Set 1

Kering Keri owns a repair shop known as the VERY KERI REPAIR SHOP. The accounts in the
company’s ledger on November 1, 2018, together with the balances of the asset, liability, and
capital accounts are as follows:

Account # Account Title Amount

101 Cash PHP 227,783.00
102 Unused Repair Supplies 52,920.00
103 Unused Office Supplies 44,800.00
104 Prepaid Insurance 70,000.00
105 Prepaid Rent
111 Repair Equipment 282,695.00
111-A Accumulated Depreciation - Repair Equipment 47,120.00
112 Office Equipment 171,402.00
112-A Accumulated Depreciation - Office Equipment 28,560.00
201 Accounts Payable 118,400.00
202 Notes Payable
203 Unearned Repair Revenue 140,000.00
301 Keri, Capital 515,520.00
302 Keri, Drawing
401 Repair Revenue
501 Salaries Expense
502 Repair Supplies Expense
503 Office Supplies Expense
504 Insurance Expense
505 Advertising Expense
506 Interest Expense
507 Utilities Expense
508 Depreciation – Repair Equipment
509 Depreciation – Office Equipment
510 Miscellaneous Expense

During the month of December, Keri had the following transactions:

December
2 Paid rent in advance for three months, P45,000.00
3 Paid advertising, P23,000.00
4 Purchased repair supplies on account, P19,870.00
5 Paid cash for office supplies, P8,100.00
6 Purchased a new repair equipment for P83,700.00 giving a 60-day note with 5%
interest per annum for P60,000.00 and paying balance in cash.
9 Cash receipts for repair services performed totaled P103,600.00
10 Paid creditors, P44,200.00
11 Paid premium on property insurance, P5,550.00
12 Paid salaries for bi-weekly salaries, P46,800.00
13 Withdrew P20,000.00 for personal use.
18 Paid miscellaneous expense, P5,920.00
19 Cash receipts for repair services performed, P24,200.00
23 Paid creditors, P15,000.00
24 Purchased repair supplies on account, P27,300.00
25 Cash receipts for repair services, P30,600.00
26 Paid telephone, electric and water bill for a total of P37,000.00
27 Borrowed P365,000.00 from a local bank, issuing a 90-day promissory note with 6%
interest rate per annum.
30 Cash receipts for repair services, P47,280.00
Instructions: Prepare the journal entries for the transactions in December, post to the
ledger, and prepare the unadjusted trial balance as of December 31, 2018.