Chapter 2, Problem 13

Assets
Accounts Prepaid Truck Equipment =
Cash Receivable Insurance
a 165,000 =
b (25,000) 194,900 =
c 28,500 =
d (6,200) =
e 24,200 =
f (1,800) =
g (4,000) 4,000 =
h (6,040) =
i =
j 28,240 =
k 25,200 =
l (11,200) =
m (15,500) =
144,660 28,240 4,000 194,900 28,500 =
Liabilities
Accounts Labausa,
Revenues Expenses
Payable Capital
165,000
169,900
28,500
6,200 Rent Expense
24,200 Catering Income
1,800 Supplies Expense

6,040 Utilities Expense

6,080 6,080 Gas and Oil Expense
28,240 Catering Income
25,200 Catering Income
11,200 Salaries Expense
(15,500) Labausa, Withdrawal
204,480 149,500 77,640 31,320
 Cash AccountsReceivable
a. 280,000 b. 1,000 f. 12,940
i. 17, 650 c. 12,300
n. 5,500 e. 1,080 7,440
g. 1,850
h. 3,500
j. 1,000
k. 8,400
l. 3,500 Accounts Payable
m. 8,500 j. 1,000
303,150 41,130
DR. Bal. 262,020 1,000

Professional Fees
f. 12,940
i. 17,650 Salaries Expense
Cr. Bal. 30,590 l. 3,500
3,500
AccountsReceivable Office Equipment Office Furniture
n. 5,500 b. 4,950 c. 12,300
d. 2,750
7,700 12,300

Accounts Payable Dalangin, Capital Dalangin, Withdrawa

b. 3,950 a. 280,000 m. 8,500
d. 2,750
6,700 280,000 8,500
5,700

Salaries Expense Rent Expense Utilities Expense

k. 8,400 e. 1,080
8,400 g. 1,850

2,930

Miscellaneous Expense
h. 3,500
3,500
 Office Furniture Trial Balance
Dalangin Clinic
June 30, 2022

Debit
Cash 262,020
Accounts Receivable 7,440
Office Equipment 7,700
alangin, Withdrawal Office Furniture 12,300
Accounts Payable
Dalangin, Capital
Dalangin, Withdrawals 8,500
Professional Fees
Rent Expense 8,400
Salaries Expense 3,500
Utilities Expense 2,930
Miscellaneous Expense 3,500
Utilities Expense Total 316,290
 nce
Clinic
2022

Credit

5,700
280,000

30,590

316,290
 Cash
1 67,000 17,500 2
8 18,350 7,150 3
20 21,000 6,000 7
8,050 9
11,600 11
5,700 16
4,300 19
14,500 21
14,100 22
3,850 24
1,250 25
106,350 94,000
Dr. Balance 12,350

Omotoy, Capital
67,000 1

67,000
 AccountsReceivable
15 42,200 21,000 20 6
27 14,150 9
56,350 21,000
35,350

Service Vehicle
2 81,000 24

81,000

Omotoy, Withdrawls
21 14,500

14,500

Telephone Expense
25 1,250
3
1,250
Plumbing Supplies Prepaid Advertising
15,700 7 6,000
8,050
23,750 6,000

Notes Payable Accounts Payable

3,850 63,500 2 16 5,700

59,650

Plumbing Revenues Salaries Expense

18,350 8 11 11,600
42,200 15 22 14,100
14,150 27
74,700 25,700

Rent Expense Miscellaneous Expense

7,150 19 4,300
7,150 4,300
repaid Advertising Trial Balance
Alabang Plumbing
April 30, 2022

Debit
Cash 12,350
Accounts Receivable 35,350
Plumbing Supplies 23,750
Accounts Payable Prepaid Advertising 6,000
15,700 6 Service Vehicle 81,000
Notes Payable
10,000 Accounts Payable
Omotoy, Capital
Omotoy, Withdrawals 14,500
Plumbing revenues
Salaries Expense 25,700
Rent Expense 7,150
Salaries Expense Telephone Expense 1,250
Miscellaneous Expense 4,300
Total 211,350

scellaneous Expense
ing
2

Credit

59,650
10,000
67,000

74,700

211,350
 Problem 10
May 3 Advertising Expense 18,500
Accounts Payable

6 Supplies Expense 8,800

Accounts Payable

15 Office Equipment 52,500

Boron, Capital

17 Cash 61,800
Accounts Receivable

22 Repair Expense 8,500

Accounts Payable

26 Accounts Payable 8,800

Cash

29 Salaries Expense 21,000

Cash

30 Cash 39,000
Delivery Revenues

31 Gas and Oil Expense 12,500

Cash

Accounts Receivable 45,000

Delivery Revenues

Boron, Withdrawal 14,500

Cash
 Problem 11
October 1 Cash
18,500 Java, Capital

2 Prepaid Insurance
8,800 Cash

3 Advertising Expense
52,500 Accounts Payable

4 Rent Expense
61,800 Cash

7 Repair Expense
8,500 Accounts Payable

10 Cash
8,800 School Fees

11 Telecommunications Expense
21,000 Cash

15 Furniture
39,000 Cash
Accounts Payable

12,500 18 Accounts Payable

Cash

45,000 21 Java, Withdrawals

Cash

14,500 24 Gas and Oil Expense

Accounts Payable
25 Cash
School Fees

27 Salaries Expense
Cash

28 Equipment
Accounts Payable

29 Cash
Accounts Receivable

30 Utilities Expense
Cash

31 Miscellaneuous Expense
Cash

Equipment
Java, Capital
Problem 11
50,000
50,000

14,500
14,500

3,200
3,200

8,900
8,900

2,880
2,880

62,500
62,500

2,300
2,300

18,800
8,800
10,000

3,200
3,200

8,000
8,000

1,800
1,800
61,400
61,400

12,000
12,000

7,500
7,500

7,000
7,000

3,600
3,600

620
620

12,300
12,300
 Problem 12
May 2 Cash

Leon, Capital

3 Office Equipment
Accounts Payable

4 Office Supplies
Accounts Payable

6 Accounts Receivable
Accounting Revenues

7 Accounting Library
Cash

8 Accounts Payable
Cash

10 Office Condominium
Cash
Notes Payable

12 Salaries Expense
Cash

13 Cash
Accounts Receivable

16 Telephone Expense
Cash
19 Cash

Accounting Revenues

22 Office Supplies
Accounts Payable

23 Leon, Withdrawals

Cash

25 Salaries Expense
Cash

26 Accounts Receivable
Accounting Revenues

27 Profesional Dues Expense

Cash

28 Rent Expense

Cash
 Post Ref.
2
110 92,500 Account Name: Cash

310 92,500 Date

May 2
150 36,800 7
220 36,800 8
10
130 17,100 12
220 17,100 13
16
120 29,200 19
410 29,200 23
25
160 19,500 27
110 19,500 28

220 4,100
110 4,100
Account Name: Accounts Receivable

140 265,000 Date

110 38,000 May 6
210 227,000 13
26
510 14,200
110 14,200
Account Name: Accounts Payable

110 9,750 Date

120 9,750 May 3
4
530 650 8
110 650 22
110 14,600 Account Name: Accounting Revenues

410 14,600 Date

May 6
130 4,650 19
220 4,650 26

320 8,150 Account Name: Leon, Capitital

110 8,150 Date

May 2
510 10,300
110 10,300 Account Name: Leon, Withdrawals

Date
120 31,600 May 23
410 31,600
Account Name: Office Equipment

540 5,500 Date

110 5,500 May 3

520 3,250 Account Name: Office Supplies

110 3,250 Date

May 4
22

Account Name: Office Condominium

Date
May 10

Account Name: Notes Payable

Date
May 10

Account Name: Accounting Library

Date
May 7

Account Name: Salaries Expense

Date
May 12
25

Account Name: Telephone Expense

Date
May 16

Account Name: Rent Expense

Date
May 28

Account Name: Professional dues Expense

Date
May 27
unt Name: Cash Balance
Post
Item Ref. Debit Credit Debit Credit
Investment 1 92,500 92,500
Tax books 1 19,500 73,000
payment of AP 1 4,100 68,900
DP of office Condo 1 38,000 30,900
paid salaries 1 14,200 16,700
collections 1 9,750 26,450
paid telephone 1 650 25,800
redered service 1 14,600 40,400
withdrawals 1 8,150 32,250
payment salaries 1 10,300 21,950
Professional dues 1 5,500 16,450
rent expense 1 3,250 13,200

unt Name: Accounts Receivable Balance

Post
Item Ref. Debit Credit Debit Credit
rendered services 1 29,200 29,200
collection 1 9,750 19,450
rendered services 1 31,600 51,050

unt Name: Accounts Payable Balance

Post
Item Ref. Debit Credit Debit Credit
purchase OE 1 36,800 36,800
purchase OS 1 17,100 53,900
payment 1 4,100 49,800
purchase OS 1 4,650 54,450
unt Name: Accounting Revenues Balance
Post
Item Ref. Debit Credit Debit Credit
on Account 1 29,200 29,200
on cash 1 14,600 43,800
on Account 1 31,600 75,400

unt Name: Leon, Capitital Balance

Post
Item Ref. Debit Credit Debit Credit
Investment 1 92,500 92,500

unt Name: Leon, Withdrawals Balance

Post
Item Ref. Debit Credit Debit Credit
cash withdrawals 1 8,150 8,150

unt Name: Office Equipment Balance

Post
Item Ref. Debit Credit Debit Credit
purchase on Acct. 1 36,800 36,800

unt Name: Office Supplies Balance

Post
Item Ref. Debit Credit Debit Credit
on account 1 17,100 17,100
on account 1 4,650 21,750

unt Name: Office Condominium Balance

Post
Item Ref. Debit Credit Debit Credit
DP and on Acct. 1 265,000 265,000

unt Name: Notes Payable Balance

Post
Item Ref. Debit Credit Debit Credit
 puchse of office condo 1 227,000 227,000

unt Name: Accounting Library Balance

Post
Item Ref. Debit Credit Debit Credit
purchase on cash 1 19,500 19,500

unt Name: Salaries Expense Balance

Post
Item Ref. Debit Credit Debit Credit
paid salaries 1 14,200 14,200
paid salaries 1 10,300 24,500

unt Name: Telephone Expense Balance

Post
Item Ref. Debit Credit Debit Credit
paid tel expense 1 650 650

unt Name: Rent Expense Balance

Post
Item Ref. Debit Credit Debit Credit
paid rent 1 3,250 3,250

unt Name: Professional dues Expense Balance

Post
Item Ref. Debit Credit Debit Credit
Prof dues 1 5,500 5,500
 Trial Balance
Kareen Leon, CPA

May 30, 2022

Debit Credit
Cash 13,200
Accounts Receivable 51,050
Office Supplies 21,750
Office Equipment 36,800
Accounting Library 19,500
Office Condominium 265,000
Accounts Payable 54,450
Notes Payable 227,000
Leon, Capital 92,500
Leon, Withdrawals 8,150
Accounting Revenues 75,400
Salaries Expense 24,500
Rent Expense 3,250
Telephone Expense 650

Professional Dues Expense 5,500

Total 449,350 449,350
Problem 16

a. Unequal totals. Debit totals will be more than 2,700 than

b. Equal Balance. Accounts Receivable will be overstated by P

Accounts Payable will be overstated by P15,00

c. Equal Balance. Cash is overstated by P37,800.

Office Supplies is Understated by P37,800.

d. Equal balance. Supplies will be overstated by P45,000.

Equipment will be understated by P45,000.
ore than 2,700 than credit totals.

will be overstated by P 15,000.

overstated by P15,000.

ated by P37,800.

tated by P45,000.
tated by P45,000.
 Unadjusted TB Adjustments
Debit Credit Debit
Cash 44,800
Accounts Receivable 189,600
Supplies 70,800
Equipment 560,000
Accounts Payable 72,600 9,900
46,000
900
Brillantes, Capital 513,000
Brillantes, Withdrawals 50,000 100,000
Revenues 371,600
Salaries Expense 35,000
Rent Expense 10,000 20,000
Utilities Expense 6,400
916,600 1,017,200 176,800
Adjustments Adjusted TB
Credit Debit Credit
10,000 34,800
46,800 142,800
70,800
560,000
15,800

513,000
50,000
7,600 379,200
35,000
10,000
1,800 4,600
66,200 908,000 908,000
Elisa Diaz Technologies
Royalty
Expense
January to June 2021 - (Payment on November 1, 2021) 1,000,000
July to December 2021 - (15,000,000 x 15%) 2,250,000
Royalty Expense and Royalty Income for 2021 3,250,000

May 1 - payment for previous year's royalty (july to december last year)
November 1 - payment for this year's royalty (january to june this year)

Adjusting Entries: December 31, 2021

Batangas Solutions:
Royalty Expense (for Sales in July to December 2021) 2,250,000
Royalty Payable 2,250,000

Eliza Diaz Technologies:

Royalty Receivable 2,250,000
Royalty Income 2,250,000
Payment will be on May 1, 2022

600,000 royalty expense/income last year

1,000,000 royalty expense/income this year
Problem 4 - Roslinda Perez Forwarders

September 1, 2021: Cash P600,000

Loan Payable P600,000

1 None. The interest and principal were paid at maturity date - February 28, 2022.
2 Interest Expense= P600,000 x 8% = P48,000 (Annual Interest)
September 1, 2021 to December 31, 2021 = 4 months
P48,000 x 4/12 = P16,000 - Interst Expense in 2021

3 AJE: December 31, 2021

Interest Expense P16,000
Interest Payable P16,000

Loan Payable P600,000

Interest Payable P16,000
Total Liabilities P616,000

4 September 1, 2021 to February 28, 2022 = 6 months

Total Interest for 6 months: P48,000 x 6/12 = P24,000
Total Payment: Principal plus Interest = P600,000 + P24,000 = P624,000

5 Interest Expense= P600,000 x 8% = P48,000 (Annual Interest)

January 1, 2022 to February 28, 2022 = 2 months
P48,000 x 2/12 = P8,000 - Interst Expense in 2022
Problem 5: Melinda Almazan

1 Interest Income: P1,200,000 x 8% = P96,000 ( Annual Interst Income)

April 1, 2020 to December 31, 2020 = 9 months
P96,000 x 9/12 = P72,000 - Interest Income for 2020

2 AJE: December 31, 2020

Interest Receivable (P96,000/12mos) P8,000
Interest Income P8,000

Effect on Accounting Equation = Asset Increase and Owner's Equity Increase.

3 April 1 to May 1 8,000

May 1 to June 1 8,000
June 1 to July 1 8,000
July 1 to August 1 8,000
August 1 to September 1 8,000
September 1 to October 1 8,000
October 1 to November 1 8,000
November 1 to Decembe 1 8,000
Total Cash to be collected 64,000

4 One month only = P8,000 c/o entry on number 2)

5 April 1, 2020 to April 1, 2021 = 12 months

December 1, 2020 to January 1, 2021 8,000

January 1 to February 1 8,000
February 1 to March 1 8,000
March 1 to April 1 8,000
Total Collections for 2021 32,000

6 January 1, 2021 to April 1, 2021 = 3 months

P96,000 x 3/12 = P24,000 - Interest Income for 2021

7 None
 DECEMBER 31
A. Insurance Expense 9,500
Prepaid Insurance 9,500

B Salaries Expense ( 3 days x P10,000/day) 30,000

Salaries Payable 30,000

C Beginning Balance - Supplies 4,480

Add: Supplies bought during the year 11,000
Total supplies available for use 15,480
Less: supplies still on hand (Ending Bal.) 6,400
Supplies Expense during the year 9,080

Supplies Expense 9,080

Supplies 9,080
depreciation
D P588,000 - P80,000 = P101,600 per year
5 years

Depreciation Expense 101,600

Accumulated Depreciation 101,600