0124 - Review of Accounting Process

General Journal page no.
Date Account Titles and Explanation F Debit Credit

2014
Dec 1 Cash 111 8,000
Josie Cacdac, capital 311 8,000
To record the initial investment of
J. Cacdac.
1 Sewing Machines 119 6,000

Cash 111 1,500
Accounts payable - Rufino Merchandinsing 212 4,500
Sewing machines bought. Terms:
1,500 down, bal. payable w/in 60 days.
1 Prepaid rent 116 3,000

Cash 111 3,000
Payment of the shop space rental
for the months of Dec, Jan & Feb.
1 Insurance expense 513 570

Cash 111 570
Payment of a one-year insurance
policy.
3 Sewing Tools 118 590

Sewing supplies 114 270
Accounts payable - Virgilio Trading 211 860
Purchase of tools and supplies on
credit.
5 Cash 111 120

Service income 411 120
Cash received for a terno delivered.
7 Accounts receivable - Flor Valdez 112 500

Services rendered on credit.
10 Clothing Materials 115 1,500

Cash 111 1,500
Purchase of clothing materials.
page no. 2
13 Cash 111 1,250
Service income 411 1,250
Cash received from various customers
for services rendered.
14 Accounts payable - Rufino Merchandising 212 4,500

Cash 111 1,500
Notes payable 213 3,000
Settlement of the account due to
Rufino Merchandising.
15 Wages 511 250

Cash 111 250
Wages of the shop helper for the first
half of the month.
17 Josie Cacdac, personal 312 500

Cash 111 500
Drawing of the owner for personal
use.
18 Cash 111 200

Accounts receivable - F. Valdez 112 200
Partial payment of F. Valdez.
20 Cash 111 1,475

Service income 411 1,475
Cash received from customers for
services rendered.
22 Wages 511 250

Cash 111 250
Wages of the shop helper for the
second half of the month.
23 Accounts receivable - Julius Ilagan 113 400

Services rendered on account.
27 Utility expense 512 150

Telephone and communication expense 514 250
Cash 111 400
Payment of monthly utility
and telephone bills.
CASH Acct no. 11
Date Explanation F Debit Date Explanation F

2014 2014
Dec. 1 Initial Investment J-1 8,000 Dec. 1 Sewing equipt. J-1
5 Service income J-1 120 1 Rental payment J-1
13 Service income J-2 1,250 1 Insurance payment J-1
18 Partial payment of F. Valdez J-2 200 10 Clothing materials J-1
20 Service income J-2 1,475 14 Payt to Rufino Mdsg. J-2
11,045 15 Wages J-2
17 Drawing J-2
22 Wages J-2
27 Utility & Tel. J-2
Balance
11,045
1,575
ACCOUNTS RECEIVABLE - FLOR VALDEZ Acct no. 11

2014 2014
Dec. 7 Service income J-1 500 Dec. 18 Partial payment J-2
500 Balance
300
ACCOUNTS RECEIVABLE - JULIUS ILAGAN Acct no. 11

2014
Dec. 23 Service income J-2 400
SEWING SUPPLIES Acct no. 11

2014
Dec. 3 Purchase J-1 270
CLOTHING MATERIALS Acct no. 11

2014
Dec. 10 Purchase J-1 1,500
PREPAID RENT Acct no. 11
2014
Dec. 1 Rental for 3 months J-1 3,000
PREPAID INSURANCE Acct no. 11

2014
Dec. 31 AJE 6 J-1
SEWING TOOLS Acct no. 11

2014
Dec. 3 Purchase J-1 590
SEWING EQUIPMENT Acct no. 11

2014
Dec. 1 Purchase J-1 6,000
ESTIMATED UNCOLLECTIBLE ACCOUNTS Acct no. 113

ACCUMULATED DEPRECIATION - SEWING MACHINES Acct no. 119

ACCOUNTS PAYABLE - VIRGILIO TRADING Acct no. 21
2014
Dec. 3 Tools and supplies J-1
ACCOUNTS PAYABLE - RUFINO MERCHANDISING Acct no. 21

2014 2014
Dec. 14 J-2 4,500 Dec. 1 Sewing equipt. J-1
NOTES PAYABLE Acct no. 21

2014
Dec. 14 Payment to Rufino Mdsg J-2
ACCRUED INTEREST PAYABLE Acct no. 21

J. CACDAC, CAPITAL Acct no. 31

2014
Dec. 1 Initial investment J-1
J. CACDAC, PERSONAL Acct no. 31

2014
Dec. 17 J-2 500
31 CE 4
SERVICE INCOME Acct no. 41

2014 2014
Dec. 31 CE 1 Dec. 5 J-1
7 F. Valdez J-1
13 J-2
20 J-2
23 J-2
WAGES Acct no. 51

2014
Dec. 15 First half of the month J-2 250
22 Second half of the month J-2 250
500
UTILITY EXPENSE Acct no. 51

2014
Dec. 27 J-2 150
INSURANCE EXPENSE Acct no. 51

2014
Dec. 1 1 year policy J-1 570
TELEPHONE AND COMMUNICATION EXPENSE Acct no. 51

2014
Dec. 27 J-2 250
SEWING SUPPLIES USED Acct no. 51

CLOTHING MATERIALS USED Acct no. 51

RENT EXPENSE Acct no. 51

DEPRECIATION - SEWING EQUIPMENT Acct no. 51

BAD DEBTS Acct no. 52

INTEREST EXPENSE Acct no. 51

REVENUE AND EXPENSE SUMMARY Acct no. 31

Acct no. 111
Debit
1,500
3,000
570
1,500
1,500
250
500
250
400
9,470
1,575
11,045
Acct no. 112

Debit
200
300
500
Acct no. 113

Debit
Acct no. 114

Debit
Acct no. 115

Debit
Acct no. 116
Debit
Acct no. 117

Debit
Acct no. 118

Debit
Acct no. 119

Debit
Acct no. 113a

Debit
Acct no. 119a

Debit
Acct no. 211
Debit
860
Acct no. 212

Debit
4,500
Acct no. 213

Debit
3,000
Acct no. 214

Debit
Acct no. 311

Debit
8,000
Acct no. 312

Debit
Acct no. 411

Debit
120
500
1,250
1,475
400
3,745
Acct no. 511

Debit
Acct no. 512

Debit
Acct no. 513

Debit
Acct no. 514

Debit
Acct no. 515

Debit
Acct no. 516

Debit
Acct no. 517

Debit
Acct no. 519

Debit
Acct no. 520

Debit
Acct no. 518

Debit
Acct no. 313

Debit
J.C. MEN'S WEAR SHOP
Trial Balance
December 31, 2014
Accounts Debit Credit
Cash 1,575.00
Accounts Receivable - Flor Valdez 300.00
Accounts Receivable - Julius Ilagan 400.00
Sewing Supplies 270.00
Clothing Materials 1,500.00
Sewing Tools 590.00
Prepaid Rent 3,000.00
Sewing Equipment 6,000.00
Accounts Payable - Virgilio Trading 860.00
Notes Payable 3,000.00
J. Cacdac, capital 8,000.00
J. Cacdac, personal 500.00
Service Income 3,745.00
Wages 500.00
Utility Expense 150.00
Insurance Expense 570.00
Telephone and Communication Expense 250.00
15,605 15,605
Adjusting Journal Entries
Debit Credit
1 Depreciation - Sewing Machines 519 100.00
Accumulated Depreciation - Sewing Machines 119a 100.00
(P6,000 ÷ 5 x 1/12)
2 Sewing supplies used 515 100.00

Sewing supplies 114 100.00
Sewing supplies 270
Less: Supplies on Hand 170
Sewing supplies used 100
3 Bad debts 520 35.00

Estimated uncollectible accounts 113a 35.00
(P300+400) x .05) = 35
4 Clothing materials used 516 800.00

Clothing materials 115 800.00
Clothing materials 1500
Less: Clothing materials on hand 700
Clothing materials used 800
5 Rent Expense 517 1,000.00

Prepaid rent 116 1,000.00
Prepaid rent, beginning 3000
Less: December rent 1000
Balance, end 2000
6 Prepaid insurance 117 522.50

Insurance expense 513 522.50
570 x 11/12 = 522.50
7 Interest expense 518 7.50

Accrued interest expense 214 7.50
3,000 x .06 x 15/360 = 7.50
CASH
Date Explanation F Debit Date Explanation

2014 2014
Dec. 1 Initial Investment J-1 8,000.00 Dec. 1 Sewing equipt.
5 Service income J-1 120.00 1 Rental payment
13 Service income J-2 1,250.00 1 Insurance payment
18 Partial payment of F. Valdez J-2 200.00 10 Clothing materials
20 Service income J-2 1,475.00 14 Payt to Rufino Mdsg.
11,045.00 15 Wages
17 Drawing
22 Wages
27 Utility & Tel.
Balance
11,045.00
1,575.00
ACCOUNTS RECEIVABLE - FLOR VALDEZ

2014 2014
Dec. 7 Service income J-1 500.00 Dec. 18 Partial payment
500.00 Balance
300.00
ACCOUNTS RECEIVABLE - JULIUS ILAGAN

2014
Dec. 23 Service income J-2 400.00
ESTIMATED UNCOLLECTIBLE ACCOUNTS

2014
Dec. 31 AJE 3
SEWING SUPPLIES
2014 2014
Dec. 3 Purchase J-1 270.00 Dec. 31 AJE 2
Balance
270.00
170.00
CLOTHING MATERIALS
2014 2014
Dec. 10 Purchase J-1 1,500.00 Dec. 31 AJE 4
Balance
1,500.00
700.00
PREPAID RENT
2014 2014
Dec. 1 Rental for 3 months J-1 3,000.00 Dec. 31 AJE 5
Balance
3,000.00
2,000.00
PREPAID INSURANCE
2014
Dec. 31 AJE 6 J-1 522.50
SEWING TOOLS
2014
Dec. 3 Purchase J-1 590.00
SEWING EQUIPMENT
2014
Dec. 1 Purchase J-1 6,000.00
ACCUMULATED DEPRECIATION - SEWING EQUIPMENT
2014
Dec. 31 AJE 1
ACCOUNTS PAYABLE - VIRGILIO TRADING

2014
Dec. 3 Tools and supplies
ACCOUNTS PAYABLE - RUFINO MERCHANDISING

2014 2014
Dec. 14 J-2 4,500.00 Dec. 1 Sewing equipt.
Balance
4,500.00
-
NOTES PAYABLE
2014
Dec. 14 Payment to Rufino Mdsg
ACCRUED INTEREST PAYABLE

2014
Dec. 14 AJE 7
J. CACDAC, CAPITAL
2014
Dec. 1 Initial investment
31 CE 4
J. CACDAC, PERSONAL
2014
Dec. 17 J-2 500.00
SERVICE INCOME
2014
Dec. 5
7 F. Valdez
13
20
23
WAGES
2014
Dec. 15 First half of the month J-2 250.00
22 Second half of the month J-2 250.00
500.00
UTILITY EXPENSE
2014
Dec. 27 J-2 150.00
INSURANCE EXPENSE
2014 2014
Dec. 1 1 year policy J-1 570.00 Dec. 31 AJE 6
Balance
570.00
47.50
TELEPHONE AND COMMUNICATION EXPENSE

2014
Dec. 27 J-2 250.00
SEWING SUPPLIES USED

2014
Dec. 31 AJE 4 100.00
CLOTHING MATERIALS USED

2014
Dec. 31 AJE 4 800.00
RENT EXPENSE
2014
Dec. 31 AJE 5 1,000.00
DEPRECIATION - SEWING EQUIPMENT

2014
Dec. 31 AJE 1 100.00
BAD DEBTS
2014
Dec. 31 AJE 3 35.00
INTEREST EXPENSE
2014
Dec. 31 AJE 7 7.50
REVENUE AND EXPENSE SUMMARY

Acct no. 111
F Debit
J-1 1,500.00
J-1 3,000.00
J-1 570.00
J-1 1,500.00
J-2 1,500.00
J-2 250.00
J-2 500.00
J-2 250.00
J-2 400.00
9,470.00
1,575.00
11,045.00
Acct no. 112

F Debit
J-2 200.00
300.00
500.00
Acct no. 113

F Debit
Acct no. 113a

F Debit
35.00
Acct no. 114

F Debit
100.00
170.00
270.00
Acct no. 115

F Debit
800.00
700.00
1,500.00
Acct no. 116

F Debit
1,000.00
2,000.00
3,000.00
Acct no. 117

F Debit
Acct no. 118

F Debit
Acct no. 119

F Debit
Acct no. 119a
F Debit
100.00
Acct no. 211

F Debit
J-1 860.00
Acct no. 212

F Debit
J-1 4,500.00
-
4,500.00
Acct no. 213

F Debit
J-2 3,000.00
Acct no. 214

F Debit
7.50
Acct no. 311

F Debit
J-1 8,000.00
Acct no. 312
F Debit
Acct no. 411

F Debit
J-1 120.00
J-1 500.00
J-2 1,250.00
J-2 1,475.00
J-2 400.00
3,745.00
Acct no. 511

F Debit
Acct no. 512

F Debit
Acct no. 513

F Debit
522.50
47.50
570.00
Acct no. 514

F Debit
Acct no. 515

F Debit
Acct no. 516

F Debit
Acct no. 517

F Debit
Acct no. 519

F Debit
Acct no. 520
F Debit
Acct no. 518

F Debit
Acct no. 313

F Debit
Trial Balance
December 31, 2014
Adjusted Trial Balance

Cash 1,575.00
Estimated uncollectible accounts 35.00
Clothing Materials 700.00
Prepaid Insurance 522.50
Sewing Tools 590.00
Accumulated Depreciation - sewing machines 100.00
Accrued interest expenses 7.50
J. Cacdac, personal 500.00
Wages 500.00
Sewing supplies used 100.00
Clothing materials used 800.00
Rent expense 1,000.00
Depreciation - sewing equipment 100.00
Bad debts 35.00
Interest expense 7.50
15,747.50 15,747.50
Income Statement
For the Period Ending December 31, 2014

Less: Operating Expenses
Wages 500.00
Depreciation - sewing equipment 100.00
Bad debts 35.00
Interest expense 7.50 2,990.00
Net Profit 755.00
Balance Sheet
As of December 31, 2014
Assets
Current
Cash 1,575.00
Total Receivables 700.00
Less: Estimated Uncollectible Accounts 35.00 665.00
Total Current Assets 5,632.50
Properties and Equipment

Sewing Tools 590.00
Less: Accumulated Depreciation 100.00 5,900.00
Total Properties and Equipment 6,490.00
Total Assets 12,122.50
Liabilities

Total Liabilities 3,867.50
Owner's Equity

J. Cacdac, personal (500.00)
Net Capital 7,500.00
Add: Net Profit 755.00
Total Capital 8,255.00
Total Liabilities and Owner's Equity 12,122.50
-
Closing Entries
Debit Credit
1 Service Income 3,745
Revenue and Expense Summary 3,745
To close the income account to the
Revenue and Expense Summary Account.
2 Revenue and Expense Summary 2,990

Wages 500.00
Depreciation - sewing machines 100.00
Bad debts 35.00
Interest expense 7.50
To close the expense accounts to the
Revenue and Expense Summary Account.
3 Revenue and Expense Summary 755

J. Cacdac, capital 755
To close the Revenue and Expense Summary
account to J. Cacdac, capital.
4 J. Cacdac, capital 500

J. Cacdac, personal 500
To close the personal account to the
capital account.
CASH Acct no. 111
Date Explanation F Debit Date Explanation F Debit

2014 2014
Dec. 1 Initial Investment J-1 8,000.00 Dec. 1 Sewing equipt. J-1 1,500.00
5 Service income J-1 120.00 1 Rental payment J-1 3,000.00
13 Service income J-2 1,250.00 1 Insurance payment J-1 570.00
18 Partial payment of F. Valdez J-2 200.00 10 Clothing materials J-1 1,500.00
20 Service income J-2 1,475.00 14 Payt to Rufino Mdsg. J-2 1,500.00
11,045.00 15 Wages J-2 250.00
17 Drawing J-2 500.00
22 Wages J-2 250.00
27 Utility & Tel. J-2 400.00
9,470.00
Balance 1,575.00
11,045.00 11,045.00
1,575.00
ACCOUNTS RECEIVABLE - FLOR VALDEZ Acct no. 112

2014 2014
Dec. 7 Service income J-1 500.00 Dec. 18 Partial payment J-2 200.00
500.00 Balance 300.00
300.00 500.00
ACCOUNTS RECEIVABLE - JULIUS ILAGAN Acct no. 113

2014
Dec. 23 Service income J-2 400.00
ESTIMATED UNCOLLECTIBLE ACCOUNTS Acct no. 113a

2014
Dec. 31 AJE 3 35.00
SEWING SUPPLIES Acct no. 114

2014 2014
Dec. 3 Purchase J-1 270.00 Dec. 31 AJE 2 100.00
Balance 170.00
270.00 270.00
170.00
CLOTHING MATERIALS Acct no. 115

2014 2014
Dec. 10 Purchase J-1 1,500.00 Dec. 31 AJE 4 800.00
Balance 700.00
1,500.00 1,500.00
700.00
PREPAID RENT Acct no. 116

2014 2014
Dec. 1 Rental for 3 months J-1 3,000.00 Dec. 31 AJE 5 1,000.00
Balance 2,000.00
3,000.00 3,000.00
2,000.00
PREPAID INSURANCE Acct no. 117

2014
Dec. 31 AJE 6 J-1 522.50
SEWING TOOLS Acct no. 118

2014
Dec. 3 Purchase J-1 590.00
SEWING EQUIPMENT Acct no. 119

2014
Dec. 1 Purchase J-1 6,000.00
ACCUMULATED DEPRECIATION - SEWING MACHINES Acct no. 119a

2014
Dec. 31 AJE 1 100.00
ACCOUNTS PAYABLE - VIRGILIO TRADING Acct no. 211

2014
Dec. 3 Tools and supplies J-1 860.00
ACCOUNTS PAYABLE - RUFINO MERCHANDISING Acct no. 212

2014 2014
Dec. 14 J-2 4,500.00 Dec. 1 Sewing equipt. J-1 4,500.00
Balance -
4,500.00 4,500.00
-
NOTES PAYABLE Acct no. 213
2014
Dec. 14 Payment to Rufino Mdsg J-2 3,000.00
ACCRUED INTEREST PAYABLE Acct no. 214

2014
Dec. 14 AJE 7 7.50
J. CACDAC, CAPITAL Acct no. 311

2014
Dec. 1 Initial investment J-1 8,000.00
31 CE 4 755.00
8,755.00
J. CACDAC, PERSONAL Acct no. 312

2014 2014
Dec. 17 J-2 500.00 Dec. 31 CE 4 500.00
SERVICE INCOME Acct no. 411

2014 2014
Dec. 31 CE 1 3,745.00 Dec. 5 J-1 120.00
7 F. Valdez J-1 500.00
13 J-2 1,250.00
20 J-2 1,475.00
23 J-2 400.00
3,745.00
WAGES Acct no. 511

2014 2014
Dec. 15 First half of the month J-2 250.00 Dec. 31 CE 2 500.00
22 Second half of the month J-2 250.00
500.00
UTILITY EXPENSE Acct no. 512

2014 2014
Dec. 27 J-2 150.00 Dec. 31 CE 2 150.00
INSURANCE EXPENSE Acct no. 513
2014 2014
Dec. 1 1 year policy J-1 570.00 Dec. 31 AJE 6 522.50
31 CE 2 47.50
570.00
TELEPHONE AND COMMUNICATION EXPENSE Acct no. 514

2014 2014
Dec. 27 J-2 250.00 Dec. 31 CE 2 250.00
SEWING SUPPLIES USED Acct no. 515

2014 2014
Dec. 31 AJE 4 100.00 Dec. 31 CE 2 100.00
CLOTHING MATERIALS USED Acct no. 516

2014 2014
Dec. 31 AJE 4 800.00 Dec. 31 CE 2 800.00
RENT EXPENSE Acct no. 517

2014 2014
Dec. 31 AJE 5 1,000.00 Dec. 31 CE 2 1,000.00
INTEREST EXPENSE Acct no. 518

2014 2014
Dec. 31 AJE 7 7.50 Dec. 31 CE 2 7.50
DEPRECIATION - SEWING EQUIPMENT Acct no. 519

2014 2014
Dec. 31 AJE 1 100.00 Dec. 31 CE 2 100.00
BAD DEBTS Acct no. 520

2014 2014
Dec. 31 AJE 3 35.00 Dec. 31 CE 2 35.00
REVENUE AND EXPENSE SUMMARY Acct no. 313

2014 2014
Dec. 31 CE 2 2,990.00 Dec. 31 CE 1 3,745.00
31 CE 3 755.00
3,745.00
-
Trial Balance
December 31, 2014
Post Closing TB
Cash 1,575.00
Estimated uncollectible accounts 35.00
Sewing Tools 590.00
Accumulated Depreciation - sewing equipment 100.00
12,257.50 12,757.50

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General Journal page no.

Date Account Titles and Explanation F Debit Credit

1 Sewing Machines 119 6,000

1 Prepaid rent 116 3,000

1 Insurance expense 513 570

3 Sewing Tools 118 590

5 Cash 111 120

7 Accounts receivable - Flor Valdez 112 500

10 Clothing Materials 115 1,500

14 Accounts payable - Rufino Merchandising 212 4,500

15 Wages 511 250

17 Josie Cacdac, personal 312 500

18 Cash 111 200

20 Cash 111 1,475

22 Wages 511 250

23 Accounts receivable - Julius Ilagan 113 400

27 Utility expense 512 150

Date Explanation F Debit Date Explanation F

ACCOUNTS RECEIVABLE - FLOR VALDEZ Acct no. 11

ACCOUNTS RECEIVABLE - JULIUS ILAGAN Acct no. 11

SEWING SUPPLIES Acct no. 11

CLOTHING MATERIALS Acct no. 11

PREPAID INSURANCE Acct no. 11

SEWING TOOLS Acct no. 11

SEWING EQUIPMENT Acct no. 11

ESTIMATED UNCOLLECTIBLE ACCOUNTS Acct no. 113

ACCUMULATED DEPRECIATION - SEWING MACHINES Acct no. 119

ACCOUNTS PAYABLE - RUFINO MERCHANDISING Acct no. 21

NOTES PAYABLE Acct no. 21

ACCRUED INTEREST PAYABLE Acct no. 21

J. CACDAC, CAPITAL Acct no. 31

J. CACDAC, PERSONAL Acct no. 31

SERVICE INCOME Acct no. 41

WAGES Acct no. 51

UTILITY EXPENSE Acct no. 51

INSURANCE EXPENSE Acct no. 51

TELEPHONE AND COMMUNICATION EXPENSE Acct no. 51

SEWING SUPPLIES USED Acct no. 51

CLOTHING MATERIALS USED Acct no. 51

RENT EXPENSE Acct no. 51

DEPRECIATION - SEWING EQUIPMENT Acct no. 51

BAD DEBTS Acct no. 52

INTEREST EXPENSE Acct no. 51

REVENUE AND EXPENSE SUMMARY Acct no. 31

Acct no. 112

Acct no. 113

Acct no. 114

Acct no. 115

Acct no. 117

Acct no. 118

Acct no. 119

Acct no. 113a

Acct no. 119a

Acct no. 212

Acct no. 213

Acct no. 214

Acct no. 311

Acct no. 312