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MGT111: PRINCIPLES OF ACCOUNTING

2020-2021

Name: Wilmar P. Mangapot Student Number: 2019-05971

Problem Set 3: ACCOUNTING CYCLE AND ACCOUNTING FOR SERVICE

(Answer Sheet)

General Instructions:

1. Access the Google Classroom “MGT 111 Z2”.

2. In Classwork: Under Problem Sets, select “Problem Set 3”.
3. Open “Google Form” and upload your answer sheet for Problem Set 3. Name the file “Surname_Problem
Set No.---“
4. Deadline of submission is on October 9, 2021, 8:00 PM.

Problem 1: Journal Entries, Posting, Trial Balance

Required:
1. Prepare Journal Entries (16 points)
2. Prepare Ledger or T-Accounts (16 points)
3. Prepare Trial Balance (8 points)

EM Data Encoders
Chart of Accounts

Assets Expenses
Cash 101 Rent Expense 401
Account Receivable 102 Advertising Expense 402
Office Equipment 103 Utility Expense 403
Furnitures and Fixtures 104 Salaries Expense 404
Computer Software 105
Office Supplies 106

Liabilities Revenue
Account Payable 201 Service Revenue 5 01

Owner’s Equity
Ms. Marie, Capital 301
Ms. Marie, Withdrawal 302
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1.Prepare Journal Entries (with explanation)

General Journal Page no.1

Date Description Ref Debit Credit
2019
July 1 Cash 101 175,000
Ms. Marie, Capital 301 175,000
To record cash investment by the owner

5 Office Equipment 103 57,500

Ms. Marie, Capital 301 57,500
Personal Computer Investment

8 Furnitures and Fixtures 104 12,800

Accounts Payable 201 12,800
Purchased office desk and filling cabinet
for P12,800 on credit

9 Computer Software 105 45,000

Cash 101 15,000
Account Payable 201 30,000
Bought a computer software worth
P45,000 with P15,000 down payment

15 Rent Expense 501 7,000

Cash 7,000
Paid rent for the month of July

17 Accounts Receivable 107 12,000

Service Revenue 401 12,000
Rendered service on account

19 Furniture and Fixtures 105 9,000

Cash 9,000
Purchased furniture and fixtures (Panaflex
Sign)

20 Advertisement Expense 402 3,230

Accounts Payable 201 3,230
Payment on account for advertisement

21 Office Supplies 104 2,240

Accounts Payable 201 2,240
Bought office supplies on account

24 Accounts Payable 201 30,000

Cash 101 30,000
Paid the remaining P30,000 to De La
Torre Computer Center
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General Journal Page no.2

Date Description Ref Debit Credit
2019
July 27 Cash 101 12,000
Accounts Receivable 105 12,000
Received P12,000 to Mr. Elijah for
rendered service

31 Utilities Expense 403 1,240

Cash 101 1,240
Paid P1,240 for electric bill

31 Accounts Payable 201 3,230

Cash 101 3,230
Paid P3,230 for advertising ad

31 Cash 101 10,900

Service Revenue 501 10,900
Received cash for services rendered

31 Salaries Expense 404 12,000

Cash 101 12, 000
Paid salaries to employees

31 Ms. Marie, Withdrawal 302 3,500

Cash 101 3,500
The owner withdrew cash for personal
use
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Prepare Ledger or T-Accounts

THE GENERAL LEDGER

CASH Account No. 101

Date Items PR Debit Date Items PR Credit

2019 1 Investment 1 175, 000 2019 9 Down payment for 1 15,000

computer software
July July bought

27 Rendered 2 12,000 15 Payment of rent 1 7,000

Service for the month of
July

31 Rendered 2 10900 19 Payment for 1 9,000

Service panaflex sign
bought

24 Paid the 1 30,000

remaining P30,000
to De la Torre
Computer Center

31 Payment for 1,240

electric bill

31 Payment for 2 3,230

advertisement
expense

31 Payment for 2 12,000

salaries

31 Owner’s 2 3,500
withdrawal

116,930 197,900 80,970

ACCOUNTS RECEIVABLE Account No. 102

Date Items PR Debit Date Items PR Credit

2019 21 Rendered 1 12,000 2019 27 Received the 2 12,000

service remaining amount
July July to Mr. Elijah

0 12,000 12,000

OFFICE EQUIPMENT Account No. 103

Date Items PR Debit Date Items PR Credit

2019 5 Personal 1 57, 500

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July computer
bought

57,500 57,500 0

FURNITURE AND FIXTURES Account No. 104

Date Items PR Debit Date Items PR Credit

2019 8 Purchased 1 12,800

office desk
July and filling
cabinet

19 Purchased 1 9, 000
panaflex
sign

21,800 21,800 0

COMPUTER SOFTWARE Account No. 103

Date Items PR Debit Date Items PR Credit

2019 9 Bought 1 45, 000

computer
July software

45,000 45,000 0

OFFICE SUPPLIES Account No. 104

Date Items PR Debit Date Items PR Credit

2019 21 Bought 1 2,240

print paper
July and
stationery

2,240 2,240 0

ACCOUNTS PAYABLE Account No. 201

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Date Items PR Debit Date Items PR Credit

2019 24 Paid the 1 30,000 2019 8 Purchased office 1 12, 800

remaining desk
July P300,000 July
balance to De
La Torre
Computer
Service

31 Payment for 2 3,230 9 Bought a computer 1 30, 000

advertisement software worth
ad P45,000 with down
payment of
P15,000

20 Payment on 1 3,230
advertisement

21 Bought office 1 2,240

supplies

33,230 15,040 48,270

MS. MARIE, CAPITAL Account No. 301

Date Items PR Debit Date Items PR Credit

2019 1 Investment 1 175,000

July

5 Personal computer 1 57,500

investment

232,500 232,500

MS. MARIE, WITHDRAWAL Account No. 302

Date Items PR Debit Date Items PR Credit

2019 31 Personal 2 3,500

Withdrawal
July
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3,500 3,500

RENT EXPENSE Account No. 401

Date Items PR Debit Date Items PR Credit

2019 31 Rent payment 1 7,000

for the month
July of July

7000 7000

ADVERTISEMENT EXPENSE Account No. 402

Date Items PR Debit Date Items PR Credit

2019 20 Payment for 1 3,320

advertisement
July

3,320 3,320

UTILITIES EXPENSE Account No. 403

Date Items PR Debit Date Items PR Credit

2019 20 Payment for 1 1,240

ELECTRIC
July BILL

1,240 1,240

SALARIES EXPENSE Account No. 404

Date Items PR Debit Date Items PR Credit

2019 20 Paid salaries 2 12,000

to employees
July

12,000 12,000

SERVICE REVENUE Account No. 303

Date Items PR Debit Date Items PR Credit

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2019 17 Rendered Service 1 12,000

July

31 Rendered Service 2 10,900

22,900 22,900

1. Prepare Trial Balance

EM Data Encoders
Trial Balance
July 31, 2019

Debit Credit
Cash P 116,930
Office Equipment 57,500
Furnitures and Fixtures 21,800
Computer Software 45,000
Office Supplies 2,240
Accounts Payable P 15,040
Ms. Marie, Capital 232,500
Ms. Marie, Withdrawal 3500
Rent Expense 7,000
Advertisement Expense 3,320
Utilities Expense 1,240
Salaries Expense 12,000
Service Revenue 22,900

270,530 270440
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Problem 1: True or False (10points)

Problem 2: Instruction: Write True if the statement is correct and False if the statement is wrong.

Item Answer
1
2
3
4
5
6
7
8
9
10
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