Accounts Payable  210 36,000

Rainbow Nursery School Cash 110  10,000
General Journal
Aug.20 Notes Payable 220 26,000
August 31, 2012
*To record the settlements of accounts
payable on August 2 and record the notes
Date Particulars PR Debit Credit
payable as balance.
 Cash 110 50,000
 Aug.2  Accounts Receivable  120 6,700
Aug. 1 Von Capital 310 50,000
3 Nursery Fees 410 6,700
*To record the initial investment of the owner
*To record service fees on account
to the nursery school.
 Utilities Expense  540 1,800
 Furniture
 Aug.2 Cash 110 1,800
Accounts payable 140 13,000
5 *To record the accounts water and electricity
*To record the acquisition of tables and chairs 210 13,000
bills for the month.
on credit.
 Aug.2  Von Drawing  320 5,000
Aug. 2 Play Equipment
8 Cash 110 5,000
Accounts Payable 150 23,000
*To record the temporary withdrawals of the
*To record acquisition of play equipment on 210 23,000
owner.
credit.
 Aug.2  Notes Payable  220 13,000
 Advertising expense 530 1,200
9 Cash 110 13,000
Aug. 4 Cash 110 1,200
*To record the settlement of notes payable on
*To record the cost of advertising expense
August 20.
 Nursery Supplies 130 7,500
 Salaries Expense  520 4,500
Aug. 5 Accounts payable 210 7,500
 Aug.3 Cash 110 4,500
*To record nursery supplies on credit.
0 *To record the salaries expense of the nursery
 Cash 110 8,000
helper.
Aug. 7 Nursery Fees 410 8,000
*To record the service fees
 Accounts Receivable 120 6,500
Aug.10 Nursery Fees 410 6,500
*To record receivable fees
 Accounts Payable 210 3,750 Rainbow Nursery School
Cash 110 3,750 General Ledger
Aug.11 *To record settlements of accounts payable on August 31, 2012
August 5 Account Title: CASH Account No.: 110
 Rent Expense 510 5,500 J
Cash 110 5.500 Date Particulars R Debit Credit
Aug.15 *To record the accounts monthly rent of the 1  Von Capital (Investment)    50,000  
space. 4  Advertising Expense      1,200
 Cash 110 3,300 7 Received Service fees    8,000  
Accounts receivable 120 3,300 11  Paid Accounts Payable      3,750
Aug.18 *To record the collection accounts receivable 15  Rent Expense      5,500
from a costumer. 18  Accounts Receivable    3,300  
 20  Paid accounts payable      10,000 Account Title: Notes Payable Account No.: 220
25  Paid utilities expense      1,800 J
Date Particulars R Debit Credit
28  Von Drawing      5,000
20  Notes Payable      26,000
29  Paid notes payable      13,000
29  Paid Notes payable   13,000  
30  Paid salaries expense      4,500
Total: 13,000
         
Account Title: Von Capital Account No.: 310
Total: 16,550 J
Account Title: Accounts Receivable Account No.: 120 Date Particulars R Debit Credit
J 1  Von capital ( investment)     50,000
Date Particulars R Debit Credit
10  Received service fees    6,500  
       
18  Account receivable      3,300
Total: 50,000
23  Received service fees    6,700  
Account Title: Von Withdrawal Account No.: 320
          J
Total: 9,900 Date Particulars R Debit Credit
28  Von drawing   5,000  
Account Title: Nursery Supplies Account No.: 130        
J Total: 5,000
Date Particulars R Debit Credit
Account Title: Income Summary Account No.: 330
5  Purchased Nursery supplies    7,500  
Date Particulars JR Debit Credit
         
7  Nursery Fees     8,000
Total: 7,500
10 Nursery Fees 6,500
Account Title: Furniture Account No.:140
J 23 Nursery Fees 6,700
Date Particulars R Debit Credit 4 Advertising expense 1,200
2  Furniture    13,000   15 Rent expense 5,500
          25 Utilities expense 1,800
Total: 13,000 30  Salaries expense    4,500
Total: 8,200
Account Title: Play Equipment Account No.: 150
J Account Title: Nursery Fees Account No.: 410
Date Particulars R Debit Credit
Date Particulars JR Debit Credit
23,00
2  Play equipment (purchased)   0   7  Nursery fees     8,000
        10 Nursery fees 6,500
Total: 23,000 23 Nursery fees 6,700
Total: 21,200
Account Title: Accounts Payable Account No.: 210
J Account Title: Rent Expense Account No.: 510
Date Particulars R Debit Credit
Date Particulars JR Debit Credit
2  Furniture     13,000
15  Rent Expense   5,500  
 Equipment     23,000
     
5  Nursery supplies     7,500 Total: 5,500
11  Paid supplies   3,750
20  Paid partial payment   36,000 Account Title: Salaries Expense Account No.: 520
Total: 3,750 Date Particulars JR Debit Credit
 30  Salaries expense   4,500  
       
Total: 4,500 Practice Set: Problem for Services Business

Account Title: Advertising Expense Account No.: 530 In August 1, 2012, Snooky Von opened a nursery school named “Rainbow Nursery
Date Particulars JR Debit Credit
School” with an initial investment of P50,000. The following transaction occurred during
the month of August.
4  Advertising expense   1,200  
       
2 Purchased on account tables and chairs, P13,000 and play equipment for
Total: 1,200
P23,000.
Account Title: Utilities Expense Account No.: 540
4 Paid P1,200 to a local newspaper for advertising the opening of the school.
Date Particulars JR Debit Credit 5 Purchased nursery supplies on account, P7,500.
25  Utilities expense   1,800   7 Received P8,000 from a client for services rendered.
        10 Sent a bill to a customer for fees amounting to P6,500.
Total: 1,800 11 Paid half of the amount due for the nursery supplies bought on August 5.
15 Paid the monthly rent of the space, P5,500.
18 Collected P3,300 as partial payment from a customer on account.
20 Paid P10,000 as partial payment for the furniture and play equipment bought on
August 2 and issued a promissory note for the balance.
Rainbow Nursery School 23 Rendered services to a client on account, P6,700.
TRIAL BALANCE 25 Paid the water and electricity bills for the month, P1,800.
August 31, 2012 28 Owner withdrew P5,000 for personal use.
29 Paid half of the amount due on the promissory note issued on Aug. 20.
30 Paid the wages of the nursery helper for the month, P4,500.
Accounts Debit Credit
Cash 16,550 Chart of Accounts:
Accounts receivable 9,900 110 Cash; 120 Accounts Receivable; 130 Nursery Supplies; 140 Furniture; 150 Play
Nursery supplies 7,500 Equipment
Furniture 13,000 210 Accounts Payable; 220 Notes payable; 310 Von Capital; 320 Von Drawing; 330
Play Equipment 23,000 Income Summary; 410 Nursery Fees; 510 Rent Expense; 520 Salaries Expense; 530
Accounts payable 3,750 Advertising Expense; 540 Utilities Expense
Notes Payable 13,000
Required:
Von Capital (Investment) 50,000
1. Journalize the above transactions to the General Journal.
Von Drawing 5,000
2. Post transactions to the General Ledgers provided and extract the balance of
Nursery fees 21,200
each account.
Rent expense 5,500 3. Prepare a trial Balance.
Salaries expense 4,500
Advertising expense 1,200
Utilities expense 1,800
TOTALS: 87,950 87,950