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    IMC ACC1 Sample Problem Week 4

    Uploaded by

    Elliza Balaba
    Accounting

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    © All Rights Reserved
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    IMC ACC1 Sample Problem Week 4

    Uploaded by

    Elliza Balaba
    4 views3 pages
    Accounting

    Original Title

    IMC-ACC1-Sample-Problem-Week-4

    Copyright

    © © All Rights Reserved

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    Accounting

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views3 pages

    IMC ACC1 Sample Problem Week 4

    Uploaded by

    Elliza Balaba
    Accounting

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    The chart of accounts is

    listed below:
    Account No.
    110 Cash
    120 Accounts Receivable
    130 Office Supplies
    140 Office Equipment
    150 Office Furniture
    210 Notes Payable
    220 Accounts Payable
    310 Masipag, Capital
    320 Masipag, Drawing
    410 Fees Earned
    510 Communication Expense
    520 Gas and Oil Expense
    530 Insurance Expense
    540 Light and Water Expense
    550 Rent Expense
    560 Salary Expense
    570 Taxes and Licenses
    Expens
    Procedures in Journalizing
    1. Identify the transaction from source documents.
    2. Indicate the accounts affected.
    3. Ascertain whether the account increased or decreased.
    4. Using the rules of debit and credit, determine whether debit or credit to record its increase or decrease
    Accounting Cycle
    1. Identification of Events to be Recorded
    2. Transactions are Recorded in the Journal
    3. Journal Entries are Posted to the Ledger
    4. Preparation of Trial Balance
    5. Preparation of Worksheet
    6. Preparation of the Financial Statements
    7. Adjusting Journal Entries are Journalized and Posted
    8. Closing Entries are Journalized and Posted
    9. Preparation of Post-closing entries
    10. Reversing Journal Entries are journalized and posted
    Journal Entry Format
    1. Date
    2. Account Titles and Explanation
    3. Posting Reference (P.R.)
    4. Debit
    5. Credit
    Sample Problem
    Dolores Aguilar started Aguilar Industrial Spray Services on April 1, 2024. During April, Aguilar completed the
    following transactions:
    a. Invested Cash in the business, P60,000.
    b. Bought a service vehicle from CDO Motors for P112,500. Paying 12,500 in cash, with the remainder
    due in thirty days.
    c. Bought spray equipment on account from Misamis Farm Supplies, P18,000.
    d. Paid rent for the month, P5,600.
    e. Paid cash for insurance on service vehicle for the year, P5,000
    f. Received cash for spray services done on a building, P21,000
    g. Bought Supplies for cash, P5,000
    h. Billed customers on account for services performed P4,000
    i. Paid cash for utilities P900
    j. Received bill for gasoline used by the service vehicle for the month, P3,000
    k. Receipts from cash customer, P16,000
    l. Aguilar withdrew cash for personal use, P10,500
    m. Paid Salaries to Employees, P20,400

    Required:
    1. Record the transaction for the month of April using the accounts Cash, Accounts Receivable, Supplies,
    Prepaid Insurance, Spray Equipment, Service Vehicle, Accounts Payable, and Aguilar Capital.
    2. T-Accounts

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