Scribd Logo
Upload

Welcome to Scribd!

  • 139 views

    Acc 101 Bookkeeping (Part 6) : Ruby Bagsit

    Uploaded by

    Princess Bersamina
    This document presents a summary of key aspects of service businesses. It discusses that a service business provides intangible services to clients for a fee, with examples like repair, beauty, health, transportation and more. The accounting is simpler than merchandising as it does not involve inventory. Revenues are earned by rendering services and eventually collecting payments, with a focus on recording revenues and collections. Major activities are rendering and billing for services, collecting payments, and paying expenses. Sample journal entries are provided to record these transactions. The document concludes with an assignment involving journal entries, ledger posting, financial statements and closing entries for a bookkeeping service business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Acc 101 Bookkeeping (Part 6) : Ruby Bagsit

    Uploaded by

    Princess Bersamina
    139 views11 pages
    This document presents a summary of key aspects of service businesses. It discusses that a service business provides intangible services to clients for a fee, with examples like repair, beauty, health, transportation and more. The accounting is simpler than merchandising as it does not involve inventory. Revenues are earned by rendering services and eventually collecting payments, with a focus on recording revenues and collections. Major activities are rendering and billing for services, collecting payments, and paying expenses. Sample journal entries are provided to record these transactions. The document concludes with an assignment involving journal entries, ledger posting, financial statements and closing entries for a bookkeeping service business.

    Original Title

    6._Service_Busines

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document presents a summary of key aspects of service businesses. It discusses that a service business provides intangible services to clients for a fee, with examples like repair, beauty, health, transportation and more. The accounting is simpler than merchandising as it does not involve inventory. Revenues are earned by rendering services and eventually collecting payments, with a focus on recording revenues and collections. Major activities are rendering and billing for services, collecting payments, and paying expenses. Sample journal entries are provided to record these transactions. The document concludes with an assignment involving journal entries, ledger posting, financial statements and closing entries for a bookkeeping service business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    139 views11 pages

    Acc 101 Bookkeeping (Part 6) : Ruby Bagsit

    Uploaded by

    Princess Bersamina
    This document presents a summary of key aspects of service businesses. It discusses that a service business provides intangible services to clients for a fee, with examples like repair, beauty, health, transportation and more. The accounting is simpler than merchandising as it does not involve inventory. Revenues are earned by rendering services and eventually collecting payments, with a focus on recording revenues and collections. Major activities are rendering and billing for services, collecting payments, and paying expenses. Sample journal entries are provided to record these transactions. The document concludes with an assignment involving journal entries, ledger posting, financial statements and closing entries for a bookkeeping service business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 11

    Acc 101 Ruby Bagsit

    Bookkeeping (part 6)
    6. Service

    Acc 101 presented by RUBY BAGSIT


    Business

    A service business
    provides services to
    clients for a fee.

    August 2021
    2
    Acc 101 presented by RUBY BAGSIT
    Service Business
    Typically, the business provides intangible products such as:
    • repairing
    • beauty care
    • health and recreation
    • transportation
    • communication
    • consulting
    • professional
    • medical, and
    • other services.

    August 2021
    3
    Acc 101 presented by RUBY BAGSIT
    Service Business
    The accounting for a service business is
    simpler, in contrast to a merchandising
    business, because the business do not
    involve accounting for inventories.

    In rendering services, the business earns


    revenues, which it eventually collects. The
    focus of the bookkeeping is on recording
    the revenues and collections.
    August 2021
    4
    Major activities involved in a service

    Acc 101 presented by RUBY BAGSIT


    business
    1. Rendering of services
    2. Collection of payments
    3. Incurrence and payment of expenses

    August 2021
    5
    Acc 101 presented by RUBY BAGSIT
    Sample Journal entries:

    Cash/Accounts Receivable xxx


    Service Revenue xxx
    Cash xxx
    Accounts Receivable xxx
    Expenses xxx
    Cash/Accounts Payable xxx
    Accounts Payable xxx
    Cash xxx
    August 2021
    6
    CLASS ASSIGNTMENT

    Acc 101 presented by RUBY BAGSIT


    Mr. Vicente Fabella established Fabella Bookkeeping Services and
    had the following transactions for the month of February:

    4 Investment of P150,000 cash fund by Mr. Fabella into the business.

    7 Received a Charge Invoice from a supplier for the purchase of a


    desktop computer amounting to P32,500. The computer is estimated to
    be useful for five years and have a salvage value of P2,500 thereafter.

    9 Purchased supplies amounting to P18,000 in cash.

    15 Paid P6,000 insurance for six months.

    7
    CLASS ASSIGNTMENT

    Acc 101 presented by RUBY BAGSIT


    Mr. Vicente Fabella established Fabella Bookkeeping Services and
    had the following transactions for the month of February:
    18 Issued a Service Invoice for an amount of P50,000 to a customer
    for services rendered on account.

    19 Received P35,000 cash from customers in payment of their


    account.

    20 Paid in cash and received an official receipt from the supplier for
    payment of accounts, P20,000.

    21 Rendered services to customers billed for P30,000.


    8
    CLASS ASSIGNTMENT

    Acc 101 presented by RUBY BAGSIT


    Mr. Vicente Fabella established Fabella Bookkeeping Services and
    had the following transactions for the month of February:
    21 Rendered services to customers billed for P30,000.

    28 Cash payment of P15,000 for the salary of an employee.

    29 Mr. Fabella withdrew P12,000 cash from the business.

    30 Paid the telephone bill for February amounting to P3,000.

    31 Supplies remaining on hand worth P15,000.


    9
    CLASS ASSIGNTMENT

    Acc 101 presented by RUBY BAGSIT


    Mr. Vicente Fabella established Fabella Bookkeeping Services and
    had the following transactions for the month of February:
    Instructions:
    1. Prepare the necessary journal entries.
    2. Post to the ledger.
    3. Prepare the trial balance.
    4. Prepare the financial statements.
    5. Record and post the closing entries.
    10
    Acc 101 presented by RUBY BAGSIT
    Thank you

    Ruby Bagsit • _

    August 2021
    11

    You might also like