UPS 5 Brgy. San Isidro, Sucat Paraaque City and had the following transactions during the month.
15-Jun Paid salary to staffs for the period June 1-15 for P35,000.
16-Jun The staff incurred transportation expenses for P2,000
17-Jun Paid P 43,650 to SM Appliances for furnitures and fixtures purchased.
Rendered accounting services to a client for P75,000. The client issued a 30-day promissory note
18-Jun Jenna an office staff, advanced P1,000 for personal use and promised to pay in July.
19-Jun Rendered accounting services to another client for P20,000 payable on July 19.
21-Jun The proprietor was reimbursed for representation expenses with a client for P3,000.
25-Jun Collected the balance from Change company.
28-Jun Received telephone bills and recorded it as liability for P5,500
Received electricty bill and paid P12,745 in cash.
Received water bill and paid P3,985 in cash.
29-Jun Paid salary to employees for the period August 16-31 as follows:
Jenna Mangubat (office staff)
Gross Salary P 35,000
WHT Payable 5,000
SSS Payable 1,000
Philhealth payable 250
Pag-ibig payable 200
Net Pay P 28,550
30-Jun The owner withdraws cash for P20,000
Additional information:
1 Supplies consumed for the month is P1,650
2 The advanced payment for rental, payment of insurance premium and purchases of supplies are
recorded using the asset method
5 Compute depreciation expense for the following assets as of Aug 31:
Purchased Date Asset Cost Salvaged Value Life
June 2 Computers P50,000 P2.000 3 years
June 2 Printers P5,000 P500 3 years
June 3 Aircon P15,000 P1.000 3 years
June 3 Furnitures P43,650 P500 3 years
June 4 Vehicle P100,000 P10,000 5 years
3 An advertising expense was incurred in June 31 but payment was made to supplier on July 2
for P5,000
4 An accounting service was made to a customer in June 31 for P20,000 but only billed to customer
on July 5
6 Compute interest expense on promissory note issued in June 4 for the purchase of service vehicle at 10% per annum, P100,000 2
7 Compute interest receivable issued by a customer in June 17 at 10% per annum, P75,000 30-day note
Computation:
Salvaged Depreciation Per day Days Total
Cost Value Net Life per year (365 days) Used Depreciation
50,000 2,000 48,000 3 16,000.00 43.84 29 1,271.23
5,000 500 4,500 3 1,500.00 4.11 29 119.18
15,000 1,000 14,000 3 4,666.67 12.79 28 357.99 1,748.40
43,650 500 43,150 3 14,383.33 39.41 28 1,103.38 1,103.38
100,000 10,000 90,000 5 18,000.00 49.32 27 1,331.51 1,331.51
4,183.29
e at 10% per annum, P100,000 2-year note.
Company Name: DMB CONSULTING FIRM Page No. 0 1
GENERAL JOURNAL
DATE Account Title & Explanation PR DEBIT CREDIT
2016
June 1 Cash 100-01 50 0 0 00
Mr. Alabat Capital 300 5 0 0 000
To record initial investment of the
owner to the business
5 Cash 100-01 1 2 0 00
Service Revenue 400-01 1 2 000
To record audit service to Gramans
Company
9 Cash 100-01 2 5 0 00
Service Revenue 400-01 2 5 000
To record audit service to Lina Inc.
11 Cash 100-01 3 0 0 00
Service Revenue 400-01 3 0 000
To record audit service to Gregan Co.
25 Cash 100-01 6 0 0 00
Accounts Receivable 100-03 6 0 000
To record collection from Change Co.
500,000.00
10,000.00
60,000.00
40,000.00
85,000.00
43,650.00
5,678.00
307,000.00
65,000.00
5,500.00
10,000.00
100,000.00
100,000.00
5,000.00
75,000.00
2,000.00
70,000.00
1,000.00
5,450.00
5,500.00
16,730.00
20,000.00
5,000.00
1,000.00
250.00
200.00
918,950.00 918,950.00
-
DMB CONSULTING FIRM
Trial Balance
June 31,2017
Debit Credit
100-01 Cash 298,942.00
100-03 Accounts receivable 65,000.00
100-04 Notes receivable 75,000.00
100-05 Advances to employees 1,000.00
100-06 Office supplies 5,678.00
100-07 Prepaid insurance 10,000.00
100-08 Prepaid rent 60,000.00
101-01 Office equipment 85,000.00
101-04 Furniture & fixtures 43,650.00
101-07 Service vehicle 100,000.00
101-08 Rental deposit 40,000.00
200-01 Accounts payable 5,500.00
200-03 Withholding tax payable 5,000.00
200-04 SSS payable 1,000.00
200-05 Philhealth payable 250.00
200-06 Pag-ibig payable 200.00
200-08 Notes payable 100,000.00
300-00 Mr. Alabat Capital 500,000.00
301-00 Mr. Alabat Drawings 20,000.00
400-01 Service revenue 307,000.00
500-02 Taxes and licenses 10,000.00
500-05 Light and water expense 16,730.00
500-07 Salaries, wages & benefits 70,000.00
500-08 Gasoline expenses 5,000.00
500-10 Representation expenses 5,450.00
500-13 Communication expenses 5,500.00
500-14 Transportation expenses 2,000.00
918,950.00 918,950.00
DMB CONSULTING FIRM
Worksheet
June 31,2017
Unadjusted Trial Balance Adjusting Entries
Debit Credit Debit Credit
100-01 Cash 298,942.00
100-03 Accounts receivable 65,000.00 e) 20,000.00
100-04 Notes receivable 75,000.00
100-05 Advances to employees 1,000.00
100-06 Office supplies 5,678.00 a) 1,650.00
100-07 Prepaid insurance 10,000.00 c) 833.33
100-08 Prepaid rent 60,000.00 b) 20,000.00
101-01 Office equipment 85,000.00
101-04 Furniture & fixtures 43,650.00
101-07 Service vehicle 100,000.00
101-08 Rental deposit 40,000.00
200-01 Accounts payable 5,500.00
200-03 Withholding tax payable 5,000.00
200-04 SSS payable 1,000.00
200-05 Philhealth payable 250.00
200-06 Pag-ibig payable 200.00
200-08 Notes payable 100,000.00
300-00 Mr. Alabat Capital 500,000.00
301-00 Mr. Alabat Drawings 20,000.00
400-01 Service revenue 307,000.00 e) 20,000.00
500-02 Taxes and licenses 10,000.00
500-05 Light and water expense 16,730.00
500-07 Salaries, wages & benefits 70,000.00
500-08 Gasoline expenses 5,000.00
500-10 Representation expenses 5,450.00
500-13 Communication expenses 5,500.00
500-14 Transportation expenses 2,000.00
918,950.00 918,950.00
Supplies expense a) 1,650.00
Rent expense b) 20,000.00
Insurance expense c) 833.33
Advertising expense d) 5,000.00
Accrued expense payable d) 5,000.00
Interest expense f) 739.73
Accrued interest payable f) 739.73
Interest receivable g) 287.67
Interest income g) 287.67
Depreciation expense h) 4,183.29
Accumulated depreciation-SV h) 1,331.51
Accumulated depreciation-OE h) 1,748.40
Accumulated depreciation-F&F h) 1,103.38
52,694.02 52,694.02
1,650.00 1,650.00
20,000.00 20,000.00
833.33 833.33
5,000.00 5,000.00
5,000.00 5,000.00
739.73 739.73
739.73 739.73
287.67 287.67
287.67 287.67
4,183.29 4,183.29
1,331.51 1,331.51
1,748.40 1,748.40
1,103.38 1,103.38
949,160.69 949,160.69
147,086.35 327,287.67
180,201.32 180,201.32
327,287.67 327,287.67 802,074.34 802,074.34
DMB CONSULTING FIRM
Statement of Income
For the Month Ended Junet 31, 2017
ASSETS
Current Assets:
Cash 298,942.00
Accounts receivable 85,000.00
Notes receivable 75,000.00
Interest receivable 287.67
Advances to employees 1,000.00
Office supplies 4,028.00
Prepaid insurance 9,166.67
Prepaid rent 40,000.00
Total Current Assets 513,424.34
Non-current Assets:
Office equipment 85,000.00
Accumulated depreciation (1,748.40) 83,251.60
Furniture & fixtures 43,650.00
Accumulated depreciation (1,103.38) 42,546.62
Service vehicle 100,000.00
Accumulated depreciation (1,331.51) 98,668.49
Rental deposit 40,000.00
Total Non-Current Assets 264,466.71
Total Assets 777,891.05
LIABILITIES
Current Liabilities:
Accounts payable 5,500.00
Withholding tax payable 5,000.00
SSS payable 1,000.00
Philhealth payable 250.00
Pag-ibig payable 200.00
Accrued expense payable 5,000.00
Accrued interest payable 739.73
Total Current Liabilities 17,689.73
Non-current Liabilities:
Notes Payable 100,000.00
Total Liabilities 117,689.73
CAPITAL
Mr. Alabat Capital 660,201.32
Total Liabilities and Capital 777,891.05
BAA ACCOUNTING FIRM
Statement of Cash Flow
For the Month Ended August 31, 2016
10,000.00
27.40
739.73
7,500.00
20.55
287.67
CLOSING ENTRIES DEBIT CREDIT
a Service Revenue 327,000.00
Interest income 287.67
Taxes and licenses 10,000.00
Light and water expense 16,730.00
Salaries, wages & benefits 70,000.00
Gasoline expenses 5,000.00
Representation expenses 5,450.00
Communication expenses 5,500.00
Transportation expenses 2,000.00
Supplies expense 1,650.00
Rent expense 20,000.00
Insurance expense 833.33
Advertising expense 5,000.00
Depreciation expense 4,183.29
Interest expense 739.73
Income Summary ###
To close revenue and expenses
to income summary
10,000.00
16,730.00
70,000.00
5,000.00
5,450.00
5,500.00
2,000.00
1,650.00
20,000.00
833.33
5,000.00
4,183.29
(739.73)
180,201.32
180,201.32
20,000.00
BAA ACCOUNTING FIRM
Post-Closing Trial Balance
August 31,2016
Debit Credit
Cash 298,942.00
Accounts receivable 85,000.00
Notes receivable 75,000.00
Interest receivable 287.67
Advances to employees 1,000.00
Office supplies 4,028.00
Prepaid insurance 9,166.67
Prepaid rent 40,000.00
Office equipment 85,000.00
Accumulated depreciation 1,748.40
Furniture & fixtures 43,650.00
Accumulated depreciation 1,103.38
Service vehicle 100,000.00
Accumulated depreciation 1,331.51
Rental deposit 40,000.00
Accounts payable 5,500.00
Withholding tax payable 5,000.00
SSS payable 1,000.00
Philhealth payable 250.00
Pag-ibig payable 200.00
Accrued expense payable 5,000.00
Accrued interest payable 739.73
Notes Payable 100,000.00
Mr. Alabat Capital 660,201.32
782,074.34 782,074.34