PROBLEM 1 – PREPARATION OF JOURNAL, LEDGER & PRELIMINARY TRIAL BALANCE

Sep 21, 2021 | students

please help me answer the following.

PROBLEM 1 – PREPARATION OF JOURNAL, LEDGER & PRELIMINARY TRIAL BALANCE

Assets

Income

Professional Fees Income

Expenses

Insurance Expense

Office Supplies

Expense Salaries Expense

Utilities Expense

Interest Expense

Depreciation Expense

Johnfrivs, CPA

Chart of Accounts

Cash

Accounts Receivable

Office Supplies Inventory

Prepaid Insurance

Library

Accumulated Depreciation – Library

Office Equipment

Accumulated Depreciation – Office Equipment

Liabilities

Accounts Payable Notes Payable Utilities Payable

Owner’s Equity

Johnfrivs, Capital

Johnfrivs, Drawing

Johnfrivs completed the following transactions during August of the current year.

August 1 – Began the practice of accountancy by investing P50,000 in cash and a library worth of P100,000.

August 2 – Purchased P40,000 of office equipment from DIMDI, paying P10,000 down-payment and issuing a promissory note for the balance.

August 3 – Purchased P5,000 office supplies and P15,000 office equipment from GH Office Depot on account. (Record supplies as an asset) 

August 6- Completed accounting work for Ace Tan and collected P10,000 cash.

August 10- Paid insurance premiums, P500.(Record insurance as an expense)

August 12- Completed accounting work for Big Enterprises and billed it P14,000 for work done.

August 18- Paid the full balance of account on GH Depot for the items purchased on August 3.

August 25- Received a check from Big Enterprises as full payment of its account on August 12.

August 28- Johnfrivs withdrew P11,000 cash from business for his personal use.

August 31- Paid the monthly salary of secretary, P15,000.

Paid the monthly light bill, P5,000. 

Required:

  1. Journalize the above transactions using the general journal. (10 pts)
  2. Post the journal entries to the general ledger accounts. (10 pts)
  3. Prepare the preliminary (unadjusted) trial balance. (10 pts) 

PROBLEM 2 – PREPARATION OF JOURNAL, LEDGER, ADJUSTED TRIAL BALANCE & FINANCIAL STATEMENTS

Assume the same information in problem 1, the following transactions for adjustments were available at month-end:

  1. Expired insurance, P300.
  2. Unused office supplies, P4,000.
  3. Depreciation of library for the month, P2,000.
  4. Office equipment has a salvage value of P1,300 and 5-year useful life. Full
  5. depreciation is taken on the month of acquisition.
  6. Unpaid water bill, P2,000.

Required:

  1. Journalize the above transactions using the general journal. (10 pts)
  2. Post the journal entries to the affected general ledger accounts (copy the
  3. previous balances from problem 1, if any). (10 pts)
  4. Prepare the adjusted trial balance. (10 pts)
  5. Prepare the income statement and balance sheet. (10 pts) 

PROBLEM 3 – PREPARATION OF JOURNAL, LEDGER & POST-CLOSING TRIAL BALANCE

Using the same problems 1 & 2 extracted in Topic 2 assignment quiz 4, prepare the following requirements:

  1. Journalize the closing entries using the general journal. (10 pts)
  2. Post the closing journal entries to the general ledger accounts (copy all your postings to the ledger account balances from the previous problems before
  3. Posting the closing entries). (10 pts)
  4. Prepare the post-closing trial balance. (10 pts)
  5. Journalize the reversing entries using the general journal. (10 pts)
  6. Post the reversing journal entries to the general ledger accounts. (10 pts)