Shella R.

Amora Grade 12 – Laos

Fundamentals of Accountancy, Business and Management 2

Module 5

Practice Set

A. Journal Entry

December 1

Cash 500,000
Capital 500,000
To record Atty. Jan Uy initial investment.

Cash 100,000
Loans Payable 100,000
To record loans payable from Mars bank.

Permits and licenses Expenses 10,000

Cash 10,000
To record the permits and licenses on cash.

December 2

Accounts Receivable 135,000

Revenue 135,000
To record the revenue on account of Mercury Co.

Prepaid Supply 5,000

Cash 5,000
To record the purchased supply on cash
December 8

Cash 37,500
Revenue 37,500
To record the revenue on cash of Venus Co.

Equipment – Laptop 36,000

Cash 36,000
To record the purchased laptop in cash.

December 15

Cash 135,000
Accounts Receivable 135,000
To record the pays of Mercury Co.

December 17

Withdraw 25,000
Cash 25,000
To record the withdraw of Atty. Uy.

December 20

Catering Expenses 25,000

Accounts Payable 25,000
To record the catering expenses.

December 22

Cash 35,000
Unearned Revenue 35,000
To record the unearned revenue.
December 23

Accounts Receivable 55,000

Revenue 55,000
To record the revenue of Vega Co.

December 27

Accounts Receivable 20,000

Revenue 20,000
To record the revenue to a client.

December 31

Salary Expenses 15,000

Cash 15,000
To record the salary expenses.

Utilities Expenses 8,000

Cash 8,000
To record the utilities expenses.

Office Supplies 3,000

Cash 3,000
To record the office supplies.

B. T-accounts
 Cash Prepaid Rent

500,000 10,000 120,000

100,000 120,000
120,000
37,500 5,000

135,000 36,000

35,000 25,000

15,000

8,000

3,000

807,500 (222,000)

585,500

Accounts Receivable

Prepaid Supplies
135,000 135,000
5,000
55,000
5,000
20,000

Equipment
210,000 135,000
36,000
75,000
36,000
 Loans Payable Accounts Payable

100,000 25,000

100,000 25,000

Unearned Revenue

35,000

35,000

Capital Revenue

500,000 135,000

37,500
500,000

55,000

Salary Expenses 20,000

15,000 247,500

15,000 247,500

Utilities Expenses
Office Supplies
8,000
3,000
8,000
3,000

Catering Expenses

25,000

25,000
 Permit and Licenses Expenses Withdraw

10,000 25,000

10,000 25,000

C. Unadjusted Trial Balance

Uy Law Office
Unadjusted Trial Balance
As of December 31, 2015

Cash 585,500
Prepaid Rent 120,000
Account Receivable 75,000
Prepaid Supplies 5,000
Equipment 36,000
Loans Payable 100,000
Accounts Payable 25,000
Unearned Revenue 35,000
Capital 500,000
Revenue 247,500
Withdraw 25,000
Salary Expenses 15,000
Utilities Expenses 8,000
Office Supplies 3,000
Catering Expenses 25,000
Permit and Licenses 10,000
907,500 907,500

D. Adjusting entries

1. 120,000 x 1/12 = 10,000

Rent Expenses 10,000

 Prepaid Rent 10,000
To record the Prepayments.

2. 100,000 x 6% x 1/12 = 500

Interest Expenses 500

Interest Payable 500
To record the accrued expenses.

3. 36,000 – 0 / 3 x 1/12 = 1,000

Depreciation Expenses 1,000

Accrued Depreciation 1,000
To record the Depreciation.

E. Adjusted Trial Balance

Uy Law Office
Adjusted Trial Balance
As of December 31, 2015
Cash 585,500
Prepaid Rent 110,000
Accounts Receivable 75,000
Prepaid Supplies 5,000
Equipment 36,000
Accumulated Depreciation (1,000)
Loans Payable 100,000
Accounts Payable 25,000
Unearned Revenue 35,000
Interest Payable 500
Capital 500,000
Revenue 247,500
Withdrawal 25,000
Salary Expenses 15,000
Utilities Expenses 8,000
Office Supplies 3,000
Catering Expenses 25,000
Permit and Licenses 10,000
Rent Expenses 10,000
Interest Expenses 500
Depreciation Expenses 1,000
908,000 908,000

F.1 Statement of Financial Position

Notes

Cash 585,500
Cash Equivalent 0
Cash and Cash Equivalent 585,500
Accounts Receivable 75,000
Trade and other Receivable 75,000

Prepaid Supplies 5,000

Prepaid Rent 110,000
Prepaid asset 115,000

Equipment 36,000
Accumulated Depreciation (1,000)
Property, plant and equipment 35,000

Unearned Revenue 35,000

Loans Payable 100,000
Accounts Payable 25,000
Interest Payable 500
Trade and other payable 160,500

Uy Law Office
Statement of Financial Position
As of December 31, 2015

Asset

Cash and Cash Equivalent 585,500

Trade and other Receivable 75,000
Prepaid asset 115,000
Property, plant and equipment 35,000

Total asset 810,500

Liabilities
Trade and other payable 160,500

Owners’ Equity

Capital 650,000

Total Liabilities and Owners’ Equity 810,500

F.2 Statement of Comprehensive Income

Uy Law Office
Statement of Comprehensive Income
As of December 31, 2015

Revenue 247,500

Less:
Salary Expenses 15,000
Utilities Expenses 8,000
Office Supplies 3,000
Catering Expenses 25,000
Permit and Licenses 10,000
Rent Expenses 10,000
Interest Expenses 500
Depreciation Expenses 1,000

Net Income 175,000

Add: Other Comprehensive Income 0
Net Comprehensive Income 175,000
F.3 Statement of Changes in Equity

Uy Law Office
Statement of Changes in Equity
As of December 31, 2015

Capital 500,000
Add: Net Comprehensive Income 175,000
Less: Withdrawal (25,000)
Uy Law Office Equity End. 650,000
F.4 Statement of Cash Flows

Uy Law Office
Statement of Cash Flow
As of December 31, 2015

Cash flow from the Operating Activities

Collection from the costumer 37,500
Collection from the costumer 135,000
Collection from the costumer 35,000
Payment for permits and licenses (10,000)
Cash Payment for rental (120,000)
Cash Payment for supplies (5,000)
Cash Payment for the expenses (26,000)
Net cash flow from the operating activities 46,500

Cash flow from the Investing Activities

Cash Payment for equipment (36,000)
Net cash flow from the investing activities (36,000)

Cash from the Financing Activities

Investment 500,000
Proceeds from bank loan 100,000
Withdrawal from the owner (25,000)
Net cash flow from the financing activities 575,000
Net increase in cash 585,500
Add: Cash from the beginning of the year -
Cash at the end of the year 585,500