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UNIVERSIDAD DE STA. ISABEL

Elias Angeles St., Naga City

REVIEW ON BASIC ACCOUNTING

Accounting is the language of business. It provides a system that measures business activities,
processes information into reports and communicates the results to decision makers.

FORMS OF BUSINESS ORGANIZATION

1. Sole Proprietorship
2. Partnership
3. Corporation

PURPOSE OF BUSINESS ORGANIZATION

1. Service
2. Merchandising
3. Manufacturing

DEFINITION OF ACCOUNTING

Accounting is the art of recording, classifying, summarizing in a significant manner and in terms
of money, transactions and events which are, in part at least, of a financial character, and
interpreting the results thereof.

PURPOSES AND PHASES OF ACCOUNTING

Purpose of Accounting. The purpose of recording business transactions is to aid management in

planning, controlling, decision-making and to comply with regulations.

PACIOLI’S DOUBLE ENTRY BOOKKEEPING

Double Entry Bookkeeping. This means that for every debit there exist a corresponding credit.
Simply put, for every item received, there must be a corresponding item parted with.

FUNDAMENTAL CONCEPTS

1. ENTITY CONCEPT. It simply means that the transactions of different entities should not be
accounted together.
2. PERIODICITY CONCEPT. An entity’s life must be subdivided into equal time period for
reporting purposes.
3. STABLE MONETARY UNIT. The Philippine peso is a reasonable unit of measure.

CRITERIA FOR GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Generally accepted accounting principles, or GAAP, are a set of rules that encompass the
details, complexities, and legalities of business and corporate accounting.

1. RELEVANCE. The information must be meaningful and useful to those who need to know
something about a certain organization.
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2. OBJECTIVITY. The resulting information is not influenced by the personal bias or judgment
of those who furnish it.
3. FEASIBILITY. The resulting information can be implemented without undue complexity or
cost.

BASIC PRINCIPLES

1. OBJECTIVITY. Accounting records should be based on information that flows from activities
documented by objective evidence.
2. HISTORICAL COST. This principle states that acquired assets should be recorded at their
actual cost and not what the management thinks they are worth as at reporting date.
3. REVENUE RECOGNITION PRINCIPLE. Revenue is to be recognized in the accounting
period when goods are delivered or services are rendered or performed.
4. EXPENSE RECOGNITION PRINCIPLE. Expenses are recognized in the accounting period in
which goods and services are incurred and not when the entity pays for those goods or
services.
5. ADEQUATE DISCLOSURE. Requires that all relevant information that would affect the user’s
understanding and assessment of the accounting entity be disclosed in the financial
statements.
6. MATERIALITY. Financial reporting is only concerned with information that is significant
enough to affect evaluations and decisions.
7. CONSISTENCY PRINCIPLE. The firm should use the same accounting method from period
to period to achieve comparability over time within a single enterprise.

THE ACCOUNTING FRAMEWORK

ELEMENTS OF FINANCIAL STATEMENTS

1. FINANCIAL POSITION
a. Assets are resources controlled by the enterprise as a result of past events and from
which future economic benefits are expected to flow to the enterprise. Simply put, assets
are valuable resources owned by the entity.
b. Liabilities are present obligations of the enterprise arising from past events, the
settlement of which is expected to result in an outflow from the enterprise of resources
embodying economic benefits. Simply put, liabilities are present obligations of the entity to
outside parties who have furnished resources.
c. Equity is the residual interest in the assets of the enterprise after deducting all its liabilities.

2. FINANCIAL PERFORMANCE
a. Income is increases in economic benefits during the accounting period in the form of
inflows or enhancement of assets or decreases of liabilities that result in increases in
equity, other than those relating to contributions from equity participants.
b. Expenses are decreases in economic benefits during the accounting period in the forms of
outflows or depletion of assets or incurrence of liabilities that result in decreases in equity,
other than those relating to withdrawal of capital.

THE ACCOUNT

1. The basis summary device of accounting is the account.

2. A separate account is maintained for each element that appears in the Balance Sheet (assets,
liabilities and equity) and in the income statement (income and expenses).
3. An account is a detailed record of the increases, decreases and balance of each element that
appears in an entity’s financial statements.
4. The simplest form of the account is known as the “T” account because of its similarity to
the letter “T”.
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5. The account has three parts as shown below:

Account Title
 
Left side or Debit Right Side or
Side Credit Side
 
 
 
 

THE ACCOUNTING EQUATION

1. The ACCOUNTING EQUATION is the most basic tool of accounting.

2. The equation presents the resources controlled by the enterprise, the present obligations and
the residual interest in the assets.
3. It states that assets must always equal liabilities and owner’s equity.
4. The basic accounting model is:

Assets = Liabilities + Owner’s Equity

5. Note above that the assets are on the left side of the equation opposite the liabilities and
owner’s equity.

DEBITS AND CREDITS – THE DOUBLE ENTRY SYSTEM

1. Accounting is based on a double-entry bookkeeping system – which means that the dual
effect of a business transaction is recorded.
2. A debit side entry must have a corresponding credit side for the entry.
3. For every transaction, there must be one or more accounts debited and one or more accounts
credited.
4. An account is debited when an amount is entered on the left side of the account and
credited when an amount is entered on the right side.
5. THE RULES OF DEBIT AND CREDIT

Balance Sheet Accounts

 
Assets Liabilities and Owner's Equity
Debit Credit   Debit Credit
(+) (-)   (-) (+)
Increases Decreases   Decreases Increases
     
Normal
Balance     Normal Balance

Income Statement Accounts

 
Expenses   Income
Debit Credit   Debit Credit
(+) (-)   (-) (+)
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Increases Decreases   Decreases Increases
     
Normal Balance     Normal Balance

NORMAL BALANCE OF AN ACCOUNT

1. The normal balance of any account refers to the side of the account – debit or credit – where
increases are recorded.
2. Assets, owner’s withdrawal and expense accounts normally have debit balances.
3. Liabilities, owner’s equity and income have credit balances.
4. Summary:

Account Category Increases Recorded by Normal Balance

Debit Credit Debit Credit
Assets / /
Liabilities / /
Owner’s Equity:
Owner’s Capital / /
Withdrawals / /
Income / /
Expense / /

ACCOUNTING EVENTS AND TRANSACTIONS

1. An accounting event is an economic occurrence that causes changes in an organization’s

assets, liabilities and/or equity.

An accounting event may be:

a. Internal actions like use of equipment for the production of goods and/or services;
b. External actions like the purchase of raw materials from a supplier.

2. A transaction is a particular kind of event that involves the transfer of something of value
between two entities.

Examples would include:

a. Acquiring assets from owner/owners;
b. Borrowing funds from creditors;
c. Purchasing and or selling of goods and services.

TYPES AND EFFECTS OF TRANSACTIONS

Types of Transactions Effects of Transactions Examples

Source of Assets Increase in Asset (1) Purchase of supplies on
(where did the assets come Increase in either Liabilities or account;
from) Owner’s Equity (2) Sold goods on cash on
delivery (COD) basis,

Exchange of Assets Increase in one Asset account (1) Acquired equipment for
Decrease in another asset cash.
account
Use of Assets Decrease in Asset Account (1) Settled accounts
Decrease in Liabilities or payable
Owner’s Equity account (2) Paid salaries of
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employees
Exchange of Claims Increase in one Liabilities or (1) Received electricity bill
Owner’s Equity account but did not pay.
Decrease in another Liabilities
or Owner’s Equity accounts

TYPES OF ACCOUNT TITLES USED

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)

A. ASSETS. Assets are classified into two:

1. CURRENT ASSETS. Assets are classified as CURRENT when:
 it expects to realize the assets, or intends to sell or consume it, in its normal operating
cycle;

Normal operating cycle is the time between the acquisition of assets for processing
and their realization to cash or cash equivalent.

 it holds the asset primarily for the purpose of trading;

 it expects to realize the asset within twelve months after the reporting date;
 the asset is cash or cash equivalent unless the asset is restricted from being
exchanged or used to settle a liability for at least twelve months after the reporting
period.

a. Cash. This refers to any medium of exchange that a bank will accept for deposit at
face value. It includes coins, currency, checks, money orders, bank deposits and
drafts.
b. Cash Equivalents. These are short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value. Examples are treasury bills, certificates of deposit.
c. Notes Receivable. A note receivable is a written pledge that the customer will pay
the business a fixed amount of money on a certain date.
d. Account Receivable. These are claims against customers arising from sale of goods
or services on credit.
e. Inventories. These are assets which are (1) held for sale in the ordinary course of
business; (2) in the process of production for such sale; (3) in the form of materials
and supplies to be consumed in the production process, or in the rendering of
services.
f. Prepaid Expenses. These are expenses paid for in advance.

2. NON-CURRENT ASSETS
a. Property, Plant and Equipment. These are tangible assets that are held by an
enterprise for use in the production of goods and or services, or for rental to others, or
for administrative purposes and which are expected to be used during more than one
accounting period. Examples are land, building, machinery and equipment, motor
vehicles and equipment.
b. Accumulated Depreciation. It is a contra asset account that contains the sum of the
periodic depreciation charges.
c. Intangible Assets. These are identifiable, nonmonetary assets without physical
substance held for use in the production or supply of goods o services, rental to others
or for administrative purposes. These include goodwill, patent, copyrights, franchises,
trademarks, brand names, secret processes and non-competition agreements.

B. LIABIITIES. Liabilities are classified into:

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1. CURRENT LIABILITIES. Liabilities are classified as current when:
 it expects to settle the liability in its normal operating cycle;
 it holds the liability primarily for purposes of trading;
 the liability is due to be settled within 12 months after the reporting period;
 the entity does not have an unconditional right to defer settlement of the liability for at
least 12 months after the reporting period.

a. Accounts Payable. This represents the reverse relationship of the account receivable.
By accepting to goods or services, the buyer agrees to pay for them in the near future.
b. Notes Payable. A note payable is like a note receivable but in a reverse sense. In case
of note payable, the business entity is the maker of the note; that is, the business entity is
the party who promises to pay the other party a specified amount of money at a specified
future date.
c. Accrued Liabilities. Amounts owed to others for unpaid expenses.
d. Unearned Revenues. When the business entity receives payment before providing its
customers with goods or services.
e. Current Portion of Long Term Debt. These are portions of long-term debt which are to
be paid within one year from the balance sheet date.

2. NON-CURRENT LIABILITIES
a. Mortgage Payable. This account records long-term debt of the business entity for which
the business entity has pledged certain assets as security to the creditor.
b. Bonds Payable. When business organizations obtain substantial amount of money from
lenders to finance the acquisition of equipment and other assets and in exchange they
issue bonds.

C. OWNNER’S EQUITY
1. Capital. It comes from the Latin word, “capitalis”, meaning “property.” This account is used
to record the following:
a. Original investment;
b. Additional Investment

This is also increase by the amount of profit earned during the year and is decreased by a
loss.
2. Withdrawal. This is when the owner of a business entity withdraws cash or other assets.
3. Income Summary. It is a temporary account used at the end of the accounting period to
close income and expenses.

INCOME STATEMENT
A. INCOME
1. Service Income. Revenues earned by performing services for a customer or client.
2. Sales. Revenues earned as a result of the sale of merchandise.

B. EXPENSES
1. Cost of Sales. The cost incurred to purchase or to produce the products sold to customer
during the period.
2. Salaries or Wages Expenses. Includes all payments as a result of an employee-employer
relationship.
3. Telecommunications, Electricity, Fuel and Water Expenses. Expenses related to the use
of telecommunication facilities, consumption of electricity, fuel and water.
4. Rent Expense. Expense for spade, equipment or other asset rentals.
5. Supplies Expense. Expense using supplies (e.g. office supplies) in the conduct of daily
business.
6. Insurance Expense. Portion of premiums paid on insurance coverage.
7. Depreciation Expense. The portion of the cost of a tangible asset allocated or charges as
expense during an accounting period.
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8. Uncollectible Account Expense. The amount of receivables estimated to be doubtful of
collection.
9. Interest Expense. An expense related to the use of borrowed funds.

EXPANDED ACCOUNTING EQUATION:

Assets = Liabilities + Owner's Capital (Original Capital +Revenues – Expenses – Owner's

Draws)

EXERCISES:
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PROBLEM 1 Transaction Effects on the Basic Accounting Model

The following are some transactions of Song Joong Ki Laundry Services:

Transactions Assets Liabilities Owner’s Equity

a. Received cash as additional investment. + +
b. Purchased supplies on account. + -
c. Charged customers for services made on +
account.
d. Charged customers for services made on +
account.
e. Rendered services to cash customers. +
f. Collected on account receivable in full. + -
g. Paid cash for suppliers. -
h. Returned supplies purchased on -
account.
i. Paid cash to settle accounts. - -
j. Paid cash to owner for personal use. -

Required:
For each transaction, indicate whether the Assets, Liabilities or Owner’s Equity increased (+),
decreased (-) or did not change (0) by placing the appropriate sign in the appropriate column.

PROBLEM 2 Transaction Effects on the Basic Accounting Model

Transactions Assets Liabilities Owner’s Equity

a. Bought equipment paying cash. +-
b. Paid the monthly rent expense. - -
c. Purchased supplies on credit. + -
d. Made an additional investment in the +
company.
e. Charged customers for services provided +
on account.
f. Paid creditor on account. +
g. Received payment from customers on +
account. -
h. Received cash for services rendered +
today.
i. Permanently reduced his investment in -
the business by taking out cash.
j. Paid salaries for the week. -
k. Acquired equipment, paying 50% down, - +
the balance due in 30 days.

Required:
For each transaction, indicate whether the Assets, Liabilities or Owner’s Equity increased (+),
decreased (-) or did not change (0) by placing the appropriate sign in the appropriate column.

PROBLEM 3 TRANSACTIONS IN A COMPLETED WORKSHEET

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Hyun Bin, to be able to guide his students in their pursuit for CPA license, established the BinJin
tutorial Services. On May 1, 2020, he contributed Php 70, 000.00 as investment to start the
business. During the month, he entered into several transactions. Note that he made no withdrawals
during the month. The following is the transaction worksheet prepared by the student assistant:

Account Office Accounts Note Hyun Bin,

No Cash + + = + +
Receivable Equipment Payable Payable Capital
+70,000                   +70,000
1
-45,000       +45,000            
2                      
3         +30,000   +10,000   +20,000    
4     +18,000               +18,000
5 -5,000                   -5,000
6 +7,000                   +7,000
7 -10,000           -10,000        
8 +15,000 -15,000                
9 -7,000                   7,000

Required:

Describe each of the above transactions.

PROBLEM 4 OWNER’S EQUITY TRANSACTIONS

1. Received cash for rendering services.

2. Withdrew cash for personal expenses.
3. Received cash from a customer who have been rendered service on account.
4. Transferred personal asset to business.
5. Paid a service station for gasoline for a business service vehicle
6. Performed a service and received a promise of payment.
7. Paid cash to acquire equipment.
8. Paid cash to an employee for services rendered.

Required:

Identify the foregoing transactions by identifying each as either one of the following: Owner’s
Investment (OI), Owner’s Withdrawal (OW), Income (I), Expense (E), or not an Owner’s Equity
transaction (NO).

PROBLEM 5 CLASSIFICATION OF EVENTS

1. Received cash investment from the owner.

2. Paid cash on accounts payable.
3. Collected cash from accounts receivable.
4. Made cash distribution to the owner.
5. Paid cash for rent expense.
6. Invested cash in time deposit.
7. Purchased land with cash.
8. Performed services for clients on account.
9. Incurred operating expenses on account.
10. Performed services for cash.

Required:
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Indicate whether each of the above transactions is a Source of Assets (SA), Use of Assets (UA),
Exchange of Assets (EA) or Exchange of Claim (EC) transactions.

LESSON NO 2. RECORDING BUSINESS TRANSACTION

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ACCOUNTING CYCLE. It refers to a series of sequential steps or procedures performed to
accomplish the accounting process.

1. Identification of the Events to be Recorded

Aim : To gather information about transactions or events generally through the
source documents.

2. Transactions are Recorded in the Journal

Aim : To record the economic impact of transactions on the firm on a journal, which is
a form that facilitates transfer to the accounts.

3. Journal Entries are Posted to the Ledger

Aim : To transfer the information from the journal to the ledger for classification.

4. Preparation of Trial Balance

Aim : To provide a listing to verify the equality of debits and credits in the ledger.

5. Preparation of the Worksheet including Adjusting Entries

Aim : To aid in the preparation of financial statements.

6. Preparation of Financial Statements

Aim : To provide useful information to decision makers.

7. Adjusting Journal Entries are Journalized and Posted

Aim : To record the accruals, expiration of deferrals, estimations and other events
from the worksheet.

8. Closing Journal Entries are Journalized and Posted

Aim : To close temporary accounts and transfer to profit to owner’s equity.

9. Preparation of Post-Closing Trial Balance

Aim : To check the equality of debits and credits after the closing entries.

10. Reversing Entries and Journalized and Posted.

Aim : To simplify the recording of certain regular transactions in the next accounting
period.

The General Journal

(the book of original entry) Shows all the effects of a transaction
in terms of debits and credits.
Office Equipment xx
Cash xx

Cash
The Ledger
Office Equipment
A grouping of accounts which is
used to classify and summarize
transactions and to prepare data
for basic financial statements.
Trial Balance
Listing of all ledger accounts, Assets
in order, with their respective Liabilities
debit or credit balances. SOURCE DOCUMENTS
Owner’s Equity
Revenues
Expenses
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1. Transactions and events are the starting point in the accounting process.
2. Source documents identify and describe transactions and events entering the accounting
process.
3. These source documents contain information about the nature and amounts of the
transaction.

THE JOURNAL

1. The journal is a chronological record of the entity’s transactions.

2. A journal entry shows the effects of a business transaction in terms of debits and credits.
3. Each transaction is initially records in a journal rather than directly in the ledger.
4. It is called the book of original entry.
5. The general journal is the simplest journal.

FORMAT OF THE GENERAL JOURNAL

Journal page 1
Account Titles and
  Date Explanation P.R. Debit Credit
1 2020        
2 1-May Cash   250,000.00  
3   SJK, Capital     250,000.00
4   Initial investment.      

The standard contents are as follows:

1. Date. The year and month are not rewritten every entry unless the year or month changes or
a new page is needed.
2. Account Titles and Explanation. The account to be debited is entered at the extreme left
of the first line while the account to be credit is entered slightly indented on the next line. A
brief description of the transaction is usually made on the line below the credit. Generally,
skip a line after each entry.
3. P.R. (Posting Reference). This will be used when the entries are posted, that is, until the
amounts are transferred to the related ledger accounts. The posting will be described later.
4. Debit. The debit amount for each account is entered in this column.
5. Credit. The credit amount for each account is entered in this column.

SIMPLE AND COMPOUND ENTRY

1. In simple entry, only two accounts are affected – one account is debited and one account is
credited.
2. In compound entry, three or more accounts are affected.

TRANSACTIONS ARE JOURNALIZED (Step 2)

1. After the transaction or event has been identified and measured, it is recorded in the journal.
2. The process of recording a transaction is called journalizing.

THE LEDGER
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1. A grouping of the entity’s account is referred to as the ledger.
2. A general ledger is the “reference book” of the accounting system and is used to classify and
summarize transactions, and to prepare data for the basic financial statements.
3. The accounts in the general ledger are classified into two groups:
a. Balance Sheet or Permanent or Real Accounts. This refers to assets, liabilities and
owner’s equity.
b. Income Statement or Temporary or Nominal Accounts. This refers to income and
expenses.
4. Each account has its own records in the ledger.

CHART OF ACCOUNTS

1. A listing of all the accounts and their account numbers in the ledger is known as the chart of
accounts.
2. The chart is arranged in the financial statement order, that is, assets first, followed by
liabilities, owner’s equity, revenues and expenses.
3. The accounts should be numbered in a flexible manner to permit indexing and cross-
referencing.

POSTING (Step 3)
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1. Posting means transferring the amounts from the journal to the appropriate accounts in the
ledger.
2. Debits in the journal are posted as debits in the ledger and credits in the journal as credits in
the ledger.

Journal page 1
Account Titles and
  Date Explanation P.R. Debit Credit
1 2020        
2 1-May Cash   250,000.00  
3   SJK, Capital     250,000.00
4   Initial investment.      

The Ledger
Account
Account: Cash No. 110
  Date Explanation J.R. Debit Credit Balance
1 2020          
2 1-May Intial investment J-1 250,000.00    

Account
Account: SJK, Capital No. 310
  Date Explanation J.R. Debit Credit Balance
1 2020          
2 1-May Intial investment J-1   250,000.00  

Illustration of T- Account:

Cash
May
May 1 250,000.00 1 8,000.00
2 210,000.00 4 420,000.00
10 26,400.00 4 14,400.00
15 10,000.00 5 15,000.00
30 24,000.00 9 10,000.00
13 6,600.00
25 14,000.00
27 7,200.00
31 3,000.00
520,400.00   498,200.00
Balance 22,200.00  
 

TRIAL BALANCE (Step 4)

1. The trial balance is a list of all accounts with their respective debit or credit balances.
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2. It is prepared to verify the equality of debits and credits in the ledger at the end of each
accounting period or at any time the postings are updated.
3. The procedures in the preparation of the trial balance follow:
a. List all the accounts in numerical order.
b. Obtain the account balance of each account from the ledger and enter the balances in the
debit or credit balances in the credit column.
c. Add the debit and credit columns.
d. Compare the totals.
4. The trial balance is a control device that helps minimize accounting errors.

EXERCISES

PROBLEM 1 DEBITS AND CREDITS

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Innovative Designs, owned by Felipe Niza Jr., has been operating for two years. Below is a series of
transactions.

Required:

For each transaction, indicate the accounts that should be debited and credited. It no journal entry is
required, write “N/A’ in the columns. Use the following accounts:
 Cash  Notes Payable
 Account Receivable  Salaries Payable
 Supplies  Noza, Capital
 Prepaid Expenses  Niza, Withdrawals
 Equipment  Service Revenue
 Patents  Operating Expenses
 Accounts Payable

Transactions Debit Credit

a. Purchased equipment for use in the business; paid one
third cash and gave a note payable for the balance.
b. Paid cash for salaries.
c. Collected cash for services performed this period.
d. Collected cash for services performed last period.
e. Performed services this period on credit.
f. Paid operating expenses incurred in this period.
g. Paid cash for operating expenses incurred last period.
h. Incurred operating expenses this period to be paid next
period.
i. Purchased supplies for inventory to be used later, paid
cash.
j. Used some supplies from inventory to operations.
k. Purchased a patent; paid cash.
l. Made a payment on the equipment note in (a); the
payment was part principal and interest.
m. Collected cash on account receivable for services
previously performed.
n. Paid cash on accounts payable for expenses previously
incurred.
o. On the last day of current period, paid cash for an
insurance policy covering 12 months.

PROBLEM 2 CLASSIFICATION OF ACCOUNTS

The following ledger accounts are used by Cardo Dalisay Repair Shop:
a. Cash m. Dalisay, Withdrawals
b. Salaries Expense n. Salaries Payable
c. Account Receivable o. Unearned Revenue
d. Dalisay, Capital p. Office Equipment
e. Service Revenues q. Rent Payable
f. Prepaid Rent r. Notes Receivable
g. Accounts Payable s. Interest Expense
h. Land t. Notes Payable
i. Supplies Expense u. Supplies
j. Prepaid Insurance v. Interest Receivable
k. Utilities Expense w. Rent Expense
l. Service Revenues
Required: Indicate each account’s classification and normal balance by placing (/) marks.

Type of Account Normal Balance

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Asset Liabilities Owner’s Equity
Dalisay, Dalisay, Revenue Expense Debit Credit
Capital Withdrawals
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
l.
m.
n.
o.
p.
q.
r.
s.
t.
w.

PROBLEM 3 JOURNALIZING, POSTING AND PREPARATION OF TRIAL BALANCE

The Chart of Accounts for Juanita Pineda Delivery Services is as follows:

Assets Income
110 Cash 410 Delivery Revenues
120 Account Receivable Expenses
130 Prepaid Insurance 510 Salaries Expenses
140 Service Vehicle 520 Gasoline and Oil Expenses
150 Office Equipment 530 Repairs Expense
Liabilities 540 Advertising Expense
210 Accounts Payable 550 Supplies Expense
Owner’s Equity 590 Miscellaneous Expense
310 Pineda, Capital
320 Pineda, Withdrawals

The company completed the following transactions in May 2020:

May 3 Placed four week-end advertisements in the Sun Daily for Php 18,500.00; the amount is due in 30 days.
6 Bought supplies on account from Supplier C, Php 8,800.00.
15 Juanita Pineda invested in the business own office equipment with a fair market value of Php 52,500.00.
17 Received Php 61, 800.00 from charge customers to apply on their own accounts.
22 Received a bill from Park Trucking for repair services performed, Php 8,500.00.
26 Paid Supplies, Inc, Php 8,800.00 in full payment of account.
29 Paid salaries to employees, Php 21,000.00
30 Received Php 39,300.00 for services performed.
31 Received and paid gasoline and oil bill to the service vehicle, Php 12,500.00.
31 Billed South China Bank for services performed, Php 45,000.00.
31 Dalisay withdrew cash for personal use, Php 14, 500.00.
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