MARK ANDREWS opened a shoe repair shop called MA Shoes with an initial capital in January 1, 2020 composed of CASH Php 100,000 SUPPLIES (Asset Method) Php 25,000 SHOE MACHINE Php 200,000 Transactions during the month are as follows Jan 2 Paid business tax to the City treasurer amounting to Php 3,000 and rent for the store space for the month amounting to Php 10,000 Jan 5 Purchased cabinets and tables from Balinggit Furnitures for Php 30,000 on credit Jan 5 Hired a new shoe worker with Php 250 daily wage He works from Monday to Fridays and started working on January 6, 2020 Jan 10 Received Php 15,000 cash for shoe repair services from various customers Sent charge bill, Php 30,000 for repairs rendered to Kiwi Shoes Jan 11 Bought supplies on credit from Baguio City Center Mall, Php 4,000 (Asset Method) Jan 12 Sent charge bills for shoe repairs rendered on credit to Shoe Mart Php 30,000 Adidas 10,000 Nike 8,000 Jan 15 Paid the following expenses Salary of shoe worker Transportation Php 5,000 Internet Expenses Php 2,000 Jan 16 Received cash collections on credit from Kiwi Shoes Php 18,000 Shoe Mart Php 18,000 Adidas Php 6,000 Nike Php 5,000 Jan 18 Received Php 7,000 cash for services rendered to various customers Paid Balinggit Furnitures and Baguio City Center Mall, Php 30,000 and 4,000, respectively Jan 20 Mark Andrew withdrew Php 10,000 cash for his personal use Jan 21 Paid Php 3,000 to repairman for repair service of the shoe machine Jan 25 Paid advertising for the month, Php 2,500 Jan 30 Paid the salary of the shoe worker Adjustments The remaining supplies at the end of the month is Php 7,500 The estimated useful life of the shoe machine and the cabinets and tables are 5 years Required list the chart of accounts to be used in recording the transactions Make sure to list the accounts according to the order of the accounting elements Journalize the above transactions in the general journal Please make sure to incorporate the necessary adjusting entries at the end of the month Post entries to the ledger Prepare the unadjusted trial balance and the set of financial statements for the month of January 2020 a Statement of Financial Position b Statement of Comprehensive Income c Statement of changes in Owner's Equity d Statement of Cash Flows Journalize the necessary closing entries post closing trial balance Part B Sky Repair Shop prepares quarterly statements You were asked to conduct an audit of its transactions The bookkeeper presented to you the records and you found out the following account balances before adjustments for the quarter ended March 31, 2020 Required Prepare the necessary adjusting entries as of March 31, 2020 Show supporting computations in good form 1 During the quarter, SRS collected in advance Php 50,000 from clients and credited the same to Unearned Service Fees Studies revealed that at the beginning of the current quarter Unearned Service Fees have a balance of Php 25,000 and as of March 31, 2020, the same had a balance of Php 20,000 2 The balance of Prepaid Insurance account of Php 44,000 represents a one year policy contracted last November 1, 2019 for Php 20,000 and a two year policy contracted last July 2020 for Php 12,000 3 The balance of the Prepaid Rent account of Php 100,000 pertains to advance rent paid last December 1, 2019 six months effective on the same date 4 The rate per day of each of the four shop workers is Php 700 SRS pays the weekly salaries of its workers every Monday if the following week (a week consists of five days from Monday to Friday) March 31, 2020 falls on Thursday 5 Mortgage notes payable had a credit balance of Php 400,000 as of March 31, 2020 Interest at the rate of 12 is payable semi annually every August 1 and February 1 SRS regularly paid the interest payments 6 Last January 15, 2020, SRS entered into a 9 month advertising contract with TV 5 Network paying Php 240,000, which was debited to advertising expense The same shall commence on January 15, 2020

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MARK ANDREWS opened a shoe repair shop called MA Shoes with an initial capital in January 1, 2020 composed of: CASH Php 100,000 SUPPLIES (Asset

MARK ANDREWS opened a shoe repair shop called "MA Shoes" with an initial capital in January 1, 2020 composed of:

CASH

Php 100,000

SUPPLIES (Asset Method)

Php 25,000

SHOE MACHINE

Php 200,000

Transactions during the month are as follows:

Jan 2

Paid business tax to the City treasurer amounting to Php 3,000 and rent for the store space for the month amounting to Php 10,000.

Jan 5

Purchased cabinets and tables from Balinggit Furnitures for Php 30,000 on credit.

Jan 5

Hired a new shoe worker with Php 250 daily wage. He works from Monday to Fridays and started working on January 6, 2020.

Jan 10

Received Php 15,000 cash for shoe repair services from various customers. Sent charge bill, Php 30,000 for repairs rendered to Kiwi Shoes.

Jan 11

Bought supplies on credit from Baguio City Center Mall, Php 4,000 (Asset Method).

Jan 12

Sent charge bills for shoe repairs rendered on credit to:

Shoe Mart - Php 30,000

Adidas - 10,000

Nike - 8,000

Jan 15

Paid the following expenses:

Salary of shoe worker

Transportation - Php 5,000

Internet Expenses - Php 2,000

Jan 16

Received cash collections on credit from:

Kiwi Shoes - Php 18,000

Shoe Mart - Php 18,000

Adidas - Php 6,000

Nike - Php 5,000

Jan 18

Received Php 7,000 cash for services rendered to various customers. Paid Balinggit Furnitures and Baguio City Center Mall, Php 30,000 and 4,000, respectively.

Jan 20

Mark Andrew withdrew Php 10,000 cash for his personal use.

Jan 21

Paid Php 3,000 to repairman for repair service of the shoe machine.

Jan 25

Paid advertising for the month, Php 2,500.

Jan 30

Paid the salary of the shoe worker.

Adjustments:

The remaining supplies at the end of the month is Php 7,500.

The estimated useful life of the shoe machine and the cabinets and tables are 5 years.

Required

list the chart of accounts to be used in recording the transactions. Make sure to list the accounts according to the order of the accounting elements.
Journalize the above transactions in the general journal. Please make sure to incorporate the necessary adjusting entries at the end of the month.
Post entries to the ledger.
Prepare the unadjusted trial balance and the set of financial statements for the month of January 2020:

a.Statement of Financial Position

b.Statement of Comprehensive Income

c.Statement of changes in Owner's Equity

d.Statement of Cash Flows

Journalize the necessary closing entries
post-closing trial balance

Part B.

Sky Repair Shop prepares quarterly statements. You were asked to conduct an audit of its transactions. The bookkeeper presented to you the records and you found out the following account balances before adjustments for the quarter ended March 31, 2020.

Required: Prepare the necessary adjusting entries as of March 31, 2020. Show supporting computations in good form.

1.During the quarter, SRS collected in advance Php 50,000 from clients and credited the same to Unearned Service Fees. Studies revealed that at the beginning of the current quarter Unearned Service Fees have a balance of Php 25,000 and as of March 31, 2020, the same had a balance of Php 20,000.

2.The balance of Prepaid Insurance account of Php 44,000 represents a one-year policy contracted last November 1, 2019 for Php 20,000 and a two-year policy contracted last July 2020 for Php 12,000.

3.The balance of the Prepaid Rent account of Php 100,000 pertains to advance rent paid last December 1, 2019 six months effective on the same date

4.The rate per day of each of the four shop workers is Php 700. SRS pays the weekly salaries of its workers every Monday if the following week (a week consists of five days from Monday to Friday). March 31, 2020 falls on Thursday.

5.Mortgage notes payable had a credit balance of Php 400,000 as of March 31, 2020. Interest at the rate of 12% is payable semi-annually every August 1 and February 1. SRS regularly paid the interest payments.

6.Last January 15, 2020, SRS entered into a 9-month advertising contract with TV-5 Network paying Php 240,000, which was debited to advertising expense. The same shall commence on January 15, 2020.