JOURNAL ENTRIES GENERAL LEDGER

Date Accounts Code Debit Credit

Feb. 4 Cash 101 150,000 ACCOUN
Capital, Fabella 301 150,000
Date
To record the capital investment.
Feb. 4
Feb. 7 Office Equipment 151 32,500 Feb. 9
Accounts Payable 201 32,500 Feb. 15
To record the purchase of a computer. Feb. 19
Feb. 20
Feb. 9 Supplies 121 18,000 Feb. 28
Cash 101 18,000 Feb. 28
To record purchase of supplies. Feb. 28

Feb. 15 Prepaid insurance 131 6,000

Cash 101 6,000 ACCOUN
To record payment of insurance.
Date
Feb. 18 Accounts Receivable 111 50,000 Feb. 18
Service Revenue 401 50,000 Feb. 19
To record services rendered on account. Feb. 21

Feb. 19 Cash 101 35,000

Accounts Receivable 111 35,000 ACCOUN
To record collection of payment.
Date

Feb. 20
Accounts Payable 201 20,000 Feb. 7
Cash 101 20,000
To record payment of accounts.

Feb. 21 Accounts Receivable 111 30,000

Service Revenue 401 30,000 ACCOUN
To record services rendered on account.
Date

Feb. 28 Salaries Expense 601 15,000 Feb. 9

Cash 101 15,000 Feb. 28
To record payment of salaries.

Feb. 28 Fabella, Drawing 311 12,000

Cash 101 12,000 ACCOUN
To record cash withdrawal.
Date
Feb. 28 Communication expense 612 3,000 Feb. 15
Cash 101 3,000
To record payment of comm. expense.

Feb. 28 Supplies expense 603 3,000

Office Supplies 121 3,000
To record used supplies.
GENERAL LEDGER

ACCOUNT 101 CASH

Balances
Description Post Debit Credit
Debit Credit
Capital investment GJ - 1 150,000 150,000
Purchase of Supplies GJ - 1 18,000 132,000
Payment of insurance GJ - 1 6,000 126,000
Collection of payment GJ - 1 35,000 161,000
Payment of accounts GJ - 1 20,000 141,000
Payment of salaries GJ - 1 15,000 126,000
Withdrawal of Cash GJ - 1 12,000 114,000
Payment of comm. Expense GJ - 1 3,000 111,000

ACCOUNT 111 ACCOUNTS RECEIVABLE

Balances
Description Post Debit Credit
Debit Credit
Services rendered GJ - 1 50,000 50,000
Collection of payment GJ - 1 35,000 15,000
Services rendered GJ - 1 30,000 45,000

ACCOUNT 151 EQUIPMENT

Balances
Description Post Debit Credit
Debit Credit

Purchase of a computer GJ - 1 32,500 32,500

GJ - 1
GJ - 1

ACCOUNT 121 SUPPLIES

Balances
Description Post Debit Credit
Debit Credit
Purchase of supplies GJ - 1 18,000 18,000
Used supplies GJ - 1 3,000 15,000
GJ - 1

ACCOUNT 131 Prepaid Insurance

Balances
Description Post Debit Credit
Debit Credit
Payment of insurance GJ - 1 6,000 6,000
GJ - 1
GJ - 1
 ACCOUNT 201 ACCOUNTS PAYABLE
Balances
Date Description Post Debit Credit
Debit Credit
Feb. 7 Purchase of a computer GJ - 1 32,500 32,500
Feb. 20 Payment of Accounts GJ - 1 20,000 12,500
GJ - 1

ACCOUNT 301 Capital, Fabella

Balances
Date Description Post Debit Credit
Debit Credit
Feb. 4 Investment of capital GJ - 1 150,000 150,000
GJ - 1
GJ - 1

ACCOUNT 311 Fabella, Drawing

Balances
Date Description Post Debit Credit
Debit Credit
Feb. 28 Withdrawal of cash GJ - 1 12,000 12,000
GJ - 1
GJ - 1

ACCOUNT 401 Service Revenue

Balances
Date Description Post Debit Credit
Debit Credit
Feb. 18 Services rendered on account GJ - 1 50,000 50,000
Feb. 21 Services rendered on account GJ - 1 30,000 80,000
GJ - 1

ACCOUNT 604 COMMUNICATION EXPENSE

Balances
Date Description Post Debit Credit
Debit Credit
Feb. 28 Payment of Comm. Exp. GJ - 1 3,000 3,000
GJ - 1
GJ - 1

ACCOUNT 601 SALARIES and WAGES

Balances
Date Description Post Debit Credit
Debit Credit
Feb. 28 Payment of salaries GJ - 1 15,000 15,000
GJ - 1
GJ - 1
 ACCOUNT 602 DEPRECIATION EXPENSE
Balances
Date Description Post Debit Credit
Debit Credit
Feb. 28 Used supplies GJ - 1
GJ - 1
GJ - 1

ACCOUNT 603 Supplies EXPENSE

Balances
Date Description Post Debit Credit
Debit Credit
GJ - 1
GJ - 1
GJ - 1
FABELLA BOOKKEEPING SERVICES
Unadjusted Trial Balance
As of February 28, 2021

Code Account Title Debit Credit

101 Cash 111,000
111 Accounts Receivable 45,000
121 Supplies 15,000
131 Prepaid insurance 6,000
151 Equipment 32,500
201 Accounts Payable 12,500
301 Capital, Fabella 150,000
311 Fabella, Drawing 12,000
401 Service Revenue 80,000
601 Salaries Expense 15,000
603 Supplies Expense 3,000
604 Communication Expense 3,000
TOTAL 242,500 242,500

ADJUSTING ENTRIES

Feb. 28 Depreciation expense 500

Accumulated Depreciation - Equipment 500

To record depreciation expense for 1 month.

Feb. 28 Insurance expense 500

Prepaid insurance 500
To record expired portion of insurance for half month.

FABELLA BOOKKEEPING SERVICES

Adjusted Trial Balance
As of February 28, 2021

Code Account Title Debit Credit

101 Cash 111,000
111 Accounts Receivable 45,000
121 Supplies 15,000
131 Prepaid insurance 5,500
151 Equipment 32,500
152 Accumulated Dep. 500
201 Accounts Payable 12,500
301 Fabella, Capital 150,000
311 Fabella, Drawing 12,000
401 Service Revenue 80,000
601 Salaries Expense 15,000
603 Supplies Expense 3,000
604 Communication Expense 3,000
621 Insurance Expense 500
631 Depreciation expense 500
TOTAL 243,000 243,000

Closing Entries

Service Revenues
Income and Expense Summary
To close revenue account.

Income and Expense Summary

Expense Account
To close expense account.

Net Income
Fabella, Capital
To close expense account.

Fabella, Capital
Fabella, Drawing
To close drawing account.
FABELLA BOOKKEEPING SERVICES FABELLA BOOKKEEPING SERVICES
Income Statement Statement of Cashflows (Direct Method)
For the month ended February 28, 2021 For the month ended Feb. 28

Service Revenue 80,000 Cash Flow from Operating Activities:

Less - Direct Cost of Services 15,000 Cash Inflows
Gross Profit 65,000 Collection of payment
Less - Operating Expenses:
Supplies expense 3,000 Cash Outflows
Communication expense 3,000 Purchase of Supplies
Insurance Expense 500 Payment of expenses
Depreciation expense 500 7,000 Net cash used by Operating Activities
Net Income ₱ 58,000
Cash Flow from Investing Activities:
Cash Outflows
Purchase of equipmenrt
FABELLA BOOKKEEPING SERVICES Net cash used by Investing Activities
Statement of Changes in Equity
For the month ended February 28, 2021 Cash Flow from Financing Activities:
Cash Inflows
Fabella, Capital, Feb. 1 - Capital investment
Add: Net Income 58,000 Cash Outflows
Capital investment 150,000 Withdrawal of Cash
Fabella, Drawings (12,000) Net cash provided by Financing Activities

Fabella, Capital, Feb. 28 ₱ 196,000 Net Change in Cash

Cash, Feb. 1
Cash, Feb. 28

FABELLA BOOKKEEPING SERVICES

Balance Sheet
As of February 28, 2021 FABELLA BOOKKEEPING SERVICES
Statement of Cashflows (Indirect Method)
ASSETS For the month ended Feb. 28
CURRENT ASSETS
Cash ₱ 111,000 OPERATING ACTIVITIES
Accounts Receivable 45,000 Net Income
Supplies 15,000 Add: Non-cash expenses
Prepaid insurance 5,500 Depreciation
Total Current Assets ₱ 176,500 Change in Assets
Increase in Accounts Receivable
NON-CURRENT ASSETS Increase in Supplies
Equipment 32,500 Increase in Prepaid Insurance
Accumulated Dep. 500
Total Non-Current Assets 32,000 Net cash used by Operating Activities
Total Assets ₱ 208,500 INVESTING ACTIVITIES
Cash Outflows
 LIABILITIES AND EQUITY Payment of Accounts
Liabilities Net cash used by Investing Activities
Accounts Payable 12,500
FINANCING ACTIVITIES
Equity Cash Inflows
Fabella, Capital 196,000 Capital investment
Total Liabilities & Equity ₱ 208,500 Cash Outflows
Withdrawal of Cash
Net cash provided by Financing Activities
Net Change in Cash
Cash, Feb. 1
Cash, Feb. 28
Closing Entries

Service Revenues
Income and Expense Summary
To close revenue account. 80,000
80,000
Income and Expense Summary
Expense Account
To close expense account. 22,500
22,500
Net Income
Fabella, Capital
To close expense account. 57,500
57,500
Fabella, Capital
Fabella, Drawing
To close drawing account. 12,000
12,000
EPING SERVICES Closing Entries
ows (Direct Method)
Service Revenues
Income and Expense Summary
rating Activities: To close revenue account. 80,000
80,000
35,000 Income and Expense Summary
Expense Account
To close expense account. 22,500
15,000 22,500
27,000 Net Income
erating Activities - 7,000 Fabella, Capital
To close expense account. 57,500
sting Activities: 57,500
Fabella, Capital
20,000 Fabella, Drawing
vesting Activities - 20,000 To close drawing account. 12,000
12,000
ncing Activities:

150,000 FABELLA BOOKKEEPING SERVICES

Post-Closing Trial Balance
12,000 As of February 28, 2021
y Financing Activities 138,000

Code Account Title Debit Credit

111,000
- 101 Cash 111,000
111,000 111 Accounts Receivable 45,000
121 Supplies 15,000
131 Prepaid insurance 5,500
151 Equipment 32,500
EPING SERVICES 152 Accumulated Dep. 500
ows (Indirect Method) 201 Accounts Payable 12,500
301 Fabella, Capital 196,000
TOTAL 209,000 209,000

57,500

500

ounts Receivable - 45,000

- 15,000
paid Insurance - 5,000
- 65,000
erating Activities - 7,000
 20,000
vesting Activities - 20,000

150,000

12,000
y Financing Activities 138,000
182,000
-
182,000