PROBLEM # 1

Account Classification Normal Balance Income Statement /

Balance Sheet Column
a. Accounts Receivable A Debit B
b. Depreciation Expense – Computer Equipment E Debit I
c. Accounts Payable L Credit B
d. Supplies A Debit B
e. Computer Equipment A Debit B
f. Christopher Biore, Capital OE Credit B
g. Accumulated Depreciation – Computer Equipment A Credit B
h. Christopher Biore, Withdrawals OE Debit B
i. Consulting Revenues R Credit I
j. Prepaid Insurance A Debit B

PROBLEM # 2

Closed
Account Title Permanent Temporary Yes No Balance Sheet Income Statement
a. Rent Expense X X X
b. Prepaid Insurance X X X
c. Accounts Receivable X X X
d. Supplies Expense X X X
e. Accumulated Depreciation – F/F X X X
f. Interest Payable X X X
g. Service Revenue X X X
h. Notes Payable X X X
i. Depreciation Expense – F/F X X X
PROBLEM # 4 Ily Abella Surveyors
Worksheet
For the month ended May 31, 2020

Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
No. Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash P 210, 000 P 210, 000 P 210, 000
120 Accounts Receivable 930, 000 930, 000 930, 000
130 Prepaid Advertising 360, 000 a. P140, 000 220, 000 220, 000
140 Engineering Supplies 270, 000 b. 180, 000 90, 000 90, 000
150 Survey Equipment 1, 890, 000 1, 890, 000 1, 890, 000
155 Accum. Depreciation-Survey P 640, 000 c. 160, 000 P 800, 000 P 800, 000
Equipt.
210 Accounts Payable 190, 000 190, 000 190, 000
220 Salaries Payable e. 140, 000 140, 000 140, 000
230 Unearned Survey Revenues 120, 000 d. P 40, 000 80, 000 80, 000
340 Notes Payable 500, 000 500, 000 500, 000
250 Interest Payable f. 60, 000 60, 000 60, 000
310 Abella, Capital 1, 120, 000 1, 120, 000 1, 120, 000
320 Abella, Withdrawals 700, 000 700, 000 700, 000
410 Survey Revenues 6, 510, 000 d. 40, 000 6, 550, 000 P 6, 550, 000
510 Salaries Expense 3, 270, 000 e. 140, 000 3, 410, 000 P3, 410, 000
520 Engineering Supplies Expense b. 180, 000 180, 000 180, 000
530 Rent Expense 960, 000 960, 000 960, 000
540 Advertising Expense a. 140, 000 140, 000 140, 000
550 Insurance Expense 250, 000 250, 000 250, 000
560 Utilities Expense 160, 000 160, 000 160, 000
570 Depreciation Expense-Survey c. 160, 000 160, 000 160, 000
Equipt.
580 Miscellaneous Expense 80, 000 80, 000 80, 000
590 Interest Expense f. 60, 000 60, 000 60, 000
Totals P 9, 080, 000 P 9, 080, 000 P 720, 000 P 720,000 P 9, 440, 000 P 9,440,000 P5,400,000 P 6, 550, 000 P4, 040, 000 P2,890,000
Profit 1,150,000 1,150,000
P 6, 550, 000 P 6, 550, 000 P4, 040, 000 P4, 040, 000
PROBLEM # 5

Journal (Adjusting Entries)

Page 3

Date Account Title & Explanation PR Debit Credit

a. Dec. 31 Office Supplies Expense 520 P 42, 000
Office Supplies 150 P 42, 000
To record used supplies
b. Dec. 31 Unearned Consulting Revenues 230 150, 000
Consulting Revenue 410 150, 000
To record earned consulting revenue
c. Dec. 31 Depreciation Expense-Building 540 38, 000
Accumulated Depreciation- Building 175 38, 000
To record depreciation on building

Depreciation Expense-Equipment 550 123, 000

Accumulated Depreciation- Equipment 185 123, 000
To record depreciation on equipment
d. Dec. 31 Salaries Expense 510 14, 000
Salaries Payable 220 14, 000
To record accrued salaries
e. Dec. 31 Interest Receivable 140 24, 000
Interest Revenue 420 24, 000
To record interest from notes receivables
a. 63, 000 – 21, 000 = 42, 000
b. 1/3 (450, 000) = 150, 000
c. Given
d. Given
e. 360, 000 x .20 = 72, 000 x 4/12 = 24, 000
Ledger

Account: Office Supplies Account No. 150

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Ending balance of office supplies J1 63, 000 63, 000
Dec. 31 Adjustment for used supplies J3 42, 000 21, 000 (debit)

Account: Interest Receivable Account No. 140

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Adjustment for interest receivable J3 24, 000 24, 000 (debit)

Account: Accumulated Depreciation- Building Account No. 175

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Ending balance of Accumulated Depreciation- Building J1 254, 000 254, 000
Dec. 31 Adjustment for depreciation J3 38, 000 292, 000 (credit)

Account: Accumulated Depreciation- Equipment Account No. 185

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Ending balance of Accumulated Depreciation- Equipment J1 612, 000 612, 000
Dec. 31 Adjustment for depreciation J3 123, 000 735, 000 (credit)

Account: Salaries Payable Account No. 230

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Adjustment for accrued salaries J3 14, 000 14, 000 (credit)

Account: Unearned Consulting Revenues Account No. 240

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Ending balance of Unearned Consulting Revenues J1 450, 000 450, 000
Dec. 31 Adjustment for earned revenues J3 150 , 000 300, 000 (credit)
Account: Consulting Revenues Account No. 410
Date Explanation JR Debit Credit Balance
2020
Dec. 31 Ending balance of Consulting Revenues J1 2, 108, 000 2, 108, 000
Dec. 31 Adjustment for earned revenues J3 150 , 000 2, 258, 000 (credit)

Account: Interest Revenue Account No. 420

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Adjustment for accrued interest J3 24, 000 24, 000 (credit)

Account: Salaries Expense Account No. 510

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Ending balance of Salaries Expense J1 875, 000 875, 000
Dec. 31 Adjustment for accrued salaries J3 14, 000 889, 000 (debit)

Account: Office Supplies Expense Account No. 520

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Adjustment for used office supplies J3 42, 000 42, 000 (debit)

Account: Depreciation Expense-Building Account No. 540

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Adjustment for depreciation on building J3 38, 000 38, 000 (debit)

Account: Depreciation Expense-Equipment Account No. 550

Date Explanation JR Debit Credit Balance
2020
Dec. 31 Adjustment for depreciation on equipment J3 123, 000 123, 000 (debit)
 Leah May Santiago Information Systems
Adjusted Trial Balance
Dec. 31, 2020

Acc. No. Account Titles Debit Credit

110 Cash P 45, 000
120 Notes Receivable 360, 000
130 Accounts Receivable 156, 000
140 Interest Receivable 24, 000
150 Office Supplies 21, 000
160 Land 300, 000
170 Building 1, 590, 000
175 Accumulated Depreciation – Building P 292, 000
180 Equipment 2, 150, 000
185 Accumulated Depreciation – Equipment 735, 000
210 Accounts Payable 213, 000
220 Salaries Payable 14, 000
230 Unearned Consulting Revenue 300, 000
310 Santiago, Capital, 1/1/2020 2, 655, 000
320 Santiago, Withdrawals 600, 000
410 Consulting Revenues 2, 258, 000
420 Interest Revenue 24, 000
510 Salaries Expense 889, 000
520 Office Supplies Expense 42, 000
530 Repairs Expense 116, 000
540 Depreciation Expense - Building 38, 000
550 Depreciation Expense – Equipment 123, 000
560 Miscellaneous Expense 37, 000
totals P 6, 491, 000 P 6, 491, 000
 Leah May Santiago Information Systems
Income Statement
For the period ended Dec. 31, 2020

Revenues
Consulting Revenues P 2, 258, 000
Interest Revenues 24, 000
Total P 2, 282, 000
Expenses
Salaries Expense 889, 000
Office Supplies Expense 42, 000
Repairs Expense 116, 000
Depreciation Expense – Building 38, 000
Depreciation Expense – Equipment 123, 000
Miscellaneous Expense 37, 000
Total P 1, 245, 000
Profit P 1, 037, 000

Leah May Santiago Information Systems

Statement of Changes in Equity
For the period ended Dec. 31, 2020
Santiago, Capital, 1/1/2020 P 2, 655, 000
ADD: Additional Investment 0
Profit P 1, 045, 000 P 1, 037, 000
Total P 3, 692, 000
LESS: Withdrawals 600, 000
Santiago, Capital, 12/31/2020 P 3, 092, 000
 Leah May Santiago Information Systems
Balance Sheet
December 31, 2020

ASSETS
Current Assets
Cash P 45, 000
Notes Receivable 360, 000
Accounts Receivable 156, 000
Interest Receivable 24, 000
Office Supplies 21, 000
Total Current Assets P 606, 000
Non-Current Assets (Net)
Land 300, 000
Building 1, 590, 000
Less: Accumulated Depreciation – Building 292, 000 1, 298, 000
Equipment 2, 150, 000
Less: Accumulated Depreciation – Equipment 735, 000 1, 415, 000 3, 013, 000
Total Assets P 3, 619, 000
LIABILITIES
Current Liabilities
Accounts Payable 213, 000
Salaries Payable 14, 000
Unearned Consulting Revenue 300, 000
Total Current Liabilities P 527, 000
OWNER’S EQUITY
Santiago, Capital, 12/31/2020 3, 092, 000
Total Liabilities and Owner’s Equity P 3, 619, 000
PROBLEM # 7

Items Income Statement of Balance Sheet

Statement Changes in Equity
a. Supplies on hand at the end of the year X
b. Total insurance expired during the year X
c. Accounts Receivable at the end of the year X
d. Total revenues earned during the year X
e. Total withdrawals by the owner X
f. The book value of the entity’s equipment X
g. The amount of depreciation taken on equipment during the X
year
h. The cost of supplies used during the year X
i. Owner’s equity at the beginning of the year X
j. Profit for the year X

PROBLEM # 8

Income Cash
a. + P 880, 000 + P 770, 000
b. 0 + 300, 000
c. 0 - 27, 000
d. - 360, 000 - 300, 000
e. - 24, 000 - 22, 500
f. - 210, 000 - 105, 000
P 286, 000 P 615, 500
profit net cash inflow
PROBLEM # 9

Nora Maniquiz Real Estate Agency

Income Statement
For the month ended June 30, 2020

Revenue
Real Estate Revenues P 1, 250, 000
Expenses
Advertising Expense P 163, 000
Commissions Expense 475, 000
Office Supplies Expense 27, 000
Rent Expense 48, 000
Salaries Expense 264, 000
Utilities Expense 42, 000
Depreciation Expense 5, 000
Total 1, 024, 000
Profit P 226, 000

Nora Maniquiz Real Estate Agency

Statement of Changes in Equity
For the month ended June 30, 2020
Maniquiz, Capital, 6/1/2020 P 123, 000
ADD: Additional Investment 16, 000
Profit P 226, 000 242, 000
Total P 365, 000
LESS: Withdrawals 250, 000
Maniquiz, Capital, 6/30/2020 P 115, 000
PROBLEM # 10

Leonila Generales Agency

Statement of Changes in Equity
For the year ended Dec. 31, 2020
Generales, Owner’s Equity, 1/1/2020 P 360, 000
ADD: Additional Investment 280, 000
Profit P 430, 000 710, 000
Total P 1, 070, 000
LESS: Withdrawals 420, 000
Generales, Owner’s Equity 12/31/2020 P 650, 000

PROBLEM # 11

1.
a. P 215, 000
b. P 315, 000
c. P 465, 000
2.
a. P 125, 000
b. P 135, 000
c. P 25, 000
3. P 468, 750
4. P 70, 000
PROBLEM # 15

Party Consultants
Statement of Cash Flows
For the month ended
Cash Flow from Operating Activities
Cash receipts from clients P 350, 000
Cash payments to accounts 160, 000
Cash payments for expenses 12, 000
Net cash flow provided by operating activities 178, 000

Cash Flow from Investing Activities

Net cash flow provided by investing activities 0

Cash Flow from Financing Activities

Cash received from investments by owner P 180, 000
Payment to owner’s withdrawal 30, 000
Net cash flow provided by financing activities 150, 000

Net increase in cash P 328, 000

Cash balance at the beginning of the period 0
Cash balance at the ending of the period P 328, 000

1. FA
2. N/A
3. N/A
4. OA
5. FA
6. OA
7. OA
8. OA
PROBLEM # 6

1. Total Amount of Revenue 2. Amount of Supplies Expense 3. Amount of Interest Expense 4. Amount of Rent Expense

9/1/20 Gain from sale of land 10, 000 12/31/20 Supplies Expense P 19, 000 Interest Expense P 8250 2/1/20 Rent Expense P 22, 000
11/1/20 Interest Revenue 500 Interest Payable P 8250
12/31/20 Service Revenue 250, 000
P 260, 500 100, 000 x 9% x 11/12 = 8250

5. Total Amount of Expenses 6. Amount of Gain from Sale of Land 7. Profit 8. Amount of Unearned Revenue

Salaries Expense 32, 000 9/1/20 Gain from sale of land P 10, 000 Total Revenue P 260, 500 7/1/20 Unearned Revenue P 42, 000
Supplies Expense 19, 000 Less: Expense P 185, 250
Operating Expense 80, 000 Profit P 75, 250
Rent Expense 22, 000
Depreciation Expense 24, 000
Interest Expense 8, 250
Total P 185, 250
9. Amount of Interest Payable 10. Total Amount of Liabilities 11. Cash Flow from Operating Activities
Cash receipts from clients P 242, 000
Interest Expense P 8250 Accounts Payable P 34, 000 Cash payments for rent (24, 000)
Interest Payable P 8250 Notes Payable P 100, 000 Cash payments to accounts (15, 000)
Unearned Service Revenue P 42, 000 Net Cash Flow provided by Operating Activities P 203, 000
100, 000 x 9% x 11/12 = 8250 Accounts Payable P 20, 000
Accounts Payable P 80, 000 12. Cash Flow from Investing Activities
Interest Payable P 8250 Cash receipts from sale of land P 100, 000
Salaries Payable P 32, 000 Cash payments to acquire service vehicle (80, 000)
P 316, 250 Cash payments to acquire land (70, 000)
Accounts Payable ( P 15, 000) Cash payments for certificate of deposit (50, 000)
Net Liabilities P 301, 250 Net Cash Flow used in Investing Activities (P 100, 000)

13. Cash Flow from Financing Activities

Cash receipts from investment by owners P 100, 000
Cash receipts from borrowings 100, 000
Cash payments to withdrawals of owners (30, 000)
Net Cash Flow provided by Financing Activities P 170, 000

Net Increase in Cash 273, 000

Cash balance at the beginning of the period 180, 000
Cash balance at the beginning of the period P 453, 000