Alva Joyce F.

Villegas

G12 ABM ADR

ENTREPRENEURSHIP

Module 10: Bookkeeping

 What I Know

1. B 6.C 11. D

2. C 7.D 12. D

3. B 8.B 13. A

4. A 9. C 14. A

5. D 10.A 15. C

 ACTIVITY TIME!

Activity 1: Identifying and recording a business transaction using the General

Journal

ALPHA LAUNDRY SYSTEMS

GENERAL JOURRNAL

PO
Date ST DEBIT CREDIT
Particulars
2018 RE
F.
1 June 1 Cash 100 P200 000

2 Mr. A, Capital 300 P200 000

3 To record the initial Capital

investment of Mr. A.
4 5 Laundry Equipment 150 150 000

5 Cash 100 150 000

6 To record the acquisition of

Laundry Equipment
7 6 Prepaid Insurance 120 6 000

8 Cash 100 6 000

9 To record the prepaid insurance

for the Laundry Equipment
10 7 Laundry Supplies 140 10 000

11 Cash 100 10 000

12 To record the acquisition of

 laundry consumables

13 15 Salaries and Wages Expense 510 4 750

14 Cash 100 4 750

15 To record the payment of

Laundry operator’s salary
16 16 Cash 100 25 000

17 Laundry Income 400 25 000

18 To record the payment received

from MZ Hotel.
19 17 Accounts Receivable 110 45 000

20 Laundry Income 400 45 000

21 To record the service rendered to

Argon Hotel
22 18 Office Supplies 130 2 000

23 Accounts Payable 200 2 000

24 To record the acquisition of

Office Supplies on account from
Ku Enterprises
25 20 Cash 100 45 000

26 Accounts Receivable 110 45 000

27 To record the full payment from

Argon Hotel
28 25 Accounts Payable 200 2 000

29 Cash 100 2 000

30 To record the full payment of

account to Ku Enterprises
31 27 Utilities Expense 500 1 000

32 Cash 100 1 000

33 To record the payment

Electricity for the month
34 30 Transportation Expense 530 1 300

35 Cash 100 1 300

36 To record the payment of

transportation for the month.
37 30 Salaries and Wages Expense 510 5 000

38 Cash 100 5 000

39 To record the payment Laundry

operator’s salary.
40 30 Rent Expense 550 7 500

41 Cash 100 7 500

42 To record the payment of rent for
Laundry space.

Activity 2: Posting journal entries to the General Ledger using T - accounts

ALPHA LAUNDRY SYSTEMS

GENERAL LEDGER

T-ACCOUNTS

ASSETS

CASH ACCOUNTS RECEIVABLE

P200 000 P150 000 P45 000 P45 000

25 000 6 000
45 000 10 000
4 750
2 000
1 000
1 300
5 000
P45 000 P45 000
7 500

0
P270 000 P187 550

P82 450

PREPAID INSURANCE OFFICE SUPPLIES

P6 000 P2 000

P6 000 0 P2 000 0

P6 000 P2 000
 LAUNDRY SUPPLIES LAUNDRY EQUIPMENT

P10 000 P150 000

P10 000 0 P150 000 0

P10 000 P150 000

LIABILITIES REVENUE

ACCOUNTS PAYABLE LAUNDRY INCOME

P2 000 P2 000 0 P25 000

45 000

P10 000 P2 000

0 P70 000

P70 000
0 Mr. A, Capital

P200 000
OWNER’S EQUITY

0 P200 000

P200 000
 EXPENSES

UTILITIES EXPENSE SALARIES AND WAGES EXPENSE

P1 000 P4 750
5 000

P1 000 0 P9 750 0

P9 750
P1 000

TRANSPORTATION EXPENSE RENT EXPENSE

P1 300 P7 500

P1 300 0
P7 500 0

P1 300 P7 500
Activity 3 : Transferring T - account balances to prepare Trial Balance (
un - adjusted TB ) .

ALPHA LAUNDRY SYSTEMS

UNADJUSTED TRIAL BALANCE

FOR THE MONTH OF JUNE 2018

Acct.no. PARTICULARS DEBIT CREDIT

100 Cash P82 450
110 Accounts Receivable 0
120 Prepaid Insurance 6 000
130 Office Supplies 2 000
140 Laundry Supplies 10 000
150 Laundry Equipment 150 000
200 Accounts Payable P0
300 Mr. A, Capital 200 000
400 Laundry Income 70 000
500 Utilities Expense 1 000
510 Salaries and Wages Expense 9 750
530 Transportation Expense 1 300
550 Rent Expense 7 500
Total P270 000 P270 000

Activity 4 : Record adjusting journal entries in the General Journal.

ALPHA LAUNDRY SYSTEMS

GENERAL JOURNAL

ADJUSTING ENTRIES

PO
Date ST.
Particulars
2018 RE DEBIT CREDIT
F.
1 June 30 Depreciation Expense 540 P2 333.33

2 Accumulated Depreciation – 160 P2 333.33

Laundry equipment
3 To recognize the depreciation
expense for the month of June.
 4 30 Insurance Expense 520 500

5 Prepaid Insurance 120 500

6 To recognize the expired portion

of the prepaid insurance
7 30 Supplies Expense 560 7 000

8 Laundry Supplies 140 7 000

9 To recognize the used portion of

the Laundry supplies
consumables

Activity 5 : Post adjusting journal entries in the General Ledger.

PREPAID INSURANCE LAUNDRY SUPPLIES

P6 000 P500 P10 000 P7 000

P5 500 P10 000 P7 000

P500

P5 500 P3 000

ACCUMULATED DEPRECIATION- INSURANCE EXPENSE

LAUNDRY EQUIPMENT

P500 0
P2 333.33

DEPRECIATION EXPENSE SUPPLIES EXPENSE

0
P2 333.33 P7 000
0 P2 333.33 P500

P500
P2 333.33

0 0
P2 333.33 P7 000

P2 333.33 P7 000
Activity 6: Prepare Adjusted Trial Balance

ALPHA LAUNDRY SYSTEMS

ADJUSTED TRIAL BALANCE

FOR THE MONTH OF JUNE 2018

Acct.no. PARTICULARS DEBIT CREDIT

100 Cash P82 450
110 Accounts Receivable 0
120 Prepaid Insurance 5 500
130 Office Supplies 2 000
140 Laundry Supplies 3 000
150 Laundry Equipment 150 000

160 Accumulated Depreciation- P2 333.33

Laundry Equipment
200 Accounts Payable P0
300 Mr. A, Capital 200 000
400 Laundry Income 70 000
500 Utilities Expense 1 000
510 Salaries and Wages Expense 9 750
520 Insurance Expense 500
530 Transportation Expense 1 300
540 Depreciation Expense 2 333.33
550 Rent Expense 7 500
560 Supplies Expense 7 000
Total P272 333.33 P272 333.33
Activity 7 : Prepare Income Statement

ALPHA LAUDNRY SYSTEMS

STATEMENT OF INCOME

FOR THE MONTH ENDED JUNE 30, 2018

Service Revenue P70 000

Less: Operating Expenses

Utilities Expense 1 000

Salaries and Wages Expense 9 750

Insurance Expense 500

Transportation Expense 1 300

Depreciation Expense 2 333.33

Rent Expense 7 500

Supplies Expense 7 000____

Total expenses _29 383.33_

Net Income P40 616.67

Activity 8: Prepare Balance Sheet

ALPHA LAUDNRY SYSTEMS

STATEMENT OF FINANCIAL POSITION / BALANCE SHEET

AS OF JUNE 30, 2018

Assets

Current Assets

Cash P82 450

Accounts Receivable 0

Prepaid Insurance 5 500

Office Supplies 2 000

Laundry Supplies 3 000

Total Current Assets 92 950

Noncurrent Assets

Laundry Equipment 150 000

Less: Accumulated Depreciation (2 333.33)

Total Noncurrent assets 147 666.67

Total Assets P240 616.67

Liabilities and Owner’s Equity

Accounts Payable P0

Total Liabilities 0

Owner’s Equity

Mr. A, Capital 200 000

Add: Net income 40 616.67

Total Liabilities and Owner’s Equity P240 616.67

 What’s More

Activity 9 : Interpret financial statements (balance sheet, income statement,

cash flow projection and summary of sales and cash receipts)

1.
Interpretation:
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒
Operating Income Ratio= For the month of June, the
𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
result shows that 58.02%
40 616.67
Operating Income Ratio= is the operating income
70 000 despite of the expenses. It
is favorable and should be
Operating Income Ratio= 58.02% maintained.
2. Interpretation:
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
Return on Assets = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐴𝑠𝑠𝑒𝑡𝑠 An average of 16.72% of
the return on assets shows
40 616.67 that the assets are utilized
Return on Assets = 242 950 to generate an income. It
should be maintained at
Return on Assets = 16.72% an increasing rate through
the operation years to be
favorable.
3.

𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 Interpretation:

Return in Equity = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐸𝑞𝑢𝑖𝑡𝑦 This indicates that the
40 616.67 return generated by the
Return in Equity = capital has an average of
200 000
20.31% which indicates
that is profitable. The
Return in Equity = 20.31%
company with a higher
ROE is judged to be more
favorable.
4. 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦 Interpretation:
Equity Ratio = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
This means that 82.32%
200 000 percent of the assets is
Equity Ratio =242 950 financed by the capital. It
implies that the company
Equity Ratio = 82.32% has a high level of capital.

 What I Have Learned

1. Bookkeeper

2. General Journal

3. General Ledger

4. Balance Sheet

5. Income Statement

6. Adjusting entries

7. Adjusted Trial Balance

8. Cash Flow report

9. Cash sales-

10. Cash receipts-

  What I Can Do

1. How much is the total service income collected in cash ?

Service rendered – Cash (Maxandria Hotel) P45,000

Service rendered – Cash (Mallberry Suites) 105,000

Service rendered – Cash (VIP Hotel Inn) 65,000

P215 00

 The total service income collected in cash amounted to P215 00.

2. How much is the total service income still collectible?

Service rendered – on account (Deluxe Hotel) P95,000

Service rendered – on account (Pearlmont Inn) 25,000

Service rendered – on account (Sogo Hotel) 55,000

Service rendered – on account (Dynasty Court Hotel) 75,000

Service rendered – on account (Grand City Hotel) 60,000

P310 000

 The total service income that is still collectible costs P310 00.
3. How much is the total expenses?

Janitor’s Salary – Total P 155,000

Management staff salary-Total 45,000

General Manager’s salary – total 90,000

Utilities expenses 15,000

Rent expense 15,000

Repairs and Maintenance 7,500

Transportation and communications 4,500

Depreciation expense 10,000

P342 000

 GIN Janitorial and General Services, Inc’s total expense is P327

000.

4. . How much is the net income of GIN Janitorial and General Services, Inc. ?

Service Revenue P525 000

Less: Expenses 342 000

Net Income P183 000

 Their net income is P183 000.

 Assessment

1. C 6. B

2. A 7. B

3. P11 000 8. A

4. C 9. C

5. C 10.D

11-15

Honda Massage and Spa Services

Income Statement

For the month of January to March 2018

Service Revenue P120 000

Less: Operating Expenses

Water expenses 4,000

Soap expense 7,500

Massage oil expenses 15,000

Light & power expenses 12,000

Rent of the Massage parlor 24,000

Salary of staff (4 massage worker) 72,000

Telephone expenses 7,500

Total Expenses 142 000

Net income/loss -P22 000

 Honda Massage and Spa Services’ has a net loss of P22 000.
  Additional Activities

ACTIVITY 1

1. Journal Entries

2. T- accounts

3. Trial Balance

4. Income Statement COFFEE ADDICT

5. Balance Sheet GENERAL JOURNAL

PO
Date ST.
Particulars
2021 RE DEBIT CREDIT
F.
1 May 1 Cash 100 P300 000

2 Ms. Villegas, Capital 300 P300 000

3 Investment of capital

4 2 Coffee Equipment 120 50 000

5 Cash 100 50 000

Purchased an equipment

3 Office Supplies 140 20 000

Cash 100 20 000

Bought office equipment on cash

4 Coffee Equipment 120 60 000

Accounts Payable 200 60 000

Purchased an equipment on
account in Willy and Son’s
5 Coffee Supplies 130 15 000

Cash 100 15 000

To record the purchased

supplies
6 Coffee Equipment 120 10 000

Cash 100 10 000

Bought an equipment on cash

7 Coffee Equipment 120 8 000

Accounts Payable 200 8 000

Purchased an equipment on
Account in ABC trading
8 Prepaid Insurance 150 6 000

Cash 100 6 000

To record prepaid insurance for

Coffee Equipment
10 Cash 100 5 100

Coffee Revenue 400 5 100

To record an income for the

coffee shop
10 Accounts Receivable 110 820

Coffee Revenue 400 820

Sold coffee in Aja Accounting

firm on account
11 Cash 100 5 340

Coffee Revenue 400 5340

To record an income for the

coffee shop
12 Cash 100 4 080

Coffee Revenue 400 4 080

To record an income for the

coffee shop
13 Cash 100 5 120

Coffee Revenue 400 5 120

To record an income for the

coffee shop
14 Cash 100 4 900

Coffee Revenue 400 4 900

To record an income for the

coffee shop
20 Cash 100 500

Accounts Receivable 110 500

Received partial payment from

Aja Accounting firm
23 Accounts Payable 200 8 000

Cash 100 8 000

Paid the full payment of the

coffee equipment to ABC Trading
24 Cash 100 10 000

Coffee Revenue 400 10 000

To record an income for the

coffee shop
28 Utilities Expense 500 1 500
 Cash 100 1 500

Paid the monthly electric bill

29 Rent Expense 520 2 500

Cash 100 2 500

To record the payment on the

rent for this month
30 Salaries Expense 510 27 000

Cash 100 27 000

Paid the monthly salaries of the

workers

COFFEE ADDICT

T-ACCOUNTS

ASSETS

CASH ACCOUNTS RECEIVABLE

P300 000 P50 000 P820 P500

5 100 20 000
5 340 15 000
4 080 10 000
5 120 6 000
4 900 8 000
500 1 500
10 000 2 500
27 000 820 500

P335 040 P140 000 P320

COFFEE EQUIPMENT COFFEE SUPPLIES
P195 040

P50 000 P15 000 0

60 000 0
10 000
8 000

128 000 0 0
15 000

P128 000
P15 000
 OFFICE SUPPLIES PREPAID INSURANCE

P20 000 P6 000

20 000 0 6 000 0

P20 000 P6 000

LIABILITIES OWNER’S EQUITY

ACCOUNTS PAYABLE MS. V, CAPITAL

P8 000 P60 000 P300 000

8 000

68 000 0 300 000

8 000

P60 000
P300 000

COFFEE REVENUE

P5 100
820
5 340
4 080
REVENUE 5 120
4 900
10 000

35 360

P35 360
EXPENSES

UTILITIES EXPENSE SALARIES EXPENSE

P1 500 P27 000

1 500
27 000

P1 500 P27 000

RENT EXPENSE

P2 500

2 500

P2 500
 COFFEE ADDICT

TRIAL BALANCE

Acct.no. PARTICULARS DEBIT CREDIT

100 Cash P195 040
110 Accounts Receivable 320
120 Coffee Equipment 128 000
130 Coffee Supplies 15 000
140 Office Supplies 20 000
150 Prepaid Insurance 6 000
200 Accounts Payable P60 000
300 Ms. V, Capital 300 00
400 Coffee Revenue 35 360
500 Utilities Expense 1 500
510 Salaries Expense 27 000
520 Rent Expense 2 500
Total P395 360 P395 360
FOR THE MONTH OF MAY 31, 2021

COFFEE ADDICT

INCOME STATEMENT

FOR THE MONTH ENDED MAY 31, 2021

Coffee Shop Revenue P35 360

Less: Operating Expenses 1 500

Utilities Expense 27 000

Salaries Expense 2 500

Rent Expense 31 000

Total Expenses

Net Income P4 360

 COFFEE ADDICT

BALANCE SHEET

AS OF MAY 31, 2021

Assets

Current Assets

Cash P195 040

Accounts Receivable 320

Coffee Supplies 15 000

Office Supplies 20 000

Prepaid Insurance 6 000

Total Current Assets 236 360

Noncurrent Assets

Coffee Equipment 128 00

Total Assets P364 360

Liabilities and Equity

Liabilities P60 000

Accounts Payable

Owner’s Equity

Ms. V, Capital 304 360

Total Liabilities and Equity P364 360

ACTIVITY 2

PART I - Preparing personal income statement

Monthly Allowance= daily allowance x number of days in a month

Monthly Allowance= 120 x 30

Monthly Allowance= P3 600

Spending= Food+ transportation + phone load+ group project fees + miscellaneous fees

Spending= 1650 + 1 000 + 280 + 100 + 50

Spending= P3 080
 PERSONAL INCOME STATEMENT

(MONTHLY)

Allowance P3 600

Less: Spending

Food 1 650

Transportation 1 000

Phone load 280

Group project fees 100

Miscellaneous fees 50

Total Expenses 3 080

Net amount P520

PART II - Preparing personal balance sheet

Current savings P500

Clothes 12 000

Shoes 7 000

Bags 3 000

School Supplies 1 200

Gadgets 15 000

Total P38 700

Debt to :

Family members 1 500

Friends 500

Parents 25 000

Total P27 000

Owned – Owed =N

P38 700 – 27 000 = P11 700

 PERSONAL BALANCE SHEET

Assets

Current savings P500

Clothes 12 000

Shoes 7 000

Bags 3 000

School Supplies 1 200

Gadgets 15 000

Total P38 700

Liabilities

Family members 1 500

Friends 500

Parents 25 000

Total P27 000

Equity P11 700

ACTIVITY 3

GROUP ACTIVITY: Compute your personal income

Income Expenses

Print services P2 500 Paper P600

Xerox copy services 1 200 Ink 1 500
Encoding 300 Utility Expense 400
Tutor services 2 000 Plastic 60
Ice selling 600 Total P2 560
Total P6 600

Subtract the total amount computed in green meta card against the total amount
computed in the yellow meta card.

P6 600- 2 560 = N

P6 600- 2 560 = P4 040

P4 040

 NET PROFIT