PROBLEM 16

JOURNALIZING, POSTING, AND PREPARING A TRIAL BALANCE

Crispina Cayna Guardians completed the following transactions during October 2022:
Oct. 1 Cayna transferred cash form a personal account to an account to be used for the business, P243,000.
3 Cayna invested in the business personal weapons having a fair market value of P34,000.
4 Bought communication equipment on account from Pesa Electronics, P13,740.
5 Paid rent for the month, P7,650.
6 Bought a used service vehicle car for P93,000, paying P45,000 down, with the balance due in thirty days.
9 Received invoice and paid insurance premium to Cacawa Fidelity Company for bonding employees, P7,710.
12 Performed security services for Loreta Galleries. Billed Loreta for services rendered, P8,250.
16 Received bill form Marcos Printers for office stationery, P1,757.
17 Billed Pascua Construction for services rendered, P14,790.
22 Paid Regal Shell Service for gasoline for service vehicle, P720.
24 Performed security services at a fashion jewelry fair. Billed organizers for service rendered, P17,500.
27 Paid Pesa Electronics P4,500 to apply on an account.
29 Received P8,250 from Loreta Galleries in full payment of an account.
30 Billed Merchant Bank for services rendered, P21,600.
31 Received and paid telephone bill, P1030.
31 Paid salaries to employees, P31,500.
31 Cayna withdrew cash for personal use, P18,000.

Required:
1. Prepare the journal entries for the October transactions.
2. Set up the following ledger accounts and post all the journal entries:

CHART OF ACCOUNTS
Account No. Account Title
110 - Cash
120 - Accounts Receivable
130 - Prepaid Insurance;
140 - Arms and Communication Equipment
150 - Service Vehicle
210 - Accounts Payable
310 - Cayna, Capital
315 - Cayna, Withdrawals
410 - Service Revenues
510 - Salaries Expense
520 - Rent Expense
530 - Supplies Expense
540 - Gasoline Expense
550 - Utilities Expense.

3. Prepare a trial balance.

 CRISPINA CAYNA GUARDIANS
JOURNALIZING TRANSACTION
FOR THE MONTH ENDED OF OCTOBER, 2022
 DATE ACCOUNTS AND EXPLANATIONS P.R. DEBIT CREDIT
Oct. 1 Cash 110 P243,000
Canya, Capital 310 243,000
To record initial investiments

3 Arms and Communication Equipment 140 34,000

Canya, Capital 310 34,000
To record investments of business personal weapons

4 Arms and Communication Equipment 140 13,740

Accounts Payable 210 13,740
To record the purchase on account of communication
equipment from Pesa Electronics

5 Rent Expense 520 7,650

Cash 110 7,650
To record payment of rent for the month

6 Service Vehicle 150 93,000

Cash 110 45,000
Accounts Payable 210 48,000
To record the purchase of service vehicle

9 Prepaid Insurance 130 7,710

Cash 110 7,710
To record payment of insurance premium invoice from
Cacawa Fidelity Company

12 Accounts Receivable 120 8,250

Service Revenues 410 8,250
To record the service rendered to Loreta Galleries

16 Supplies Expense 530 1,757

Accounts Payable 210 1,757
To record the bill from Marcos Printers for office
stationaries

17 Accounts Receivable 120 14,790

Service Revenues 410 14,790
To record the service rendered to Pascua Construction

22 Gasoline Expense 540 720

Cash 110 720
To record the payment of gasoline to Rega Shell
Service

24 Accounts Receivable 120 17,500

Service RevenuesS 410 17,500
To record the service rendered at a fashion Jewelry fair

27 Accounts Payable 210 4,500

Cash 110 4,500
To record the partial payment to Pesa Electronics
 29 Cash 110 8,250
Accounts Receivable 120 8,250
To record the full payment of Loreta Galleries

30 Accounts Receivable 120 21,600

Service Revenues 410 21,600
To record the service rendered to Merchant Bank

31 Utilities Expense 550 1,030

Cash 110 1,030
To record the payment of telephone bills

31 Salaries Expense 510 31,500

Cash 110 31,500
To record the payment of salaries to employees

31 Canya, Withdrawals 315 18,000

Cash 110 18,000
To record Canya withdrawals from the business

POSTING
CRISPINA CAYNA GUARDIANS
GENERAL LEDGER ENTRY
FOR THE MONTH ENDED OF OCTOBER, 2022
DATE EXPLANATION PR DEBIT CREDIT BALANCE
110 - CASH

Oct 1 Initial investment J-1 243,000 243,000

5 Rent payment J-1 7,650 235,350
6 Purchase of service vehicle J-1 45,000 190,350
9 Insurance payment J-1 7,710 182,640
22 Gasoline payment J-1 720 181,920
27 Partial payment to Pesa J-1 4,500 177,420
Electronics
29 Full payment of Loreta Galleries J-1 8,250 185,670
31 Telephone bills payment J-1 1,030 184,640
31 Salaries payment J-1 31,500 153,140
31 Withdrawals J-1 18,000 135,140
120 ACCOUNTS RECEIVABLE
Oct 12 Loreta Galleries J-1 8,250 8,250
17 Pascua Construction J-1 14,790 24,030
24 Fashion Jewelry Fair J-1 17,500 40,540
29 Payment of Loreta Galleries J-1 8,250 32,290
30 Merchant Bank J-1 21,600 53,890
130 - PREPAID INSURANCE
Oct. 9 Payment to Cacawa Fidelity J-1 7,710 7,710
Company
140 - ARMS AND COMMUNICATION EQUIPMENT
Oct. 3 Personal weapon investments J-1 34,000 34,000
4 Purchase from Pesa Electronics J-1 13,740 47,740
150 - SERVICE VEHICLE
Oct. 6 Purchase J-1 93,000 93,000
210 - ACCOUNTS PAYABLE
Oct. 4 Equipment purchase from Peso J-1 13,740 13,740
 Electronics
Oct. 6 Purchase of service vehicle J-1 48,000 61,740
16 Bill from Marcos Printers J-1 1,757 63,497
27 Partial payment to Peso J-1 4,500 58,997
Electronics
310 - CAYNA, CAPITAL
Oct. 1 Initial investments J-1 243,000 243,000
3 Weapon investments J-1 34,000 277,000
315 - CAYNA, WITHDRAWALS
Oct. 31 Canya withdrawals J-1 18,000 18,000

410 - SERVICE REVENUES

Oct. 12 Loreta Galleries J-1 8,250 8,250
17 Pascua Constructions J-1 14,790 23,030
24 Fashion Jewelry Fair J-1 17,500 40,540
30 Merchant Bank J-1 21,600 62,140
510 - SALARIES EXPENSE
Oct. 31 Payment to employees J-1 31,500 31,500
520 - RENT EXPENSE
Oct. 5 Rent payment for the month J-1 7,650 7,650

530 - SUPPLIES EXPENSE

Oct. 16 Bill from Marco Printers J-1 1,757 1,757
540 - GASOLINE EXPENSE
Oct. 22 Payment to Rega Shell Service J-1 720 720
550 - UTILITIES EXPENSE
Oct. 31 Payment of telephone bills J-1 1,030 1,030

CRISPINA CAYNA GUARDIANS

TRIAL BALANCE OF BALANCES
FOR THE MONTH ENDED OF OCTOBER 31, 2022
Acct ACCOUNT TITLES DEBIT CREDIT
No
110 Cash P135,140
120 Accounts Receivable 53,890
130 Prepaid Insurance 7,710
140 Arms and Communication Equipment 47,740
150 Service Vehicle 93,000
210 Accounts Payable 58,997
310 Canya, Capital 277,000
315 Canya, Withdrawals 18,000
410 Service Revenues 62,140
510 Salaries Expense 31,500
520 Rent Expense 7,650
530 Supplies Expense 1,757
540 Gasoline Expense 720
550 Utilities Expense 1,030
TOTAL: 398,137 398,137