Step 1: Analyzing business transactions and journalizing
Use the following Chart of accounts to record the transactions Joseph Landscaping and Plants
Store.
Account
No.
101
102
103
104
104-A
105
CHART OF ACCOUNTS
Account
Account Title
No.
ASSETS
Cash in Bank
401
Petty Cash Fund
401-A
Investments in Trading
Securities
Accounts Receivable
501
Allowance for Doubtful
Accounts
502
Notes Receivable
502-A
301
Interest Receivable
Merchandise Inventory
Store and Office Supplies on
Hand
Land
Buildings
Accumulated DepreciationBuilding
Equipment
Accumulated DepreciationEquipment
Furniture and Fixture
Accumulated Depreciation –
Furniture
LIABILITIES
Accounts Payable
302
Notes Payable
615
303
Withholding Taxes Payable
616
304
305
310
Utilities Payable
Interest Payable
Mortgage Payable
617
618
619
630
106
107
108
201
202
202-A
203
203-A
204
204-A
502-B
503
601
601-A
601-B
602
Account Title
OWNER'S EQUITY
Joseph de Jesus, Capital
Joseph de Jesus, Drawing
REVENUES
Service Income
Sales
Sales Discounts
Sales Returns and
Allowances
Interest Income
EXPENSES
Purchases
Purchases Discounts
Purchases Returns and
Allowances
Freight in
610
611
Freight out
Salaries and Wages Expense
612
613
614
Depreciation Expense
Utilities Expense
Insurance Expense
Store and Office Supplies
Expense
Repairs and Maintenance
Expense
SSS, Philhealth,and Pag-ibig
Expense
Doubtful Accounts Expense
Miscellaneous Expense
Interest Expense
Learning Activity: Step 1- Analyzing business transactions and journalizing.
• The following is the list summarizing the various transactions of Joseph Landscaping Business
for the month of December, 2019 which you are asked to record.
Dec. Rendered landscaping services to Argem Day Care Center for P20,000 and received a 31 month, 12% note.
2 Purchased additional shop supplies from Stephen Trading amounting to P25,000 on
terms P10,000 down payment and the balance on account.
3 Rendered landscaping services to Guadalupe's Garden, P30,000. Terms: 50% down
payment balance on account.
4 Rendered gardening services to Emmanuel Retreat Center amounting to P70,000.
Terms: P20,000 down payment and the balance on account.
5 Issued a debit memorandum to Stephen Trading for P500 worth of defective goods.
6 Joseph made additional cash investment for P20,000.
7 Paid P1,500 for the repair of the gardening equipment.
8 Rendered landscaping services to Rafael Novelty Shop P50,000, C.O.D.
9 Made partial payment amounting to P5,000 to Stephen Trading.
10 Purchased additional office supplies worth P15,000. Gabriel Bookstore and Office
Supplies. Terms: P5,000 down payment and the balance on account.
12 Paid account with Stephen Trading in full.
15 Joseph withdrew in anticipation of future profits cash amounting to P8,000.
17 Returned P500 worth of office supplies to Gabriel Bookstore and Office Supplies.
19 Collected in full the receivable from Emmanuel Retreat Center.
20 Paid account with Gabriel Bookstore and Office Supplies in full.
26 Collected in full the receivable from Guadalupe's Garden
28 Rendered landscaping services to Shalom House of Prayer P50,000 on account.
31 Paid salaries of employees for the month P32,000 .
Learning Activity: Step 2 - Posting to the general ledger.
• Post the December transactions you recorded using T-accounts. Please refer to the following
is the trial balance prepared for Joseph Landscaping Business as of November 30, 2019.
Joseph Landscaping Business
Trial Balance
November 30, 2019
Account Title
Debit
Credit
Cash in Bank
112,800
Petty Cash Fund
10,000
Financial Assets at Fair Value Through
Profit or Loss (a.k.a. Investments in
Trading Securities)
150,000
Accounts Receivable
95,000
Allowance for Doubtful Accounts
7,000
Office Supplies on Hand
20,500
Shop Supplies on Hand
35,000
Land
400,000
Buildings
440,000
Accumulated Depreciation-Building
57,600
Equipment
220,000
Accumulated Depreciation-Equipment
50,000
Furniture and Fixture
120,000
Accumulated Depreciation – Furniture
44,000
Accounts Payable
37,000
Notes Payable
12,000
Withholding Taxes Payable
5,600
Mortgage Payable
200,000
Joseph de Jesus, Capital
842,950
Joseph de Jesus, Drawing
10,000
Service Income
889,350
Salaries and Wages Expense
374,300
Utilities Expense
46,000
Insurance Expense
28,450
Repairs and Maintenance Expense
16,750
Transportation Expense
16,350
SSS, Philhealth, and Pag-ibig Expense
31,550
Miscellaneous Expense
12,400
Interest Expense
6,400
Total
2,197,700 2,197,700