CLASS ACTIVITIES TODAY (Week 4)

1 OPENING PRAYER
2 SHORT QUIZ 2
3 CALENDAR REVIEW
4 ATTENDANCE
5 MODULE 4
6 GROUP EXERCISE
 Name Assigned Task Wk #

1 ALICANTE, YSHA MAXINE RETONEL OPENING PRAYER

2 AMITA, ELYSHIA EIREEN ZSANEL MANIMTIMICE BREAKER 2
3 ASIS, FRANCHESCA JANE APITAN TIME KEEPER
4 AYUSTE, ANGELITO PANGAN OPENING PRAYER
5 BALLARAN, FRITZ KENNETH DIONG ICE BREAKER 3
6 BERTUMEN, KIRBY CADELIÑA TIME KEEPER
7 BOBADILLA, MICAH PAULINNE VARGAS OPENING PRAYER
8 BOOL, KALIAH ANGEL SANTILLANA ICE BREAKER 4
9 CASIBU, JARHA KEZIAH ANCIRO TIME KEEPER
10 CHAN, LYIANNE LALAS OPENING PRAYER
11 CLACITO, ALEXANDRA MADISSON TURLA ICE BREAKER 5
12 DEL ROSARIO, JETRO RIEGO DE DIOS TIME KEEPER
13 DESCALLAR, AUDREY CELESTINE DELA PEÑ OPENING PRAYER
14 ALBAY , ALEXANDRA THERESA AWITAN ICE BREAKER 6
15 DUNGCA, LANDER AMIEL ROBLES TIME KEEPER
16 EROLAN, MA. MIKAELLA MABULAC OPENING PRAYER
17 FELLIZAR, AHRON CEDRIC DE GUZMAN ICE BREAKER 7
18 GAGARRA, DULCE BEA ANDREA HERMODO TIME KEEPER
19 GONJORAN, FERDINAND SEDOL OPENING PRAYER
20 GONZAGA, JOSHRIELLE AREVALO ICE BREAKER 8
21 HECHANOVA, LADY YSABEL VELASCO TIME KEEPER
22 ISODA, NAOMI YUKI MASENDO OPENING PRAYER
23 NACIONAL, RACHELLE ANNE ILUMBA ICE BREAKER 13
24 LOMADILLA, SOPHIA PEARL RAPADA TIME KEEPER
25 MACUSI, SHERAIN MORIE JUEVESANO OPENING PRAYER
26 MALLARI, MARC NICO SULIT ICE BREAKER 14
27 NALUZ, SEAN KENAN MACARIO TIME KEEPER
28 RAMOS, ANDREI LOUIS CASELA OPENING PRAYER
29 OSIAL, JENNAH MAYE MALUTO ICE BREAKER 15
30 PAGUIPO, MARK DAVEN LUNA TIME KEEPER
31 PALMA, KAREN BUHAT OPENING PRAYER
32 PELAYO, ERICK DANIEL MARQUEZ ICE BREAKER 16
33 PEREZ, DENISE KATRIEL BOLIMA TIME KEEPER
34 SUBARAN, SEAN WARREN MACABASCO OPENING PRAYER
35 TAN, ALEYANA LINA ICE BREAKER 17
36 TIMPAC, HAJAR APUES TIME KEEPER
37 UMALI, USHA IRA JENE ENGUANCHO OPENING PRAYER
38 VILLAFLORES, ALYSSA NICOLE ZAPATA ICE BREAKER 18
39 VILLANUEVA, JOVI MAE RAZON TIME KEEPER
40 TALEON, CARYL MONIQUE SUMALINOG OPENING PRAYER
Name Name

ALICANTE, YSHA MAXINE RETONEL ALBAY , ALEXANDRA THERESA AWITAN

AMITA, ELYSHIA EIREEN ZSANEL MANIMTIM ALICANTE, YSHA MAXINE RETONEL
ASIS, FRANCHESCA JANE APITAN AMITA, ELYSHIA EIREEN ZSANEL MANIMTIM
AYUSTE, ANGELITO PANGAN ASIS, FRANCHESCA JANE APITAN
BALLARAN, FRITZ KENNETH DIONG AYUSTE, ANGELITO PANGAN

BERTUMEN, KIRBY CADELIÑA BALLARAN, FRITZ KENNETH DIONG

BOBADILLA, MICAH PAULINNE VARGAS BERTUMEN, KIRBY CADELIÑA
BOOL, KALIAH ANGEL SANTILLANA BOBADILLA, MICAH PAULINNE VARGAS

CASIBU, JARHA KEZIAH ANCIRO BOOL, KALIAH ANGEL SANTILLANA

CHAN, LYIANNE LALAS CASIBU, JARHA KEZIAH ANCIRO
CLACITO, ALEXANDRA MADISSON TURLA CHAN, LYIANNE LALAS
DEL ROSARIO, JETRO RIEGO DE DIOS CLACITO, ALEXANDRA MADISSON TURLA
DESCALLAR, AUDREY CELESTINE DELA PEÑA DEL ROSARIO, JETRO RIEGO DE DIOS
DIPANTAR, HARRIS LUMPINGAN DESCALLAR, AUDREY CELESTINE DELA PEÑA
DUNGCA, LANDER AMIEL ROBLES DUNGCA, LANDER AMIEL ROBLES
EROLAN, MA. MIKAELLA MABULAC EROLAN, MA. MIKAELLA MABULAC
FELLIZAR, AHRON CEDRIC DE GUZMAN FELLIZAR, AHRON CEDRIC DE GUZMAN
GAGARRA, DULCE BEA ANDREA HERMODO GAGARRA, DULCE BEA ANDREA HERMODO
GONJORAN, FERDINAND SEDOL GONJORAN, FERDINAND SEDOL
GONZAGA, JOSHRIELLE AREVALO GONZAGA, JOSHRIELLE AREVALO
HECHANOVA, LADY YSABEL VELASCO HECHANOVA, LADY YSABEL VELASCO
ISODA, NAOMI YUKI MASENDO ISODA, NAOMI YUKI MASENDO
LAPIG, ELAIZA JUDIELE DION ICO LOMADILLA, SOPHIA PEARL RAPADA
LOMADILLA, SOPHIA PEARL RAPADA MACUSI, SHERAIN MORIE JUEVESANO
MACUSI, SHERAIN MORIE JUEVESANO MALLARI, MARC NICO SULIT
MALLARI, MARC NICO SULIT NACIONAL, RACHELLE ANNE ILUMBA
NALUZ, SEAN KENAN MACARIO NALUZ, SEAN KENAN MACARIO
ODSINADA , JAN YDELSON BUCE OSIAL, JENNAH MAYE MALUTO
OSIAL, JENNAH MAYE MALUTO PAGUIPO, MARK DAVEN LUNA
PAGUIPO, MARK DAVEN LUNA PALMA, KAREN BUHAT
PALMA, KAREN BUHAT PELAYO, ERICK DANIEL MARQUEZ
PELAYO, ERICK DANIEL MARQUEZ PEREZ, DENISE KATRIEL BOLIMA
PEREZ, DENISE KATRIEL BOLIMA RAMOS, ANDREI LOUIS CASELA
ROXAS, JOHN BENEDICT LEGASTO SUBARAN, SEAN WARREN MACABASCO
SUBARAN, SEAN WARREN MACABASCO TALEON, CARYL MONIQUE SUMALINOG
TAN, ALEYANA LINA TAN, ALEYANA LINA
TIMPAC, HAJAR APUES TIMPAC, HAJAR APUES
UMALI, USHA IRA JENE ENGUANCHO UMALI, USHA IRA JENE ENGUANCHO
VILLAFLORES, ALYSSA NICOLE ZAPATA VILLAFLORES, ALYSSA NICOLE ZAPATA
VILLANUEVA, JOVI MAE RAZON VILLANUEVA, JOVI MAE RAZON
ZAMORA, BEATRIZ KAYE MENDOZA
DESCALLAR, AUDREY CELESTINE DELA PEÑA
AMITA, ELYSHIA EIREEN ZSANEL MANIMTIM
HECHANOVA, LADY YSABEL VELASCO
PAGUIPO, MARK DAVEN LUNA
CASIBU, JARHA KEZIAH ANCIRO
ODSINADA , JAN YDELSON BUCE
Short Quiz 2

On your 1/4 sheet of pad paper, write TRUE if the statement is correct; otherwise,
write FALSE. Avoid any erasures. Erasures in any form will invalidate your answer.
Do not use pencil. Only permanent ink pen is allowed. If you will not follow
instructions, your answer, even if correct, will not be considered.

1 Only the employer shares in the monthly contribution to HDMF.

2 The maximum employer share in HDMF is Php100.

3 The SSS contribution of the employee is treated as receipt of revenue of the emp

4 Both SSS employees' and employer's shares are expenses of the employees.

5 The withholding tax on the earning of employee is the expense of the employer.

6 The withholding of income tax in an employee's earnings is optional.

The withholding of income tax from the earning of employees who are given
7 minimum wage is required.

Only the employee has the regular share on the monthly premium payable to
8 Philhealth.

9 EC contribution is considered as an expense of the employer.

The withholding tax deducted by the employer from the salary of its employee
is a LIABILITY of the employer.
10
 ID Name

1 202180784 ALBAY , ALEXANDRA THERESA AWITAN

2 202330464 ALICANTE, YSHA MAXINE RETONEL
3 202330736 AMITA, ELYSHIA EIREEN ZSANEL MANIMTIM
4 202330429 ASIS, FRANCHESCA JANE APITAN
5 202180262 AYUSTE, ANGELITO PANGAN
6 202330482 BALLARAN, FRITZ KENNETH DIONG
7 202330404 BERTUMEN, KIRBY CADELIÑA
8 202330821 BOBADILLA, MICAH PAULINNE VARGAS
9 202180413 BOOL, KALIAH ANGEL SANTILLANA
10 202330630 CASIBU, JARHA KEZIAH ANCIRO
11 202331300 CHAN, LYIANNE LALAS
12 202330765 CLACITO, ALEXANDRA MADISSON TURLA
13 202180175 DEL ROSARIO, JETRO RIEGO DE DIOS
14 202330653 DESCALLAR, AUDREY CELESTINE DELA PEÑA
15 202331283 DUNGCA, LANDER AMIEL ROBLES
16 202330187 EROLAN, MA. MIKAELLA MABULAC
17 202330935 FELLIZAR, AHRON CEDRIC DE GUZMAN
18 202331011 GAGARRA, DULCE BEA ANDREA HERMODO
19 202330763 GONJORAN, FERDINAND SEDOL
20 202331040 GONZAGA, JOSHRIELLE AREVALO
21 202330550 HECHANOVA, LADY YSABEL VELASCO
22 202330694 ISODA, NAOMI YUKI MASENDO
23 202330060 LOMADILLA, SOPHIA PEARL RAPADA
24 202330812 MACUSI, SHERAIN MORIE JUEVESANO
25 202330816 MALLARI, MARC NICO SULIT
26 202180754 NACIONAL, RACHELLE ANNE ILUMBA
27 202330041 NALUZ, SEAN KENAN MACARIO
28 202180097 OSIAL, JENNAH MAYE MALUTO
29 202331235 PAGUIPO, MARK DAVEN LUNA
30 202180326 PALMA, KAREN BUHAT
31 202330138 PELAYO, ERICK DANIEL MARQUEZ
32 202331366 PEREZ, DENISE KATRIEL BOLIMA
33 201720079 RAMOS, ANDREI LOUIS CASELA
34 201720389 SUBARAN, SEAN WARREN MACABASCO
35 202180699 TALEON, CARYL MONIQUE SUMALINOG
36 202331074 TAN, ALEYANA LINA
37 202331151 TIMPAC, HAJAR APUES
38 202331377 UMALI, USHA IRA JENE ENGUANCHO
39 202330928 VILLAFLORES, ALYSSA NICOLE ZAPATA
40 201720137 VILLANUEVA, JOVI MAE RAZON
CLASS CALENDAR

Holidays/No class Wk# From To Type

FTF
1 Aug 14 Aug 19
Async
Aug 21 Ninoy Aquino FTF
2 Aug 21 Aug 26
Day Async
Aug 28 National FTF
3 Aug 28 Sep 2
Heroes Day
Async
FTF
4 Sep 4 Sep 9
Async
FTF
5 Sep 11 Sep 16
Async
FTF
6 Sep 18 Sep 23
Async
FTF
7 Sep 25 Sep 30
Async
FTF
8 Oct 2 oct 7
Async

9 Oct 9 Oct 14 Onsite

10 Oct 16 Oct 21 Async?

11 Oct 23 Oct 28

Oct 31, Nov 1 & 2

12 Oct 30 Nov 4
Holidays Async
FTF
13 Nov 6 Nov 11
Async
FTF
14 Nov 13 Nov 18
Async
FTF
15 Nov 20 Nov 25
Async
FTF
Nov 30 Bonifacio Day 16 Nov 27 Dec 2
Async
Dec 8 Feast of FTF
Immaculate 17 Dec 4 Dec 9 Async
Conception

18 Dec 11 Dec 16 Onsite

 Supplemental Class Discussions
Activity
(Thursday, 230-530 pm)
Class Introduction & Module 1 (Part 1)
Aug 17 Module 1 Part 2
Module 1 via Schoolbook
SQ1; Module 2 (Part 1)
Aug 24 Module 2 Part 2
Module 2 via Schoolbook
EA1: Introduction to TB (1.5 hours); Module 3
(Part 1) Aug 31 Module 3 Part 2
Module 3 via Schoolbook
SQ2; Module 4 (Part 1)
Sep 07 Module 4 Part 2
Module 4 via Schoolbook
Modules 5 & 6 (Part 1)
Sep 14 Modules 5 & 6 Part 1A
Modules 5 & 6 via Schoolbook
EA2 (Payroll & Notes) ; Modules (Part 2)
Sep 21 Modules 5 & 6 Part 2A
Modules 5 & 6 via Schoolbook
SQ3; Modules 5 & 6 (Part 3);
Sep 28 Modules 5 & 6 Part 3A
Modules 5 & 6 via Schoolbook
EA03 (AJE, FS, Year-End Procedures)

Review for Midtern Exams (via MS Teams)

SA1: Midterm Exams (CPALE Simulation: 100

items MC, 3 hours)

Students' Week

Self-Care Week

School Holiday
Module 6 via SB
SQ4; Module 6 Part 1
Nov 9 Module 7 Part 2
Module 7 via SB
SQ5; Module 7 Part 1
Nov 16 Module 8 Part 2
Module 7 via SB
SQ6; Module 7 Part 3
Nov 23 Module 9 Part 1
Module 8 via SB
EA04 (Merchandising); Module 9 Part 2
Nov 30 Holiday; May be rescheduled
Module 8 via SB
SQ9; Module 9 Part I
Module 9 via SB Dec 7 Module 10 Part 2
EA05 (Cash Controls & Manufacturing); Online

SA2: Final Exams

 Modules

1. Overview of Accounting Principles, and Its Professional

Environment

2. Accounting for Transaction of a Service Oriented Business

3. Payroll

4. Promissory Note

5 & 6. Adjusting Journal Entries, FS and Year-end Procedures

7. Merchandising: Sales, Purchases,. Freight Cost; Periodic

and Perpetual; Gross Method and Net Method

8. Documents and Special Journals, Voucher System and

Financial Statements for Merchandising Business (VAT)

9. Cash Controls: Bank Recon and PCF

10. Manufacturing (JE for tranx peculiar to Manufacturing);

ACCOUNTING FOR PROMISSORY NOTES
A. NOTES PAYABLE
On September 22, 2022 the company issued a 240-day, 12%, P300,000 note in
exchange for an equipment.
2022
Sep 22 Equipment 300,000.00
Notes Payable 300,000.00 Accrued Interest Expense Interest Expense already incurred but not yet paid.
Accrued # of days: Principal or Face Value 300,000
Dec 31 Accrual of Interest Expense Sep (30-22) 8 x Interest Rate 12%
AJE Interest Expense 10,000.00 Oct 31 x Accrued # of Days 100
Interest Payable 10,000.00 Nov 30 /# of days in a year 360
(300,000 x 12% x 100/360) Dec 31 Accrued Interest Expense 10,000.00
100
CE Income and Expense Summary 10,000.00
Interest Expense 10,000.00 Jan 31 Pay the Maturity Value
Feb 28 Principal 300,000
2023 Mar 31 Interest 24,000 300,000 x 12% x 240/360
RE Interest Payable 10,000.00 Apr 30 Maturity Val 324,000
Jan 1 Interest Expense 10,000.00 May 20 Maturity Date

May 20 Notes Payable 300,000.00

Interest Expense 24,000.00 (300,000 x 12% x 240/360)
Cash 324,000.00
Interest Expense, 2022 14,000.00
What if no Reversing Entry was made?
May 20 Notes Payable 300,000.00
Interest Payable 10,000.00
Interest Expense (300,000 x 12% x 140/360) 14,000.00
Cash 324,000.00

DISCOUNTING OF NOTES PAYABLE deducts the interest in advanced

On September 22, 2022, the company issued a 240-day, 12%, P300,000 note in
exchange for cash. Interest is deducted in advanced.
Step 1: Total Interest
Principal 300,000.00
Rate 12%
Time 240/360
Total Interest 24,000.00

Step 2: Net Proceeds

Principal 300,000.00
Interest (24,000.00) CONTRA-LIABILITY
Net Proceeds 276,000.00 Normal Balance is Dr

2022
Sep 22 Cash 276,000.00 Notes Payable 300,000
Discount on Notes Payable 24,000.00 Prepaid Interest Less: Discount on Notes Payable 24,000
Notes Payable 300,000.00 Carrying Amount 276,000

How is Discount on Notes Payable presented on Notes to Financial Statements?

Notes Payable 300,000.00 Notes Payable in SFP
 Less: Discount on Notes Payable 24,000.00
Carrying Value 276,000.00

Dec 31 Amortization of Discount on Notes Payable Amortization of Discount on Notes Payable

AJE Interest Expense 10,000.00 Nominal Acct
Discount on Notes Payable 10,000.00
(24,000/240 x 100)
or 24,000/240 x 100

What is the carrying amount of the note on December 31 SFP?

Notes Payable 300,000.00
Less: Discount on Notes Payable
(24,000 - 10,000 ) 14,000.00 interest expense for next year
Carrying Amount 286,000.00

Amortization of Discount on Notes Payable?

● increases Interest Expenses
● decreases Discount on Notes Payable
● increases Carrying amount of the Notes Payable

CE Income and Expense Summary 10,000.00

Interest Expense 10,000.00

2023
Jan 1 No Reversing Entry is necessary
Amortization of Discount on Notes Payable is not reversed

May 20 1st entry is to update the amortization of discount Discount on NP as of 12/31 = 14,000
Interest Expense 14,000.00 300,000 x 12% x 140/36 14000
Discount on Notes Payable 14,000.00 24,000/240 x140 14000

next and last entry is to record payment of the maturity value = 300,000
Notes Payable 300,000.00 since interest is deducted in advanced
Cash 300,000.00 upon maturity, payment = principal amount

B. NOTES RECEIVABLE
On October 14, 2022, the company received P200,000, 180-day, 15% note in
exchange for services rendered.

2022
Oct 14 Notes Receivable 200,000.00
Service Income 200,000.00

Accrued number of days:

Dec 31 Oct (31 - 14) 17
AJE Interest Receivable 6,500.00 Nov 30
Interest Income 6,500.00 Dec 31
200,000 x 15% x 78/360 78

CE Interest Income 6,500.00 Accrued Interest Income

 Income and Expense Summary 6,500.00 Interest already earned but not yet received

2023
Jan 1
RE Interest Income 6,500.00 200,000 x 15% x 180/360 15000 Interest
Interest Receivable 6,500.00
Jan 31
Apr 12 Cash 215,000.00 Feb 28
Interest Income 15,000.00 Mar 31
Notes Receivable 200,000.00 Apr 12
102
If No Reversing Entry was made?
Apr 12 Cash 215,000.00 200,000 x 15% x 102/360 8500
Interest Income 8,500.00 200,000 x 15% x 102/360
Interest Receivable 6,500.00 200,000 x 15% x 78/360
Notes Receivable 200,000.00

WHAT IF THE CUSTOMER DISHONORED THE NOTE? If no RE was made on Dec 31:
ASSUME THAT REVERSING ENTRY WAS MADE ON JAN 1 Accounts Receivable 215,000.00
Apr 12 Accounts Receivable 215,000.00 Interest Income 8,500.00
Interest Income 15,000.00 Interest Receivable 6,500.00
Notes Receivable 200,000.00 Notes Receivable 200,000.00

DISCOUNTING OF NOTES RECEIVABLE selling the Notes Receivable to Financial Institutions

On October 14, 2022, the company received P200,000, 180-day, 15% note in
exchange for merchandise sold. In November, the company experienced financial
difficulty. Thus, on November 10, 2022, the company presented this note to the bank for
discounting. The bank discounted the note at 12%.
Assumption 1: With Recourse if customer dishonors the NR, the financial institution will collect payment from the company
2022
Oct 14 Notes Receivable 200,000.00
Sales 200,000.00

Step 1: Maturity Value

Maturity Value = Principal + Interest
Principal 200,000.00
Interest (200,000 x 15% x 180/360) 15,000.00
Maturity Value 215,000.00

Step 2: Compute for the accrued interest from date of note to date of discounting

Oct (31 - 14) 17

Nov 10
Number of Days Accrued 27

Principal 200,000.00
x Rate 15%
x Time 27/360
Accrued Interest 2,250.00

Step 3: Compute for the Carrying Amount of Note as of date of discounting

 Principal 200,000.00
Accrued Interest 2,250.00
Carrying Amount of Notes Receivable 202,250.00

Step 4: Compute for the discount period unexpired portion of the term of the note
(discount period is the unexpired term of the note)
Term 180 days
Less: Accrued # of days 27 days
Discount Period 153

Step 5: Compute for the discount

Maturity Value 215,000.00
x Discount Rate 12%
x Discount Period 153/360
Discount on Notes Receivable 10,965.00

Step 6: Compute for the proceeds from discounting

Maturity Value 215,000.00
- Discount on Notes Receivable 10,965.00
Proceeds from Discounting 204,035.00

Step 7: Determine the gain or loss from discounting

Net Proceeds VS Carrying Amount
NP > CA, difference is gain
NP < CA, difference is loss

Net Proceeds 204,035.00

Carrying Amount 202,250.00
Gain from Discounting 1,785.00

Step 8: Journalize the discounting

Nov 10 Cash (Proceeds) 204,035.00 Financial Statement Presentation
Notes Receivable Discounted ( Principal) 200,000.00 Notes to Financial Statement:
Interest Income (Accrued Interest) 2,250.00 Notes Receivable 500,000.00
Gain from Notes Receivable Discounting 1,785.00 Less: Notes Receivable Discounted 200,000.00 contingent liability
Carrying Amount 300,000.00
Apr 12 Scenario 1: the customer honored the note
Notes Receivable Discounted 200,000.00
Notes Receivable 200,000.00

Scenario 2: the customer dishonored the note. The bank charged a

protest fee of P1,000.
Since this is with recourse, the company will be obliged to pay the
bank on behalf of the customer the maturity value of the note plus the
protest fee.
Accounts Receivable (215,000 + 1,000) 216,000.00 we pay the bank: Maturity value + Protest fee
Cash 216,000.00

and

Notes Receivable Discounted 200,000.00

Notes R 200,000.00
 Assumption 2: Without Recourse the financial institution will not
Nov 10 Cash (Proceeds) 204,035.00 collect payment for the note
Notes Receivable ( Principal) 200,000.00 from the company if the
Interest Income (Accrued Interest) 2,250.00 customer dishonors the note
Gain from Notes Receivable Discounting 1,785.00

April 12 Customer honored the note

No Entry

Customer dishonored the note

No Entry
ADJUSTING JOURNAL ENTRIES
ENTRIES MADE AT THE END OF THE ACCOUNTING PERIOD (DEC 31 IF PROBLEM IS SILENT)
WHY? TO UPDATE OR CORRECT THE BALANCES OF THE ACCOUNTS

CRUZ REPAIR SHOP

Purchased supplies for 2,000 on account from Aze Hardware.
Returned defective supplies, 500.

Purchased 2,000
Returns 500
Balance 1,500

Closing Entries
Normal Bal Closing
Revenues Cr Dr 500,000
Expenses Dr Cr 320,000
Withdrawal Dr Cr 10,000

CE1 Service Revenue 500,000

Income and Expense Summary 500,000

CE2 Income and Expense Summary 320,000

Salaries Expense 120,000
Utilities Expense 100,000
Rent Expense 100,000

Income and Expense Summary also a Nominal account

CE2 320,000 CE1 500,000
180,000 Net Income

CE3 Income and Expense Summary 180,000

Asis, Capital 180,000

CE4 Asis, Capital 10,000

Asis, Personal 10,000

Statement of Changes in Equity

Asis, Capital - January 1 800,000.00 Capital in the GL

Investment 200,000.00
Net Income 180,000.00
Withdrawals (10,000.00)
Asis, Capital - December 31 1,170,000.00

REVERSING ENTRIES OPTIONAL

Selected AJE
Accrual of Expense for convenience
Accrual of Income easier to record future transactions
Prepaid Expenses under Expense
Unearned Revenues under Revenue
LEM IS SILENT)

so a Nominal account
future transactions
 A B C D
Face Value 8,000 50,000 10,000 15,000
Date of Note 17-May 24-Apr 14-Jul 15-Dec Year 2022
Interest Rate 15% 12% 18% 6%
Term of note 60 days 45 days 75 days 60 days
Maturity Date 16-Jul 8-Jun 27-Sep 13-Feb
Interest on Note 200 750 375 150
Maturity Value 8,200 50,750 10,375 15,150