HIS BULACAN CORPORATION

Finance Department
0441 ENO-MAG Subdivision Banga I Plaridel Bulacan

Performance Evaluation
Basic Financial Accounting
Comprehensive Problem:
Carmen Villareal, the owner of a Private Duty Nurse Deployment Agency began her practice on
January 1, 2020. The transactions of the firm are as follows:

Jan 1 Carmen invested P150,000 in the firm.

2 Paid rent for January to Villanueva Realty, P8,000.
2 Purchased supplies on account, P7,200.
3 Acquired P75,000 of office equipment, paying P37,000 down with the balance due in 30 days.
8 Paid P7,200 on account for supplies purchased.
14 Paid office salaries for two weeks, P6,000.
20 Received cash for duty services rendered, P20,000.
28 Paid office salaries for two weeks, P6,000.
30 Billed clients for January duty services, P48,000.
31 Carmen withdrew P12,000 from the business.
Required:
1. Open the following general ledger accounts, using the account number shown: Cash (110);
Accounts (120); Fees Receivable (130); Supplies (140); Office Equipment (150); Accumulated
Depreciation (155); Accounts Payable (210); Salaries Payable (220); Villareal, Capital (310);
Villareal, Withdrawals (320); Income Summary (330); Duty Fee Revenue (410); Salaries
Expense (510); Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540).
2. Journalize the January transactions and post to the ledger.
3. Prepare the adjusting entries using the following information:
a. Supplies on hand at January 31 amounted to P4,700.
b. Salaries of P1,800 have accrued at month-end.
c. Depreciation is P800 for January.
d. 20 hours of duty was rendered in a house case during January. When completed in
February, an hour of duty will be billed at P500 per hour. Note: The firm uses the account
Fees Receivable to reflect the amounts earned but not yet billed.
4. Prepare an income statement, a statement of changes in equity; a statement of financial
position, and a statement of cash flows.
5. Journalize and post adjusting and closing entries.
6. Prepare a post-closing trial balance.
7. Journalize and post the reversing entries.

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 Journal Entries
Date Account Title Debit Credit

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 Adjusting Entries
Account Title Debit Credit
a.

b.

c.

d.

Closing Entries
Date Account Title Debit Credit

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 Cash Accounts Receivable Fees Receivable

Supplies Office Equipment Accumulated Depreciation

Accounts Payable Salaries Payable

Carmen, Capital Carmen, Withdrawals Income Summary

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Duty Fees Revenue Salaries Expense Supplies Expense

Rent Expense Depreciation Expense

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 Carmen Villareal Private Duty Nurses
Statement of Comprehensive Income
For the Month Ended January 31, 2020

Revenue

Expenses

Net Profit

Carmen Villareal Private Duty Nurses

Statement of Changes in Equity
For the Month Ended January 31, 2020

Carmen, Capital January 1, 2020

Add: Profit
Total
Less: Withdrawals
Carmen, Capital January 31 2020

Page 6 of 8
 Carmen Villareal Private Duty Nurses
Statement of Financial Position
As of January 2020

Assets
Current Assets

Total Current Assets

Non-current Assets

Total Current Assets

Liabilities
Current

Total Liabilities

Owner's Equity

Total Liabilities and Owner's Equity

Carmen Villareal Private Duty Nurses

Post Closing Trial Balance
As of January 2020

No. Account Title Debit Credit

Page 7 of 8
 Carmen Villareal Private Duty Nurses
Statement of Cashflows
For the Month Ended January 31,2020
Cash Flows from Operating Activities:
Cash received from clients
Payment to suppliers
Payment for office rent
Payment to employees
Net cash provided by (used in) operating activities
Cash Flows from Investing Activities
Payment to acquire office equipment
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Cash received as investment by owner
Payment for withdrawals by owner
Net Increase (Decrease) in Cash
Cash Balance at the beginning of the period
Cash balance at the end of the period

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