Name:
Directions:
1. Guess the account title being described in each sentence.
2. Identify what element of SFP (Assets, Liabilities or Equity) it is listed/ included.
Description Account title SFP Element
1. I am used as a medium of cash asset
exchange in business
transactions. I may be held on
hand or put in banks for
safekeeping.
2. I can be in the form of cash or owner’s capital equity
other assets invested by the
owner to start- up a business.
3. I am items held for resale. Merchandise inventory asset
4. I am expenses paid in Prepaid expenses asses
advance.
5. I am expenses incurred but Accrued expenses liability
not yet paid.
6. I am amounts due to suppliers Accounts payable liability
for the purchase of goods or
services received on account.
7. I am an amount taken by the drawings equity
owner from the business for
personal use.
8. I am an account due with Notes payable liability
supporting promissory notes.
9. I am an account due from Accounts receivable asset
customers as a result of sale
of goods or for services
rendered.
10. I have a long- life and acquired Property, plant, and equipment asset
for use in business operations.
Practice Exercise II: General Journal Preparation
Directions:
1. Prepare the General Journal and T-Accounts for the Problem Illustrated below: Use the Chart of
Accounts given.
October 1 Migz invested P200,000 cash as beginning capital to his business on October 1, 2023.
October 1 Migz bought food supplies for the upcoming catering services for the month of October
amounting P30,000.00 cash.
October 1 Migz Canteen rendered catering services to the customers and received cash payment of
P50,000.
October 10 Migz paid cash for electricity bill amounting P3,000.
October 15 He bought electric oven from Josol Marketing on account in the amount of P20,000.
October 27 He paid half of his debt of P20,000.00 to Josol Marketing
October 27 He paid cash of P10,000.00 for food supplies to be used in catering services.
October 28 Migz Canteen received catering services on account from Student Government
Organization amounting P20,000.00
October 30 The Student Government Organization paid P20,000.00 for catering services to Migz
Canteen rendered on October 28
October 31 Migz withdrew P5,000 from his capital on October 31, 2023.
October 31 Paid salaries for the period October 1-31, 2023 amounting P15,000.00 cash
CHART OF ACCOUNTS
Asset Accounts:
Cash
Accounts Receivable
Equipment
Food Supplies
Liability and Capital Accounts:
Accounts Payable
Capital
Drawing (Capital)
Revenue account:
Service Revenue
Expense accounts:
Utility Expense
Salaries expense
Date Particulars Debit (₱) Credit (₱)
Oct. 1 Cash 200,000
Migz, Capital 200,000
Investment of owner
Oct. 1 Food Supplies 30,000
Cash 30,000
Purchased food supplies for cash
Oct. 1 Cash 50,000
Service Revenue 50,000
Rendered catering services for cash
Oct. 10 Electricity Expense 3,000
Cash 3,000
Paid electricity bill
Oct. 15 Equipment (Electric Oven) 20,000
Accounts Payable – Josol Marketing 20,000
Purchased oven on account
Oct. 27 Accounts Payable – Josol Marketing 10,000
Cash 10,000
Paid half of the amount due
Oct. 27 Food Supplies 10,000
Cash 10,000
Purchased food supplies for cash
Oct. 28 Accounts Receivable – SGO 20,000
Service Revenue 20,000
Rendered services on account
Oct. 30 Cash 20,000
Accounts Receivable – SGO 20,000
Collection from SGO
Oct. 31 Drawings 5,000
Cash 5,000
Owner's withdrawal
Oct. 31 Salaries Expense 15,000
Cash 15,000
Paid salaries