Juan Tamad, a tax consultant began his practice on December 1, 2020.
The transactions of the firm are as follows: (Use asset m
and liability method)
Dec. 1 Juan invested P250,000 in the firm. Dec 1 Cash
Dec 2 Paid rent for 1 year to Recoletos Realty,
P24,000. Dec 2 Prepaid Rent
2000
Dec 2 Purchased supplies on account, P9,200. Dec 2 Supplies
Dec 3 Acquired P75,000 of office equipment
with a salvage value of P5,000 and a useful life
of 3yrs, paying P37,000 down and the balance
on account. Dec 3 Office Equipment
70000
23333.3333333333
1944.44444444444
Dec 8 Received P30,000 from a client as an
advance payment for services to be rendered in
the future. Dec 8 Cash
Dec 14 Paid assistant’s salaries for two weeks,
P6,000. Dec 14 Salaries Expense
Dec 20 Performed consulting services for cash,
P20,000. Dec 20 Cash
Dec 28 Paid assistant’s salaries for the last two
weeks, P6,000. Dec 28 Salaries Expense
Dec 30 Billed clients for December consulting
services, P48,000. Dec 30 Accounts Receivable
Dec 31 Tamad withdrew P12,000 from the
business. Dec 31 Tamad, Withdrawal
1. Use the following ledger accounts: Cash, Accounts Receivable, Prepaid Rent, Supplies, Office equipment,
Accumulated depreciation-Equipment, Accounts Payable, Unearned Revenue, Salaries Payable, Tamad, Capital,
Tamad,
2. Withdrawals,
Journalize Consulting
the transactions revenues,
and post salaries expense, supplies expense, rent expense, depreciation expense.
it to the
ledger.
3. Prepare an unadjusted trial balance.
4. Prepare adjusting entries:
a. Supplies on hand on Dec 31 is 30% of the
total amount. a.
b. Salaries of P1,800 have accrued at month-
end. b.
c. Depreciate the office equipment. c.
d. Adjust the transaction on December 2. d.
e. Total earned revenues on December 31
amounted to P20,000. e.
5. Prepare an adjusted trial balance.
er 1, 2020. The transactions of the firm are as follows: (Use asset method
Cash
250,000 250,000 24,000
Tamad, Capital 250,000 30,000 37,000
To record owner's initial investment 20,000 6,000
6,000
Prepaid Rent 24,000 12,000
Cash 24,000
To record advance payment of rent 215,000
Accounts Payable
9,200 9,200
Accounts Payable 9,200 38,000
To record purchase of supplies on account
Office Equipment 75,000
Cash 37,000
Accounts Payable 38,000 47,200
To record acquisition of office equipment
by paying cash and the balance on account Salaries Expense
6,000
30,000 6,000
Unearned Revenue 30,000 1,800
To record advance payment for services
Salaries Expense 6,000
Cash 6,000 13,800
To record payment of salaries
Juan Tamad
20,000 Adjusted Trial Balance
Consulting Revenues 20,000 December 31, 2020
To recorded service rendered for cash
Cash
Salaries Expense 6,000 Accounts Receivable
Cash 6,000 Prepaid Rent
To record payment of salaries Supplies
Office Equipment
Accounts Receivable 48,000 Accumulated Dep'n - Off. Eqpt
Consulting Revenues 48,000 Accounts Payable
To record service rendered on account Unearned Revenues
Salaries Payable
Tamad, Withdrawal 12,000 Tamad, Capital
Cash 12,000 Tamad, Withdrawal
To record owner's withdrawal of cash Consulting Revenes
Receivable, Prepaid Rent, Supplies, Office equipment, Salaries Expense
e, Unearned Revenue, Salaries Payable, Tamad, Capital, Supplies Expense
se, supplies expense, rent expense, depreciation expense.
Rent Expense
Depreciation Expense
Total
Supplies Expense 6,440
Supplies 6,440
To record adjustment of supplies
Salaries Expense 1,800
Salaries Payable 1,800
To record accrual of salaries
Depreciation Expense 1,944.44
Accumulated Dep'n - Office Eqpt 1,944.44
To record depreciation of Office Equipment
Rent Expense 2,000
Prepaid Rent 2,000
To record adjustment of rent
Unearned Revenues 20,000
Consulting Revenues 20,000
To record adjustment for service rendered
Accounts Receivable Prepaid Rent Supplies Office Equipment Accumulated Depreciation - OE
48,000 24,000 2,000 9,200 6,440 75,000
48,000 22,000 2,760 75,000
Unearned Revenues Salaries Payable Tamad, Capital Tamad, Withdrawal Consulting Revenues
20,000 30,000 1,800 250,000 12,000
10,000 1,800 250,000 12,000
Supplies Expense Rent Expense Depreciation Expense
6,440 2,000 1,944
6,440 2,000 1,944
Juan Tamad
Adjusted Trial Balance
December 31, 2020
Debit Credit
215,000
Receivable 48,000
22,000
2,760
75,000
ated Dep'n - Off. Eqpt 1,944
47,200
d Revenues 10,000
1,800
250,000
12,000
88,000
13,800
6,440
2,000
tion Expense 1,944
P 398,944 398,944
mulated Depreciation - OE
1,944
1,944
Consulting Revenues
20,000
48,000
20,000
88,000
