for TV advertising, P 78,600.
5 Acquired on account additional uniforms for the upcoming series with the San Alcantara Padres,
P30,750.
9 Billed season-ticket holders for the last five games, P320,250.
10 Paid the amount due on this date for a note payable, P600,000.
11 Acquired insurance for the months of December to June, P215,250. Record as prepaid insurance.
12 Acquired additional training equipment on account, P319,500.
15 Paid players' salaries, P1,136,250.
17 Received P3,316,050 cash for tickets to playoff games.
19 Paid travel expenses to San Alcantara, P558,000.
20 Paid laundry expenses, P 12,600.
23 Paid creditors, P941,850.
25 Paid miscellaneous expenses, P26,850.
26 Paid medical expenses, P18,900.
27 Paid utilities expenses, P210,450.
28 Paid players' salaries, P1,240,650.
30 Vincent Fabella withdrew P250,000.

Required:
1. Enter the amounts from the November 2021 trial balance into the appropriate ledger accounts.
2. Prepare the journal entries for the December transactions.
3. Post the entries to the ledger.
4. Prepare a trial balance as at Dec. 31, 2021.

Prepared by Sir Jerome

FAR Instructor

Problems lifted from Sir Ballada’s BASIC ACCOUNTING