NAME: PERMECITA, LEIZEL B. COURSE & YR.

: BSED MATHEMATICS 3-1

Answer the following questions. Write it on a short bond paper.

Make a Trial Balance Report
Use the given JCN Computer Repair Services chart of accounts. Make sure to follow the
steps in preparing a trial balance report.
Ms. Julianah Chloe Neri opened her computer repair business in Cagayan de Oro City on
July 14, 2020. The following transactions occurred during the month of July 2020:

DATE TRANSACTIONS

July 14 Invested PHP500,000 to her business. The trade name of the business was
JCN Internet Café.

July 15 Julianah purchased one computer unit from XY Computer Store to be used
for her business. She issued check number 001 amounting to PHP25,000.

July 16 Julianah hired Alele Valix, a BSIT graduate.

July 17 Repaired the computers of Albertos Co. and collected P10,000.

July 18 Repaired the computers of Marko; however, Marko will pay P15,000 only on
August 2020.

July 19 Julianah purchase office supplies from IZA Merchandise amounting to P

5,000 on account. Jualianah will pay on August 30, 2020.

July 25 Paid the salary of Alele amounting to P 4,000.

STEP 1: IDENTIFY AND RECORD A BUSINESS TRANSACTION USING THE

GENERAL JOURNAL

July 14, 2020 – Invested PHP500,000 to her business. The trade name of the business was JCN
Internet Café
Journal Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
1 July 14 Cash 500,000
2 Neri, Capital 500,000
3 To record the initial Capital
investment of Neri
GENERAL JOURNAL PAGE 1

July 15 Julianah purchased one computer unit from XY Computer Store to be used
for her business. She issued check number 001 amounting to PHP25,000.

Journal Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
4 July 15 Computer Equipment 25,000
5 Cash 25,000
6 To record the acquisition of
Computer equipment
GENERAL JOURNAL PAGE 1

July 16 Julianah hired Alele Valix, a BSIT graduate.

EXPLANATION: No entry will be made in this transaction because there was

neither inflow or outflow of cash or an exchange of assets that have monetary
value.
July 17 Repaired the computers of Albertos Co. and collected P10,000.

Journal Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
7 July 17 Cash 10,000
8 Service Revenue 10,000
9 To record service rendered to
Albertos Co.
GENERAL JOURNAL PAGE 1

July 18 Repaired the computers of Marko; however, Marko will pay P15,000 only
on August 2020.
 Journal Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
10 July 18 Account Receivable 15,000
11 Service Revenue 15,000
12 To record the service rendered to
Marko
GENERAL JOURNAL PAGE 1

July 19 Julianah purchase office supplies from IZA Merchandise amounting to P

5,000 on account. Jualianah will pay on August 30, 2020.

Journal Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
13 July 19 Office Supplies 5,000
14 Accounts Payable 5,000
15 To record the acquisition of Office
Supplies on account from IZA
Merchandise
GENERAL JOURNAL PAGE 1

July 25 Paid the salary of Alele amounting to P 4,000.

Journal Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
16 July 25 Salaries Expense 4,000
17 Cash 4,000
18 To record the payment of
Alele’s salary
GENERAL JOURNAL PAGE 1 Journal Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
1 July 14 Cash 500,000
2 Neri, Capital 500,000
3 To record the initial Capital
investment of Neri
4 July 15 Computer Equipment 25,000
5 Cash 25,000
6 To record the acquisition of
Computer equipment
7 July 17 Cash 10,000
8 Service Revenue 10,000
9 To record service rendered to
Albertos Co.
10 July 18 Account Receivable 15,000
11 Service Revenue 15,000
12 To record the service rendered to
Marko
13 July 19 Office Supplies 5,000
14 Accounts Payable 5,000
15 To record the acquisition of Office
Supplies on account from IZA
Merchandise
16 July 25 Salaries Expense 4,000
17 Cash 4,000
18 To record the payment of
Alele’s salary
GENERAL JOURNAL PAGE 1

STEP 2: POST JOURNAL ENTRIES TO GENRAL LEDGER USING T-ACCOUNTS

II.
III.
IV.
V. VI.

ASSETS

CASH ACCOUNTS COMPUTER

RECEIVABLE EQUIPMENT
500,000 25,000 15,000 - 25,000 -
10,000 4,000
510,000 29,000 15,000 - 25,000 -
481,000 15,000 25,000
 OFFICE
SUPPLIES
5,000 -

5,000 -
5,000

LIABILITIES OWNER’S EQUITY EXPENSE

ACCOUNTS SALARIES EXPENSE

NERI, CAPITAL
PAYABLE - 4,0000 -
-
- - 4,0000 -
- 4,000 500,000

REVENUE

SERVICE REVENUE
- 10,000
- 15,000
- 25,000
25,000

STEP 3: PREPARE TRIAL BALANCE

CHART OF ACCOUNTS

TRIAL BALANCE

FOR THE PERIOD JULY, 2020

Account Number ACCOUNT TITLES DR CR

100 Cash 481,000 -
110 Accounts receivable 15,000 -
120 Prepaid Insurance - -
130 Office Supplies 5,000 -
140 Computer Equipment 25,000 -
150 Accu-Dep’n Computer Eqt - -
200 Accounts Payable - 5,000
300 Neri, Capital - 500,000
310 Neri, Drawing - -
400 Service Revenue - 25,000
500 Supplies Expense - -
510 Salaries Expense 4,000 -
520 Insurance Expense - -
530 Transportation Expense - -
 540 Depreciation Expense - -
550 Rent Expense - -
TOTAL 530,000 530,000

VII. Computation for accrued and deferred accounts and adjusting journal entry
preparation.

1. Compute for Depreciation

The following are financial data of the ABM Corp. for the year ended December
31, 2019:
a. The cost of the equipment is PHP25,000.
b. It was estimated to have a useful life of 5 years. It is estimated that after 5
years.
c. The office equipment can be sold at a scrap value of PHP1,000.

SOLUTION:
(𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡 − 𝑆𝑎𝑙𝑣𝑎𝑔𝑒 𝑜𝑟 𝑅𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑉𝑎𝑙𝑢𝑒)
𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒

𝑃ℎ𝑝 25,000 − 𝑃ℎ𝑝 1,000

𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 =
5 𝑦𝑒𝑎𝑟𝑠

𝐴𝑛𝑛𝑢𝑎𝑙 𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑷𝒉𝒑 𝟒, 𝟖𝟎𝟎

Adjusting Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
44 Dec 31 Depreciation Expense 4,800
45 Acumulated Dep’n- Office 4,800
Equipment
46 To recognize the depreciation
expense for the month of
December
GENERAL JOURNAL PAGE 1

2. Deferred expenses or prepaid expenses

The following are financial data of the ABM Corp. for the year ended December
31, 2019:

a. Purchased P15,000 worth of office supplies on account.

b. By the end of the month, PHP5,000 worth of these supplies are still unused.

SOLUTION:

Supplies at cost ₱ 15,000

Less: Unused Supplies - 5,000
Used supplies ₱ 10,000
 Adjusting Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
47 Dec 31 Supplies Expense 10,000
48 Supplies 10.000
49 To recognize the used portion of
the Office supplies consumables

GENERAL JOURNAL PAGE 1

3. Deferred income or unearned income

On February 15, 2016 Matapang entered into a contract with Makisig to maintain
the computers of Makisig for two months starting on February 15, 2016 up to April
15, 2016. On the same date, Makisig paid the total contract amount of PHP40,000
in full.

The entries to record and adjust the books are: In the February 29, 2016 entry
above, as of end of February 2016, Matapang has already earned the service
revenue for the first 15 days, thus an adjusting entry is recorded.

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
50 Feb 15 Cash 40,000
51 Unearned Service Revenue 40,000
52 To record receipt of full payment
for the two-month service contract
with Makisig

Adjusting Entry
53 Feb 29 Unearned Service Revenue 10,000
54 Service Revenue 10,000
55 To record service income earned
from Feb 15-29, 2016, ₱40,000 x
(1/2 month
/2 months)
GENERAL JOURNAL PAGE 1

4. Accrued income or accrued assets

Prepare adjusting journal entries for the following transaction:

On February 28, 2016, Juan repaired the computer of Pedro for PHP15,000. Pedro
was on an out-of-town trip so he could not pay Juan. He told Juan that he will pay
 for their services on March 1, 2016. Juan has already earned the PHP15,000 but
was not paid as of the end of February 2016. Therefore, an income should be
properly recognized in February 2016 for this transaction.

Adjusting Entry:

POST BALANCES
DATE PARTICULAR REF. DEBIT CREDIT
56 Feb 29 Account Receivable 15,000
57 Service Income 15.000
58 To record accrued income for the
service already rendered during
the month of Febuary

GENERAL JOURNAL PAGE 1

I. Compute Revenue, Expenses and Net Income/Loss

Mr. Izatsuki Hamida, the bookkeeper of Honda Massage and Spa Services reported
the following financial record for the month of January to March 2018:

Water expense ---------------------------------------P 4,000

Soap expense ------------------------------------ 7,500
Massage oil expenses --------------------------- 15,000 Light &
power expenses --------------------------- 12,000
Rent of the Massage parlor -------------------------24,000
Salary of staff (4 massage worker) ----------------72,000
Income received from massage service ------115,700
Income not yet received from customer -------55,000
Telephone expenses --------------------------- ---- 7,500

Compute for the following:

a. Total revenue Revenue/Service
Income:

Service rendered - Cash ₱ 115,700

Service rendered – on account + 55,000
TOTAL ₱170,700

TOTAL SERVICE INCOME COLLECTED IN CASH = ₱ 115,700

b. Total expense Total

Expenses:

Water Expense ₱ 4,000

Soap Expense 7,500
Massage oil Expenses 15,000
Light & Power Expences 12,000
Rent of the Massage parlor 24,000
Telophone Expenses 7,500
Salary of staff (4 massage worker) + 72,000
 TOTAL ₱142,000

c. Net income/net loss

Thus the Honda Massage and Spa Services Net Loss is ₱ 26,300.