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Journalizing
Posting
Preliminary Trial Balance
Worsheet and adjusting transactions
FS
Journalizing and psoting adjusting journal entries
Journalizing and posting of closing journal entries
Post closing trial balance
Journalizing and posting of reversing entries
Niko Ong Art Gallery
Chart of Accounts
Assets Revenue
100 Cash 400
101 Accounts Receivable
102 Art Supplies Expenses
103 Prepaid Rent 500
104 Prepaid Insurance 501
105 Transportation Equipment 502
106 Office Equipment 503
107 Accumulated Depreciation - Transportation equipment 504
108 Allowance for bad debts 505
506
Liabilities
200 Accounts Payable
201 Notes Payable
202 Utilities Payable
203 Unearned Painting Revenue
204 Interest Payable
205 Salaries Payable
Owner's Equity
300 Ong, Capital
301 Ong, Drawing
302 Income Summary
lery
nts
Revenue
Painting Revenue
Expenses
Salaries expense
Utilities Expense
Art Supplies expense
Rent expense
Insurance Expense
Depreciation expense - Transportation equipment
Bad debts expense
September 2014
Sept . 1
Niko Ong has a talent for painting. He is into charcoal, water color, acrylic, and oil painting.
Having the flair for it, he started studying under a private tutor at the age of 10. Because of
the many requests for job paintings, Niko is getting from prospective customers; he decided to
put up an art gallery. He invested 500,000 in this initial endeavor.
1 Acquired transportation equipment to be used for delivery 300,000 cash.
1 Rented office space and paid two months’ rent in advance, 30,000.00
2 Niko Ong issued a promissory note for a 200,000 loan from Methro Bank. The note carries a
12% interest per annum. The interest and the principal are payable after one year.
4 Paid Insular Life Insurance Co., 18,000 for one year insurance of the art gallery.
5 Acquired office equipment from Abenson’s 50,000 paying 20,000 and the balance at the
end of the month.
8 The 12,000 oil paints ordered from Enriquez Art Supplies were delivered on account.
10 Paid Enriquez Art Supplies P5,000 of the amount owed.
11
Painted the portrait of Don Enriquez Zobel receiving P200,000 cash for the completed portrait.
15 Paid secretary’s salary for half month, P2,500.
17 Received 250,000 cash for a contract to paint the portrait of Dona Susana.
21 Delivered and billed Mr. Sy 150,000 for a landscape painting.
23 Niko Ong withdrew 30,000 for personal use.
23 Received bill from PLDT 900
25 Received 100,000 from Mr. Sy as partial payment for landscape painting delivered last Sept. 21.
2014
Sept 1 Cash 100 500,000
Ong, Capital 300 500,000
To record initial investmenr
U
Allowance for bad debts Acct. no.: 108
Date
Balances
Date Explanation J.R Debit Credit
Debit Credit 23-Sep
30-Sep uncollectable ac J-2 2,500 2,500 30-Sep
30-Sep
Depreciation exp
Date
30-Sep
30-Sep
Ba
Date
30-Sep
30-Sep
Art
Date
30-Sep
30-Sep
Date
30-Sep
30-Sep
In
Date
30-Sep
30-Sep
Accounts Payable Acct. no.: 200
Balances
Explanation J.R Debit Credit
Debit Credit
Purchased J-1 30,000 30,000
Purchased J-1 12,000 42,000
Payment J-1 5,000 37,000
506 P 2,500
ance for bad debts 108 P 2,500
timated doubful accounts
502 3,000
102 3,000
supplies used
503 20,000
103 20,000
504 4,500
id insurance 104 4,500
After the adjusting journal entries, update
pired insurance the posting or general ledger for the
adjusments accounts.
Niko Ong Art Gallery
Statement of Financial Position
As of September 30, 2014
Assets Liabilities
Current Assets
Cash P 840,500 Accounts Payable
Accounts Receivable P 50,000 Notes Payable
Less: Alowance for bad debts 2,500 47,500 Utilities Payable
Art supplies 9,000 Unearned Painting revenue
Prepaid rent 10,000 Total Liabilities
Prepaid Insurance 13,500
Total Current Assets P 920, 500
Owner's equity
Non Current Assets
Transportation equipment 300,000 Ong, Capital
Less: Accumulated depreciation 10,000 290,000 Less: Ong, Drawing
Office Equipment 50,000 Total
Total non current Asset 340,000 Add: Net income
P 37,000
200,000
900
250,000
P 487,900
Owner's equity
P 500,000
30,000
470,000
302600 772,600
2014
Sept. 30 Painting revenue 400 350,000
Income summary 302 350,000
To close revenue account