2110 Fundamentals of Accounting On December 31, 2024, the trial balance was prepared in preparation

First Semester, SY 2025-26 for year-end reporting.

Grace Dimaguiba, a CPA-lawyer, started her practice on January 1, Account Account Title Unadjusted Trial Balance
2024. The chart of accounts is presented below:
Number Debit Credit

Account 110 Cash ₱600,000.00

Number Account Title 120 Accounts Receivable 300,000.00
110 Cash 130 Office Supplies 80,000.00
120 Accounts Receivable 140 Prepaid Insurance 120,000.00
125 Allowance for Uncollectible Accounts 150 Furniture and Fixtures 400,000.00
130 Office Supplies 160 Office Equipment 600,000.00
140 Prepaid Insurance 170 Service Vehicle 1,100,000.00
150 Furniture and Fixtures 210 Accounts Payable ₱50,000.00
Accumulated Depreciation-Furniture & 220 Loans Payable 500,000.00
155 Fixtures
Unearned Professional
160 Office Equipment 240 Practice Revenues 150,000.00
165 Accumulated Depreciation-Office Equipment 310 Dimaguiba, Capital 1,140,000.00
170 Service Vehicle 320 Dimaguiba, Withdrawals 350,000.00
175 Accumulated Depreciation-Service Vehicle Professional Practice
210 Accounts Payable 410 Revenues 3,900,000.00

220 Loans Payable 510 Rent Expense 500,000.00

230 Interest Payable 520 Salaries Expense 1,200,000.00

240 Unearned Professional Practice Revenues 530 Utilities Expense 490,000.00

310 Dimaguiba, Capital

The following year-end adjustments were summarized:
320 Dimaguiba, Withdrawals a.​ Office supplies on hand at year-end amounted to 15,000
b.​ A one-year insurance premium of 120,000 was paid on
410 Professional Practice Revenues
November 1, 2024
510 Rent Expense c.​ All long-term assets were acquired on January 1. The
furniture and fixtures and office equipment are expected to
520 Salaries Expense
have a useful life of 5 years, while a service vehicle is
530 Utilities Expense estimated to have a useful life of 10 years . A straight-line
method of depreciation is used.
540 Office Supplies Expense
d.​ A loan was obtained in connection with acquisition of a
550 Insurance Expense service vehicle.
It has the following terms:
560 Depreciation Expense
maturity date- 3 years from January 1, 2024
570 Interest Expense Interest rate-12% per annum, payable every
January 1 starting January 1, 2025.
580 Uncollectible Accounts Expense
e.​ One-third of the unearned professional practice revenues
was already earned as of year end.
Required: Prepare and complete the 10-column worksheet for the f.​ It was estimated that 4% of accounts receivable would not
year ended December 31, 2024. be collectible.
Provide for the following columns:
1.​ Unadjusted Trial Balance (debit & credit)
2.​ Adjustments (debit & credit)
3.​ Adjusted Trial Balance (debit & credit)
4.​ Profit or Loss (debit & credit)
5.​ Financial Position (debit & credit)
Prepare the Statement of Profit or Loss for the year ended December
31, 2024.
Prepare the Statement of Financial Position as of December 31, 2024.
Sept 24 Practice Set 2.​ Prepare the Trial Balance as of December 31, 2024
Comprehensive Bookkeeping Problem for Service Entity 3.​ Prepare and complete the 10-column worksheet, considering
all the necessary adjustments including the following:
Ace Matiyaga, tax consultant, started his professional career on a.​ Office supplies on hand on December 31, 2024
December 1, 2024. The transactions of the firm are as follows: amounted to 3,000
​ b.​ Office equipment and furniture and fixtures have
Dec 1 ​ Ace invested P200,000 in the firm estimated useful lives of 10 years, and are to be
1​ Acquired 90,000 office equipment, paying 40,000 depreciated using straight line method
downpayment and the balance was issued with a 1 year, 12% c.​ Outstanding Accounts Receivable is expected to be
Notes Payable 90% collectible.
2​ Paid rent for December 2024 and January 2025 amounting to
50,000 (Expense Method) 4.​ Prepare the Statement of Profit and Loss for the period and
3​ Purchased office supplies for cash, 8,000. (Expense Method) Statement of Financial Position as of December 31, 2024
4​ Acquired office furniture on account amounting to 60,000 5.​ Journalize and post adjusting entries (Use General Journals
14 ​ Received 62,000 for services rendered and General Ledgers)
15 ​ Paid office assistant salaries of 8,000 6.​ Journalize and post closing entries (Use General Journals and
18​ Paid 50% of the accounts with the supplier of office furniture General Ledgers)
20​ Billed client for services rendered amounting to 45,000 7.​ Prepare post-closing trial balance
29​ Received advance payment from a client for a service 8.​ Journalize the reversing entries
contract amounting 35,000 to be performed in the first
quarter of 2025 (Income Method)
30​ Received billing for utilities amounting to 6,000
31​ Paid office assistant salaries of 8,000

Required:
1.​ Journalize and post the December 2024 transactions (Use
General Journals and General Ledgers)
Refer to this chart of accounts:
110​ Cash
120​ Accounts Receivable
125 ​ Allowance for Doubtful Accounts
130 ​ Office Supplies
140​ Prepaid Rent
150​ Office Equipment
155​ Accumulated Depreciation- Office equipment
160​ Furniture and Fixtures
165​ Accumulated Depreciation- Furniture and Fixtures
210​ Accounts Payable
220​ Notes Payable
230​ Interest Payable
240​ Utilities Payable
250​ Salaries Payable
260​ Unearned Consulting Revenues
310​ Matiyaga, Capital
320​ Matiyaga, Withdrawals
330 ​ Income Summary
410​ Consulting Revenues
510​ Office Supplies Expense
520​ Rent Expense
530​ Interest Expense
540​ Utilities Payable
550​ Salaries expense
560​ Depreciation Expense
570​ Doubtful Accounts Expense
Paciencia Laundry Shop started in January 2019. On December 31, The following year-end adjustments were summarized:
2024, the trial balance before adjustments was provided for It is estimated that Accounts Receivable would be 90%
preparation of financial statements: a collectible.
Notes Receivable bear annual interest rate of 10% payable every
Account Account Title Unadjusted Trial Balance
b July 1
Number Debit Credit
Laundry supplies on hand on December 31, 2024 amounted to
110 Cash ₱580,400.00 c 155,000
120 Accounts Receivable 1,324,700.00 d One-year insurance was paid on April 1
Allowance for Uncollectible Building is depreciated over its useful life of 30 years with salvage
125 Accounts ₱40,600.00 e value of 100,000
130 Notes Receivable 2,000,000.00 Laundry equipment is depreciated over its useful life of 10 years
f with salvage value of 150,000
140 Interest Receivable
Mortgage Payable has a 10-year term from January 1, 2019 and
150 Laundry Supplies 368,700.00
g requires12% per annum interest payment every January 1
160 Prepaid Insurance 180,000.00
Part of the building is being rented out as commercial space. On
170 Land 900,000.00 July 1, 2024, the entity received an annual rental fee and credited
180 Building 6,100,000.00 h it to unearned rent income.

Accumulated
Required:
185 Depreciation-building 1,000,000.00
1.​ Prepare and complete the worksheet for the year ended
190 Laundry Equipment 2,150,000.00 December 31, 2024.
Accumulated Depreciation- 2.​ Prepare the Statement of Profit or Loss for the year ended
195 laundry equipment 1,000,000.00 December 31, 2024.
3.​ Prepare the Statement of Financial Position as of December
210 Accounts Payable 1,020,000.00 31, 2024.
220 Mortgage Payable 4,000,000.00 4.​ Journalize the adjusting journal entries
5.​ Journalize the closing entries
230 Interest Payable
240 Unearned Rent Income 800,000.00
310 Paciencia, Capital 3,428,000.00
320 Paciencia, Withdrawals 500,000.00
410 Laundry Service Revenues 5,026,700.00
420 Interest Income 100,000.00
430 Rent Income
510 Salaries Expense 956,000.00
520 Repairs Expense 300,000.00
530 Utilities Expense 910,500.00
540 Miscellaneous Expense 145,000.00
Uncollectible Accounts
550 Expense
560 Laundry Supplies Expense
570 Insurance Expense
580 Depreciation Expense
590 Interest Expense
₱16,415,300. ₱16,415,300.
00 00
Recording Purchases and Sales Transactions

Grateful Company provided the following transactions for the

month of December, 2024

December
7 Purchased merchandise on credit from AC Company at an
invoice amount of 150,000, terms 3/10, n/30, FOB shipping
point. Paid freight of 4,000

8 Sold merchandise on account to GG Company at a selling

price of 200,000, terms 2/10, n/30, FOB destination. Paid
freight 6,000.

9 Returned merchandise amounting to 20,000 from

December 7 purchases

10 Received returned merchandise at a sales price of 40,000

from December 8 sales

11 Purchased merchandise on credit from AE Company at an

invoice amount of 250,000, terms 3/10, n/30, FOB Destination.
Paid freight of 8,000

12 Sold merchandise on account to SS Company at a selling

price of 300,000, terms 2/10, n/30, FOB shipping point. Paid
freight 9,000.

17 Paid total amount due to AC Company

18 Received full settlement of the amount due from GG

Company

30 Paid total amount due to AE Company

31 Received full settlement of the amount due from SS

Company

Record the transactions for the month of December, 2025:

Assume that the entity is using a perpetual inventory system.
Gross profit rate is 30% of [Link] method Net method
Comprehensive Simulation Case on Bookkeeping for Merchandising
Entity 21​ Paid the suppliers of office equipment and furniture and
fixtures
Peter Sy, started a buy and sell business - Conscientious Company in
Naga City. During December 2023, the first month of operation, the 23​ Sold merchandise on account to YY Company at a selling
following transactions occurred: price of 900,000, terms 2/10, n/30, FOB destination. Paid freight
22,000.
December
1​ Invested 1,500,000 cash to the business. 27​ Received billing for the month of December from Casureco 2
amounting to 36,000 and from MNWD amounting to 23,000.
1​ A piece of Land amounting to 2,000,000 and a building
amounting to 3,000,000 were acquired by paying 1,000,000 cash down 28​ Paid PLDT amounting to 10,000.
payment and issuing a five-year, 12% promissory note for the balance.
Interest is payable annually while the principal is payable on maturity 29 ​ Received full settlement of the amount due from RR
date. Company

1​ Purchased on account store equipment amounting to 30​ Paid total amount due to BB Company
240,000, office equipment amounting to 120,000, and furniture and
fixtures amounting to 60,000. 31​ Paid salaries to sales staff 35,000 and office staff 20,000
Sy made withdrawals amounting to 100,000 for personal use.
1​ Paid 18,000 for store supplies, and 10,000 for office supplies.

1​ Paid a one-year insurance amounting to 36,000 The chart of accounts is provided below:
Account Title
1​ Entered into a 1-year contract amounting to 480,000 for
building maintenance and janitorial services. Number
100 Cash
2​ Purchased merchandise on credit from AA Company at an
invoice amount of 550,000, terms 3/10, n/30, FOB shipping point. Paid 110 Accounts Receivable
freight of 14,000.
115 Allowance for Uncollectible Accounts
3​ Sold merchandise on account to WW Company at a selling 120 Merchandise Inventory
price of 700,000, terms 2/10, n/30, FOB destination. Paid freight
125 Store Supplies
16,000.
130 Office Supplies
5​ Returned merchandise amounting to 20,000 acquired from
135 Prepaid Insurance
AA Company on December 2
140 Land
6​ Sold merchandise on cash basis at sales price of 180,000
150 Building
7​ Received returned merchandise at a sales price of 80,000 155 Accumulated Depreciation - building
from customer WW Company on December 3 sales
160 Store Equipment
8​ Purchased merchandise on credit from BB Company at an 165 Accumulated Depreciation - Store equipment
invoice amount of 450,000, terms 3/10, n/30, FOB Destination. Paid
170 Office Equipment
freight of 30,000
175 Accumulated Depreciation - office equipment
10 ​ Sold merchandise on account to RR Company at a selling
180 Furniture and Fixtures
price of 850,000, terms 2/10, n/30, FOB shipping point. Paid freight
40,000. Accumulated Depreciation - furniture and
185 fixtures
11​ Received full settlement of the amount due from WW
200 Accounts Payable
Company
210 12% Notes Payable
12​ Paid total amount due to AA Company
220 Utilities Payable
13​ Purchase merchandise on cash basis amounting to 140,000 230 Accrued Maintenance and Janitorial Expenses
240 Unearned Rent Income
15​ Paid salaries to sales staff 35,000 and office staff 20,000
​ Part of the building is being rented out as commercial space. 250 Interest Payable
Received 150,000 as advance 3 months rental starting December 15.
300 Sy, Capital
20 ​ Purchased merchandise on credit from CC Company at an 310 Sy, Withdrawals
invoice amount of 360,000, terms 3/10, n/30, FOB shipping point. Paid
400 Sales
freight of 9,000.
405 Sales Returns
410 Sales Discounts
420 Rent Income
500 Purchases
505 Purchase Returns
510 Purchase Discounts
515 Transportation In
520 Store Supplies Expense
525 Office Supplies Expense
530 Transportation Out
535 Sales Salaries
540 Office Salaries
545 Utilities Expense
550 Insurance Expense
555 Interest Expense
560 Maintenance and Janitorial Expenses
565 Uncollectible Accounts Expense
570 Depreciation Expense-Building
575 Depreciation Expense-Store Equipment
580 Depreciation Expense-Office Equipment
585 Depreciation Expense-Furniture and Fixtures

On December 31, 2023, inventories were taken:

​ Office Supplies 2,000
​ Store Supplies 5,000
​ Merchandise inventory 170,000

* Use Accounts Payable primarily for purchases of goods and

acquisition of long-term assets on open accounts.
* Common expenses such depreciation of building, depreciation of
furniture and fixtures, utilities expense, insurance expense and
maintenance and janitorial expenses are allocated equally to sales and
to general and administrative expenses.

For bookkeeping, the following accounting policies are established:

1.​ Periodic Inventory System is to be used for merchandise
inventory
2.​ Gross method of recording Purchases, Accounts Payable,
Sales and Accounts Receivable
3.​ Expense method is to be used for deferral of expense
1.​ Income method is to be used for deferral of income
2.​ 20 -year economic life is to be used for depreciation of
buildings.
3.​ 10-year economic life is to be used for depreciation of store
equipment, office equipment and furniture and fixtures.
4.​ Provision for uncollectible accounts is estimated at 8% of
accounts receivable
5.​ Accrued income and expenses are to be recognized on
reporting date
6.​ The accounting period is on the basis of the calendar year.
Diligent Company started its buy and sell business in 2022. On 570 Insurance Expense
December 31, 2024 the unadjusted trial balance was prepared for
year-end reporting. Depreciation Expense-
580 Building
Account Account Title Unadjusted Trial Balance Depreciation Expense -
585 Store Equipment
Number Debit Credit
590 Interest Expense
110 Cash ₱600,000.00
120 Accounts Receivable 500,000.00 The following adjustments were summarized on December 31, 2024
Allowance for Uncollectible
125 Accounts ₱10,000.00 It is estimated that 8% of the Accounts Receivable would not
a be collected
130 Notes Receivable 400,000.00
Notes Receivable bear annual interest rate of 10% payable
135 Interest Receivable
b every July 1
140 Merchandise Inventory 650,000.00
Store supplies on hand on December 31, 2024 amounted to
150 Store Supplies 100,000.00 c 25,000
160 Prepaid Insurance 200,000.00 d One-year insurance was paid on April 1
170 Land 2,000,000.00 Building is depreciated over its useful life of 20 years.
Depreciation is allocated 50% to sales and 50% to general
180 Building 6,000,000.00
e and administrative
Accumulated
Store equipment is depreciated over its useful life of 10
185 Depreciation-building 600,000.00
f years
190 Store Equipment 1,000,000.00
Mortgage Payable has a 10-year term from January 1, 2022
Accumulated and requires12% per annum interest payment every January
Depreciation-store g 1
195 equipment 200,000.00
One-fifth of unearned revenues was still unearned at the
210 Accounts Payable 1,400,000.00 h end of 2024
220 Mortgage Payable 5,000,000.00 Merchandise inventory on December 31 amounted to
i 510,000
230 Interest Payable
240 Unearned Rent Income 500,000.00 ●​ Repairs, insurance and utilities are allocated equally to sales
310 Dela Cruz, Capital 2,650,000.00 and to general and administrative

320 Dela Cruz, Withdrawals 1,000,000.00 Required:

14,000,000.0 1.​ Prepare and complete the worksheet for the year ended
410 Sales 0 December 31, 2024
2.​ Prepare the Statement of Profit or Loss for the year ended
411 Sales Discount 70,000.00 December 31, 2024
412 Sales Returns 250,000.00 3.​ Prepare the Statement of Financial Position as of December
31, 2024
420 Interest Income 20,000.00 4.​ Journalize the adjusting entries and closing entries
430 Rent Income 5.​ Prepare the post-closing trial balance
6.​ Journalize the reversing entries
500 Purchases 6,500,000.00
511 Purchase Discounts 30,000.00
512 Purchase Returns 150,000.00
513 Transportation In 200,000.00
510 Sales Salaries 2,500,000.00
515 Office Salaries 1,000,000.00
520 Repairs Expense 800,000.00
530 Utilities Expense 420,000.00
540 Transportation Out 370,000.00
Uncollectible Accounts
550 Expense
560 Store Supplies Expense