Reviewer Materials for Perpetual and Periodical Accounting Cycle
Additional Guides and Tips for TESDA NC III Bookkeeping.
-Accounting Tutorial
Therefore, I tell you, whatever
you ask in prayer, believe that you have
received it, and it will be yours.
-Mark 11:24 ESV
Heavenly Father, please be with this student as he/she go
where they do not know.
As they seek to grow in knowledge, show and give
him/her to find your light and graciousness.
As they start to conquer the world, I pray that he/she start
to conquer your kingdom too. Give them struggles for this
will be their strengths and will use to fight all the
hindrances along the way to you and to your kingdom.
Take he/she deeper that his/her feet could ever wander
and let his/her will be made stronger in the presence of
our Lord Jesus, Our Savior.
Always bring him/her to where he/she belong. To your
hands, heart and kingdom.
Amen
SOLE PROPRIETORSHIP
ACCOUNTING
TRANSACTIONS
(MOCK EXAM)
Completing the Accounting Cycle from Journal Entries to Post closing Trial
balance with a provided worksheet and answer keys.
On December 1, Mark Rivera began an AUTO REPAIR SHOP, Rivera’s Quality Automotive. The
following transactions occurred during December:
December 1
Rivera contributed PHP 200,000.00 cash to the business in exchange of shares of
common stocks.
December 1
Purchased PHP 12,000.00 of computer equipment paid thru cash.
December 1
Paid a 3 months insurance policy starting December 1,2020, PHP 9,000.00
December 5
Purchased Office Supplies on account, PHP 5,800.00
December 8
Borrowed PHP 80,000.00 from the bank for business use. Rivera prepared and
signed promissory notes payable to bank under the name of his business.
December 9
Paid advertising expenses for only PHP 1,580.00
December 10
Paid half of the supplies on account
December 13
Rivera’s Quality Automotive paid registration and licensing fees for the business,
PHP 10,800.00
December 16
The company acquired tables, chairs, shelves, and other fixtures for a total of
PHP 30,000.00 The entire amount was paid in cash.
December 17
The company acquired service equipment for PHP 16,000.00 The company paid
a 50% down payment and the balance will be paid after 60 days.
December 17
The company received PHP 10,900.00 for services rendered.
December 17
Rendered services on account, PHP 78,000.00. As per agreement with the Rapid
Automotive, the amount is to be collected after 10 days
December 19
Mr. Rivera invested an additional PHP 53,200.00 into the business
December 20
Rendered services to a big corporation on December 20. As per agreement, the
PHP 33,400.00 amount due will be collected after 30 days
December 21
Paid in full the supplies on account
December 21
The owner withdrew cash due to an emergency need. Mr. Rivera withdrew PHP
60,000.00 from the company.
December 22
Paid rent for December, PHP 1,500.00
December 23
Paid salaries to its employees, PHP 3,500.00
December 27
Collected from the Rapid Automotive full amount.
December 28
Paid the bank 30% of loan payable
Rivera's Quality Automotive
Chart of Accounts
101
102
103
104
105
106
107
108
109
201
202
203
204
205
301
302
303
401
601
602
603
604
605
606
607
608
609
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Computer Equipment
Accumulated Depreciation - Equipment
Furniture and Fixtures
Service Equipment
Accumulated Depreciation - Service Equipment
Accounts Payable
Notes Payable
Interest Payable
Loan Payable
Unearned Revenue
Capital
Withdrawal
Income Summary Account
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Supplies Expense
Insurance Expense
Taxes and Licenses
Advertising Expenses
Depreciation Expense – Computer Equipment
Depreciation Expense – Service Equipment
ADJUSTMENT DATA:
A.
B.
C.
D.
Office Supplies used during the month, PHP 3,800.00
Depreciation of the computer for the month, PHP 2,400.00
Depreciation of the service equipment for the month, PHP 3,200.00
One-month insurance was expired.
REQUIREMENTS:
1.
2.
3.
4.
5.
Prepare the journal entries and post to the T-Accounts
Prepare unadjusted trial balance
Prepare the adjusting journal entries and post to the T-Accounts
Prepare adjusted trial balance
Prepare the Financial Statements: (Income Statements, Statement of Owner’s Equity,
Balance Sheet)
6. Prepare the closing entries and post to the T- Accounts
7. Prepare post-closing trial balance
PREPARE JOURNAL ENTRIES:
JOURNAL ENTRIES
Sr No.
Particulars
DR Amount (in
PHP)
CR Amount (in
PHP)
JOURNAL ENTRIES:
JOURNAL ENTRIES
Sr No.
Particulars
DR Amount (in PHP)
CR Amount (in PHP)
JOURNAL ENTRIES:
JOURNAL ENTRIES
Sr No.
Particulars
DR Amount (in PHP)
CR Amount (in PHP)
Cash
TOTAL
Accounts Receivable
TOTAL
Balance:
TOTAL
Balance:
Office Supplies
TOTAL
Balance:
TOTAL
TOTAL
Prepaid Insurance
TOTAL
Balance:
TOTAL
Service Equipment
TOTAL
TOTAL
Balance:
Accumulated Depreciation - Service Equipment
TOTAL
Balance:
Accounts Payable
TOTAL
Balance:
TOTAL
TOTAL
Notes Payable
TOTAL
Balance:
TOTAL
Loan Payable
TOTAL
TOTAL
Balance:
Unearned Revenue
TOTAL
Balance:
Capital
TOTAL
Balance:
TOTAL
Withdrawal
TOTAL
TOTAL
Balance:
TOTAL
Income Summary Account
TOTAL
TOTAL
Balance:
Service Revenue
TOTAL
Balance:
Salaries Expense
TOTAL
Balance:
TOTAL
TOTAL
Rent Expense
TOTAL
Balance:
TOTAL
Utilities Expense
TOTAL
TOTAL
Balance:
Supplies Expense
TOTAL
Balance:
Insurance Expense
TOTAL
Balance:
TOTAL
TOTAL
Taxes and Licences
TOTAL
Balance:
TOTAL
Depreciation Expense - Computer Equipment
TOTAL
Balance:
TOTAL
Depreciation Expense - Service Equipment
TOTAL
Balance:
TOTAL
RIVERA’S QUALITY AUTOMOTIVE
UNADJUSTED TRIAL BALANCE
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
ADJUSTED TRIAL BALANCE
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
INCOME STATEMENT
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
STATEMENT OF ACCOUNT
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
CASH FLOW
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
BALANCE SHEET
DECEMBER 31,2020
RIVERA’S QUALITY AUTOMOTIVE
POST CLOSING TRIAL BALANCE
DECEMBER 31,2020
SOLE PROPRIETORSHIP
ACCOUNTING
TRANSACTIONS
(ANSWER KEYS)
ADJUSTMENT DATA:
E. Office Supplies used during the month, PHP 3,800.00
F. Depreciation of the computer for the month, PHP 2,400.00
G. Depreciation of the service equipment for the month, PHP 3,200.00
H. One-month insurance was expired.
REQUIREMENTS:
8.
9.
10.
11.
12.
Prepare the journal entries and post to the T-Accounts
Prepare unadjusted trial balance
Prepare the adjusting journal entries and post to the T-Accounts
Prepare adjusted trial balance
Prepare the Financial Statements: (Income Statements, Statement of Owner’s Equity,
Balance Sheet)
13. Prepare the closing entries and post to the T- Accounts
14. Prepare post-closing trial balance
PREPARE JOURNAL ENTRIES:
JOURNAL ENTRIES
Sr No.
101
301
105
101
101
103
201
101
204
607
101
201
101
606
101
107
101
108
101
201
Particulars
CASH
RIVERA, CAPITAL
To record the investment of the owner
COMPUTER EQUIPMENT
CASH
To record purchased computer equipment
PREPAID INSURANCE
CASH
To record availed insurance
OFFICE SUPPLIES
ACCOUNTS PAYABLE
To record bought office supplies on account
CASH
LOANS PAYABLE
To record loans payable
ADVERTISING EXPENSE
CASH
To record the payment for advertising
ACCOUNTS PAYABLE
CASH
To record the payment for office supplies in half
TAX AND LICENSES
CASH
To record the payment for the registration of licenses
FURNITURE AND FIXTURES
CASH
To record bought furniture and fixtures
SERVICE EQUIPMENT
CASH
ACCOUNTS PAYABLE
To record bought service equipment on cash and on account
DR Amount (in
PHP)
CR Amount (in
PHP)
200,000.00
200,000.00
12,000.00
12,000.00
9,000.00
9,000.00
5,800.00
5,800.00
80,000.00
80,000.00
1,580.00
1,580.00
2,900.00
2,900.00
10,800.00
10,800.00
30,000.00
30,000.00
16,000.00
8,000.00
8,000.00
JOURNAL ENTRIES:
JOURNAL ENTRIES
Sr No.
101
401
102
401
101
301
102
401
201
101
302
101
101
101
101
101
Particulars
CASH
SERVICE REVENUE
To record rendered services received on cash
ACCOUNTS RECEIVABLE
SERVICE REVENUE
To record rendered services received on AR
CASH
RIVERA’S CAPITAL
To record additional investment of owner
ACCOUNTS RECEIVABLE
SERVICE REVENUE
To record rendered services received on AR
ACCOUNTS PAYABLE
CASH
To record full payment on supplies
RIVERA’S WITHDRAWAL
CASH
To record withdrawal of owner
RENT EXPENSES
CASH
To record payment of rent
SALARIES EXPENSES
CASH
To record payment of salaries of employees
CASH
ACCOUNTS RECEIVABLE
To record the cash received from Rapid Customer
LOAN PAYABLE
CASH
To record payment of loan 30%
JOURNAL ENTRIES:
DR Amount (in PHP)
CR Amount (in PHP)
10,900.00
10,900.00
78,000.00
78,000.00
53,200.00
53,200.00
33,400.00
33,400.00
2,900.00
2,900.00
60,000.00
60,000.00
1,500.00
1,500.00
3,500.00
3,500.00
78,000.00
78,000.00
24,000.00
24,000.00
JOURNAL ENTRIES
Sr
No.
Particulars
DR Amount (in
PHP)
CR Amount (in
PHP)
ADJUSTING ENTRIES
SUPPLIES EXPENSE
3,800.00
OFFICE SUPPLIES
3,800.00
To adjust office supplies
DEPRECIATION EXPENSE – COMPUTER
2,400.00
ACCUMULATED DEPRECIATION - COMPUTER
2,400.00
To record depreciation of computer equipment
DEPRECIATION EXPENSE – SERVICE EQUIPMENT
ACCUMULATED DEPRECIATION – SERVICE
EQUIPMENT
To record depreciation of service equipment
3,200.00
INSURANCE EXPENSE
3,000.00
3,200.00
PREPAID INSURANCE
3,000.00
To recognize 1-month insurance
CLOSING ENTRIES
SERVICE REVENUE
122,300.00
INCOME SUMMARY ACCOUNT
122,300.00
To closed revenue
INCOME SUMMARY AMOUNT
29,780.00
SALARIES EXPENSE
3,500.00
RENT EXPENSE
1,500.00
TAX EXPENSE
10,800.00
ADVERTISING EXPENSE
1,580.00
INSURANCE EXPENSE
3,000.00
DEPRECIATION EXPENSE - COMP. EQUIPMENT
2,400.00
DEPRECIATION EXPENSE - SERVICE EQUIPMENT
3,200.00
To closed expenses
INCOME SUMMARY ACCOUNT
92,520.00
RIVERA, CAPITAL
92,520.00
To closed income summary account
RIVERA, CAPITAL
WITHDRAWAL
To closed withdrawal
60,000.00
60,000.00
Cash
Capital 200,000
Computer 12,000
Loans 80,000
Insurance 9,000
Revenue 10,900
Supplies 2,900
Capital 53,200
Revenue 78,000
Tax 10,800
Furnitures 30,000
Equipment 8,000
Withdrawal 60,000
Salaries 3,500
Loan 24,000
Advertising 1,580
Supplies 2,900
Rent 1,500
TOTAL 422,100
Balance:
255,920
TOTAL 166,180
Accounts Receivable
Revenue
78,000
Revenue
33,400
Revenue
78,000
TOTAL 111,400
TOTAL 78,000
Balance: 33,400
Office Supplies
Adjustment
Supplies 5,800
3,800
Prepaid Insurance
Adjustment
Insurance 9,000
3,000
TOTAL 5,800.00
Balance:
2,000.00
TOTAL 9,000
TOTAL 3,800
Balance: 6,000
TOTAL 3,000
Service Equipment
Service 16,000
TOTAL 16,000
Balance:
16,000.00
TOTAL
Accumulated Depreciation - Service Equipment
Adjustment
3,200
TOTAL
TOTAL 3,200
Balance:
3,200.00
Computer Equipment
Accumulated Depreciation - Equipment
Adjustment
2,400.00
Computer
12,000
TOTAL 12,000
Balance: 12,000
TOTAL
TOTAL
TOTAL 2,400
Balance
2,400.00
Accounts Payable
AP 5,800
Notes Payable
AP 2,900
AP 2,900
AP 8,000
TOTAL 5,800
TOTAL
13,800
TOTAL
Balance:
8,000.00
Balance:
LP 24,000
Loan Payable
LP 80,000
TOTAL
Unearned Revenue
TOTAL 24,000
TOTAL
80,000
TOTAL
Balance:
56,000.00
Balance:
TOTAL
Capital
Withdrawal
Withdrawal
60,000
ISA 60,000.00
TOTAL 60,000.00
TOTAL
345,720.
TOTAL 60,000
TOTAL
60,000
Balance:
285,720.00
Balance: 0.00
Capital 200,000
Capital 53,200
ISA 92,520.00
Withdrawal
60,000
Expenses
29,780
Income Summary Account
Revenue
122,300.00
Capital 92,520
TOTAL 122,300
Balance: 0.00
TOTAL 122,300
Service Revenue
Revenue
ISA 122,300.00
10,900
Revenue
78,000
Revenue
33,400
TOTAL 122,300
TOTAL 122,300
Balance:
0.00
Salaries Expense
Salaries 3,500
ISA 3,500.00
TOTAL 3,500
TOTAL 3,500
Balance: 0.00
Balance:
TOTAL 1,500.00
TOTAL
1,500.00
Balance: 0.00
Utilities Expense
TOTAL
Rent 1,500
Rent Expense
ISA 1,500.00
TOTAL
Supplies Expense
Adjustment 3,800.00
ISA 3,800.00
TOTAL 3,800
Balance:
0.00
TOTAL
3,800.00
Insurance Expense
Adjustment
3,000.00
ISA 3,000.00
TOTAL 3,000.00
TOTAL
3,000.00
Balance: 0.00
Taxes and Licenses
TAX 10,800
ISA 10,800
TOTAL 10,800
TOTAL
10,800
Balance: 0.00
Depreciation Expense - Computer Equipment
Adjustment 2,400
ISA 2,400
Depreciation Expense - Service Equipment
Adjustment 3,200
ISA 3,200
TOTAL 2,400.00
TOTAL 3,200
Balance: 0.00
TOTAL 2,400
Balance: 0.00
TOTAL 3,200
Furniture and Fixtures
Furnitures 30,000
Advertising Expenses
Advertising 1,580
1,580
TOTAL 30,000.00
TOTAL 1,580
TOTAL 1,580
Balance: 0.00
0.00
Balance: 30,000.00
TOTAL
RIVERA’S QUALITY AUTOMOTIVE
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
101
Cash
PHP 255,920.00
102
Accounts Receivable
PHP 33,400.00
103
Office Supplies
PHP 5,800.00
104
Prepaid Insurance
PHP 9,000.00
105
Computer Equipment
PHP 12,000.00
107
Furniture and Fixtures
PHP 30,000.00
108
Service Equipment
PHP 16,000.00
201
Accounts Payable
PHP 8,000.00
204
Loan Payable
PHP 56,000.00
301
Capital
PHP 253,200.00
302
Withdrawal
401
Service Revenue
601
Salaries Expense
PHP 3,500.00
602
Rent Expense
PHP 1,500.00
606
Taxes and Licenses
PHP 10,800.00
607
Advertising Expenses
PHP 1,580.00
TOTAL TRIAL BALANCE
PHP 439,500.00
PHP 60,000.00
PHP 122,300.00
PHP 439,500.00
RIVERA’S QUALITY AUTOMOTIVE
ADJUSTED TRIAL BALANCE
DECEMBER 31,2020
101
Cash
PHP 255,920.00
102
Accounts Receivable
PHP 33,400.00
103
Office Supplies
PHP 2,000.00
104
Prepaid Insurance
PHP 6,000.00
105
Computer Equipment
PHP 12,000.00
106
Accumulated Depre - Computer Equipment
107
Furniture and Fixtures
PHP 30,000.00
108
Service Equipment
PHP 16,000.00
109
Accumulated Depre - Service Equipment
PHP 3,200
201
Accounts Payable
PHP 8,000.00
204
Loan Payable
PHP 56,000.00
301
Capital
PHP 253,200.00
302
Withdrawal
401
Service Revenue
601
Salaries Expense
PHP 3,500.00
602
Rent Expense
PHP 1,500.00
606
Taxes and Licenses
PHP 10,800.00
607
Advertising Expenses
PHP 1,580.00
604
Supplies Expenses
PHP 3,800.00
605
Insurance Expenses
PHP 3,000.00
607
Depreciation Exp – Computer
PHP 2,400.00
608
Depreciation Exp – Service
TOTAL TRIAL BALANCE
PHP 3,200.00
PHP 445,100.00
PHP 2,400.00
PHP 60,000.00
PHP 122,300.00
PHP 445,100.00
RIVERA’S QUALITY AUTOMOTIVE
INCOME STATEMENT
DECEMBER 31,2020
REVENUES
Service Revenue
PHP 122,300.00
TOTAL REVENUES
PHP 122,300.00
EXPENSES
Salaries Expense
(PHP 3,500.00)
Rent Expense
(PHP 1,500.00)
Taxes and Licenses
(PHP 10,800.00)
Advertising Expenses
(PHP 1,580.00)
Supplies Expenses
(PHP 3,800.00)
Insurance Expenses
(PHP 3,000.00)
Depreciation Exp – Computer
(PHP 2,400.00)
Depreciation Exp – Service
(PHP 3,200.00)
TOTAL EXPENSES
NET INCOME
(PHP 29,780.00)
PHP 92,520.00
RIVERA’S QUALITY AUTOMOTIVE
STATEMENT OF ACCOUNT
DECEMBER 31,2020
Mark Rivera, Capital December 1,
Investment during the year
PHP 253,200.00
Net Income for the year
PHP 92,520.00
TOTAL
PHP 345,720.00
Less: Withdrawal
(PHP 60,000.00)
Net Increase in owner’s equity
PHP 285,720.00
Mark Rivera, Capital December 31,
PHP 285,720.00
RIVERA’S QUALITY AUTOMOTIVE
CASH FLOW
DECEMBER 31,2020
CASH FLOW FROM OPERATING ACTIVITIES
Cash received from customers
PHP 88,900.00
Less paid cash for:
Insurance
PHP 9,000.00
Supplies
PHP 5,800.00
Taxes and Licenses
PHP 10,800.00
Salaries
PHP 3,500.00
Advertisement
PHP 1,580.00
Rent
PHP 1,500.00
(PHP 32,180.00)
NET CASH PROVIDED BY OPERATING ACTIVITIES
PHP 56,720.00
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Equipment:
Computer
PHP 12,000.00
Service Equipment
PHP 8,000.00
Furnitures and Fixtures PHP 30,000.00
NET CASH PROVIDED BY INVESTING ACTIVITIES
(PHP 50,000.00)
CASH FLOW FROM FINANCING ACTIVITIES
Capital
PHP 253,200.00
Loans
PHP 80,000.00
Repayment of Loans
(PHP 24,000.00)
Withdrawal
(PHP 60,000.00)
NET CASH PROVIDED BY FINANCING ACTIVITIES
PHP 249,200.00
CASH BALANCE AT DECEMBER 31,2020
PHP 255,920.00
RIVERA’S QUALITY AUTOMOTIVE
BALANCE SHEET
DECEMBER 31,2020
ASSETS
CURRENT ASSETS
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Total Current Assets:
LIABILITIES AND OE
CURRENT LIABILITIES
PHP 255,920.00
PHP 33,400.00
PHP 2,000.00
PHP 6,000.00
PHP 297,320.00
Accounts Payable
PHP 8,000.00
Total Current Liability PHP 8,000.00
Long-term liabilities
PHP 56,000.00
TOTAL LIABILITY PHP 64,000.00
PLANT AND EQUIPMENT
Computer Equipment PHP 12,000.00
Less: Accumulated Depre - Computer (PHP 2,400.00)
Furniture and Fixtures PHP 30,000.00
Service Equipment
PHP 16,000.00
Less: Accumulated Depre - Service
(PHP 3,200.00)
Total Plant Equipment:
PHP 52,400.00
Owners Equity
TOTAL ASSETS:
TOTAL LIABILITIES & OWNERS
EQUITY
PHP 349,720.00
PHP 349,720.00
PHP 285,720.00
RIVERA’S QUALITY AUTOMOTIVE
POST CLOSING TRIAL BALANCE
DECEMBER 31,2020
101
Cash
PHP 255,920.00
102
Accounts Receivable
PHP 33,400.00
103
Office Supplies
PHP 2,000.00
104
Prepaid Insurance
PHP 6,000.00
105
Computer Equipment
PHP 12,000.00
106
Accumulated Depre - Computer Equipment
107
Furniture and Fixtures
PHP 30,000.00
108
Service Equipment
PHP 16,000.00
109
Accumulated Depre - Service Equipment
PHP 3,200.00
201
Accounts Payable
PHP 8,000.00
204
Loan Payable
PHP 56,000.00
301
Capital
PHP 285,720.00
TOTAL POST CLOSING TRIAL BALANCE
PHP 355,320.00
PHP 2,400.00
PHP 355,320.00