Chapter 2, Problem 13

Assets
Accounts Prepaid Truck Equipment =
Cash Receivable Insurance
a 165,000 =
b (25,000) 194,900 =
c 28,500 =
d (6,200) =
e 24,200 =
f (1,800) =
g (4,000) 4,000 =
h (6,040) =
i =
j 28,240 =
k 25,200 =
l (11,200) =
m (15,500) =
144,660 28,240 4,000 194,900 28,500 =
Liabilities
Accounts Labausa, Revenues Expenses
Payable Capital
165,000
169,900
28,500
6,200 Rent Expense
24,200 Catering Income
1,800 Supplies Expense

6,040 Utilities Expense

6,080 6,080 Gas and Oil Expense
28,240 Catering Income
25,200 Catering Income
11,200 Salaries Expense
(15,500) Labausa, Withdrawal
204,480 149,500 77,640 31,320
 Cash AccountsReceivable
a. 280,000 b. 1,000 f. 12,940
i. 17, 650 c. 12,300
n. 5,500 e. 1,080 7,440
g. 1,850
h. 3,500
j. 1,000
k. 8,400
l. 3,500 Accounts Payable
m. 8,500 j. 1,000
303,150 41,130
DR. Bal. 262,020 1,000

Professional Fees
f. 12,940
i. 17,650 Salaries Expense
Cr. Bal. 30,590 l. 3,500
3,500
AccountsReceivable Office Equipment Office Furniture
n. 5,500 b. 4,950 c. 12,300
d. 2,750
7,700 12,300

Accounts Payable Dalangin, Capital Dalangin, Withdrawa

b. 3,950 a. 280,000 m. 8,500
d. 2,750
6,700 280,000 8,500
5,700

Salaries Expense Rent Expense Utilities Expense

k. 8,400 e. 1,080
8,400 g. 1,850

2,930

Miscellaneous Expense
h. 3,500
3,500
 Office Furniture Trial Balance
Dalangin Clinic
June 30, 2022

Debit
Cash 262,020
Accounts Receivable 7,440
Office Equipment 7,700
alangin, Withdrawal Office Furniture 12,300
Accounts Payable
Dalangin, Capital
Dalangin, Withdrawals 8,500
Professional Fees
Rent Expense 8,400
Salaries Expense 3,500
Utilities Expense 2,930
Miscellaneous Expense 3,500
Utilities Expense Total 316,290
ance
Clinic
2022

Credit

5,700
280,000

30,590

316,290
 Cash
1 67,000 17,500 2
8 18,350 7,150 3
20 21,000 6,000 7
8,050 9
11,600 11
5,700 16
4,300 19
14,500 21
14,100 22
3,850 24
1,250 25
106,350 94,000
Dr. Balance 12,350

Omotoy, Capital
67,000 1

67,000
 AccountsReceivable
15 42,200 21,000 20 6
27 14,150 9
56,350 21,000
35,350

Service Vehicle
2 81,000 24

81,000

Omotoy, Withdrawls
21 14,500

14,500

Telephone Expense
25 1,250
3
1,250
Plumbing Supplies Prepaid Advertising
15,700 7 6,000
8,050
23,750 6,000

Notes Payable Accounts Payable

3,850 63,500 2 16 5,700

59,650

Plumbing Revenues Salaries Expense

18,350 8 11 11,600
42,200 15 22 14,100
14,150 27
74,700 25,700

Rent Expense Miscellaneous Expense

7,150 19 4,300
7,150 4,300
repaid Advertising Trial Balance
Alabang Plumbing
April 30, 2022

Debit
Cash 12,350
Accounts Receivable 35,350
Plumbing Supplies 23,750
Accounts Payable Prepaid Advertising 6,000
15,700 6 Service Vehicle 81,000
Notes Payable
10,000 Accounts Payable
Omotoy, Capital
Omotoy, Withdrawals 14,500
Plumbing revenues
Salaries Expense 25,700
Rent Expense 7,150
Salaries Expense Telephone Expense 1,250
Miscellaneous Expense 4,300
Total 211,350

scellaneous Expense
ing
2

Credit

59,650
10,000
67,000

74,700

211,350
 Problem 10
May 3 Advertising Expense 18,500
Accounts Payable

6 Supplies Expense 8,800

Accounts Payable

15 Office Equipment 52,500

Boron, Capital

17 Cash 61,800
Accounts Receivable

22 Repair Expense 8,500

Accounts Payable

26 Accounts Payable 8,800

Cash

29 Salaries Expense 21,000

Cash

30 Cash 39,000
Delivery Revenues

31 Gas and Oil Expense 12,500

Cash

Accounts Receivable 45,000

Delivery Revenues

Boron, Withdrawal 14,500

Cash
 Problem 11
October 1 Cash
18,500

2 Prepaid Insurance
8,800

3 Advertising Expense
52,500

4 Rent Expense
61,800

7 Repair Expense
8,500

10 Cash
8,800

11 Telecommunications Expense
21,000

15 Furniture
39,000

12,500 18 Accounts Payable

45,000 21 Java, Withdrawals

14,500 24 Gas and Oil Expense

25 Cash
27 Salaries Expense

28 Equipment

29 Cash

30 Utilities Expense

31 Miscellaneuous Expense

Equipment
 Problem 11
50,000
Java, Capital 50,000

Prepaid Insurance 14,500

Cash 14,500

Advertising Expense 3,200

Accounts Payable 3,200

Rent Expense 8,900

Cash 8,900

Repair Expense 2,880

Accounts Payable 2,880

62,500
School Fees 62,500

Telecommunications Expense 2,300

Cash 2,300

Furniture 18,800
Cash 8,800
Accounts Payable 10,000

Accounts Payable 3,200

Cash 3,200

Java, Withdrawals 8,000

Cash 8,000

Gas and Oil Expense 1,800

Accounts Payable 1,800

61,400
 School Fees 61,400

Salaries Expense 12,000

Cash 12,000

Equipment 7,500
Accounts Payable 7,500

7,000
Accounts Receivable 7,000

Utilities Expense 3,600

Cash 3,600

Miscellaneuous Expense 620

Cash 620

Equipment 12,300
Java, Capital 12,300
Problem 16

a. Unequal totals. Debit totals will be more than 2,700 than

b. Equal Balance. Accounts Receivable will be overstated by P

Accounts Payable will be overstated by P15,00

c. Equal Balance. Cash is overstated by P37,800.

Office Supplies is Understated by P37,800.

d. Equal balance. Supplies will be overstated by P45,000.

Equipment will be understated by P45,000.
ore than 2,700 than credit totals.

will be overstated by P 15,000.

overstated by P15,000.

ated by P37,800.

tated by P45,000.
tated by P45,000.
 Unadjusted TB Adjustments
Debit Credit Debit
Cash 44,800
Accounts Receivable 189,600
Supplies 70,800
Equipment 560,000
Accounts Payable 72,600 9,900
46,000
900
Brillantes, Capital 513,000
Brillantes, Withdrawals 50,000 100,000
Revenues 371,600
Salaries Expense 35,000
Rent Expense 10,000 20,000
Utilities Expense 6,400
916,600 1,017,200 176,800
Adjustments Adjusted TB
Credit Debit Credit
10,000 34,800
46,800 142,800
70,800
560,000
15,800

513,000
50,000
7,600 379,200
35,000
10,000
1,800 4,600
66,200 908,000 908,000
Elisa Diaz Technologies
Royalty
Expense
January to June 2021 - (Payment on November 1, 2021) 1,000,000
July to December 2021 - (15,000,000 x 15%) 2,250,000
Royalty Expense and Royalty Income for 2021 3,250,000

May 1 - payment for previous year's royalty (july to december last year)
November 1 - payment for this year's royalty (january to june this year)

Adjusting Entries: December 31, 2021

Batangas Solutions:
Royalty Expense (for Sales in July to December 2021) 2,250,000
Royalty Payable 2,250,000

Eliza Diaz Technologies:

Royalty Receivable 2,250,000
Royalty Income 2,250,000
Payment will be on May 1, 2022

600,000 royalty expense/income last year

1,000,000 royalty expense/income this year
Problem 4 - Roslinda Perez Forwarders

September 1, 2021: Cash P600,000

Loan Payable P600,000

1 None. The interest and principal were paid at maturity date - February 28, 2022.
2 Interest Expense= P600,000 x 8% = P48,000 (Annual Interest)
September 1, 2021 to December 31, 2021 = 4 months
P48,000 x 4/12 = P16,000 - Interst Expense in 2021

3 AJE: December 31, 2021

Interest Expense P16,000
Interest Payable P16,000

Loan Payable P600,000

Interest Payable P16,000
Total Liabilities P616,000

4 September 1, 2021 to February 28, 2022 = 6 months

Total Interest for 6 months: P48,000 x 6/12 = P24,000
Total Payment: Principal plus Interest = P600,000 + P24,000 = P624,000

5 Interest Expense= P600,000 x 8% = P48,000 (Annual Interest)

January 1, 2022 to February 28, 2022 = 2 months
P48,000 x 2/12 = P8,000 - Interst Expense in 2022
Problem 5: Melinda Almazan

1 Interest Income: P1,200,000 x 8% = P96,000 ( Annual Interst Income)

April 1, 2020 to December 31, 2020 = 9 months
P96,000 x 9/12 = P72,000 - Interest Income for 2020

2 AJE: December 31, 2020

Interest Receivable (P96,000/12mos) P8,000
Interest Income P8,000

Effect on Accounting Equation = Asset Increase and Owner's Equity Increase.

3 April 1 to May 1 8,000

May 1 to June 1 8,000
June 1 to July 1 8,000
July 1 to August 1 8,000
August 1 to September 1 8,000
September 1 to October 1 8,000
October 1 to November 1 8,000
November 1 to Decembe 1 8,000
Total Cash to be collected 64,000

4 One month only = P8,000 c/o entry on number 2)

5 April 1, 2020 to April 1, 2021 = 12 months

December 1, 2020 to January 1, 2021 8,000

January 1 to February 1 8,000
February 1 to March 1 8,000
March 1 to April 1 8,000
Total Collections for 2021 32,000

6 January 1, 2021 to April 1, 2021 = 3 months

P96,000 x 3/12 = P24,000 - Interest Income for 2021

7 None
 DECEMBER 31
A. Insurance Expense 9,500
Prepaid Insurance 9,500

B Salaries Expense ( 3 days x P10,000/day) 30,000

Salaries Payable 30,000

C Beginning Balance - Supplies 4,480

Add: Supplies bought during the year 11,000
Total supplies available for use 15,480
Less: supplies still on hand (Ending Bal.) 6,400
Supplies Expense during the year 9,080

Supplies Expense 9,080

Supplies 9,080
depreciation
D P588,000 - P80,000 = P101,600 per year
5 years

Depreciation Expense 101,600

Accumulated Depreciation 101,600