Chapter 1 - Test 1 & 3: The Yellow Group

CHAPTER 1 -
THE YELLOW GROUP TEST 1 & 3

Baltazar, Beatrice R. JOURNALIZING AND POSTING
Galuga, Ashley Jewel L.
Lostreno, Jemuel P.
Opiz, Rosemarie D.
Rimorin, Christian Iverson P.
CHAPTER 5 - TEST 1 JOURNALIZING AND POSTING
INSTRUCTION: IdentIfy which account would be debited and credited to record each transaction.
Write the identifying letters in the proper columns. The first transaction has been done as an
example.
The first transaction is a check issued for monthly rent. It was recorded as rent expense under debit and cash under credit. To explain why, debit
is always simply explained as “what comes in” and credit as “what comes out.” In this transaction, what came in is a rent expense and to pay the
rent, cash needed to come out.
CHAPTER 5 - TEST 1
JOURNALIZING AND POSTING
ACCOUNTS:
A. Cash D. Equipment G. Rent Expense

B. Accounts Receivable E. Accounts Payable H. Salaries Expense
C. Supplies F. Service Income I. Telephon Expense
TRANSACTION DEBIT CREDIT

1. Purchased supplies on C E
account.
DEBIT CREDIT
Purchased supplies on account. Purchased supplies on account.
What came in? What came out?

Supplies Nothing yet. But there will be.
ACCOUNTS:


2. Purchased new
equipment, issuing a check D A&E
for a downpayment with
balance due in thirty days.
DEBIT CREDIT
Purchased new equipment, issuing a check for a Purchased new equipment, issuing a check for a
downpayment with balance due in thirty days. downpayment with balance due in thirty days.

Equipment Cash for the downpayment and a balance due in thirty days.
CHAPTER 5 - TEST 1
ACCOUNTS:


3. Provided services on B F
account.
DEBIT CREDIT
Provided services on account. Provided services on account.

Nothing yet. But there will be. Since there are services provided, there is a service income
which increases the owner’s equity. Revenues or income is
always recorded as a credit.
ACCOUNTS:


4. Purchase supplies for C A
cash.
DEBIT CREDIT
Purchase supplies for cash. Purchase supplies for cash.

Supplies Cash
ACCOUNTS:


5. Issued a check to pay a E A
creditor on account.
DEBIT CREDIT
Issued a check to pay a creditor on account. Issued a check to pay a creditor on account.

Nothing but your obligation to pay. Cash
ACCOUNTS:


6. Collected payment from A B
credit customer.
DEBIT CREDIT
Collected payment from credit customer. Collected payment from credit customer.

Cash Nothing but your right to collect.
ACCOUNTS:


7. Issued checks to pay H A
employees their monthly
salaries.
DEBIT CREDIT
Issued checks to pay employees their monthly salaries. Issued checks to pay employees their monthly salaries.

The services from your employees and the obligation to pay Cash
their monthly salaries.
ACCOUNTS:


8. Performed services for A F
cash.
DEBIT CREDIT
Performed services for cash. Performed services for cash.

Cash Since there are performed services for cash, there is a service
income which increases the owner’s equity. Revenues or
income is always recorded as a credit.
ACCOUNTS:


9. Received cash for A C
damaged supplies returned.
DEBIT CREDIT
Received cash for damaged supplies returned. Received cash for damaged supplies returned.

Cash Supplies
ACCOUNTS:


10. Issued a check to pay I A
the telephone bill.
DEBIT CREDIT
Issued a check to pay the telephone bill. Issued a check to pay the telephone bill.

Telephone services and the obligation to pay it. Cash
INSTRUCTION: For the month of April 2020: (1) journalize, (2) post, and (3) prepare the trial
balance or the following transactions of Locsin Decorators. Use the answer sheet provided. The
first journal entry has been done as an example.
The first journal: Tina Locsin established Locsin Decorators and invested P640,000 cash. The P640,000 cash was recorded under debit and was
recorded as capital under credit. To explain why, debit is always simply explained as “what comes in” and credit as “what comes out.” In this
transaction, what came in is the P640,000 cash and what came out is the P640,000 amount invested.
TRANSACTIONS:
April 1 Tina Locsin established Locsin Decorators and invested P640,000 cash.
2 Purchased P45,500 of office equipment on account.
5 Bought P15,750 of office supplies for cash.
8 Purchased a small truck for P840,000 paying P280,000 in cash and issuing a note payable for balance.
10 Purchased office supplies on account, P15,750.
15 Completed a job and recieved P35,000.
20 Paid insurance premiums, P42,000
22 Paid P45,500 due on purchase of office equipment.
26 Completed a job and billed client P70,000.
30 Paid rent for the month, P21,000.
CHAPTER 5 - TEST 3
CHART OF ACCOUNTS:
Assets: Income:
101 Cash 301 Service income

102 Accounts recievable
121 Office equipment
122 Delivery equipment
Liabilities: Expense:
201 Accounts payable 401 Office supplies expense

202 Notes payable 401 Rent expense
403 Insurance expense
404 Miscellaneous expense
Proprietorship:
501 Locsin, capital

502 Locsin, drawing
GENERAL JOURNAL
Date PARTICULARS F DEBIT CREDIT

Apr 1 Cash 101 P 640,000 00
Locsin, capital 501 P 640,000 00
-to record initial investment
2 Office Equipment 121 P 45,500 00

Acconts Payable 201 P 45,500 00
-to record the aquisition of office equipment on account
5 Office supplies 401 P 15,750 00

Cash 101 P 15,750 00
-to record purchase of store supplies
8 Delivery Equipment 122 P 840,000 00

Cash 101 P 280,000 00
Note Payable 202 P 560,000 00
-to record the cash payment and acquisition of delivery
equipment using note.
10 Office Supplies 401 P 15,750 00

-to record the aquisition of office supplies on account
15 Cash 101 P 35,000 00

Service Income 301 P 35,000 00
-to record the cash recieved from client
20 Insurance Expense 403 P 42,000 00

Cash 101 P 42,000 00
-to record insurance premium paid
22 Accounts Payable 201 P 45,500 00

Cash 101 P 45,500 00
-to record the payment of Accounts Payable in
purchasing office equipment
CHAPTER 5 - TEST 3
Apr 26 Accounts Receivable 102 P 70,000 00

-to record the receivables from client
30 Rent Expense 401 P 21,000 00

Cash 101 P 21,000 00
-to record the payment of rent
EXPLANATION
2 Office Equipment 121 P 45,500 00

-to record the aquisition of office equipment on account
5 Office supplies 401 P 15,750 00

Cash 101 P 15,750 00
-to record purchase of store supplies
DEBIT CREDIT
Apr 2 What came in? Apr 2 What came out?
Office equipment Nothing yet. But there will be.

Office supplies Cash
8 Delivery Equipment 122 P 840,000 00

Cash 101 P 280,000 00
Note Payable 202 P 560,000 00
-to record the cash payment and acquisition of delivery
equipment using note.
10 Office Supplies 401 P 15,750 00

-to record the aquisition of office supplies on account
DEBIT CREDIT
Delivery equipment Cash. and an obligation to pay.

Office supplies Nothing yet. But there will be.
CHAPTER 5 - TEST 3JOURNALIZING AND POSTING
15 Cash 101 P 35,000 00

-to record the cash recieved from client
DEBIT CREDIT
Cash received as payment Rendered service.
20 Insurance Expense 403 P 42,000 00

Cash 101 P 42,000 00
-to record insurance premium paid
22 Accounts Payable 201 P 45,500 00

Cash 101 P 45,500 00
-to record the payment of Accounts Payable in
purchasing office equipment
DEBIT CREDIT
Insurance Cash as payment for the expense.

The obligation to pay Cash
CHAPTER 5 - TEST 3
Apr 26 Accounts Receivable 102 P 70,000 00

-to record the receivables from client
30 Rent Expense 401 P 21,000 00

Cash 101 P 21,000 00
-to record the payment of rent
DEBIT CREDIT
Receivables from client Rendered service.

Rent expense Cash
CHAPTER 5 - TEST 3
GENERAL LEDGER
Cash
Account Title
Account No. 101
2020 PARTICULARS DEBIT PARTICULARS CREDIT
Apr 1 Initial Investment 640,000 Apr 5 Purchase of Office Supplies 15,750
15 Collection 35,000 8 Downpayment of Delivery Equipment 280,000
20 Payment for Insurance 42,000
22 Payment for Account Payable 45,500
30 Payment for Rent 21, 000
DEBIT BALANCE 270,750
TOTAL 675,000 TOTAL 675,000

CHAPTER 5 - TEST 3

TOTAL 675,000
TOTAL 675,000
DEBIT CREDIT
Initial investment worth P640,000 Payment for the purchase.

Collection worth P35,000 Cash for downpayment

TOTAL 675,000
TOTAL 675,000
CREDIT DEBIT BALANCE

Apr 20 What came out? Apr 30 What came out? 15,750 + 280,000 + 42,000 + 45,500 + 21,000
Cash as payment for the insurance. Cash as payment for rent = 404,250
Apr 22 What came out? TOTAL DEBIT - 404,250
Cash as payment for accounts payable. =270,750
CHAPTER 5 - TEST 3
Accounts receivable
Account Title
Account No. 102
2020 PARTICULARS DEBIT
Apr 26 Service Income 70,000 Apr

Apr 26 Service Income 70,000 Apr
DEBIT
Apr 26 What came in?
Accounts receivable worth 70,000 for rendered
service.
CHAPTER 5 - TEST 3
Office equipment
Account Title
Account No. 121
Apr 2 Acquisition on account 45,500 Apr
CHAPTER 5 - TEST 3
Office equipment
Account Title
Account No. 121
Apr 2 Acquisition on account 45,500 Apr
DEBIT
Apr 2 What came in?
Balance worth 45,500
Delivery equipment
Account Title
Account No. 122
2020
Apr 8 Purchase by downpayment of cash and acquisition of 840,000 Apr
note
Delivery equipment
Account Title
Account No. 122
2020
Apr 8 Purchase by downpayment of cash and acquisition of 840,000 Apr
note
DEBIT
Apr 8 What came in?
Delivery equipment purchased by downpayment of
cash and acquisition of note worth 840,000.
CHAPTER 5 - TEST 3
Accounts payable
Account Title
Account No. 201
Apr 22 Payment of Office Equipment 45,500 Apr 2 Acquisition of Office Equipment 45,500
CREDIT BALANCE 15,750 10 Acquisition of Office Supplies 15,750
TOTAL 61,250 TOTAL 61,250

Accounts payable
Account Title
Account No. 201
Apr 22 Payment of Office Equipment 45,500 Apr 2 Acquisition of Office Equipment 45,500
CREDIT BALANCE 15,750 10 Acquisition of Office Supplies 15,750
DEBIT CREDIT BALANCE CREDIT

Apr 22 What came in? 61,250 - 45,500 Apr 2 What came out?
Payment of office = 15,750 Nothing but an obligation to pay for office equipment worth 45,500.
equipment worth 45,500.
Apr 10 What came out?
Nothing but an obligation to pay for office supplies worth 15,750.
CHAPTER 5 - TEST 3
Notes payable
Account Title
Account No. 202
2020 PARTICULARS CREDIT
Apr Apr 8 Acquisition of note for Delivery Equipment 560,000
CHAPTER 5 - TEST 3
Notes payable
Account Title
Account No. 202
Apr Apr 8 Acquisition of note for Delivery Equipment 560,000
CREDIT
Notes payable worth 560,000
CHAPTER 5 - TEST 3
Locsin, capital
Account Title
Account No. 501
Apr Apr 1 Initial Investment 640,000
CHAPTER 5 - TEST 3
Locsin, capital
Account Title
Account No. 501
Apr Apr 1 Initial Investment 640,000
CREDIT
640,000 worth of initial investment
CHAPTER 5 - TEST 3
Service Income
Account Title
Account No. 301
Apr CREDIT BALANCE 105,000 Apr 15 Collection 35,000
26 Billing 70,000
TOTAL 105,000 TOTAL 105,000

CHAPTER 5 - TEST 3
Service Income
Account Title
Account No. 301
Apr CREDIT BALANCE 105,000 Apr 15 Collection 35,000
26 Billing 70,000
TOTAL 105,000 TOTAL 105,000
CREDIT BALANCE CREDIT

35,000 + 70,000 Apr 15 What came out?
= 105,000 Rendered service worth 35,000 - collected.

Rendered service worth 70,000 - receivable.
CHAPTER 5 - TEST 3
Office supplies expense

Account Title
Account No. 401
Apr 5 Purchased by Cash 15,750 Apr DEBIT BALANCE 31,500
10 Acquisition on account 15,750

CHAPTER 5 - TEST 3
Office supplies expense

Account Title
Account No. 401
Apr 5 Purchased by Cash 15,750 Apr DEBIT BALANCE 31,500
10 Acquisition on account 15,750
DEBIT DEBIT BALANCE

Apr 5 What came in? 15,750 + 15,750
Expense for office supplies worth 15,750 =31,500

Balance worth 15,750
CHAPTER 5 - TEST 3
Rent expense
Account Title
Account No. 403
Apr 30 Payment 21,000 Apr
CHAPTER 5 - TEST 3
Rent expense
Account Title
Account No. 403
DEBIT
Expense for rent worth 21,000
CHAPTER 5 - TEST 3
Insurance expense
Account Title
Account No. 403
CHAPTER 5 - TEST 3
Insurance expense
Account Title
Account No. 403
DEBIT
Expense for insurance worth 42,000
CHAPTER 5 - TEST 3
Locsin Decorators
Trial Balance
June 30,2020
ACCOUNT TITLES DEBIT CREDIT

Cash 270,750 00
Accounts Receivable 70,000 00
Office Equipment 45,500 00
Delivery Equipment 840,000 00
CHAPTER 5 - TEST 3
ACCOUNT TITLES DEBIT CREDIT

Accounts Payable 15,750 00
Notes Payable 560,000 00
Locsin, Capital 640,000 00
Service Income 105,000 00
Office Supplies Expense 31,500 00
Rent Expense 21,000 00
Insurance Expense 42,000 00
TOTAL
1,320,750 00 1,320,750 00
THANK YOU!

Chapter 1 - Test 1 & 3: The Yellow Group

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Chapter 1 - Test 1 & 3: The Yellow Group

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CHAPTER 1 -

THE YELLOW GROUP TEST 1 & 3

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

A. Cash D. Equipment G. Rent Expense

TRANSACTION DEBIT CREDIT

What came in? What came out?

101 Cash 301 Service income

201 Accounts payable 401 Office supplies expense

501 Locsin, capital

Date PARTICULARS F DEBIT CREDIT

2 Office Equipment 121 P 45,500 00

5 Office supplies 401 P 15,750 00

8 Delivery Equipment 122 P 840,000 00

10 Office Supplies 401 P 15,750 00

15 Cash 101 P 35,000 00

20 Insurance Expense 403 P 42,000 00

22 Accounts Payable 201 P 45,500 00

Apr 26 Accounts Receivable 102 P 70,000 00

30 Rent Expense 401 P 21,000 00

2 Office Equipment 121 P 45,500 00

5 Office supplies 401 P 15,750 00

Apr 5 What came in? Apr 5 What came out?

8 Delivery Equipment 122 P 840,000 00

10 Office Supplies 401 P 15,750 00

Apr 10 What came in? Apr 10 What came out?

15 Cash 101 P 35,000 00

20 Insurance Expense 403 P 42,000 00

22 Accounts Payable 201 P 45,500 00

Apr 22 What came in? Apr 22 What came out?

Apr 26 Accounts Receivable 102 P 70,000 00

30 Rent Expense 401 P 21,000 00

Apr 30 What came in? Apr 30 What came out?

15 Collection 35,000 8 Downpayment of Delivery Equipment 280,000