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SCALP Handout 012

This document provides a chart of accounts and details 12 sample transactions for a travel agency's first month of operations in April 2020. The transactions include investing capital, paying expenses, purchasing assets, rendering travel services, receiving payments from customers, and paying salaries and expenses. The purpose is to practice journalizing, posting, preparing a trial balance, adjusting entries, and financial statements for the business.

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0% found this document useful (0 votes)

164 views

SCALP Handout 012

Uploaded by

Sam Corsiga

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

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This is

Handout
012 Mini-Practice Set on the Accounting Process

Please use this handout for

Lessons 012 Analysis of Business Transactions through Tabular Analysis in the Accounting Equation
014 Journalizing
015 Posting
016 Trial Balance
022 Adjusting Entries 6 – Adjusting Entries for the Sample Problem
023 Ten-column Worksheet
024 Financial Statements
025 Closing Procedures
026 Reversing Entries
YouTube Links

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

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Handout
012 Mini-Practice Set on the Accounting Process

Please use this handout for

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This is
Handout
012 Mini-Practice Set on the Accounting Process

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CHART OF ACCOUNTS

ASSETS
101 Cash
102 Accounts Receivable
103 Office Supplies
104 Prepaid Rent
105A Automobile
105B Accumulated Depreciation – Automobile
106A Office Equipment
106B Accumulated Depreciation – Office Equipment
107A Furniture and Fixtures
107B Accumulated Depreciation – Furniture and Fixtures

LIABILITIES
201 Accounts Payable
202 Notes Payable
203 Unearned Local Travel Fees
204 Unearned International Travel Fees
205 Interest Payable

CAPITAL
301 Yoon, Capital
302 Yoon, Drawing
303 Profit or Loss Summary

REVENUE
401 Local Travel Fees Earned
402 International Travel Fees Earned
403 Travel Assistance Fees Earned

EXPENSES
501 Salaries Expense
502 Utilities Expense
503 Rent Expense
504 Repairs and Maintenance Expense
505 Organization Expense
506 Office Supplies Expense
507 Interest Expense
508 Depreciation Expense – Automobile
509 Depreciation Expense – Office Equipment
510 Depreciation Expense – Furniture and Fixtures
511 Gas and Oil Expense

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Handout
012 Mini-Practice Set on the Accounting Process

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Transactions of the company on its first month of operations (April 2020) are as follows:

Miss Yoon Se-Ri invested P6,000,000 to open Landing On You Travel Services
(Transaction # 1)
01 Company. Five (5) employees were initially hired for the travel services team with two (2) drivers.

Paid pre-operating expenses for permit and licenses to start operations, P250,000
(Transaction # 2)
02 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.

Purchased two (2) units of a shuttle 15-seater van amounting to P1,600,000 per
(Transaction # 3)
04 vehicle, on account.

Purchased ten (10) computer equipment sets for operational purposes, P30,000 per
(Transaction # 4)
06 unit, cash payment made.

Purchased office supplies amounting to P50,000 and paid rent in advance covering
(Transaction # 5)
07 6 months’ equivalent rent, P150,000.

Purchased furniture and fixtures such as tables, chairs, cabinets and sofa set for
(Transaction # 6)
08 guests and clients, package of P600,000, P200,000 paid in cash, balance on account.

(Transaction # 7) Started operations through rendering travel services to customers with the following
details:
09
Destination Tara na sa Batanes 3 days 2 nights
Number of persons 10 persons
Price per person P7,316
Payment terms Cash payment

11 (Transaction # 8) Paid the amount of one of the two shuttle vans purchased on April 4, 2020.

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012 Mini-Practice Set on the Accounting Process

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15 (Transaction # 9) Paid salaries of employees, total of P95,000 in cash.

(Transaction # 10) Rendered travel services to customers with the following details:

Destination Wonderful Seoul 5 days 4 nights

18 + Gyeonggido Day Tour
Number of persons 5 persons
Price per person P38,888
Payment terms Payable in one month (on account)

19 (Transaction # 11) Paid P7,000 for minor repairs of automobile, cash payment.

(Transaction # 12) Received advanced payment for the following travels:

Destination Splendid Cebu 4 days 3

nights May 3-6, 2020
Number of persons 8 persons
Price per person P6,454
23 Payment terms Advanced payment

Destination Japan, Japan, Sagot Sa Kasiyahan

5 days 4 nights
April 25-30, 2020
Number of persons 10 persons
Price per person P63,800
Payment terms Advanced payment

(Transaction # 13) Received

payment from three (3) customers of the Wonderful Seoul 5 days 4
nights
25 + Gyeonggido Day Tour who went to South Korea on April 18, 2020.

(Transaction # 14) Theowner, Miss Yoon Se-Ri, had an emergency and has withdrawn P30,000
29 cash for personal use.

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012 Mini-Practice Set on the Accounting Process

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30 (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)

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This is Handout
012 Mini-Practice Set on the Accounting Process

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Accounts Office Furniture and Accounts

Cash Office Supplies Prepaid Rent Automobile Notes Payable Unearned LTF Unearned ITF Capital Capital Notation
Receivable Equipment Fixtures Payable
1

4
6
7
8
9
11
15
18
19
23
25
29
30

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This is
Handout
012 Mini-Practice Set on the Accounting Process