Analyze Journalize

Post entries to the

source transactions in the
accounts in the Prepare PRELIMINARY
documents. general journal.
general ledger.
TRIAL Balance.

Journalize THE 10 STEPS IN THE Journalize

REVERSING ENTRIES ADJUSTING
in the general ACCOUNTING CYCLE ENTRIES in the
journal. general journal.

Prepare financial
Journalize CLOSING
statements.
ENTRIES in the
general journal. Prepare worksheet
or FINAL TRIAL
Prepare POST BALANCE
CLOSING TRIAL
Balance.
The following are the summary of
transactions of B.A. Roa TV
Repair Shop for the month of
October 2017
JOURNAL ENTRIES
1 B. A. Roa opened a T.V. Repair Shop by investing
P100,000 in the business.

ANALYSIS
BUSINESS TRANSACTION? Yes

Cash
SPECIFIC ACCOUNTS AFFECTED?
B.A. Roa, Capital

Asset
CLASSIFICATION?
Capital

Increase
EFFECT?
Increase

Debit
DEBIT/CREDIT?
Credit
1 B. A. Roa opened a T.V. Repair Ship by investing P100,000
in the business.

1 Cash 100,000
B.A. Roa, Capital 100,000

CASH B.A. ROA, Capital

1 100,000 1 100,000
2 Paid the rent of the shop space, P4,000.

ANALYSIS
BUSINESS TRANSACTION? Yes

Rent Expense
SPECIFIC ACCOUNTS AFFECTED?
Cash

Expense
CLASSIFICATION?
Asset

Increase
EFFECT?
Decrease

Debit
DEBIT/CREDIT?
Credit
2 Paid the rent of the shop space, P4,000.

2 Rent Expense 4,000

Cash 4,000

CASH RENT EXPENSE

1 100,000 2 4,000 2 4,000
3 Purchased shop supplies for cash P15,000.

ANALYSIS
BUSINESS TRANSACTION? Yes

Shop Supplies
SPECIFIC ACCOUNTS AFFECTED?
Cash

Asset
CLASSIFICATION?
Asset

Increase
EFFECT?
Decrease

Debit
DEBIT/CREDIT?
Credit
3 Purchased shop supplies for cash P15,000.

3 Shop Supplies 15,000

Cash 15,000

CASH SHOP SUPPLIES

1 100,0002 4,000 3 15,000
3 15,000
4 Purchased shop supplies from L. Salvador on credit,
P16,500.

ANALYSIS
BUSINESS TRANSACTION? Yes

Shop Supplies
SPECIFIC ACCOUNTS AFFECTED?
Accounts Payable

Asset
CLASSIFICATION?
Liability

Increase
EFFECT?
Increase

Debit
DEBIT/CREDIT?
Credit
4 Purchased shop supplies from L. Salvador on credit,
P16,500.

4 Shop Supplies 16,500

Accounts Payable 16,500

ACCOUNTS PAYABLE SHOP SUPPLIES

4 16,500 3 15,000
4 16,500
5 Repaired the T.V. set of J. de Belen and collected P2,500
for the service.

ANALYSIS
BUSINESS TRANSACTION? Yes

Cash
SPECIFIC ACCOUNTS AFFECTED?
Service Income

Asset
CLASSIFICATION?
Revenue

Increase
EFFECT?
Increase

Debit
DEBIT/CREDIT?
Credit
5 Repaired the T.V. set of J. de Belen and collected P2,500
for the service.

5 Cash 2,500
Service Income 2,500

CASH SERVICE INCOME

1 100,000 2 4,000 5 2,500
5 2,500 3 15,000
6 Paid L. Salvador 50% of the amount owed to him.

ANALYSIS
BUSINESS TRANSACTION? Yes

Accounts Payable
SPECIFIC ACCOUNTS AFFECTED?
Cash

Liability
CLASSIFICATION?
Asset

Decrease
EFFECT?
Decrease

Debit
DEBIT/CREDIT?
Credit
6 Paid L. Salvador 50% of the amount owed to him.

6 Accounts Payable 8,250

Cash 8,250

CASH ACCOUNTS PAYABLE

1 100,000 2 4,000 6 8,250 4 16,500
5 2,500 3 15,000
6 8,250
7 Repaired the T.V. set of J. Vega P1,500 on credit.

ANALYSIS
BUSINESS TRANSACTION? Yes

Accounts Receivable
SPECIFIC ACCOUNTS AFFECTED?
Service Income

Asset
CLASSIFICATION?
Revenue

Increase
EFFECT?
Increase

Debit
DEBIT/CREDIT?
Credit
7 Repaired the T.V. set of J. Vega P1,500 on credit.

7 Accounts Receivable 1,500

Service Income 1,500

ACCOUNTS RECEIVABLE SERVICE INCOME

7 1,500 5 2,500
7 1,500
8 Paid the salary of the shop assistant, P2,000.

ANALYSIS
BUSINESS TRANSACTION? Yes

Wages Expense
SPECIFIC ACCOUNTS AFFECTED?
Cash

Expense
CLASSIFICATION?
Asset

Increase
EFFECT?
Decrease

Debit
DEBIT/CREDIT?
Credit
8 Paid the salary of the shop assistant, P2,000.

8 Wages Expense 2,000

Cash 2,000

CASH WAGES EXPENSE

1 100,000 2 4,000 8 2,000
5 2,500 3 15,000
6 8,250
8 2,000
9 Paid the telephone bill of the month, P550.

ANALYSIS
BUSINESS TRANSACTION? Yes

Communication Expense
SPECIFIC ACCOUNTS AFFECTED? Cash

Expense
CLASSIFICATION?
Asset

Increase
EFFECT?
Decrease

Debit
DEBIT/CREDIT?
Credit
9 Paid the telephone bill of the month, P550.

9 Communication Expense 550

Cash 550

CASH COMMUNICATION EXPENSE

1 100,000 2 4,000 9 550
5 2,500 3 15,000
6 8,250
8 2,000
9 550
10 Received 50% of J. Vega account

ANALYSIS
BUSINESS TRANSACTION? Yes

Cash
SPECIFIC ACCOUNTS AFFECTED?
Accounts Receivable

Asset
CLASSIFICATION?
Asset

Increase
EFFECT?
Decrease

Debit
DEBIT/CREDIT?
Credit
10 Received 50% of J. Vega account

10 Cash 750
Accounts Receivable 750

CASH ACCOUNTS RECEIVABLE

1 100,000 2 4,000 7 1,500 10 750
5 2,500 3 15,000
10 750 6 8,250
8 2,000
9 550
11 Took P500 from the business for personal use

ANALYSIS
BUSINESS TRANSACTION? Yes

B.A. Roa, Drawings

SPECIFIC ACCOUNTS AFFECTED?
Cash

Withdrawal
CLASSIFICATION?
Asset

Increase
EFFECT?
Decrease

Debit
DEBIT/CREDIT?
Credit
11 Took P500 from the business for personal use

11 B.A. Roa, Drawings 500

Cash 500

CASH B.A. ROA, DRAWINGS

1 100,000 2 4,000 11 500
5 2,500 3 15,000
10 750 6 8,250
8 2,000
9 550
11 500
T-ACCOUNTS
BALANCES
 CASH ACCOUNTS RECEIVABLE
1 100,000 2 4,000 7 1,500 10 750
5 2,500 3 15,000 1,500 750
10 750 6 8,250 750
8 2,000
9 550
11 500
103,250 30,300
72,950

SHOP SUPPLIES ACCOUNTS PAYABLE

3 15,000 6 8,250 4 16,500
4 16,500 8,250 16,500
31,500 0 8,250
31,500
B.A. ROA, Capital B.A. ROA, DRAWINGS
1 100,000 11 500
0 100,000 500 0
100,000 500

SERVICE INCOME
5 2,500
7 1,500
0 4,000
4,000
 RENT EXPENSE WAGES EXPENSE
2 4,000 8 2,000
4,000 0 2,000 0
4,000 2,000

COMMUNICATION EXPENSE
9 550
550 0
550
 PRELIMINARY
TRIAL BALANCE
 ROA TV Repair Shop
Preliminary Trial Balance
October 2017

Cash 72,950
Accounts Receivable 750
Shop Supplies 31,500
Accounts Payable 8,250
B.A. Roa, Capital 100,000
B.A. Roa, Drawings 500
Service Income 4,000
Rent Expense 4,000
Communication Expense 550
Wages Expense 2,000
TOTAL 112,250 112,250
 Analyze Journalize
Post entries to the
source transactions in the
accounts in the Prepare PRELIMINARY
documents. general journal.
general ledger.
TRIAL Balance.

Journalize THE 10 STEPS IN THE Journalize

REVERSING ENTRIES ADJUSTING
in the general ACCOUNTING CYCLE ENTRIES in the
journal. general journal.

Prepare financial
Journalize CLOSING
statements.
ENTRIES in the
general journal. Prepare worksheet
or FINAL TRIAL
Prepare POST BALANCE
CLOSING TRIAL
Balance.
ADJUSTING
ENTRIES
 The rent of P4,000 is for October and November

30 Prepaid Rent 2,000

Rent Expense 2,000

RENT EXPENSE PREPAID RENT

2 4,000 30 2,000
4,000 0
4,000 30 2,000
 60 percent of the supplies remains on hand at month end

30 Supplies Expense 12,600

Shop Supplies 12,600

SHOP SUPPLIES SUPPLIES EXPENSE

3 15,000 30 12,600
4 16,500
31,500 0
31,500 30 12,600
NEW T-ACCOUNTS
BALANCES
 CASH ACCOUNTS RECEIVABLE
1 100,000 2 4,000 7 1,500 10 750
5 2,500 3 15,000 1,500 750
10 750 6 8,250 750
8 2,000
9 550
11 500
103,250 30,300
72,950

SHOP SUPPLIES PREPAID RENT

3 15,000 30 2,000
4 16,500 2,000 0
31,500 0 2,000
31,500 30 12,600
18,900
 ACCOUNTS PAYABLE B.A. ROA, Capital
6 8,250 4 16,500 1 100,000
8,250 16,500 0 100,000
8,250 100,000

B.A. ROA, DRAWINGS SERVICE INCOME

11 500 5 2,500
500 0 7 1,500
500 0 4,000
4,000
 RENT EXPENSE WAGES EXPENSE
2 4,000 8 2,000
4,000 0 2,000 0
4,000 30 2,000 2,000
2,000

COMMUNICATION EXPENSE SUPPLIES EXPENSE

9 550 30 12,600
550 0 12,600 0
550 12,600
FINAL TRIAL
BALANCE
 ROA TV Repair Shop
Preliminary Trial Balance
October 2017

Cash 72,950
Accounts Receivable 750
Shop Supplies 31,500
Accounts Payable 8,250
B.A. Roa, Capital 100,000
B.A. Roa, Drawings 500
Service Income 4,000
Rent Expense 4,000
Communication Expense 550
Wages Expense 2,000
TOTAL 112,250 112,250
 ROA TV Repair Shop
Final Trial Balance
October 2017

Cash 72,950
Accounts Receivable 750
Shop Supplies 18,900
Prepaid Rent 2,000
Accounts Payable 8,250
B.A. Roa, Capital 100,000
B.A. Roa, Drawings 500
Service Income 4,000
Rent Expense 2,000
Communication Expense 550
Wages Expense 2,000
Supplies Expense 12,600
TOTAL 112,250 112,250
 FINANCIAL
STATEMENTS
 ROA TV Repair Shop
Statement of Operations
October 2017

Service Income 4,000

Less: Expenses
Rent Expense 2,000
Communication Expense 550
Wages Expense 2,000
Supplies Expense 12,600 17,150
Net Loss 13,150
 ROA TV Repair Shop
Statement of Capital
October 2017

B.A. Roa, Capital, beg 100,000

Add: Additional Investment 0
Net Income 0 0
Total 100,000
Less: Net Loss 13,150
B.A. Roa, Drawings 500 13,650
B.A. Roa, Capital, end 86,350
 ROA TV Repair Shop
Statement of Financial Position
October 2017

ASSETS LIABILITIES AND CAPITAL

Cash 72,950 Accounts Payable 8,250
Accounts Receivable 750
Shop Supplies 18,900
Prepaid Rent 2,000 B.A. Roa, Capital 86,350
Total Liabilities and
Total Assets 94,600 Capital 94,600
 ROA TV Repair Shop
Statement of Financial Position
October 2017

ASSETS
Cash 72,950
Accounts Receivable 750
Shop Supplies 18,900
Prepaid Rent 2,000
Total Assets 94,600

LIABILITIES AND CAPITAL

Accounts Payable 8,250
B.A. Roa, Capital 86,350
Total Liabilities and Capital 94,600
CLOSING ENTRIES
30 Service Income 4,000
Income and Loss Summary 13,150
Rent Expense 2,000
Communication Expense 550
Wages Expense 2,000
Supplies Expense 12,600

B.A. BOA, Capital 13,150

Income and Loss Summary 13,150

B.A. BOA, Capital 500

B.A. BOA, Drawings 500
NEW T-ACCOUNTS
BALANCES
 CASH ACCOUNTS RECEIVABLE
1 100,000 2 4,000 7 1,500 10 750
5 2,500 3 15,000 1,500 750
10 750 6 8,250 750
8 2,000
9 550
11 500
103,250 30,300
72,950

SHOP SUPPLIES PREPAID RENT

3 15,000 30 2,000
4 16,500 2,000 0
31,500 0 2,000
31,500 30 12,600
18,900
 ACCOUNTS PAYABLE B.A. ROA, Capital
6 8,250 4 16,500 1 100,000
8,250 16,500 0 100,000
8,250 30 13,150 100,000
30 500
13,650 100,000
86,350

B.A. ROA, DRAWINGS SERVICE INCOME

11 500 5 2,500
500 0 7 1,500
500 30 500 0 4,000
0 30 4000 4,000
0
 RENT EXPENSE WAGES EXPENSE
2 4,000 8 2,000
4,000 0 2,000 0
4,000 30 2,000 2,000 2,000
2,000 2,000 0
0

COMMUNICATION EXPENSE SUPPLIES EXPENSE

9 550 30 12,600
550 0 12,600 0
550 550 12,600 12,600
0 0
POST CLOSING
TRIAL BALANCE
 ROA TV Repair Shop
Post Closing Trial Balance
October 2017

Cash 72,950
Accounts Receivable 750
Shop Supplies 18,900
Prepaid Rent 2,000
Accounts Payable 8,250
B.A. Roa, Capital 86,350
TOTAL 94,600 94,600
 ROA TV Repair Shop
Final Trial Balance
October 2017

Cash 72,950
Accounts Receivable 750
Shop Supplies 18,900
Prepaid Rent 2,000
Accounts Payable 8,250
B.A. Roa, Capital 100,000
B.A. Roa, Drawings 500
Service Income 4,000
Rent Expense 2,000
Communication Expense 550
Wages Expense 2,000
Supplies Expense 12,600
TOTAL 112,250 112,250