CASE 1: Journalizing, Posting and Preparing a Trial Balance

After several years with a large accounting firm, Wala Kapilia decided to establish her own
accounting practice. The following transactions of Wala Kapilia, CPA were completed during May 2023:

May 2 Transferred P92,500 cash from a personal savings account to a checking account, Wala
Kapilia, CPA.
3 Acquired office equipment on account from Ningsaad Furniture, P36,800.
4 Acquired office supplies on account from Ning-asa Office Supply, P17,100.
6 Performed accounting services for Tambag Computers and submitted a bill of P29,200 for
those services.
7 Paid for accounting and tax books for use in the practice, P19,500.
8 Paid Ning-asa Office Supply, P4,100 on account.
10 Acquired a condominium unit for the accounting practice, P265,000. A down payment of
P38,000 was made and issued a note payable for the remaining P227,000.
12 Paid salaries, P14,200
13 Received P9,750 from Tambag Computers, billed on May 6.
16 Paid telephone expense, P650.
19 Received cash in the amount of P14,600 from NoLabel Books for accounting services
rendered for the month.
22 Acquired office supplies on account from Ning-asa Office Supply, P4,650.
23 Withdrew P8,150 for personal use.
25 Paid salaries, P10,300.
26 Billed HindiNgaPalaTayo Exporters P31,600 for accounting services rendered.
27 Paid PICPA-Maasin P5,500 for professional dues.
28 Paid P3,250 rent on an office-copying machine.

Required:
1. Prepare the journal entries for the May transactions.
2. Post the journal entries using the following Chart of Accounts: Cash; Accounts Receivable; Office
Supplies; Office Condominium; Office Equipment; Accounting Library; Notes Payable; Accounts
Payable; Kapilia, Capital; Kapilia, Withdrawals; Accounting Revenues; Salaries Expense; Rent
Expense; Telephone Expense; and Professional Dues Expense.
3. Prepare trial balance.
CASE 2: Journalizing, Posting, Preparing a Trial Balance and Financial Statements.
Jake Balls recently established a business that will operate as Balls Cleaning Service. The
transactions for February 2023 are presented below.

Feb 1 Deposited P62,000 cash in a bank account in the name of the new entity.
3 Acquired cleaning supplies on account, P21,400.
5 Acquired cleaning equipment on account, P15,600.
6 Acquired an old service vehicle costing P47,000 for the business, paying P10,000 cash, and
financing the remaining P37,000 by issuing a note payable.
7 Paid rent on office space for the month, P7,300.
9 Received P31,800 cash for cleaning services rendered.
10 Paid for a newspaper advertisement, P1,700.
12 Paid for insurance for the next six months by recording prepaid insurance, P4,800.
13 Paid P9,000 on account.
14 Paid miscellaneous expenses, P2,200.
15 Billed customers P18,600 for cleaning services rendered.
16 Paid salaries, P8,400.
20 Received P9,800 from customers billed on Feb. 15.
22 Paid amount due on the note payable, P2,400.
25 Paid telephone expense, P900.
28 Paid salaries, P7,900.
28 Billed customers for cleaning services rendered, P22,500.
28 Withdrew P10,000 from the business.

Required:
1. Prepare the journal entries for the February transactions.
2. Post the entries to the ledger accounts using the following Chart of Accounts: Cash; Accounts
Receivable; Cleaning Supplies; Prepaid Insurance; Cleaning Equipment; Service Vehicle; Notes
Payable; Accounts Payable; Balls, Capital; Balls, Withdrawals; Cleaning Revenues; Salaries
Expense; Rent Expense; Advertising Expense; Telephone Expense and Miscellaneous Expense.
3. Prepare a trial balance.
CASE 3: Presented below is the unadjusted trial balance of Mupalayo Nako Travel Agency for the year
ended Dec. 31. 2022:
Mupalayo Nako Travel Agency
Unadjusted Trial Balance
Dec. 31, 2022

Cash P 126,000
Accounts Receivable 645,000
Prepaid Rent 360,000
Office Supplies 63,000
Furniture 2,175,000
Accumulated Depreciation P 435,000
Notes Payable 900,000
Accounts Payable 285,000
Salaries Payable
Interest Payable
Nako, Capital 1,680,000
Nako, Withdrawals 1,200,000
Income Summary
Travel Revenues 5,133,000
Salaries Expense 3,771,000
Rent Expense
Office Supplies Expense
Depreciation Expense
Interest Expense
Miscellaneous Expense 93,000
Totals P 8,433,000 P 8,433,000

Information pertaining to Nako’s accounts is as follows:

a. On Nov. 30, 2022, Mupalayo paid Dinna Ikaw Realtors P360,000 for six months rent on the office
building commencing that date.
b. Office supplies on hand at Dec. 31, 2022 amounted to P20,000.
c. Depreciation expense for the furniture amounted to P217,500 for the year.
d. At Dec. 31, 2022, P105,000 salaries have accrued.
e. The P900,000 note payable was issued on Oct. 31, 2022. It will be repaid in 12 months together
with interest at an annual rate of 12%.

Required:
1. Prepare the worksheet with the following columns: Unadjusted Trial Balance; Adjustments:
Adjusted Trial Balance; Income Statement; Balance Sheet
CASE 4: Presented below is the unadjusted trial balance of Peek Uy Information Systems Company for the
year ended December 31, 2022:

Peek Uy Information Systems Company

Unadjusted Trial Balance
December 31, 2022

Cash P 45,000
Notes Receivable 360,000
Accounts Receivable 156,000
Office Supplies 63,000
Land 300,000
Building 1,590,000
Accumulated Depreciation – Building P 254,000
Equipment 2,150,000
Accumulated Depreciation – Equipment 612,000
Accounts Payable 213,000
Unearned Consulting Revenues 450,000
Uy, Capital, 1/1,2009 2,655,000
Uy, Withdrawals 600,000
Consulting Revenues 2,108,000
Salaries Expense 875,000
Repairs Expense 116,000
Miscellaneous Expense 37,000
Totals P 8,433,000 P 8,433,000

Additional Information:
a. Office supplies on hand as at Dec. 31, 2022 is P21,000.
b. One-third of the unearned revenues has been earned as at Dec. 31, 2022.
c. Depreciation for the year amounted to P38,000 for the building and P123,000 for the equipment.
d. Salaries in the amount of P14,000 have accrued at year-end.
e. The notes receivable were accepted from several customers. The notes were issued on Sept. 1, 2022
and will be settled together with a 20% interest on May 31, 2023.

Required:

1. Prepare the worksheet with the following columns: Unadjusted Trial Balance; Adjustments:
Adjusted Trial Balance; Income Statement; Balance Sheet