Activity 3: Accounting Cycle

Instructions: Given the Chart of Accounts and Transactions of ABC Repair Services, prepare the following;
· General Journal – using format given
· General Ledger– using format given
· Trial Balance – using worksheets
· Income Statement - using worksheets
· Balance Sheet - using worksheets

Transactions:
On December 1, 2021, Mr. Cedric Andrew Espino started ABC Repair Services by investing P400,000.
On December 5, ABC Repair Services paid registration and licensing fees for the business, P25,000.
On December 6, the company acquired tables, chairs, shelves, and other fixtures for a total of P35,000.
On December 7, the company acquired service equipment for P160,000. The company paid a 50% down payment and the balance will be paid after 60 days.
Also, on December 7, ABC Repair Services purchased service supplies on account amounting to P27,500.
On December 9, the company received P29,500 for services rendered.
On December 12, the company rendered services on account, P42,500. As per agreement with the customer, the amount is to be collected after 10 days.
On December 14, received 50,000 cash from a customer for repair services to be performed on December 30.
Rendered services to a big corporation. on December 15. As per the agreement, the P64,000 amount due will be collected after 30 days.
On December 22, the company collected from the customer on December 12.
On December 23, the company paid some of its liability on December 7 by issuing a check. The company paid P15,000 of the P27,500 payable.
On December 25, the owner withdrew cash due to an emergency need. Mr. Espino withdrew P70,000 from the company.
On December 29, the company paid rent for December, P20,000.
On December 30, the company acquired a P300,000 short-term bank loan; the entire amount plus a 10% interest is payable after 1 year.
Also, on December 30, performed services for the customer on December 14.
On December 31, the company paid salaries to its employees, P70,000.
On December 31, the company paid electricity and water bills, P10,000.
balance will be paid after 60 days.

to be collected after 10 days.

after 30 days.

the P27,500 payable.

e after 1 year.
 ABC Repair Services
Chart of Accounts
Balance Sheet Accounts Income Statement Accounts

Account Account
Assets
No. No.
110 Cash 410
120 Accounts Receivable
130 Notes Receivable

140 Repair Supplies

150 Furniture and fixtures 510
160 Repair Equipment 520
190 Transportation Equipment 530
540
550

Liabilities 560

210 Accounts Payable 570

220 Note Payable
230 Unearned Service Revenue

Equity
310 Espino Capital
320 Espino Drawings
Income Statement Accounts

Income

Service Revenue

Expenses
Salaries Expense
Rent Expense
Utilities Expense
Repair Supplies Expense
Advertising Expense

Insurance Expense

Taxes and Licenses

Note: Use this general journal for your journal entries.
PAGE: GJ1

ABC Repair Services

General Journal
For the month ended December 31, 2021

ACCOUNT TITLES AND EXPLANATIONS

2021
PR

DATE NO. DEBIT CREDIT

12 1 Cash 110 ₱ 4 0 0 0 0 0 _ ₱ 1
Espino, Capital 310 4 0 0 0 0 0 2
To record owner's investment 3
4
5
6
7
8
9
10
11
12
13
14
15
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18
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20
21
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25
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27
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29
30
31
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35
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40

PAGE: GJ2

ACCOUNT TITLES AND EXPLANATIONS

PR

DATE NO. DEBIT CREDIT

1
2
3
4
5
6
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8
9
10
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12
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Note: Use this general ledger for posting your journal entries. You can duplicate the ledger per Account Title.

ABC Repair Services

General Ledger
For the month ended Dec. 31, 2021

Account Title: Cash Account No: 110

Date Description PR Debit Credit Balance
Dec-21 To record owner's investment GJ1 ₱400,000 ₱400,000
 COMPANY NAME
Worksheet
For the month ended *DATE*

Accounts Trial Balance Income Statement Balance Sheet

Seq No Acc No. Debit Credit Debit Credit Debit Credit
1 Cash 110 ₱400,000 400000
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Totals
Net Income/Loss
 Balance Sheet
Debit Credit