Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    Fundamentals of ABM 1 & 2: Accounting Exercises

    Uploaded by

    Rezel Funtilar
    The document provides journal entries for Ms. Chiu's laundry business called "Ms. Labandera" from January 2, 2016 through its early operations. It records Ms. Chiu's initial investment of PHP500,000, cash collections of PHP3,000 from customers, purchases of supplies and a washing machine, payment of utilities, receipt of payment from a hotel customer, Ms. Chiu withdrawing cash for personal use, and additional purchases made partially on account. It also includes practice problems applying the accounting equation to calculate asset, liability, and equity balances for various companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Fundamentals of ABM 1 & 2: Accounting Exercises

    Uploaded by

    Rezel Funtilar
    3K views22 pages
    The document provides journal entries for Ms. Chiu's laundry business called "Ms. Labandera" from January 2, 2016 through its early operations. It records Ms. Chiu's initial investment of PHP500,000, cash collections of PHP3,000 from customers, purchases of supplies and a washing machine, payment of utilities, receipt of payment from a hotel customer, Ms. Chiu withdrawing cash for personal use, and additional purchases made partially on account. It also includes practice problems applying the accounting equation to calculate asset, liability, and equity balances for various companies.

    Original Title

    PRACTICE SET.pptx

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Read this document in other languages

    Did you find this document useful?

    Is this content inappropriate?

    The document provides journal entries for Ms. Chiu's laundry business called "Ms. Labandera" from January 2, 2016 through its early operations. It records Ms. Chiu's initial investment of PHP500,000, cash collections of PHP3,000 from customers, purchases of supplies and a washing machine, payment of utilities, receipt of payment from a hotel customer, Ms. Chiu withdrawing cash for personal use, and additional purchases made partially on account. It also includes practice problems applying the accounting equation to calculate asset, liability, and equity balances for various companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    3K views22 pages

    Fundamentals of ABM 1 & 2: Accounting Exercises

    Uploaded by

    Rezel Funtilar
    The document provides journal entries for Ms. Chiu's laundry business called "Ms. Labandera" from January 2, 2016 through its early operations. It records Ms. Chiu's initial investment of PHP500,000, cash collections of PHP3,000 from customers, purchases of supplies and a washing machine, payment of utilities, receipt of payment from a hotel customer, Ms. Chiu withdrawing cash for personal use, and additional purchases made partially on account. It also includes practice problems applying the accounting equation to calculate asset, liability, and equity balances for various companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22
    At a glance
    Powered by AI
    The key takeaways are the basic journal entries to record various business transactions like investments, revenues, expenses, purchases, and withdrawals for a laundry business.

    The steps to record a business transaction through a journal entry are to describe the transaction, identify the accounts affected and determine if they are debited or credited, and write the journal entry in the debit-credit format.

    The accounting equation is Assets = Liabilities + Owner's Equity. It expresses the basic relationship that the assets of a company are equal to the claims on those assets by its creditors and owners. It is used to check that debits and credits are equal in a journal entry to keep the accounting records in balance.

    FUNDAMENTALS OF

    ABM 1 & 2
    ACCOUNTING EXERCISES
    JOURNAL
    ENTRY
    Ms Chiu open a laundry business on Jan. 2,
    2016. She Invested PHP500,000 to her
    business. The trade name of the business
    was “MS. LABANDERA”
    Cash 500,000
    Chiu, Capital 500,000
    To record investment by owner.
    Collections from various customers
    for the day - PHP3,000

    Cash 3,000
    Service Income 3,000
    To record collection from customer.
    Purchase store supplies from
    Labada Store - PHP10,000

    Office Supplies 10,000


    Cash 10,000
    To record purchase of supplies.
    Sikat Hotel availed the services of MS.
    LABANDERA amounting to PHP15,000.
    Payment will be made on January 20, 2016.

    Accounts Receivable 15,000


    Service Income 15,000
    To record rendered service on account.
    Purchase a washing machine on
    account amounting to PHP50,000

    Property, Plant & Equipment 50,000


    Accounts Payable 500,000
    To record purchase of equipment on account.
    Paid electricity bill for the month
    amounting to PHP18,000

    Utilities Expense 1,800


    Cash 1,800
    To record payment to electricity.
    Received payment from Sikat Hotel
    amounting to PHP15,000.

    Cash 15, 000


    Accounts Receivable 15,000
    To record payment of Sikat Hotel.
    Ms. CHIU needed money for the
    hospitalization of his son. He withdrew
    PHP18,000 from the business.

    Chiu, Drawing 18,000


    Cash 18,000
    To record withdrawal of Ms. Chiu.
    Purchased office supplies pay P5,000 and
    issue a note for the remaining P3,000.

    Office Supplies 8,000


    Cash 5,000
    Notes Payable 3,000
    To record purchase of supplies.
    ACCOUNTING
    EQUATION PRACTICE!
    ASSETS = OWNER’S EQUITY +
    LIABILITIES
    Learning is Fun Company had current assets
    amounting to Php 100,000. Noncurrent
    assets for the year totaled Php 76,000. How
    much is the company’s total assets?

    Answer: P176,000.
    Happy Selling Company’s total liabilities
    amounted Php 10,000. Total equity had
    an ending balance of Php 20,000. How
    much is total assets?

    Answer: P30,000.
    Happy Selling’s had the following accounts at
    year end: Cash-250,000, Accounts Payable-
    70,000, Prepaid Expense-15,000. Compute
    for the company’s current assets.

    Answer: P265,000.
    Happy Selling’s Accounts Receivable amounted to Php
    500,000. Prepaid Expense and PPE totaled Php 30,000
    and Php 90,000 respectively. Cash balance amounted
    to Php 100,000 while Accounts Payable and Unearned
    Income totaled to Php 20,000 and Php 10,000
    respectively. How much is the company’s current
    assets? Current liabilities?

    Answer: P630,000 and P30,000


    Company’s Total Liabilities and Equity amounted
    to Php 285,000. Total noncurrent assets ended at
    Php 85,000. Cash totaled Php50,000. Inventory
    amounted to Php100,000. Assuming the company
    had no other assets, how much is Accounts
    Receivable?

    Answer: P50,000.
    Total assets amounted to Php575,000. Total
    equity amounted to Php 250,000. Accounts
    Payable amounted to Php 50,000 while Unearned
    Income totaled Php 85,000. Assuming there are
    no other current liabilities, compute for the
    company’s noncurrent liabilities.

    Answer: P190,000
    If assets are Php17,000 and
    owner's equity is Php10,000,
    liabilities are _______________.
    Answer: Php 7,000 (Topic: Assets = Liabilities
    + Owner’s Equity)
    At the end of the first month of operations for Juana’s
    Delivery Service, the business had the following accounts:
    Accounts Receivable, Php1,200; Prepaid Insurance,
    Php500; Equipment, Php36,200 and Cash, Php40,650. On
    the same date, Juana owed the following creditors: Nena’s
    Supply Company, Php12,000; Maria’s Equipment,
    Php9,500.The current assets for the Juana’s Delivery
    Service are _________.

    Answer:Php42,350
    At the end of the first month of operations for Juana’s
    Delivery Service, the business had the following accounts:
    Accounts Receivable, Php1,200; Prepaid Insurance,
    Php500; Equipment, Php36,200 and Cash, Php40,650. On
    the same date, Juana owed the following creditors: Nena’s
    Supply Company, Php12,000 (due in 6 months); Maria’s
    Equipment, Php9,500 (due after 2 years).Current liabilities
    are _________.

    Answer: Php12,000
    THANK YOU!

    You might also like