ACTIVITY SHEET 1
Title: Prepare Journal Entry
Performance Objective: Given one learning outcome on preparing journal
entry, you should be able to journalize the following transactions.
Supplies/Materials:
Calculator
Journal Book/Columnar Book
Learning Materials
Pencil
Eraser
Ruler
Steps/Procedure:
1 Based on the first month’s operation of SiraMo AyosKo Repair
Services determine the titles of the accounts involve. (Refer to the
following transactions below)
2 Analyze the nature of the accounts
3 Apply the rule of debit and credit
4 Make the necessary journal entry for each transaction.
5 Supply an explanation for each entry.
Assessment Method:
Written/Practical test
Interview
SiraMo AyosKo Repair Services had the following transactions in
December.
On December 1, 2021, Mr. Cedric Andrew Espino started SiraMo AyosKo Repair
Services by investing P400,000.
On December 5, SiraMo AyosKo Repair Services paid registration and licensing fees
for the business, P25,000.
On December 6, the company acquired tables, chairs, shelves, and other fixtures for
a total of P35,000.
On December 7, the company acquired service equipment for P160,000. The
company paid a 50% down payment and the balance will be paid after 60 days.
Also, on December 7, SiraMo AyosKo Repair Services purchased service supplies on
account amounting to P27,500.
On December 9, the company received P29,500 for services rendered.
On December 12, the company rendered services on account, P42,500. As per
agreement with the customer, the amount is to be collected after 10 days.
On December 14, received 50,000 cash from a customer for repair services to be
performed on December 30.
Rendered services to a big corporation. on December 15. As per agreement, the
P64,000 amount due will be collected after 30 days.
On December 22, the company collected from the customer in December 12.
On December 23, the company paid some of its liability in December 7 by issuing a
check.
The company paid P15,000 of the P27,500 payable.
On December 25, the owner withdrew cash due to an emergency need. Mr. Espino
withdrew P70,000 from the company.
On December 29, the company paid rent for December, P20,000.
On December 30, the company acquired a P300,000 short-term bank loan; the
entire amount plus a 10% interest is payable after 1 year.
Also, on December 30, performed services for the customer on December 14.
On December 31, the company paid salaries to its employees, P70,000.
Chart of Accounts of SiraMo AyosKo Repair Services
101 – Cash 310 - Espino Capital
105 – Accounts Receivable 320 - Espino Drawings
110 – Notes Receivable 401 – Service Revenue
115 – Repair Supplies 510 - Salaries Expense
120 – Furniture and fixtures 520 - Rent Expense
125 – Accumulated Depreciation - 530 - Utilities Expense
Furniture and fixtures
130 – Repair Equipment 540 - Repair Supplies Expense
135 – Accumulated Depreciation – 550 - Advertising Expense
Repair Equipment
140 – Transportation Equipment 560 - Insurance Expense
145 – Accumulated Depreciation - 570 - Taxes and Licenses
Transportation Equipment
210 - Accounts Payable 580 - Income Summary
220 - Note Payable 590 - Depreciation Expense
230 - Unearned Service Revenue
Dec, 1, 2021 Cash 400,000.00
Espino Capital 400,000.00
Owner's investment
Dec, 5, 2021 Taxes and Licenses 25,000.00
Cash 25,000.00
Registration and licensing fees for the business
Dec, 6, 2021 Furniture and fixtures 35,000.00
Cash 35,000.00
Acquired tables, chairs, shelves, and other fixtures
Dec, 7, 2021 Repair Equipment 160,000.00
Cash 80,000.00
Accounts Payable 80,000.00
50% down payment for service equipment; balance will be paid after 60 days.
Dec, 7, 2021 Repair Supplies 27,500.00
Accounts Payable 27,500.00
Purchase service supplies on account
Dec, 9, 2021 Cash 29,500.00
Service Revenue 29,500.00
Service Income
Dec, 12, 2021 Accounts Receivable 42,500.00
Service Revenue 42,500.00
Service Income on account
Dec, 14, 2021 Cash 50,000.00
Unearned Service Revenue 50,000.00
Unearned Service Revenue to be performed on December 30
Dec, 15, 2021 Accounts Receivable 64,000.00
Service Revenue 64,000.00
Service Income on account
Dec, 22, 2021 Cash 42,500.00
Accounts Receivable 42,500.00
Collection of receivable
Dec, 23, 2021 Accounts Payable 80,000.00
Cash 80,000.00
Payment of bills
Accounts Payable 15,000.00
Cash 15,000.00
Partial payment of service supplies
Dec, 25, 2021 Espino Drawings 70,000.00
Cash 70,000.00
Cash drawing of owner
Dec, 29, 2021 Rent Expense 20,000.00
Cash 20,000.00
Payment of rent for December
Dec, 30, 2021 Cash 300,000.00
Note Payable 300,000.00
Acquired note payable with 10% interest payable after 1 year
Unearned Service Revenue 50,000.00
Service Revenue 50,000.00
Performed services for the customer on December 14
Dec, 31, 2021 Salaries Expense 70,000.00
Cash 70,000.00
Payment of salaries
