Date Transactions

Ockim invested P1,000,000 and his personal vehicle with a value of P500,000 into
the business.

Rented an office space for a monthly rental of P10,000. Paid two years' rent in
advance.
January 1

Obtained a loan from BDO Bank amounting to P300,000 at an annual interest of

10%, payable for three equal monthly installments.

Paid Pioneer Insurance P24,000 for one-year comprehensive insurance coverage

on the service vehicle.

Acquired office equipment for P200,000 from ABC Computer Shop. Paid 30%
downpayment and the balance in 30 days.
January 2

Bought office furniture for P25,000 in cash.

Received P50,000 as advance payment from JK Inc. for the accounting services to
be rendered in January 15.
January 3

Bought office chairs and tables for P17,000 on credit.

January 4 Bought office supplies for P25,000. Issued promisorry note to pay the amount
within 30 days.

Performed audit services to clients for P75,000 on credit.

Performed accounting services to clients for P350,000 cash.

January 5

Paid P5,000 for meals and meetings with the clients.

Paid P10,000 for fuel or gasoline consumption of service vehicle.

 Paid P10,000 for fuel or gasoline consumption of service vehicle.

January 6 Paid 40,000 cash as partial payment for the remaining balance of the account on
the acquisition in January 2.

January 7 Incurred salaries during the first week amounting to P125,000. Salaries are
payable every 15th and 30th day of the month.

January 10
Ockim withrew P150,000 in cash for personal expenses.

January 12
Collected P50,000 from credit clients.

January 13
Rendered accounting services to various clients for P200,000. Received P50,000
and the balance is collectible after 5 days.

January 14
Received P25,000 from credit clients for services already rendered.

Paid salaries incurred during the first week and second week. Total salaries
incurred for the second week amounted to P125,000

Rendered services to JK Inc. as agreed during January 3.

January 15
Received electricity billing, P27,000

Paid the telephone bill, P13,000

Incurred P50,000 for repairing the office equipment.

January 20 Issued promissory note for the balance on credit for the office chairs and tables
bought in January 3.

January 25
Received P200,000 from clients for audit services to be performed next month.
January 27
Settled the remaining balance on the January 2 acquisition of office equipment.

January 28 Performed accounting services to clients for P175,000 which is to be collected the
next month.

Paid salaries for the 30th cut-off period, P215,000.

January 30

Paid the first monthly installment of loans payable.

 Journal Entry DR CR

Cash 1,000,000.00
Service Vehicle 500,000.00
Ockim, Capital 1,500,000.00

Prepaid Rent 240,000.00

Cash 240,000.00

Cash 300,000.00
Loans Payable 300,000.00

Prepaid Insurance 24,000.00

Cash 24,000.00

Office Equipment 200,000.00

Cash 60,000.00
Accounts Payable 140,000.00

Furniture and Fixtures 25,000.00

Cash 25,000.00

Cash 50,000.00
Unearned Service Revenue 50,000.00

Furniture and Fixtures 17,000.00

Accounts Payable 17,000.00

Supplies 25,000.00
Notes Payable 25,000.00

Accounts Receivables 75,000.00

Service Revenue 75,000.00

Cash 350,000.00
Service Revenue 350,000.00

Representation Expense 5,000.00

Cash 5,000.00

Transportation Expense 10,000.00

Cash 10,000.00

Accounts Payable 40,000.00

Cash 40,000.00

Salaries Expense 125,000.00

Salaries Payable 125,000.00

Ockim, Withdrawal 150,000.00

Cash 150,000.00

Cash 50,000.00
Accounts Receivables 50,000.00

Cash 50,000.00
Accounts Receivables 150,000.00
Service Revenue 200,000.00

Cash 25,000.00
Accounts Receivables 25,000.00

Salaries Expense 125,000.00

Salaries Payable 125,000.00
Cash 250,000.00

Unearned Service Revenu 50,000.00

Service Revenue 50,000.00

Utilities Expense 27,000.00

Utilities Payable 27,000.00

Utilities Expense 13,000.00

Cash 13,000.00

Repairs & Maintenance E 50,000.00

Cash 50,000.00

Accounts Payable 17,000.00

Notes Payable 17,000.00

Cash 200,000.00
Unearned Service Revenue 200,000.00
Accounts Payable 100,000.00
Cash 100,000.00

Accounts Receivables 175,000.00

Service Revenue 175,000.00

Salaries Expense 215,000.00

Cash 215,000.00

Loans Payable 100,000.00

Cash 100,000.00
 Trial Balance DR CR
110 Cash 743,000.00 -
120 Accounts Receivables 325,000.00 -
125 Allowance for Bad Debts - -
130 Notes Receivables - -
140 Supplies 25,000.00 -
150 Prepaid Rent 240,000.00 -
160 Prepaid Insurance 24,000.00 -
170 Service Vehicle 500,000.00 -
175 Accumulated Depreciation - -
180 Office Equipment 200,000.00 -
185 Accumulated Depreciation - -
190 Furniture and Fixtures 42,000.00 -
195 Accumulated Depreciation - -
210 Accounts Payable - -
220 Notes Payable - 42,000.00
230 Loans Payable - 200,000.00
240 Salaries Payable - -
250 Utilities Payable - 27,000.00
260 Interest Payable - -
270 Unearned Service Revenue - 200,000.00
310 Ockim, Capital - 1,500,000.00
320 Ockim, Withdrawal 150,000.00 -
330 Income Summary - -
410 Service Revenue - 850,000.00
420 Interest Income - -
430 Other Income - -
510 Salaries Expense 465,000.00 -
520 Supplies Expense - -
530 Rent Expense - -
540 Insurance Expense - -
550 Utilities Expense 40,000.00 -
560 Depreciation Expense - Service Vehicle - -
570 Depreciation Expense - Office Equipment - -
580 Depreciation Expense - Furniture and Fixtures - -
590 Transportation Expense 10,000.00 -
600 Repairs & Maintenance Expense 50,000.00 -
610 Representation Expense 5,000.00 -
620 Miscellaneous Expense - -
630 Interest Expense - -
640 Bad Debt Expense - -
2,819,000.00 2,819,000.00
 BALANCE SHEET INCOME STATEMENT
ASSETS
Current Assets Income
Cash 743,000.00 Service Revenue 850,000.00
Accounts Receivables 325,000.00
Supplies 25,000.00 Less: Operating Expenses
Prepaid Rent 240,000.00 Salaries Expense 465,000.00
Prepaid Insurance 24,000.00 Utilities Expense 40,000.00
Total Current Assets 1,357,000.00 Transportation Expense 10,000.00
Repairs & Maintenance Expense 50,000.00
Noncurrent Assets Representation Expense 5,000.00
Service Vehicle 500,000.00 Total Operating Expenses 570,000.00
Office Equipment 200,000.00 Net Income 280,000.00
Furniture and Fixtures 42,000.00
Total Noncurrent Assets 742,000.00
Total Assets 2,099,000.00

LIABILITIES AND EQUITY

Liabilities
Notes Payable 42,000.00
Loans Payable 200,000.00
Utilities Payable 27,000.00
Unearned Service Revenue 200,000.00
Total Liabilities 469,000.00

Equity
Ockim, Capital 1,500,000.00
Ockim, Withdrawal - 150,000.00
Income Summary 280,000.00 Amount of income summary should be equal to the net income during th
Total Equity 1,630,000.00
Total Liabilities and Equity 2,099,000.00
to the net income during the year.]