The following transactions were found on the books of Shena Hall and Wall Graphic Designs
a. Bank note issued last October 1, 2019 maturing in 20 months with 3% interest
b. The useful life of the building is 20 years with a salvage value of Php 50,000
c. Paid employees salaries and commission for October 17 to October 31, 2019
d. It is expected that 5% of the accounts from Ms. Silvanna is deemed uncollectible.
e. Records show that there are still remaining Php 3,480 worth of art and crafts supply.
f. Purchase of insurance last October 15, 2020 was not recorded. The insurance contract is worth 72,000 and is valid until October 15, 2023.
Requirements:
1 Prepare the necessary journal entries for the month ending October 31, 2019
2 Prepare the adjusted trial balance of Shena Hall and Wall Graphic Designs
3 Prepare the (1) Income Statement; and (2) Statement of Financial Position for October 2019
The following transactions were found on the books of Shena Hall and Wall Graphic Designs
a. Bank note issued last October 1, 2019 maturing in 20 months with 3% interest
b. The useful life of the building is 20 years with a salvage value of Php 50,000
c. Paid employees salaries and commission for October 17 to October 31, 2019
d. It is expected that 5% of the accounts from Ms. Silvanna is deemed uncollectible.
e. Records show that there are still remaining Php 3,480 worth of art and crafts supply.
f. Purchase of insurance last October 15, 2020 was not recorded. The insurance contract is worth 72,000 and is valid until October 15, 2023.
Requirements:
1 Prepare the necessary journal entries for the month ending October 31, 2019
2 Prepare the adjusted trial balance of Shena Hall and Wall Graphic Designs
3 Prepare the (1) Income Statement; and (2) Statement of Financial Position for October 2019
The following transactions were found on the books of Shena Hall and Wall Graphic Designs
a. Bank note issued last October 1, 2019 maturing in 20 months with 3% interest
b. The useful life of the building is 20 years with a salvage value of Php 50,000
c. Paid employees salaries and commission for October 17 to October 31, 2019
d. It is expected that 5% of the accounts from Ms. Silvanna is deemed uncollectible.
e. Records show that there are still remaining Php 3,480 worth of art and crafts supply.
f. Purchase of insurance last October 15, 2020 was not recorded. The insurance contract is worth 72,000 and is valid until October 15, 2023.
Requirements:
1 Prepare the necessary journal entries for the month ending October 31, 2019
2 Prepare the adjusted trial balance of Shena Hall and Wall Graphic Designs
3 Prepare the (1) Income Statement; and (2) Statement of Financial Position for October 2019
Ref Credit Journal Entries 2019 Date Account Titles October 1, 2019 Computer Cash Building Shena Capital Notes Payable To record investment of owner Debit 50,000 70,000 500,000 370,000 250,000 20,000 October 4, 2019 Arts and Craft Supplies Cash To record purchase of arts and craft supplies 20,000 10,000 10,000 October 5, 2019 Cash Accounts Receivable Service Income To record performance of service 20,000 1 17,000 October 7, 2019 Printer Accounts Payable To record purchase of printer 17,000 8,500 October 9, 2019 Accounts Payable Cash To record 50% of payment on October 7 8,500 30,000 October 12, 2019 Cash Service Income To record performance of service 30,000 10,000 Arts and Craft Supplies Accounts Payable To record purchase of arts and craft supplies 10,000 8,500 October 14, 2019 Accounts Payable Cash To record the payment of remaining balance on October 7 8,500 5,000 October 15, 2019 Advertising Expense Cash To record payment of advertisement 5,000 22,500 7,500 October 16, 2019 Salaries Expense Commission Expense Cash To record payment of salaries 30,000 50,000 October 19, 2019 Cash Service Income To record performance of service 50,000 30,000 October 20, 2019 Accounts Receivable Service Income To record performance of service on account 30,000 10,000 Cash Accounts Receivable To record payment of balance on October 5 10,000 10,000 October 22, 2019 Utilities Expense Accounts Payable To record expense of electricity bill 10,000 4,200 October 24, 2019 Utilities Expense Accounts Payable To record expense of water bill 4,200 10,000 October 27, 2019 Accounts Payable Cash To record payment of electricity bill 10,000 P 12,200 October 29, 2019 Shena drawings Cash To record withdrawal of cash by owner P 12,200 Ledger P Account Title CASH Date: Explanation JR October 1, 2019 Investment of Cash JR#1 October 4, 2019 Purchased Arts and Craft Supplies JR#1 October 5, 2019 Performed Service JR#1 October 9, 2019 Payment of Account JRH1 October 12, 2019 Performed Service JR#1 October 14, 2019 Payment of Account JR#1 October 15, 2019 Payment of Advertisement JR1 October 16, 2019 Paid salaries JR#1 October 16, 2019 Paid commissions JR#1 October 19, 2019 Performed Service JR#1 October 20, 2019 Collecting remaining balance JR1 October 27, 2019 Payment of Account JR#1 October 29, 2019 withdrawal by owner JR1 Page Number Debit Credit 70,000 20,000 10,000 8,500 30,000 8,500 5,000 22,500 7,500 50,000 10,000 10,000 12,200 Balance 70,000 50,000 60,000 51,500 81,500 73,000 68,000 45,500 38,000 88,000 98,000 88,000 75,800 P JR Account Title ARTS AND CRAFTS SUPPLIES Date: Explanation October 4, 2019 Purchased Arts and Craft Supplies JR#1 October 12, 2019 Purchased Arts and Craft Supplies JR#1 Page Number Debit Credit 20,000 10,000 P Balance 20,000 30,000 Account Title ACCOUNTS RECEIVABLE Date: Explanation October 5, 2019 Performed services October 20,2019 Performed services on account October 20,2019 Payment of balance P JR JR#1 JR #1 JR#1 Page Number Debit Credit 10,000 30,000 10000 Balance 10,000 40,000 30000 Account Title COMPUTER Date: Explanation October 1, 2019 Investment of Computer JR JR#1 Page Number Debit Credit 50,000 Balance 50,000 Account Title SHENA CAPITAL Date: Explanation October 1, 2019 initial investment JR JR#1 Page Number Debit Credit 370,000 Balance 370,000 P Account Title SHENA DRAWINGS Date: Explanation October 29, 2019 Withdrawal of cash by owner JR JR1 Page Number Debit Credit 12,200 Balance 12,200 P P Account Title SERVICE INCOME Date: Explanation October 5, 2019 Performed Service October 12, 2019 Performed Service October 19, 2019 Performed Service October 20, 2019 Performed Service on Account JR JR1 JR#1 JR#1 Page Number Debit Credit 20,000 30,000 50,000 30,000 Balance 20,000 50,000 100,000 130,000 Account Title ADVERTISING EXPENSE Date: Explanation October 15, 2019 Paid Advertising Expense JR JRH1 Page Number Debit Credit 5,000 Balance 5,000 P Account Title SALARIES EXPENSE Date: Explanation October 16, 2019 Paid Salaries Expense JR JR#1 Page Number Debit Credit 22,500 Balance 22,500 P Account Title COMMISSIONS EXPENSE Date: Explanation October 16, 2019 Paid Commissions Expense JR JR#1 Page Number Debit Credit 7,500 Balance 7,500 P Account Title UTILITIES EXPENSE Date: Explanation October 22, 2019 Expense of Electricity Bill October 24, 2019 Expense of Water Bill JR JR#1 Page Number Debit Credit 10,000 4,200 P Balance 10,000 14,200 Account Title BUILDING Date: Explanation October 1, 2019 Investment of Building JR JR#1 Page Number Debit Credit 500,000 Balance 500,000 P Account Title PRINTER Date: Explanation October 7, 2019 Purchased printer JR JR1 Page Number Debit Credit 17,000 Balance 17,000 P JR Account Title ACCOUNTS PAYABLE Date: Explanation October 7, 2019 Purchased printer JR#1 October 9, 2019 Payment of Account JR1 October 12, 2019 Purchased Arts and Craft Supplies JR#1 October 14, 2019 Payment of Remaining Balance Page Number Debit Credit 17,000 8,500 10,000 8,500 Balance 17,000 8,500 18,500 10,000 Account Title NOTES PAYABLE Date: Explanation October 1, 2019 Investment of Building JR JR#1 Page Number Debit Credit 250,000 Balance 250,000 Date: Account Title UTILITIES PAYABLE Explanation October 22, 2019 Expense of electricity bill October 24, 2019 Expense of water bill October 27, 2019 Payment of electricity bill JR JR#1 JR#1 JR#1 Page Number Debit Credit 10,000 4,200 10,000 Balance 10,000 14,200 4,200 H B 1 D E G Sheena Hall and Wall Graphic Designs Trial Balance Month of October 2019 2 3 Credit Debit 75,800 30,000 30,000 50,000 500,000 17,000 4 5 Account Name 6 Cash 7 Arts and Craft Supplies 8 Accounts Receivable 9 Computer 10 Building 11 Printer 12 Accounts Payable 13. Notes Payable 14 Utilities Payable 15 Shena Capital 16 shena Drawings 17 Service Income 18 Advertising Expense 19 Salaries Expense 20 Commissions Expense 21 Utilities Expense 22 10,000 250,000 4,200 370,000 12,200 130,000 5,000 22,500 7,500 14,200 764,200 P 764,200 Ref Credit Journal Entries 2019 Date Account Titles October 1, 2019 Computer Cash Building Shena Capital Notes Payable To record investment of owner Debit 50,000 70,000 500,000 370,000 250,000 20,000 October 4, 2019 Arts and Craft Supplies Cash To record purchase of arts and craft supplies 20,000 10,000 10,000 October 5, 2019 Cash Accounts Receivable Service Income To record performance of service 20,000 1 17,000 October 7, 2019 Printer Accounts Payable To record purchase of printer 17,000 8,500 October 9, 2019 Accounts Payable Cash To record 50% of payment on October 7 8,500 30,000 October 12, 2019 Cash Service Income To record performance of service 30,000 10,000 Arts and Craft Supplies Accounts Payable To record purchase of arts and craft supplies 10,000 8,500 October 14, 2019 Accounts Payable Cash To record the payment of remaining balance on October 7 8,500 5,000 October 15, 2019 Advertising Expense Cash To record payment of advertisement 5,000 22,500 7,500 October 16, 2019 Salaries Expense Commission Expense Cash To record payment of salaries 30,000 50,000 October 19, 2019 Cash Service Income To record performance of service 50,000 30,000 October 20, 2019 Accounts Receivable Service Income To record performance of service on account 30,000 10,000 Cash Accounts Receivable To record payment of balance on October 5 10,000 10,000 October 22, 2019 Utilities Expense Accounts Payable To record expense of electricity bill 10,000 4,200 October 24, 2019 Utilities Expense Accounts Payable To record expense of water bill 4,200 10,000 October 27, 2019 Accounts Payable Cash To record payment of electricity bill 10,000 P 12,200 October 29, 2019 Shena drawings Cash To record withdrawal of cash by owner P 12,200 Ledger P Account Title CASH Date: Explanation JR October 1, 2019 Investment of Cash JR#1 October 4, 2019 Purchased Arts and Craft Supplies JR#1 October 5, 2019 Performed Service JR#1 October 9, 2019 Payment of Account JRH1 October 12, 2019 Performed Service JR#1 October 14, 2019 Payment of Account JR#1 October 15, 2019 Payment of Advertisement JR1 October 16, 2019 Paid salaries JR#1 October 16, 2019 Paid commissions JR#1 October 19, 2019 Performed Service JR#1 October 20, 2019 Collecting remaining balance JR1 October 27, 2019 Payment of Account JR#1 October 29, 2019 withdrawal by owner JR1 Page Number Debit Credit 70,000 20,000 10,000 8,500 30,000 8,500 5,000 22,500 7,500 50,000 10,000 10,000 12,200 Balance 70,000 50,000 60,000 51,500 81,500 73,000 68,000 45,500 38,000 88,000 98,000 88,000 75,800 P JR Account Title ARTS AND CRAFTS SUPPLIES Date: Explanation October 4, 2019 Purchased Arts and Craft Supplies JR#1 October 12, 2019 Purchased Arts and Craft Supplies JR#1 Page Number Debit Credit 20,000 10,000 P Balance 20,000 30,000 Account Title ACCOUNTS RECEIVABLE Date: Explanation October 5, 2019 Performed services October 20,2019 Performed services on account October 20,2019 Payment of balance P JR JR#1 JR #1 JR#1 Page Number Debit Credit 10,000 30,000 10000 Balance 10,000 40,000 30000 Account Title COMPUTER Date: Explanation October 1, 2019 Investment of Computer JR JR#1 Page Number Debit Credit 50,000 Balance 50,000 Account Title SHENA CAPITAL Date: Explanation October 1, 2019 initial investment JR JR#1 Page Number Debit Credit 370,000 Balance 370,000 P Account Title SHENA DRAWINGS Date: Explanation October 29, 2019 Withdrawal of cash by owner JR JR1 Page Number Debit Credit 12,200 Balance 12,200 P P Account Title SERVICE INCOME Date: Explanation October 5, 2019 Performed Service October 12, 2019 Performed Service October 19, 2019 Performed Service October 20, 2019 Performed Service on Account JR JR1 JR#1 JR#1 Page Number Debit Credit 20,000 30,000 50,000 30,000 Balance 20,000 50,000 100,000 130,000 Account Title ADVERTISING EXPENSE Date: Explanation October 15, 2019 Paid Advertising Expense JR JRH1 Page Number Debit Credit 5,000 Balance 5,000 P Account Title SALARIES EXPENSE Date: Explanation October 16, 2019 Paid Salaries Expense JR JR#1 Page Number Debit Credit 22,500 Balance 22,500 P Account Title COMMISSIONS EXPENSE Date: Explanation October 16, 2019 Paid Commissions Expense JR JR#1 Page Number Debit Credit 7,500 Balance 7,500 P Account Title UTILITIES EXPENSE Date: Explanation October 22, 2019 Expense of Electricity Bill October 24, 2019 Expense of Water Bill JR JR#1 Page Number Debit Credit 10,000 4,200 P Balance 10,000 14,200 Account Title BUILDING Date: Explanation October 1, 2019 Investment of Building JR JR#1 Page Number Debit Credit 500,000 Balance 500,000 P Account Title PRINTER Date: Explanation October 7, 2019 Purchased printer JR JR1 Page Number Debit Credit 17,000 Balance 17,000 P JR Account Title ACCOUNTS PAYABLE Date: Explanation October 7, 2019 Purchased printer JR#1 October 9, 2019 Payment of Account JR1 October 12, 2019 Purchased Arts and Craft Supplies JR#1 October 14, 2019 Payment of Remaining Balance Page Number Debit Credit 17,000 8,500 10,000 8,500 Balance 17,000 8,500 18,500 10,000 Account Title NOTES PAYABLE Date: Explanation October 1, 2019 Investment of Building JR JR#1 Page Number Debit Credit 250,000 Balance 250,000 Date: Account Title UTILITIES PAYABLE Explanation October 22, 2019 Expense of electricity bill October 24, 2019 Expense of water bill October 27, 2019 Payment of electricity bill JR JR#1 JR#1 JR#1 Page Number Debit Credit 10,000 4,200 10,000 Balance 10,000 14,200 4,200 H B 1 D E G Sheena Hall and Wall Graphic Designs Trial Balance Month of October 2019 2 3 Credit Debit 75,800 30,000 30,000 50,000 500,000 17,000 4 5 Account Name 6 Cash 7 Arts and Craft Supplies 8 Accounts Receivable 9 Computer 10 Building 11 Printer 12 Accounts Payable 13. Notes Payable 14 Utilities Payable 15 Shena Capital 16 shena Drawings 17 Service Income 18 Advertising Expense 19 Salaries Expense 20 Commissions Expense 21 Utilities Expense 22 10,000 250,000 4,200 370,000 12,200 130,000 5,000 22,500 7,500 14,200 764,200 P 764,200
