JOURNALIZING
EXERCISES
EXERCISE 4.3
EXERCISE 4.3
Aldrin Garganta opened an accounting and auditing firm. He is the owner of the
proprietorship which he named AG Consultancy. During the first month of
operations, January 2015, Garganta engaged in the following transactions:
a. Garganta invested P350,000 of personal funds to start the business.
Cash in Bank P350,000
Aldrin Garganta, Capital P350,000
*to record investment by owner*
EXERCISE 4.3
b. Rendered professional service for cash, P10,000.
Cash in Bank P10,000
Professional Fees Income P10,000
*to record service rendered*
EXERCISE 4.3
c. Bought equipment on account, P40,000.
Office Equipment P40,000
Accounts Payable P40,000
*to record the purchase of equipment*
EXERCISE 4.3
d. Paid taxes and licenses to the government, P3,000
Taxes and Licenses P3,000
Cash in Bank P3,000
*to record payment of taxes and licenses*
EXERCISE 4.3
e. Withdrew P5,000 cash for personal use.
Aldrin Garganta, Drawing P5,000
Cash in Bank P5,000
*to record withdrawal of owner*
EXERCISE 4.4
EXERCISE 4.4
Nelson Entienza formed the ADS Sign Company on April 1, 2015. He deposited
P350,000 at the UCPB under the name of the new business entity. During the
month of April 2015, the following transaction occurred:
Apr 1 Cash P350,000
Entienza, Capital P350,000
*to record investment of owner*
EXERCISE 4.4
Apr 2 - Acquired a service vehicle in the amount of P250,000 on account.
Apr 2 Service Vehicle P250,000
Accounts Payable P250,000
*to record the purchase of videokes*
EXERCISE 4.4
Apr 3 - Acquired supplies for cash, P32,000.
Apr 3 Supplies P32,000
Cash P32,000
*to record the purchase of supplies*
EXERCISE 4.4
Apr 8 - Received P90,000 cash for signs painted.
Apr 8 Cash P90,000
Service Revenue P90,000
*to record service rendered*
EXERCISE 4.4
Apr 11 - Paid the month’s rent, P25,000.
Apr 11 Rent Expense P25,000
Cash P25,000
*to record payment of rent*
EXERCISE 4.4
Apr 12 - Painted signs for SOGO Company on account, P200,000.
Apr 12 Accounts Receivable P200,000
Service Revenue P200,000
*to record service rendered*
EXERCISE 4.4
Apr 13 - Paid P75,000 on account from April 2.
Apr 13 Accounts Payable P75,000
Cash P75,000
*to record payment of liability*
EXERCISE 4.4
Apr 15 - Withdrew P30,000 for personal use.
Apr 15 Entenzia, Withdrawal P30,000
Cash P30,000
*to record withdrawal of owner*
EXERCISE 4.4
Apr 19 - Collected P75,000 from SOGO Company.
Apr 19 Cash P75,000
Accounts Receivable P75,000
*to record collection from SOGO company*
EXERCISE 4.4
Apr 24 - Paid salaries of P85,000 for the month.
Apr 24 Salaries Expense P85,000
Cash P85,000
*to record salaries*
EXERCISE 4.4
Apr 28 - Paid PLDT P3,000 for communications services for the month.
Apr 28 Utilities Expense P3,000
Cash P3,000
*to record communication expense*
EXERCISE 4.4
Apr 30 - Paid a bill from Panaflex for P20,000 for advertising for the month.
Apr 30 Advertising Expense P20,000
Cash P20,000
*to record advertising expense*
EXERCISE 4.5
EXERCISE 4.5
Paco Pulgar invests in a Shoe and Bag Repair Shop. The following took place in
May 2025.
May 1 - The owner invested P70,000 which he deposited in the bank.
May 1 Cash in Bank P70,000
P. Pulgar, Equity P70,000
*to record investment of owner*
EXERCISE 4.5
May 2 - Borrowed money from Metro Bank, P90,000 by signing a note with an
interest deducted in advance of P10,000 for 1 year in a net proceeds of P80,000.
May 2 Cash in Bank P80,000
Prepaid Interest P10,000
Notes Payable P90,000
*to record borrowing from bank*
EXERCISE 4.5
May 5 - Bought various shop supplies on account, P15,000.
May 5 Shop Supplies Inventory P15,000
Accounts Payable P15,000
*to record purchase of supplies*
EXERCISE 4.5
May 7 - Rendered repair services to various customers on account, P5,500.
May 7 Accounts Receivable P5,500
Service Revenue P5,500
*to record service rendered*
EXERCISE 4.5
May 10 - Partially paid the May 5 account, P15,000.
May 10 Accounts Payable P15,000
Cash in Bank P15,000
*to record payment of liability*
EXERCISE 4.5
May 15 – Paid space rental for the month, P3,000.
May 15 Rental Expense P3,000
Cash in Bank P3,000
*to record payment of liability*
EXERCISE 4.5
May 18 - Rendered repair services for cash, P25,000.
May 18 Cash in Bank P25,000
Service Revenue P25,000
*to record service rendered*
EXERCISE 4.5
May 23 - The owner withdrew cash of P10,000 for his personal use.
May 23 P. Pulgar, Drawing P10,000
Cash in Bank P10,000
*to record withdrawal of owner*
EXERCISE 4.5
May 25 - Paid taxes and licenses, P1,500.
May 25 Taxes and Licenses P1,500
Cash in Bank P1,500
*to record payment of taxes and licenses*
EXERCISE 4.5
May 27 - Paid salaries for the month, P21,000.
May 27 Salaries Expense P21,000
Cash in Bank P21,000
*to record payment salaries*
EXERCISE 4.5
May 29 - Paid light and water bills, P2,300.
May 27 Utilities Expense P2,300
Cash in Bank P2,300
*to record payment of water and light bills*
EXERCISE 4.5
May 31- Additional cash invested by the owner, P50,000.
May 31 Cash in Bank P50,000
P. Pulgar, Equity P50,000
*to record additional investment of owner*
EXERCISE 4.6
Journalizing Business Transactions
◦ Lala Reyes decided to put up a laundry shop business which she named as Lalabandera.
During the first month of operation, Lalabandera engaged in the following transactions.
◦ Chart of Accounts: Cash, Notes Receivable, Accounts Receivable, Office Supplies, Prepaid
Rent, Equipment, Accounts Payable, Unearned Service Revenue, Loans Payable, Reyes,
Capital, Reyes, Withdrawal, Service Revenue, Rent Expense, Salaries Expense, Utilities
Expense, Permit and Licenses.
Journalizing Business Transactions
◦ Sept 1 – Lala invested P150,000 to the business.
Sept 1 Cash P150,000
Reyes, Capital P150,000
*to record investment by owner*
Journalizing Business Transactions
◦ Sept 3 – Loaned P75,000 from Banco de Oro (BDO).
Sept 3 Cash P75,000
Loans Payable P75,000
*to record bank borrowing*
Journalizing Business Transactions
◦ Sept 3 – Paid permit and licenses to government agencies amounting
to P2,800.
Sept 3 Permit and Licenses P2,800
Cash P2,800
*to record payment for permits and licenses*
Journalizing Business Transactions
◦ Sept 5 – Purchase equipment worth P45,000 and office supplies worth P5,000. Out of
the total purchase price, Lalabandera only paid 25%. The balance will be paid at a
later date.
Sept 5 Equipment P45,000
Office Supplies 5,000
Cash P12,500
Accounts Payable 37,500
*to record purchase of equipment and office supplies*
Journalizing Business Transactions
◦ Sept 7 – Paid a six-month rent in advance for the space used by the
business, P42,000.
Sept 7 Prepaid Rent P42,000
Cash P42,000
*to record payment of rent in advance*
Journalizing Business Transactions
◦ Sept 8 – Rendered service to a customer, P8,700
Sept 8 Cash P8,700
Service Revenue P8,700
*to record service rendered*
Journalizing Business Transactions
◦ Sept 10 – A big-time client paid Lalabandera P27,000. However, Lalabandera will
provide service to the client on the first week next month.
Sept 10 Cash P27,000
Unearned Service Revenue P27,000
*to record advance payment received from customer*
Journalizing Business Transactions
◦ Sept 12 – Lala withdrew P2,000 to be use for personal reasons.
Sept 12 Reyes, Withdrawal P2,000
Cash P2,000
*to record withdrawal of owner*
Journalizing Business Transactions
◦ Sept 14 – Rendered service to a customer on credit, P6,200.
Sept 14 Accounts Receivable P6,200
Service Revenue P6,200
*to record service rendered on credit*
Journalizing Business Transactions
◦ Sept 15 – Paid the remaining balance on the amount owed in Sept 5.
Sept 15 Accounts Payable P37,500
Cash P37,500
*to record payment of previously owed amount*
Journalizing Business Transactions
◦ Sept 18 – Lala invested P100,000 additional capital to the business.
Sept 18 Cash P100,000
Reyes, Capital P100,000
*to record additional investment by owner*
Journalizing Business Transactions
◦ Sept 20 – Rendered service to a customer, P10,500. Half of the amount was already
paid by the customer and issued a promissory note for the remaining half.
Sept 20 Cash P5,250
Notes Receivable 5,250
Service Revenue P10,500
*to record service rendered*
Journalizing Business Transactions
◦ Sept 23 – Received payment from customer on Sept 14.
Sept 23 Cash P6,200
Accounts Receivable P6,200
*to record collection from customer*
Journalizing Business Transactions
◦ Sept 27 – Paid water and electric bills for the month amounting to
P4,300.
Sept 27 Utilities Expense P4,300
Cash P4,300
*to record payment of water and electric bills*
Journalizing Business Transactions
◦ Sept 30 – Paid the salary of its employee, P10,000.
Sept 30 Salaries Expense P10,000
Cash P10,000
*to record payment of salaries of employee*