SELF-PACED LEARNING MODULE

SENIOR HIGH SCHOOL

MODULE 13
Subject:

FUNDAMENTALS OF ACCOUNTING BUSINESS and

MANAGEMENT 1 ( ABM11-FA1)

AISAT COLLEGE – DASMARIÑAS, INC.

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 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |2
ABM11-FA1 Units: 80hrs
and Management 1

INFORMATION SHEET Q2-13.1.1

“COMPLETING THE ACCOUNTING PROCESS”

Comprehensive Problem:

ABM Tax Consultant, began his practice on December 1, 2019 by naming his business as ABM Tax
Consulting Services. The balances on previous transaction are as follows: Cash of ₱50,000; Accounts
Receivable ₱140,000; Supplies ₱ 10,000; ABM, Capital ₱200,000. The transaction on January 1, 2020
are as follows:

Transactions:

January 1 ABM make an additional investment ₱150,000 in the firm.

2 Paid rent for January to Santuario Realty, ₱8,00
2 Purchase supplies on account, P 7,200 purchased.
3 Acquired ₱75,000 of office equipment, paying ₱37,000 down with the balance due in
30days.
8 Paid supplied purchase on account.
14 Paid assistant’s salaries for two weeks, ₱ 6,000
20 Performed consulting services for cash, ₱ 20,000
28 Paid assistant’s salaries for two weeks, ₱6,000
30 Billed clients for January consulting services, ₱ 48,000
31 ABM withdraw ₱12,000 from the business.

Required:
1. Prepare a Chart of account and General ledger using the following account: Cash (110); Accounts
Receivable(120);Fees Receivable(130);Supplies(140); Office Equipment (150); Accumulated
Depreciation(155);Accounts Payable(210); Salaries Payable(220); ABM Capital(310); ABM,
Withdrawal(320); Income and Expense Summary (330); Consulting Revenues(410); Salaries
Expense(510); Supplies Expense(520);Rent Expense(530); and Depreciation Expense(540)

2. Journalize the January transaction and post to the general ledger.

3. Prepare an unadjusted trial balance.

4. Prepare an adjusting entries using this information:

a. Supplies on hand at January 31 amounting to ₱ 4,700

b. Salaries of ₱1,800 have accrued at month-end.
c. Depreciation is ₱800 for January.

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |3
ABM11-FA1 Units: 80hrs
and Management 1

d. ABM has spent 20 hours on tax fraud case during January. When completed in February, his
work will be billed at ₱ 500 per hour. Note: The firm uses the account Fees Receivable to
reflect the amounts earned but not yet billed.

5. Post adjustment and prepare an adjusted trial balance.

6. Prepare an income statement, statement of changes in equity, statement of cash flow and
balance sheet.

7. Prepare and post- closing entries.

8. Prepare a post-closing trial balance.

9. Prepare Balance Sheet.

1. CHART OF ACCOUNT

ABM TAX CONSULTING SERVICES

Chart of Account

Account No. Account Title

110 Cash
120 Accounts Receivable
130 Fees Receivable
140 Supplies
150 Office Equipment
155 Accumulated Depreciation
210 Accounts Payable
220 Salaries Payable
310 ABM ,Capital
320 ABM, withdrawal
330 Income and Expense Summary
410 Consulting Revenues
510 Salaries Expense
520 Supplies Expense
530 Rent Expense
540 Depreciation Expense

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |4
ABM11-FA1 Units: 80hrs
and Management 1

JOURNAL ENTRIES
GJ Page 1

Date
2021 Particular PR DEBIT CREDIT
11
January 1 Cash 0 150,000  
31
    ABM, capital 0   150,000
    Additional investment.      
           
53
  2 Rent Expense 0 8,000  
11
    Cash 0   8,000
    Payment of rent      
           
14
  √ Supplies 0 7,200  
21
    Accounts Payable 0   7,200
    Purchase supplies on account      
           
15
  3 Office Equipment 0 75,000  
11
    Cash 0   37,000
21
    Accounts Payable 0   38,000
    Purchase of office equipment      
           
21
  8 Accounts Payable 0 7,200  
SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:
MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |5
ABM11-FA1 Units: 80hrs
and Management 1

11
    Cash 0   7,200
    Payment of supplies      
           
51
  14 Salaries Expense 0 6,000  
11
  Cash 0   6,000

11
  20 Cash 0 20,000  
41
    Consulting Revenue 0   20,000
           
51
  28 Salaries Expense 0 6,000  
11
    Cash 0   6,000
           
12
  30 Accounts Receivable 0 48,000  
    Consulting Revenue     48,000
           
32
  31 ABM, withdrawal 0 12,000  
    Cash     12,000
           

2. UNADJUSTED TRIAL BALANCE

ABM Tax Consulting Services
SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:
MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |6
ABM11-FA1 Units: 80hrs
and Management 1

Unadjusted Trial Balance

January 31, 2020

Account No. Account Title DEBIT CREDIT

110 Cash 143,800
120 Accounts Receivable 188,000
130 Fees Receivable 0
140 Supplies 17,200
150 Office Equipment 75,000
155 Accumulated Depreciation 0
210 Accounts Payable 38,000
220 Salaries Payable 0
310 ABM, Capital 350,000
320 ABM, Withdrawal 12,000
330 Income and Expense Summary 0
410 Consulting Revenues 68,000
510 Salaries Expense 12,000
520 Supplies Expense 0
530 Rent Expense 8,000
540 Depreciation Expense 0
TOTAL 456,000 456,000

3. ADJUSTING ENTRIES

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |7
ABM11-FA1 Units: 80hrs
and Management 1

INCOME STATEMENT
ABM Tax Consulting Services
Income Statement
For the Month ended, January 31, 2021

Revenue
Consulting Revenue ₱ 78,000
Less: Operating Expenses
Salaries Expense ₱ 12,000
Supplies Expense 12,500
Rent Expense 8,000
Depreciation Expense 800
Total Operating Expenses 33,300
Net Income/(Loss) ₱ 44,700

STATEMENT OF CHANGES IN EQUITY

or STATEMENT OF CAPITAL

ABM Tax Consulting Services

Statement of Changes in Equity
For the Month ended, January 31,2021

ABM, Capital, beg. ₱ 200,000

Add: Additional Investment ₱ 150,000
Net Income 44,700
Total Increase in Capital ₱ 194,700
Less: ABM, Withdrawal 12,000
Total Increase/(Decrease) in Capital 182,000
ABM, Capital, end ₱ 382,700

WORKSHEET

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |8
ABM11-FA1 Units: 80hrs
and Management 1

Reference Book: Simplified Accounting for Sole Proprietorship

By: Nelson S. Abeleda

SELF-CHECK QUESTION Q2-13.1.1.

Directions: Answer the question based on how you understand the topic discussed.

A. Place check (√) under the name of financial statement in which you will find each of the
following items: I-E=NI A=L+OE

Accounts Income Statement Statement of financial Position

1. Cash on hand ___________________ _________________________
2. Accounts Payable ___________________ _________________________
3. Service fees earned ___________________ _________________________
4. Accounts Receivable ___________________ _________________________
5. Prepaid Insurance ___________________ _________________________
6. Rent Expense ___________________ _________________________
7. Salary Expense ___________________ _________________________
8. Notes Receivable ___________________ _________________________
9. Office supplies on hand ___________________ _________________________
10. Interest Income ___________________ _________________________
SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:
MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business Page |9
ABM11-FA1 Units: 80hrs
and Management 1

11. Land ___________________ _________________________

12. Building ___________________ _________________________
13. Accumulated Depreciation-
Building ___________________ _________________________
14. Depreciation-building ___________________ _________________________
15. Bad Debts ___________________ _________________________
16. Office supplies used ___________________ _________________________
17. Furniture and fixtures ___________________ _________________________
18. Accumulated depreciation-
Furniture and fixture ___________________ _________________________
19. Cash in bank ___________________ _________________________
20. Advertising Expense ___________________ _________________________
21. Allowance for Bad Debts __________________ _________________________
22. B. Valdez, Capital ___________________ _________________________
23. [Link], drawing ___________________ _________________________
24. Unearned service fees ___________________ _________________________
25. Accrued Salaries ___________________ _________________________

STUDENT NAME: __________________________________ SECTION: __________________

PERFORMANCE TASK Q2-13.13-.1

PERFORMANCE TASK TITLE: STATEMENT OF FINANCIAL POSITION

PERFORMANCE OBJECTIVE: Enable the learners to process business transactions with the completion of
accounting cycle.
TOOLS AND MATERIALS: pen and papers
EQUIPMENT : none
ESTIMATED COST : none
PROCESS/PROCEDURES:

Prepare the Statement of Financial Position of ABM Tax Consulting Services using
a. Account form
b. Report form

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business P a g e | 10
ABM11-FA1 Units: 80hrs
and Management 1

( Refer to worksheet of ABM Tax Consulting Services) – page 9

Deadline of Submission : January 15, 2021

Output of Submission:

A) Flexible Distance Learning -Screenshot of hand written answer in bond paper. -Uploaded in EDMODO
(Turn-in Assignment).

B) Modular Distance Learning (Downloaded) -Screenshot of hand written answer in bond paper. -
Uploaded in EDMODO (Turn-in Assignment) or can be submitted at AISAT Campus

C) Modular Distance Learning (Printed) -Hand written answer In bond paper. -Submitted at AISAT
Campus
Note for Modular Distance Learning – Printed: Write your Name, Course & Section, Subject,
Module number and Subject Teacher in a bond paper

PRECAUTIONS : •Avoid copy and paste of other works

ASSESSMENT METHOD : PERFORMANCE TASK CRITERIA CHECKLIST

STUDENT NAME: _____________________________________ SECTION: ___________

PERFORMANCE TASK CRITERIA CHECKLIST Q2-13-13.1

Did I … CRITERIA SCORING
1 2 3 4 5
1. Logic and key points. All corresponding ideas about the topic
are logically presented.
2. Content. Content of the essay flows and is passionate.
3. Cleanliness. Very clean and well presented.
4. Spelling and Grammar. No error in spelling and grammar.
5. Word usage. Word choice and usage are professionals.

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director
 Unit Accounting for Service Business
Module COMPLETING THE ACCOUNTING PROCESS
Fundamentals of Accounting, Business P a g e | 11
ABM11-FA1 Units: 80hrs
and Management 1

GRADES

Teacher’s Remarks □ Quiz □ Recitation □ Project

5 - Excellently Performed
4 - Very Satisfactory Performed
3 - Satisfactory Performed
2 - Fairly Performed
1 - Poorly Performed

SUBJECT TEACHER: APPROVED FOR IMPLEMENTATION:

MODULE 13th
QUARTER 2
13 Meeting JULIETA S. ECHEGOYEN MR. WILBERT A. MAÑUSCA
Subject Teacher School Director