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Chart of Accounts

Leslie Mendez established a car accessories business in October 2018. Throughout the month, transactions included depositing startup cash, acquiring equipment and supplies for customers, receiving payments from customers, withdrawing cash, and paying expenses. An income statement and balance sheet were prepared to summarize the business's financial performance and position for the month.

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Vincent Madrid
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125 views9 pages

Chart of Accounts

Leslie Mendez established a car accessories business in October 2018. Throughout the month, transactions included depositing startup cash, acquiring equipment and supplies for customers, receiving payments from customers, withdrawing cash, and paying expenses. An income statement and balance sheet were prepared to summarize the business's financial performance and position for the month.

Uploaded by

Vincent Madrid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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On October 1 2018, Leslie Mendez established a business under the name Mendez’s Car

Accessories.
The transaction compiled during the month were as fallows.

October 01 – Opened a business bank account with a cash deposit of ₱250.000.


04 - Acquired a motor cycle for delivery worth of ₱75.000 on account.
08 – Acquired equipment for installation of car accessories worth of ₱10.000 on cash.
12 – Acquired supplies for his first costumer worth of ₱20.000 on cash.
15 – Received ₱30.000 cash from his costumer.
20 – Acquired another supplies worth of ₱25.000 cash for his second costumer.
22 – Received cash worth of ₱35.000 from his second costumer.
23 – Paid his delivery boy a cash worth of ₱500.
27 – Withdraw a cash from the business account for personal use worth of ₱3.000.
29 – Paid rent for the month worth of ₱5.000.
31 – Paid utilities worth of ₱1.000.
Account Number Account Titles
101 Cash
105 Supplies
106 Equipment
110 Service Vehicle
Liability
201 Accounts Payable
Owner’s Equity
301 Mendez, Capital
302 Mendez, Drawing
Revenues
401 Service Income
Expense
501 Salaries Expense
502 Utilities Expense
503 Rent Expense

CHART OF ACCOUNTS
GENERAL JOURNALS
PAGE NUMBER GJ-1
With Explanation

CURRENT JOURNAL ENTRIES


DATE DESCRIPTION REF DEBIT CREDIT
2018
OCTOBE 01 Cash 101 ₱250.000
R
Mendez’s Capital 301 250.000
Mendez open a business

04 Service Vehicle 110 75.000


Accounts Payable 201 75.000
Acquired service vehicle

08 Equipment 106 10.000


Cash 101 10.000
Bought equipment

12 Supplies 105 20.000


Cash 101 20.000
Bought supplies

15 Cash 101 30.000


Service Income 110 30.000
Received income

20 Supplies 105 25.000


Cash 101 25.000
Bought supplies

22 Cash 101 35.000


Service Income 110 35.000
Received income

23 Salaries expense 501 500


Cash 101 500
Paid salaries

27 Mendez’s Withdrawing 302 3000


Cash 101 3000
Withdraw for personal use
GENERAL JOURNALS
PAGE NUMBER GJ-2
With Explanation

CURRENT JOURNAL ENTRIES


DATE DESCRIPTION REF DEBIT CREDIT
2018
OCTOBE 29 Rent Expense 503 5000
R
Cash 101 5000
Paid rent

31 Utilities Expense 502 1000


Cash 101 1000
Paid utilities

GENERAL LEDGER
PAGE NUMBER GL-1
Account title - Cash
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 01 GJ-1 250.000 250.000
08 GJ-1 10.000 240.000
12 GJ-1 20.000 220.000
15 GJ-1 30.000 250.000
20 GJ-1 25.000 225.000
22 GJ-1 35.000 260.000
23 GJ-1 500 259.500
27 GJ-1 3.000 256.500
29 GJ-2 5.000 251.500
31 GJ-2 1.000 ₱250.500

Account title- Supplies


Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 12 GJ-1 20.000 20.000
20 GJ-1 25.000 ₱45.000

Account title- Equipment


Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 08 GJ-1 10.000 ₱10.000

Account title- Service Vehicle


Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 04 GJ-1 75.000 ₱75.000
Account title- Accounts Payable
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 04 GJ-1 75.000 ₱75.000

GENERAL LEDGER
PAGE NUMBER GL-1
Account title- Mendez’s Capital
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 01 GJ-1 250.000 ₱250.000
Account title- Mendez’s Drawing
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 27 GJ-1 3000 ₱3.000
Account title- Service Income
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 15 GJ-1 30.000 30.000
22 GJ-1 35.000 ₱65.000
Account title- Salaries Expense
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 23 GJ-1 500 ₱500
Account title-Utilities Expense
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 31 GJ-2 1.000 ₱1.000
Account title- Rent Expense
Account
Date Item Post Debit Credit Balance
2018 Debit Credit
October 29 GJ-2 5.000 ₱5.000
PRELIMINARY TRIAL BALANCE

ACCOUNT TITLE DR CR

CASH ₱250.500

SUPPLIES 45.000

EQUIPMENT 10.000

SERVICE VEHICLE 75.000

ACCOUNT’S PAYABLE 75.000

MENDEZ’S CAPITAL 250.000

MENDEZ’S DRAWING 3.000

SERVICE INCOME 65.000

SALARIES EXPENSE 500

UTILITIES EXPENSE 1.000

RENT EXPENSE 5.000

TOTAL
₱390.00 ₱390.000
0
Mendez’s Car Accessories

STATEMENT OF FINANCIAL POSITION

As Of October 31.2018

(IN PESOS)

Asset

Current Asset
₱250.000
Cash
45.000
Supplies
10.000
Equipment
75.000
Service Vehicle

Total Non-Current Asset ₱380.000

Liabilities and Owner’s Equity

Liability
₱75.000
Accounts Payable

Owner’s Equity
250.000
Merndez’s Capital

Total Owner’s Equity ₱325.000


Mendez’s Car Accessories
STATEMENT OF PERFORMACE
For the month of ended of October31,2019
(IN PESOS)
Revenue
Service Income ₱65.000
Less Expenses
Salaries expense ₱500
Rent expense 1.000
Utilities expense 5.000
₱58.500

Mendez’s Car Accessories


STATEMENT OF EQUITY
October 31.2018
(IN PESOS)
Mendez’s ?Beginning capital October31,2019 ₱250.000
Add : Net Income ₱58.500
Less ; Mendez’s Withdrawing 3.000 55.500
Mendez’s ending capital, October31,2018 ₱305.500

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