This is
Handout
012
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Lessons
012
014
015
016
022
023
024
025
026
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
Miss Yoon Se-Ri**, a Korean living in the Philippines*, established a
travel and tours agency business in the Philippines which she called
LANDING ON YOU TRAVEL SERVICES COMPANY, a company
that promises safe travel with no crash landing***.
The company started pre-operational activities on April 1, 2020 and
rendered their first travel services on April 9, 2020.
The business offers travel and tours services to local Philippine
destinations such as Batanes, Sagada, Cebu, Camarines Sur, and
Palawan, international Asian destinations such as South Korea,
Japan, Thailand, Singapore, and Hong Kong, and other travel
services such as VISA assistance and flight booking assistance.
______________________________________________________
* A foreigner cannot form a solely owned business in the Philippines without a heavy investment. Hence, this example is for illustration
purposes only, making the example relatable to students.
**,*** Yoon Se-Ri is the lead female character of the 2019 Korean Drama “Crash Landing On You” featuring Korean Actress Son
Ye-Jin. The example is not, in any way, related to actress Son Ye-Jin.
Page 1 of 22
This is
Handout
012
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012
014
015
016
022
023
024
025
026
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
CHART OF ACCOUNTS
ASSETS
101
102
103
104
105A
105B
106A
106B
107A
107B
Cash
Accounts Receivable
Office Supplies
Prepaid Rent
Automobile
Accumulated Depreciation – Automobile
Office Equipment
Accumulated Depreciation – Office Equipment
Furniture and Fixtures
Accumulated Depreciation – Furniture and Fixtures
LIABILITIES
201
202
203
204
205
Accounts Payable
Notes Payable
Unearned Local Travel Fees
Unearned International Travel Fees
Interest Payable
CAPITAL
301
302
303
Yoon, Capital
Yoon, Drawing
Profit or Loss Summary
REVENUE
401
402
403
Local Travel Fees Earned
International Travel Fees Earned
Travel Assistance Fees Earned
EXPENSES
501
502
503
504
505
506
507
508
509
510
511
Salaries Expense
Utilities Expense
Rent Expense
Repairs and Maintenance Expense
Organization Expense
Office Supplies Expense
Interest Expense
Depreciation Expense – Automobile
Depreciation Expense – Office Equipment
Depreciation Expense – Furniture and Fixtures
Gas and Oil Expense
Page 2 of 22
This is
Handout
012
Mini-Practice Set on the Accounting Process
Please use this handout for
Lessons
012
014
015
016
022
023
024
025
026
YouTube Links
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
Transactions of the company on its first month of operations (April 2020) are as follows:
01
Miss Yoon Se-Ri invested P6,000,000 to open Landing On You Travel Services
Company. Five (5) employees were initially hired for the travel services team with two (2) drivers.
(Transaction # 1)
Paid pre-operating expenses for permit and licenses to start operations, P250,000
cash payment. Bank borrowing was approved with a note of promise to pay, P100,000 payable in
one year with 12% interest upon repayment of the principal amount.
(Transaction # 2)
02
04
06
07
08
Purchased two (2) units of a shuttle 15-seater van amounting to P1,600,000 per
vehicle, on account.
(Transaction # 3)
Purchased ten (10) computer equipment sets for operational purposes, P30,000 per
unit, cash payment made.
(Transaction # 4)
Purchased office supplies amounting to P50,000 and paid rent in advance covering
6 months’ equivalent rent, P150,000.
(Transaction # 5)
Purchased furniture and fixtures such as tables, chairs, cabinets and sofa set for
guests and clients, package of P600,000, P200,000 paid in cash, balance on account.
(Transaction # 6)
(Transaction # 7) Started
details:
09
11
Destination
Number of persons
Price per person
Payment terms
(Transaction # 8)
operations through rendering travel services to customers with the following
Tara na sa Batanes 3 days 2 nights
10 persons
P7,316
Cash payment
Paid the amount of one of the two shuttle vans purchased on April 4, 2020.
Page 3 of 22
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012
Mini-Practice Set on the Accounting Process
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012
014
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022
023
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15
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
(Transaction # 9) Paid
salaries of employees, total of P95,000 in cash.
(Transaction # 10) Rendered
Destination
18
Number of persons
Price per person
Payment terms
19
(Transaction # 11)
Wonderful Seoul 5 days 4 nights
+ Gyeonggido Day Tour
5 persons
P38,888
Payable in one month (on account)
Paid P7,000 for minor repairs of automobile, cash payment.
(Transaction # 12) Received
Destination
23
travel services to customers with the following details:
Number of persons
Price per person
Payment terms
Destination
Number of persons
Price per person
Payment terms
advanced payment for the following travels:
Splendid Cebu 4 days 3 nights
May 3-6, 2020
8 persons
P6,454
Advanced payment
Japan, Japan, Sagot Sa Kasiyahan
5 days 4 nights
April 25-30, 2020
10 persons
P63,800
Advanced payment
(Transaction # 13) Received
25
29
payment from three (3) customers of the Wonderful Seoul 5 days 4 nights
+ Gyeonggido Day Tour who went to South Korea on April 18, 2020.
(Transaction # 14)
for personal use.
The owner, Miss Yoon Se-Ri, had an emergency and has withdrawn P30,000 cash
Page 4 of 22
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012
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012
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022
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30
Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
(Transaction # 15)
Paid the following: salaries, P95,000, utilities, P12,000, gas and oil, P10,000.
Data for adjustments:
a. Interest accrued for the note payable for one month.
b. Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle.
c. Depreciation of office equipment, five-year useful life, 10% estimated residual value per set.
d. Depreciation of furniture and fixtures, five-year useful life, no residual value.
e. P35,000 worth of office supplies were used.
f. One month of rent was expired.
g. Earned the Japan travel service in full on April 30.
As the accountant of LANDING ON YOU TRAVEL SERVICES COMPANY, do the following for
April 2020:
1.
Analyze the transactions of the firm through a financial transaction tabular analysis.
(Lesson 012)
2.
Journalize the transactions in a journal. (Lesson 014)
3.
Post the journal entries in a ledger. (Lesson 015)
4.
Prepare the initial, unadjusted trial balance. (Lesson 016)
5.
Create a summary of adjusting entries. (Lesson 022)
6.
Prepare the company’s ten-column worksheet. (Lesson 023)
7.
Prepare the company’s Statement of Comprehensive Income. (Lesson 024)
8.
Prepare the company’s Statement of Changes in Equity. (Lesson 024)
9.
Prepare the company’s Statement of Financial Position. (Lesson 024)
10. Journalize and post all adjusting entries and check if the ledger corresponds to the
adjusted trial balance columns of the worksheet. (Lesson 025)
11. Journalize and post all closing entries. (Lesson 025)
12. Prepare a post-closing trial balance. (Lesson 025)
13. Journalize reversing entries for May 1, 2020. (Lesson 026)
Page 5 of 22
This is
Handout
012
Mini-Practice Set on the Accounting Process
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Lessons
012
014
015
016
022
023
024
025
026
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Cash
Accounts
Receivable
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
Office Supplies Prepaid Rent
Automobile
Office
Equipment
Furniture and
Fixtures
Accounts
Payable
Notes Payable Unearned LTF Unearned ITF
Capital
Capital Notation
1
2
4
6
7
8
9
11
15
18
19
23
25
29
30
Page 6 of 22
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
General Journal
Date
Page 1
Description
PR
Debit
Credit
Page 7 of 22
This is
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012
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012
014
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016
022
023
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025
026
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
General Journal
Date
Page 2
Description
PR
Debit
Credit
Page 8 of 22
This is
Handout
012
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012
014
015
016
022
023
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025
026
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
General Journal
Date
Page 3
Description
PR
Debit
Credit
Page 9 of 22
This is
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012
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012
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022
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
General Journal
Date
Page 4
Description
PR
Debit
Credit
Page 10 of 22
This is
Handout
012
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Lessons
012
014
015
016
022
023
024
025
026
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
General Journal
Date
Page 5
Description
PR
Debit
Credit
Page 11 of 22
This is
Handout
012
Mini-Practice Set on the Accounting Process
Please use this handout for
Lessons
012
014
015
016
022
023
024
025
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101 Cash
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
102 Accounts Receivable
104 Prepaid Rent
105B Acc. Dep. - Automobile
106B Acc. Dep. - Off. Equip.
103 Office Supplies
105A Automobile
106A Office Equipment
107A Furniture and Fixtures
107B Acc. Dep. - F & F
Page 12 of 22
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201 Accounts Payable
Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
202 Notes Payable
203 Unearned LTF
204 Unearned ITF
205 Interest Payable
Page 13 of 22
This is
Handout
012
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012
014
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016
022
023
024
025
026
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
301 Yoon, Capital
302 Yoon, Drawing
303 Profit or Loss Summary
401 Local Travel Fees Earned
402 Int. Travel Fees Earned
403 Travel Assist. Fees Earned
Page 14 of 22
This is
Handout
012
Mini-Practice Set on the Accounting Process
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Lessons
012
014
015
016
022
023
024
025
026
YouTube Links
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
501 Salaries Expense
503 Rent Expense
505 Organization Expense
507 Interest Expense
509 Dep. Ex. - Office Equip.
502 Utilities Expense
504 Rep. and Maint. Expense
506 Office Supplies Expense
508 Dep. Ex. - Automobile
510 Dep Ex. - F & F
511 Gas and Oil Expense
Page 15 of 22
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012
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012
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
Landing On You Travel Services Company
Trial Balance (Initial and Unadjusted)
April 30, 2020
Account Title
Debit
Credit
Page 16 of 22
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Handout
012
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012
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
Landing On You Travel Services Company
Summary of Adjustements
April 30, 2020
a. Interest accrued for the note payable for one month.
b. Depreciation of automobile, ten-year useful life, P100,000 estimated residual value per vehicle.
c.
Depreciation of office equipment, five-year useful life, 10% estimated residual value per set.
d. Depreciation of furniture and fixtures, five-year useful life, no residual value.
e. P35,000 worth of office supplies were used.
f.
One month of rent was expired.
g. Earned the Japan travel service in full on April 30.
Page 17 of 22
Account Titles
This is
Cash
Handout
012
Accounts Receivable
Office Supplies Please use this handout for
012
Prepaid Rent Lessons
014
Automobile
015
Office Equipment
016
Furniture and Fixtures
022
023
Accounts Payable
024
Notes Payable
025
Unearned Local Travel Fees 026
YouTubeTravel
Links Fees
Unearned International
Yoon, Capital
Yoon, Drawing
Local Travel Fees Earned
International Travel Fees Earned
Salaries Expense
Utilities Expense
Repairs and Maintenance Expense
Organization Expense
Gas and Oil Expense
Unadjusted TB
Debit
Credit
Adjustments
Debit
Credit
Adjusted TB
Debit
Credit
Profit and Loss
Debit
Credit
Financial Position
Debit
Credit
Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
Page 18 of 22
This is
Handout
012
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Lessons
012
014
015
016
022
023
024
025
026
YouTube Links
Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
LANDING ON YOU TRAVEL SERVICES COMPANY
Statement of Comprehensive Income
For the month ended April 30, 2020
Page 19 of 22
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022
023
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025
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
LANDING ON YOU TRAVEL SERVICES COMPANY
Statement of Changes in Equity
For the month ended April 30, 2020
Page 20 of 22
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012
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016
022
023
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
LANDING ON YOU TRAVEL SERVICES COMPANY
Statement of Financial Position
April 30, 2020
Page 21 of 22
This is
Handout
012
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Lessons
012
014
015
016
022
023
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025
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Mini-Practice Set on the Accounting Process
Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
Journalizing
Posting
Trial Balance
Adjusting Entries 6 – Adjusting Entries for the Sample Problem
Ten-column Worksheet
Financial Statements
Closing Procedures
Reversing Entries
Landing On You Travel Services Company
Post-Closing Trial Balance
April 30, 2020
Account Title
Debit
Credit
Page 22 of 22