PROBLEM 1: POSTING

A business had the following transactions during the period:

1. The business owner provides P600,000 capital to the business.
2. The business renders services worth P200,000, on cash basis.
3. The business bills clients for services rendered worth P300,000 on
account.
4. The business pays salaries expense of P180,000.
5. The business collects P100,000 account receivable.

Requirement:
a. Provide the journal entries.
b. Post the entries to the ledger (use T-accounts).
c. Answer the questions below:
a. How much are the total service fees earned during the period?
b. How much are the total collections from clients during the
period?
c. How much are the total disbursements during the period?
d. How much cash does the business have at the end of the period?
e. How much are the outstanding accounts receivable from clients
at the end of the period?

PROBLEM 2: POSTING
Entity A had the following transactions during the period:
1. Owner contributed P1,000,000 to the business.
2. Purchased office supplies worth P300,000 on account (use an asset
or prepaid account).
3. Rendered services worth P500,000, on cash basis.
4. Rendered services worth P800,000, on account.
5. Paid P100,000 accounts payable.
6. Collected P700,000 accounts receivable.
7. Purchased equipment worth P58,000.
8. Drawings of owner amounted to P10,000.
9. Paid salaries expense of P70,000.
10. Paid interest expense of P5,000.
Requirements:
 a. Provide journal entries.
b. Paid interest expense of P5,000.

PROBLEM 3: UNADJUSTED TRIAL BALANCE

Entity A has the following account balances on December 31, 20x1:
Accounts receivable 90,000
Accumulated depreciation 400,000
Cash 180,000
Equipment 500,000
Land 800,000
Owner’s capital 920,000
Prepaid rent 50,000
Salaries expense 600,000
Service fees 900,000

Requirement: Prepare the unadjusted trial balance. Make sure you provide a
proper heading for the report.

PROBLEM 4: UNADJUSTED TRIAL BALANCE

Entity B has the following account balances on December 31, 20x1:

Accounts payable 300,000

Accounts receivable 500,000
Accumulated depreciation-Bldg. 300,000
Allowance for bad debts 20,000
Bad debt expense 10,000
Building 3,000,000
Cash 750,000
Depreciation expense 100,000
Owner’s capital 1,500,000
Owner’s drawings 50,000
Prepaid supplies 50,000
Salaries expense 630,000
Salaries payable 60,000
Service fees 3,000,000
Supplies expense 30,000
Taxes and licenses 60,000

Requirement: Prepare the unadjusted trial balance. Make sure you provide a
proper heading for the report.

PROBLEM 5: POSTING & UNADJUSTED TRIAL BALANCE

Mr. A opened a barber shop called “Ace Barber Shop” on February 1, 20x1.
The following were the transactions during the first week of operations:

February 1 Provided P300,000 cash as initial investment to the business.

February 2 Acquired furniture and fixture for P200,000 cash.
February 4 Purchased supplies for P30,000 cash.
February 5 Rendered services worth P20,000 on cash plans.
February 7 Paid P10,000 salaries of employees.

Requirements:
a. Provide journal entries.
b. Post the entries to the ledger (use T-accounts).
c. Prepare the unadjusted trial balance.
PROBLEM 6: POSTING & UNADJUSTED TRIAL BALANCE
You started a plumbing business called “The Good Plumber” on March 1,
20x1. The following were the transactions during the month:
March 1 Provided P20,000 cash as initial investment to the business.
March 2 Acquired tools (equipment) for P10,000 cash.
March 4 Purchased supplies for P2,000 cash.
March 25 Rendered plumbing services worth P40,000 on cash basis.
March 26 Rendered plumbing services worth P20,000 on account.
March 31 Paid P2,000 for advertising expense.

Requirements:
a. Provide the journal entries.
b. Post the entries to the ledger (use T-accounts).
c. Prepare the unadjusted trial balance.

PROBLEM 8: WORKSHEET
Ms. B put up an accounting firm on November 1, 20x1. The registered name
of the business is “B Accounting firm.” The following were the transactions
during the months of November and December 20x1:
1. The owner provided P30,000 cash as initial investment to the business
on December 1, 20x1.
2. Obtained a 12%, one-year, bank loan for P50,000 on November 1,
20x1. Principal and interest are due at maturity date.
3. Purchased office supplies worth P60,000 for cash during the period.
The firm uses the Asset method.
4. Rendered services worth P280,000 for cash during the period.
5. Paid utilities expense of P4,000.
6. The owner withdrew a total of P100,000 cash from the business during
the period.
Additional information:
 Unused office supplies on December 31,20x1 amounted to P5,000.
Requirements:
a. Provide journal entries.
b. Post the entries to the ledger.
c. Prepare the unadjusted trial balance.
d. Provide the adjusting entries.
e. Complete the worksheet
f. Prepare the closing entries.(do not answer)
g. Prepare the balance sheet and income statement.

PROBLEM 9: WORKSHEET
Mr. George opened a janitorial services business called “George Johnny” on
January 1, 20x1. The following were the transactions during the year:
1. Mr. George made an investment of P100,000 to the business.
2. The business purchased supplies worth P60,000. Mr. George uses the
expense method.
3. Total service fees billed to clients, on account, amounted to P400,000.
4. Total collections on accounts receivable amounted to P270,000.
5. Mr. George took P60,000 cash from the business.
6. Total salaries paid amounted to P180,000.
Additional information:
a. One of the debtors of Mr. George with an account balance of P50,000
is undergoing financial difficulties. Mr. George estimated that only
P40,000 of the account will be collected.
b. Unused supplies at the end of the period amounted to P20,000.
c. Unpaid employee salaries amounted to P30,000.
Requirements:
a. Provide the journal entries.
b. Post the entries to the ledger.
c. Prepare the unadjusted trial balance.
d. Provide the adjusting entries.
e. Complete the worksheet
f. Prepare the closing entries.(do not answer)
g. Prepare the balance sheet and income statement.
PROBLEM 10: WORKSHEET
Entity A was formed in 20x1 with the primary purpose of providing business
process outsourcing services. The following were the transactions of Entity A
during the year.
1. The owner provided an initial capital of P2,000,000 to the business.
2. The business acquired office equipment for P800,000 cash on January
1,20x1. The equipment has a useful life of 10 years.
3. The business paid two years rent in advance amounting to P720,000
on January 1,20x1. Entity A uses the asset method in recording
prepayments.
4. Total service billed to clients amounted to P2,900,000 on account.
5. Total payments for supplies expense amounted to P190,000.
6. Total payments for utilities expense amounted to P260,000.
7. Total payments for salaries expense amounted to P1900,000.
8. Total collections on accounts receivable amounted to P2,700,000.

Requirements:
a. Provide the journal entries.
b. Post the entries to the ledger.
c. Prepare the unadjusted trial balance.
d. Provide the adjusting entries.
e. Complete the worksheet.
f. Prepare the closing entries.(do not answer)
g. Prepare the balance sheet and income statement.

PROBLEM 11: WORKSHEET

Ms. A opened a call center business called “A Call Center” on October 1,
20x1. The following were the transactions during the three months ended
December 31, 20x1:
1. Ms. A provided an initial capital of P1,000,000 to the business.
2. The business acquired computer equipment for P700,000 cash on
October 1, 20x1. The equipment has a useful life of 5 years.
3. Total payments for business permit and other licenses amounted to
P200,000.
4. The business took a one-year insurance for P42,000 covering the
months of October 1, 20x1 to September 30, 20x2. The business uses
the expense method in recording prepayments.
 5. Total service fees billed to clients amount to P3,200,000 on account.
6. Total payments for utilities expense amounted to P420,000.
7. Total payments for salaries expense amounted to P2,400,000.
8. 8. Total collections on accounts receivable amounted to P2,900,000.

Additional information:
 Unpaid rent amounted to P30,000.

Requirements:
a. Provide the journal entries.
b. Post the entries to the ledger.
c. Prepare the unadjusted trial balance.
d. Provide the adjusting entries.
e. Complete the worksheet
f. Prepare the closing entries.(do not answer)
g. Prepare the balance sheet and income statement.