PROBLEM 16
JOURNALIZING, POSTING, AND PREPARING A TRIAL BALANCE
Crispina Cayna Guardians completed the following transactions during October 2010:
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: Cash; Accounts Receivable; Prepaid
Insurance; Arms and Communication Equipment; Service Vehicle; Accounts Payable; Cayna, Capital; Cayna,
Withdrawals; Service Revenues; Salaries Expense; Rent Expense; Supplies Expense; Gasoline Expense and
Utilities Expense.
3. Prepare a trial balance.
ANSWER:
1.
CRISPINA CAYNA GUARDIANS
JOURNALIZING TRANSACTION
FOR THE MONTH ENDED OF OCTOBER, 2010
DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT
Oct 1 Cash 243,000.00
Cayna, Capital 243,000.00
3 Arms and Communication Equipment 34,000.00
Cayna, Capital 34,000.00
4 Arms and Communication Equipment 13,740.00
Accounts Payable 13,740.00
5 Rent Expense 7,650.00
Cash 7,650.00
6 Service Vehicle 93,000.00
Cash 45,000.00
Accounts Payable 48,000.00
9 Prepaid Insurance 7,710.00
Cash 7,710.00
12 Accounts Receivable 8,250.00
Service Revenues 8,250.00
16 Supplies Expense 1,757.00
Accounts Payable 1,757.00
17 Accounts Receivable 14,790.00
Service Revenue 14,790.00
22 Gasoline Expense 720.00
Cash 720.00
24 Accounts Receivable 17,500.00
Service Revenue 17,500.00
27 Accounts Payable 4,500.00
Cash 4,500.00
29 Cash 8,250.00
Accounts Receivable 8,250.00
30 Accounts Receivable 21,600.00
Service Revenue 21,600.00
31 Utilities Expense 1,030.00
Cash 1,030.00
31 Salaries Expense 31,500.00
Cash 31,500.00
31 Cayna, Withdrawals 18,000.00
Cash 18,000.00
2.
CRISPINA CAYNA GUARDIANS
GENERAL LEDGER ENTRY
FOR THE MONTH ENDED OF OCTOBER, 2010
DATE EXPLANATION PR DEBIT CREDIT BALANCE
CASH
DEBIT CREDIT
Oct 1 243,000.00 243,000.00
5 7,650.00 235,350.00
6 45,000.00 190,350.00
9 7,710.00 182,640.00
22 720.00 181,920.00
27 4,500.00 177,420.00
29 8,250.00 185,670.00
31 1,030.00 184,640.00
31 31,500.00 153,140.00
31 18,000.00 135,140.00
ACCOUNTS RECEIVABLE
12 8,250.00 8,250.00
17 14,790.00 23,040.00
24 17,500.00 40,540.00
29 8,250.00 32,290.00
30 21,600.00 53,890.00
PREPAID INSURANCE
9 7,710.00 7,710.00
ARMS AND COMMUNICATION EQUIPMENT
3 34,000.00 34,000.00
4 13,740.00 47,740.00
SERVICE VEHICLE
6 93,000.00 93,000.00
ACCOUNTS PAYABLE
4 13,740.00 13,740.00
6 48,000.00 61,740.00
16 1,757.00 63,497.00
27 4,500.00 58,997.00
CAYNA, CAPITAL
1 243,000.00 243,000.00
3 34,000.00 277,000.00
CAYNA, WITHDRAWALS
31 18,000.00 18,000.00
SERVICE REVENUES
12 8,250.00 8,250.00
17 14,790.00 23,040.00
24 17,500.00 40,540.00
30 21,600.00 62,140.00
SALARIES EXPENSE
31 31,500.00 31,500.00
RENT EXPENSE
5 7,650.00 7,650.00
SUPPLIES EXPENSE
16 1,757.00 1,757.00
GASOLINE EXPENSE
22 720.00 720.00
UTILITIES EXPENSE
31 1,030.00 1,030.00
3.
CRISPINA CAYNA GUARDIANS
TRIAL BALANCE OF BALANCES
FOR THE MONTH ENDED OF OCTOBER 31, 2010
ACCOUNT TITLES DEBIT CREDIT
CASH 135,140.00
ACCOUNTS RECEIVABLE 53,890.00
PREPAID INSURANCE 7,710.00
ARMS AND COMMUNICATION EQUIPMENT 47,740.00
SERVICE VEHICLE 93,000.00
ACCOUNTS PAYABLE 58,997.00
CAYNA, CAPITAL 277,000.00
CAYNA, WITHDRAWALS 18,000.00
SERVICE REVENUES 62,140.00
SALARIES EXPENSE 31,500.00
RENT EXPENSE 7,650.00
SUPPLIES EXPENSE 1,757.00
GASOLINE EXPENSE 720.00
UTILITIES EXPENSE 1,030.00
TOTAL: ₱ 398,137.00 ₱ 398,137.00
