CHART OF ACCOUNTS

SANTOS LAW OFFICE

CHART OF ACCOUNTS
ACCOUNT NUMBER ACCOUNT TITLE

101 CASH
104 LAWBOOKS
110 ACCOUNTS RECEIVABLE
120 SUPPLIES
150 EQUIPMENT
155 ACCUMULATED DEPRECIATION-EQUIPMENT
201 ACCOUNTS PAYABLE
210 UNEARNED REVENUE
215 UTILITIES PAYABLE
301 SANTOS CAPITAL
302 SANTOS WITHDRAWALS
401 SERVICE REVENUE
501 SALARIES EXPENSE
504 OFFICE SUPPLIES EXPENSE
505 UTILITIES EXPENSE
509 TAXES AND LICENSES EXPENSE
510 ADVERTISING EXPENSE
515 DEPRECIATION EXPENSE-EQUIPMENT
600 INCOME SUMMARY
 GENERAL JOURNAL

GENERAL JOURNAL
PAGE NUMBER GJ-1
With Explanations

CURRENT JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2012
Feb 1 Cash 101 ₱ 80000
Santos Capital 301 ₱ 80000
Explanation

5 Lawbooks 104 11500

Cash 101 4500
Accounts Payable 201 7000
00 Explanation

10 Taxes and Licenses Expense 509 1500

Cash 101 1500
Explanation

14 Cash 101 15300

Unearned Revenue 210 15300
Explanation

18 Accounts Receivable 110 20000

Service Revenue 401 20000
Explanation

19 Office Supplies Expense 504 980

Cash 101 980
Explanation

25 Unearned Revenue 210 1750

Service Revenue 401 1750
Explanation

26 Santos Withdrawals 302 1500

Cash 101 1500
Explanation

27 Salaries Expense 501 4500

Cash 101 4500
Explanation
 GENERAL JOURNAL

GENERAL JOURNAL
PAGE NUMBER GJ-2
With Explanations

CURRENT JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2012
Feb 28 Lawbooks 104 ₱ 15000
Santos Capital 301 ₱ 15000
Explanation

00
 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-1
Account 101 CASH
Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  32,150 32,150
1 Investment GJ1 80,000 112,150
5 Lawbooks GJ1 4500 107,650
10 Taxes and Licenses GJ1 1,500 106,150
14 Service Revenue GJ1 15,300 121,450
19 Office Supplies Expense GJ1 980 120,470
26 Withdrawals GJ1 1500 118,970
27 Salaries Expense GJ1 4,500 114,470

Account 104 LAWBOOKS

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  9,000 9,000
5 Purchased GJ1 11,500 20,500
28 Additional Investment GJ2 15,000 35,500

Account 104 ACCOUNTS RECEIVABLE

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  5,300 5,300
18 Billed for legal services rendered GJ1 20,000 25,300
29 Adjusting 500 25,800
 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-2
Account 120 SUPPLIES
Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  3,500 3,500

Account 115 ACCUMULATED DEPRECIATION-EQUIPMENT

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 29 Adjusting 1,000 1,000

Account 150 EQUIPMENT

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  8,000 8,000

Account 201 ACCOUNTS PAYABLE

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  11,650 11,650
5 Purchased lawbooks GJ1 7,000 18,650
 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-3
Account 210 UNEARNED REVENUE
Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  5,500 5,500
14 Received for retainer’s fee GJ1 15,300 20,800
25 Performed service to client GJ1 1,750 19,050
with advanced payment

Account 215 UTILITIES PAYABLE

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 29 Adjusting 1,500 1,500

Account 301 SANTOS CAPITAL

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  42,000 42,000
1 Investment GJ1 80,000 122,000
28 Additional Investment GJ2 15,000 137,000
29 Closing GJ3 28,870 165,870
29 Closing GJ3 1,500 164,370

Account 302 SANTOS WITHDRAWALS

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 26 Withdrew cash GJ1 1,500 1,500
29 Closing GJ3 1,500 -
 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-4
Account 401 SERVICE REVENUE
Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 18 Billed Clients GJ1 20,000 20,000
25 From advanced payment clients GJ1 1,750 21,750
29 Adjusting 500 22,250
29 Closing GJ3 22,250 -

Account 504 OFFICE SUPPLIES EXPENSE

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 9 Paid in cash GJ1 980 980
29 Closing GJ3 980 -

Account 505 UTILITIES EXPENSE

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 29 Adjusting 1,500 1,500
29 Closing GJ3 1,500 -

Account 509 TAXES AND LICENSES EXPENSE

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 10 Paid in cash GJ1 1,500 1,500
29 Closing GJ3 1,500 -
 GENERAL LEDGER

GENERAL LEDGER
PAGE NUMBER GL-5
Account 510 ADVERTISING EXPENSE
Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 1 Beginning  1,200 1,200
29 Closing GJ3 1,200 -

Account 600 DEPRECIATION EXPENSE-EQUIPMENT

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 29 Adjusting 1,000 1,000
29 Closing 1,000 -

Account 600 INCOME SUMMARY

Date Item Post Debit Credit Balance
2012 Debit Credit
Feb 29 Closing GJ3 22,250 22,250
29 Closing GJ3 10,680 11,570
29 Closing GJ3 11,570 -

Account
Date Item Post Debit Credit Balance
Debit Credit
 STATEMENT OF PERFORMANCE & STATEMENT OF EQUITY

SANTOS LAW OFFICE

STATEMENT OF PERFORMANCE
FOR THE MONTH ENDED, FEBRUARY 29, 2012
(IN PESOS)

SERVICE REVENUE ₱ 22,250

LESS EXPENSES:
SALARIES EXPENSE ₱ 4,500
OFFICE SUPPLIES EXPENSE 980
TAXES AND LICENSES EXPENSE 1,500
ADVERTISING EXPENSE 1,200
UTILITIES EXPENSE 1,500
DEPRECIATION EXPENSE-EQUIPMENT 1,000 (10,680)
NET INCOME ₱ 11,570

SANTOS LAW OFFICE

STATEMENT OF EQUITY
FOR THE MONTH ENDED, FEBRUARY 29, 2012
(IN PESOS)
Beginning Capital, February 1, 2012 ₱ 122,000
Add: Additional Investment 15,000
Add: Net Income 11,570
Less: Santos Withdrawals (1,500)
Ending Capital, February 29,2012 ₱ 147,070
 STATEMENT OF FINANCIAL POSITION

SANTOS LAW OFFICE

STATEMENT OF FINANCIAL POSITION
AS OF FEBRUARY 29, 2012

(IN PESOS)
ASSETS
CURRENT ASSETS
CASH ₱ 114,470
ACCOUNTS RECEIVABLE 25,800
SUPPLIES 3,500
TOTAL CURRENT ASSSETS 143,770
NON-CURRENT ASSETS
LAWBOOKS 35,500
EQUIPMENT 8,000
ACCUMULATED DEPRECIATION-EQUIPMENT (1,000)
TOTAL NON-CURRENT ASSETS 42,500
TOTAL ASSETS ₱ 186,270

LIABILTIES
CURRENT LIABILITIES
ACCOUNTS PAYABLE ₱ 18,650
UNEARNED REVENUE 19,050
UTILITIES PAYABLE 1,500
TOTAL LIABILITIES 39,200

OWNER’S EQUITY
SANTOS CAPITAL 147,070
TOTAL
T LIABILITIES AND OWNER’S EQUITY ₱ 186,270
 SANTOS LAW OFFICE
STATEMENT
STATEMENT OFOFCASH
CASHFLOWS
FLOWS
FOR THE MONTH ENDED, FEBRUARY 29, 2012
(in pesos)

CASH FLOWS FROM OPERATING ACTIVITIES

CASH RECEIVED FROM
CASH CLIENTS ₱ 15,300
TOTAL 15,300
CASH PAYMENT FOR
SALARIES EXPENSE (4,500)
TAXES AND LICENSES EXPENSE (1,500)
OFFICE SUPPLIES EXPENSE (980)
TOTAL (6,980)
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES ₱ 8,320

CASH FLOWS FROM INVESTING ACTIVITIES

PURCHASED LAWBOOKS ₱ (4,500)
TOTAL CASH FLOWS FROM INVESTING ACTIVITIES ₱ (4,500)

CASH FLOWS FROM FINANCING ACTIVITES

SANTOS CASH INVESTMENT ₱ 80,000
SANTOS WITHDRAWALS (1,500)
TOTAL CASH FLOWS FROM FINANCING ACTIVITIES ₱ 78,500

INCREASE IN CASH AND CASH EQUIVALENTS 82,320

ADD CASH & CASH EQUIVALENTS, FEBRUARY 1. 2012 32,150
CASH & CASH EQUIVALENTS, FEBRUARY 29, 2012 ₱ 114,470
 CLOSING JOURNAL ENTRIES

GENERAL JOURNAL
PAGE NUMBER GJ-3
With Explanations

CLOSING JOURNAL ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT
2012
Feb 29 Service Revenue ₱ 22,250
Income Summary ₱ 22,250
To close the revenue account

29 Income Summary 10,680

Salaries Expense 4,500
Office Supplies Expense 980
Taxes and Licenses Expense 1,500
Advertising Expense 1,200
Utilities Expense 1,500
Depreciation Expense-Equipment 1,000
To close the expenses account

29 Income Summary 11,570

Santos Capital 11,570
To close the income summary

29 Santos Capital 1,500

Santos Withdrawals 1,500
To close the withdrawals account
 POST-CLOSING TRIAL BALANCE

SANTOS LAW OFFICE

POST-CLOSING TRIAL BALANCE
FEBRUARY 29, 2012
(in pesos)
ACCOUNT TITLES DR CR
101 CASH ₱114,470
104 LAWBOOKS 35,500
110 ACCOUNTS RECEIVABLE 25,800
120 SUPPLIES 3,500
150 EQUIPMENT 8,000
155 ACCUMULATED DEPRECIATION-EQUIPMENT ₱ 1,000
201 ACCOUNTS PAYABLE 18,650
210 UNEARNED REVENUE 19,050
215 UTILITIES PAYABLE 1,500
301 SANTOS CAPITAL 147,070

₱187,270 ₱187,270