3.

Presented below is information related to Nemo Real Estate Agency:

Nov. 1 Nemie Morales begins business as a real estate agent with a cash investment of
P130,000.
2 Hires an administrative assistant.
3 Buys office furniture for P19,000 on account.
6 Sells a house and lot for Mr. Flores; fees due from Mr. Flores, P32,000 (not
paid by Mr. Flores at this time).
10 Receives cash of P1,400 as fees for renting an apartment for the owner.
27 Pays P7,000 on the balance indicated in the transaction of November 3.
27 Pays the administrative assistant P9,600 in salary for
November.
Nemo Real Estate Agency’s chart of accounts shows:
01 Cash
02 Accounts
Receivable
03 Furniture and
Fixtures
04 Accounts
Payable
05 Morales, Capital
06 Service Revenue
07 Rent Income
08 Salaries Expense

5.
The Kindness Miniature Gold and Driving Range was opened on May 1 by Edna Ramirez. The
following selected events and transactions occurred during May:
May 1 Invested P500,000 cash in the business.
3 Purchased Lee’s Golf Land of P380,000 cash. The price consists of land,
P230,000; building, P90,000; and equipment, P60,000
5 Advertised the opening of the driving range and miniature golf course, paying
advertising expenses of P16,000.
6 Paid cash P14,800 for a one-year insurance policy.
10 Purchased golf clubs and other equipment for P16,000 from Pambunal
Company payable in 30 days.
18 Received golf fees of P8,000 in cash.
19 Sold 100 coupon books for P150 each. each book contains 10 coupons that
enable the holder to one round of miniature golf or to hit one bucket of golf balls.
25 Withdraw P5,000 cash for personal use.
30 Paid salaries of P6,000.
31 Received P5,000 of fees in cash.
Chart of accounts: 01 Cash; 02 Prepaid Insurance; 03 Land; 04 Buildings; 05 Equipment; 06
Accounts Payable; 07 Unearned Golf Fees; 08 Ramirez, Capital; 09 Ramirez, Drawing; 10 Golf
Fees Earned; 11 Advertising Expense; 12 Salaries Expense.

6.
The trial balance of Nora’s Laundry on April 30 is shown below:
NORA’S LAUNDRY
Trial Balance
April 30, 2022

Account No. Account Titles Debit Credit

101 Cash P85,000
112 Accounts Receivable 22,000
126 Supplies 17,000
157 Equipment 80,000
201 Accounts Payable P50,000
206 Unearned Revenue 7,000
301 Nora, Capital 147,000
Balance P204,000 P204,000

The May transactions were as follows:

May 5 Received P9,000 cash from customers on account.
10 Billed customers for services performed P55,000.
15 Paid employee salaries P12,000.
17 Performed P4,000 of services for customers who paid in advance in March.
20 Paid P16,000 to creditors on account.
31 Paid utilities P6,000.
Additional account titles: 302 Nora, Drawing; 205 Laundry Revenue; 401 Salaries Expense; 402
Utilities Expense

7.
The SM Cinema, owned by Sy, will begin operations in March. The Star will be unique in that it
will show only triple features of sequential theme movies. As of February 28, the ledger of Star
showed: 01 Cash P160,000; 03 Land P420,000; 04 Building (concession stand, projection
room, ticket booth, and screen) P180,000; 05 Equipment P160,000; 06 Accounts Payable
P120,000; and 07 SM, Capital P800,000. During the month of March the following events and
transactions occurred:

March 2 Acquired three Star Wars movies (Star Wars, The Empire Strikes Back, and The
Return of the Jedi) to be shown for the first 3 weeks of March. The film rental was
P120,000; P40,000; was paid in cash and P80,000 will be paid on March 10.
3 Ordered the first three Star Wars Trek movies to be shown the last 10 days of
March. It will cost P4,000 per night.
9 Received P65,000 cash from admissions.
10 Paid balance due on Star Wars movies rental and P30,000 on February 28
accounts payable.
11 Hired T. Bugak to operate concession stand. T. Bugak to pay Star Theater 15%
of gross receipts payable monthly.
12 Paid advertising expenses P8,000.
20 Received P72,000 cash from admissions.
20 Received the Star Trek movies and paid the rentals fees of P40,000.
31 Paid salaries of P38,000.
31 Received statement from T. Bugak showing gross receipts from concessions of
 P80,000 and the balance due to Star Theater of P12,000 for March. T. Bugak was
paid one-half the balance due and will remit the remainder on April 5.
31 Received P125,000 cash from admissions.
Additional accounts: 02 Accounts Receivable; 08 Admission Revenue; 09 Concession
Revenue; 10 Advertising Expense; 11 Film Rental Expense; 12 Salaries Expense

8.
Dr. Darren Gonzales opened a medical clinic in Kapalong, Davao del Norte. With the use of a
two-column General Journal, record the completed transactions during the first month of its
operation using the given chart of accounts:

Chart of Accounts
Assets Owner’s Equity
01 Cash on Hand 08 D. Gonzales, Capital
02 Accounts Receivable 09 D. Gonzales, Drawing
03 Unused Medical Supplies Income
04 Furniture & Fixtures 10 Medical Fees Income
05 Medical Equipment Expenses
Liabilities 11 Salaries Expense
06 Accounts Payable 12 Taxes and Licenses
07 Notes Payable 13 Utilities Expense
Transactions:
Sep 1 Dr. Gonzales invested cash amounting to P950,000 and a clinic furniture worth
P250,000.
2 Bought medical equipment on account from Gensan Medical Equipment
Supply Company amounting to P750,000, paying P200,000 and issued a note
for the balance.
4 Bought medical supplies for cash, P100,000.
5 The doctor withdrew for his personal use, P15,000.
7 Medical Fees income earned for the week:
Cash P50,000
On Account 60,000
9 Dr. Gonzales made an additional cash investment of P350,000.
11 Full payment of the note issued to Gensan Medical Equipment Supply
Company, P550,000.
14 Medical fees income earned for the week:
Cash P30,000
On Account 10,000
15 Collected in full the patients’ accounts of Sep 7, P60,000
18 Bought medical supplies on account from GMESCO, P30,000.
28 Medical fees income for two weeks:
Cash P40,000
On Account 70,000
30 Paid the following expenses:
Taxes and Licenses, P20,000
Salaries of Attendants, P45,000
Utilities Expenses, P40,000
9.
Mr. Kent Masayahin is engaged in a Rent-A-Car business to cater tourists whoa re visiting
Tagbilaran City. His investment consisted of the following:
2 units Toyota Van – P2,000,000
Cash which he deposited with RCBC, P50,000

Chart of Accounts
Assets Owner’s Equity
Cash in Bank K. Masayahin, Capital
Accounts Receivable K. Masayahin, Drawing
Tires and Tubes Inventory Income
Prepaid Insurance Rental Revenue
Transportation Equipment Expenses
Liabilities Gasoline and Oil
Accounts Payable Taxes and Licenses
Unearned Rental Revenue Commission Expense
Repairs and Maintenance
Transactions:
May 1 -Bought gasoline and oil for the 2 units Toyota Van, P3,500.
2 -Rendered transportation service to various tourists who roamed around the
city to watch the Sandugo Festival, P20,000.
3 -Paid business permits and licenses including that of the Land Transportation
Office, P15,000.
7 -Rental revenue for the week from tourists for visiting Panglao Beach Resort,
Loboc River and Chocolate Hills, P12,000.
8 -Received a bill from Petron Service Center for gasoline withdrawn on account,
P15,000.
9 -Paid in advance car insurance (on damaged and third party liability) P7,300.
10 -Bought spare tire on account from Tagbiliran Dura-Trac, P8,500.
14 -Rental revenue for the week:
Cash, P25,000
On Account, P10,000
-Payment of the Petron Service Center bill, P15,000.
15 -Paid driver’s commission for the week, P7,000.
16 -Check-up of Toyota Van and replacement of exploded tire and repair of side
mirror, P3,500.
17 -Received a bill from Petron Service Center for gasoline withdrawn on account,
P17,500.
22 -Received cash of P15,000 from Cebu Lions Club for services that has not yet
been rendered.
-Rental revenue for the week:
Cash, P12,000
On Account, P15,000
-Paid driver’s commission, P7,000.
23 -Collected the customer’s account of May 14, P10,000
24 -Partial payment of account with Petron Service Center, P12,000.
25 -Paid the account of May 10 with Tagbilaran Dura-Trac in the amount of
P8,500.
 26 -Received P2,800 as payment for a special trip to Baclayon Church.
-Paid gasoline and oil for cash, P1,000.
27 -Refunded the amount of P15,000 to Cebu Lions Club re-May 22 transaction.
Trip was cancelled.
28 -Rental revenue for the week, P27,000 broken down as follows:
Cash, P20,000
On Account, P7,000
29 -Paid the driver’s commission, P5,600.
30 -Bought gasoline on account from Caltex Philippines, P1,000.
31 -Paid the account with Caltex Philippines, P1,000.
-Collected in full the customers’ account of May 28 – P7,000 and May 22 –
P15,000.
-Received cash of P3,000 from Cebu Employees Union for services that has to
be rendered yet.
-Minor repair of Toyota Van, P2,500.

10.
Mr. Ezekiel Roswell is a professional accountant. He ventured in a milling business to serve
the needs of farmers in the rural areas of Dipolog City. With the given chart of accounts,
record the transactions for the first month of operations on April 2022.

DIPOLOG RICE MILL

Chart of Accounts
Assets Owner’s Equity
Cash in Bank E. Roswell, Capital
Petty Cash Fund E. Roswell, Drawing
Accounts Receivable Income
Advances to Employees Milling Income
Diesoline Inventory Other Income
Satake Rice Mill Expenses
Furniture and Fixtures Salaries and Wages
Liabilities Taxes and Licenses
Accounts Payable Repairs and Maintenance
Unearned Milling Income Light and Water

Transactions for the month:

April 1 Mr. Ezekiel Roswell invests cash of P100,000. He deposited the P99,000 in
Land Bank and kept the P1,000 as petty cash fund to pay for small expenses. He also
invests a Satake Rice Mill which includes installation cost worth P950,000 and
Furniture amounting to P80,000 for a total investments of P1,130,000.
3 Purchased diesoline worth P15,000 account from Caltex Philippines.
5 Paid licenses and Business permits to the city government, P2,800.
7 Salary advance of an employee deductible from payroll, P3,000.
8 Paid minor repairs, P500. This was taken from the Petty Cash Fund.
14 Received cash for milling services, P9,000
18 Withdrew P8,000 cash for personal use.
20 Rendered milling services to Zamboanga Traders on account, P18,000.
23 Paid in full the account with Caltex Philippines, P15,000.
27 Collected partially the account of Zamboanga Traders, P10,000
28 Received cash in advance but service is still to be rendered, P7,000.
29 Paid light and water for the month, P8,000.
30 Total payroll for the month, P15,000 less salary advance of P3,000.
Billed Dipolog Farms for milling services rendered, P25,000.