- Michael Winston invested $50,000 cash in his new business. The business incurred various expenses and earned some revenue during its first month of operations in January 2020.
- In February 2020, Dr. Marlon Balista started his medical practice. He invested $150,000 and incurred various expenses. He also billed and collected from patients.
- Journal entries were made to record all the transactions for both businesses. Trial balances were prepared at the end of the month to check the equality of debits and credits.
- Michael Winston invested $50,000 cash in his new business. The business incurred various expenses and earned some revenue during its first month of operations in January 2020.
- In February 2020, Dr. Marlon Balista started his medical practice. He invested $150,000 and incurred various expenses. He also billed and collected from patients.
- Journal entries were made to record all the transactions for both businesses. Trial balances were prepared at the end of the month to check the equality of debits and credits.
- Michael Winston invested $50,000 cash in his new business. The business incurred various expenses and earned some revenue during its first month of operations in January 2020.
- In February 2020, Dr. Marlon Balista started his medical practice. He invested $150,000 and incurred various expenses. He also billed and collected from patients.
- Journal entries were made to record all the transactions for both businesses. Trial balances were prepared at the end of the month to check the equality of debits and credits.
- Michael Winston invested $50,000 cash in his new business. The business incurred various expenses and earned some revenue during its first month of operations in January 2020.
- In February 2020, Dr. Marlon Balista started his medical practice. He invested $150,000 and incurred various expenses. He also billed and collected from patients.
- Journal entries were made to record all the transactions for both businesses. Trial balances were prepared at the end of the month to check the equality of debits and credits.
INSTRUCTION: The following are the transactions of WINSTON ENTERPRISES
during its first month of operations. 2020 January 2. Michael Winston invested P50,000 cash in the business. 4. Paid municipal taxes and licenses, P550 7. Bought supplies P6,000 cash basis. 8. Purchased furniture and fixture from Rhea Trading for P12,500 Terms: 10% down, balance on account. 9. Paid rent P45,000 in advance for three months. 10. Receipts for the week from various services rendered amounted to P18,000 15. Billed a customer the amount of P6,000 for services rendered. 16. Paid Rhea Trading Company in full. 18. Paid salaries of employees, P46,000. 20. Purchased equipment on account P14,000. 25. Paid miscellaneous expense, P2,400. 27. Michael Winston withdrew cash for personal use, P7,000. 29. Paid light telephone and water for the month, P12,600 31. Paid the salaries for the second half of the month, P38,000.
Date Description P/R Debit Credit
Jan 2 Cash 50,000
Winston, Capital 50,000
Invest Cash
4 Taxes and Licenses 550
Cash 550
Paid municipal taxes and licenses
7 Supplies 6,000
Cash 6,000 Purchased Supplies
8 Furnitures and Fixtures 12,000
Cash 1,250
Accounts Payable 11,250
Purchased Furnitures and Fixtures using cash
and balance on account
9 Rent Expense 15,000
Cash 15,000
Paid rent for three months
10 Cash 18,000
Service Revenue 18,000
Receipts for the week from various services
rendered
15 Accounts Receivable 6,000
Service revenue 6,000
Billed a customer for service rendered
16 Accounts Payable 11,250
Cash 11,250
Paid balance in full
18 Salaries Expense 46,000
Cash 46,000
Paid Salary
20 Equipment 14,000
Accounts Payable 14,000
Purchased equipment on account
25 Miscellaneous Expense 2,400
Cash 2,400
Paid miscellaneous fees
27 Winston, Drawing 7,000
Cash 7,000
Cash withdrawal for personal use
29 Utilities Expense 12,600
Cash 12,600
Paid utility bills
31 Salary Expense 38,000
Cash 38,000
Paid Salary for the second half of the month
PROBLEM 3-2
On February 2020, Marlon Balista started his medical services in practice. During the month the following transactions were completed:
FEBRUARY 1. Mr. Balista invested P150,000 in a new bank account in the name of Marlon Balista, M.D. 3. Purchased medical equipment costing P62.000, paying P20,000 cash and the balance on notes payable. 4. Bought medical supplies for cash, P12,000. 7. Paid rent for the month, P6,000. 8. Received P15,000 for medical services rendered. 10. Acquired table & chairs on account, P8,500 13. Billed medical services to a client, P34,000 15. Paid salaries to employees, P26,400 17. Paid another doctor for preparing laboratory services on a patient, P3,000 20. Paid creditors on account, P2,500 22. Paid insurance premium for the quarter, P4,700. 23. Paid miscellaneous expenses, P2,200. 25. Received P34,000 from patient on account. 27. Paid salaries of medical technician and other employees, P58,50 28. Received cash from cash patients, P68,500
INSTRUCTIONS: 1. Prepare jojunal entries on the above transactions. 2. Post the entries to the ledger.
Use the following account titles given:
Cash, 11; Accounts receivable, 12; Medical supplies, 13; Medical equipment, 14; Furniture & Fixtures, 15; Notes payable, 21; accounts payable, 22;Balista, Capital, 31, Balista, Drawing, 32; Medical revenues, 41; Salary expense, 51; Rent expense, 52; Laboratory expense, 53; Utilities Expense, 54; Insurance expense, 55; and Miscellaneous expense, 58. 3. Prepare a TRIAL BALANCE for the month.
GENERAL LEDGER MONTH END CLOSING
General Ledger Sheet Sheet No:1
Account: Cash Account No:
11
Date Details Ref. Debit Credit Balance
2020
Feb-01 By Cash GJ1 150,000 150,000
3 By Cash GJ1 20,000 130,000
4 By Cash GJ1 12,000 118,000
7 By Cash GJ1 6,000 112,000
8 By Cash GJ1 15,000 127,000
15 By Cash GJ1 26,400 100,600
17 By Cash GJ1 3,000 97,600
20 By Cash GJ1 2,500 95,100
22 By Cash GJ1 4,700 90,400
23 By Cash GJ1 2,200 88,200
25 By Cash GJ1 34,000 122,200
27 By Cash GJ1 58,500 63,700
28 By Cash GJ1 68,500 132,200
Feb-28 Totals 267,500 135,300 132,200
General Ledger Sheet Sheet No: 2
Account: Accounts Receivable Account No: 12
Balanc Date Details Ref Debit Credit e 2020
Feb-13 By Accounts Receivable GJ1 34,000 34,000
25 To Accounts Receivable GJ1 34,000 0
Feb-28 Totals 34,000 34,000 0
General Ledger Sheet Sheet No: 3
Account: Medical Supplies Account No: 13
Date Details Ref Debit Credit Balance
2020
Feb-04 By Medical Supplies GJ1 12,000 12,000
Feb-28 12,000 12,000
General Ledger Sheet Sheet No: 4
Account: Medical Equipment Account No: 14
Date Details Ref Debit Credit Balance
2020
Feb-03 By Medical Equipment GJ1 62,000 62,000
Feb-28 Totals 62,000 62,000
General Legder Sheet Sheet No: 5
Account: Furniture and Fixtures Account No: 15
Date Details Ref Debit Credit Balance
2020 Feb-10 By Furnitures and Fixtures GJ1 8,500 8,500
