SuperBonga

Beauty Salon
JOURNAL
ENTRIES
October 1 Mora made the following
investments:
Cash 50,000
Furniture and Fixtures 30,000
Shop Equipment 60,000

Octobe 1 Cash 50,000

r
Furniture and Fixtures 30,000
Shop Equipment 60,000
Mora, Capital 140,0
00
October 1 Bought air conditioning unit
on account, P30,000. Interest
bearing promissory note was issued
to this effect

October 1 Air conditioning 30,00

0
Notes payable 30,0
00
 October 2 Paid business permit
and licenses, P4,000

Octobe 2 Permit and licenses 4,000

r
Cash 4,000
 October 2 Paid local radio station for
advertising the opening of the
salon, P5,000. Use expense
method

October 2 Advertising expense 5,000

Cash 5,000
 October 3 Bought some beauty
supplies on account, P30,000.
Use asset method

Octobe 3 Beauty supplies 30,00

r 0
Accounts payable 30,00
0
 October 8 Revenues for the week:
Cash 10,000
On account 12,000

October 8 Cash 10,000

Accounts receivable 12,000
Service income 22,00
0
 October 9 Paid fifty percent (50%) of
the beauty supplies bought on
October 3.

Octobe 9 Accounts payable 15,00

r 0
Cash 15,00
0
 October 12Rendered home service
worth P10,000 to bride and groom
Kathryn and Daniel on account.
Interest bearing note was
issued by Kathryn to this effect.

October 1 Notes receivable 10,000

2
Service income 10,00
0
 October 15Received cash from various
clients for services rendered
during the week, P20,000.

Octobe 15 Cash 20,00

r 0
Service income 20,00
0
 October 15Paid the wages of her
assistants, P15,000

October 15 Wages expense 15,000

Cash 15,00
0
 October 15Paid P15,000 to Mahal, the
owner of the building used by the
salon. Use asset method method

October 1 Prepaid rent 15,000

5
Cash 15,00
0
 October 16Received P10,000 from
Nadine for home service to be
rendered on October 25. Use income
method.

October 1 Cash 10,000

6
Service income 10,00
0
 October 17 Collected 50% of October 8
revenue on account

October 1 Cash 6,000

7
Accounts 6,000
receivable
 October 21Revenues for the week
Cash 10,000
On credit 15,000

Octobe 2 Cash 10,00

r 1 0
Accounts receivable 15,00
0
Service income 25,00
0
 October 21Withdrew P10,000 for tuition
of her children

October 2 Mora, withdrawals 10,000

1
Cash 10,00
0
 October 25Received 3,000 from Piolo
for three (3) home services to be
rendered in the future. Use liability
method

October 2 Cash 3,000

5
Unearned service 3,000

income
 October 28Received 25,000 from
various clients for services
rendered

October 28 Cash 25,00

0
Service income 25,00
0
 October 29Received light and water
bill for the month, P1,500

Octobe 29 Light and water 1,500

r
Light and water 1,500
payable
 October 31Paid the following
Light and water bill 1,500
Wages 15,000
Telephone bill 1,000

October 3 Light and water 1,500

1 payable
Wages expense 15,000
Communication 1,000
expense
Cash 17,50
 T-
ACCOUNTS/
LEDGERS
 Cash
50,000 4,000
10,000 5,000
20,000 15,000
10,000 15,000
6,000 15,000
10,000 10,000
3,000 17,500
25,000 
134,000 81,500
52,500 
 Notes Receivable
10,000 
 
 

Accounts Receivable
12,000 6,000
15,000 
27,000 6,000
21,000 
Prepaid Rent
15,000 
 
 

Beauty Supplies
30,000 
 
 
Furniture & Fixtures
30,000 
 
 

Shop Equipment
60,000 
 
 
Air Conditioning
30,000 
 
 

Notes Payable
30,000
 
 
 Accounts Payable
15,000 30,000
15,000
 

Unearned Service Income

3,000
 
 
Light & Water Payable
1,500 1,500
0
 

Mora, Capital
140,000
 
 
 Mora, Withdrawals
10,000 
 
 

Service Income
22,000
10,000
20,000
10,000
25,000
  25,000
112,000
Advertising Expense
5,000 
 
 

Wages Expense
15,000 
15,000 
30,000 
 
 Light and Water
1,500 
 
 

Communication Expense
1,000 
 
 
Permits and Licenses
4,000 
 
 
 PRELIMINARY
TRIAL BALANCE
 SuperBonga Beauty Salon
Preliminary Trial Balance
October 30, 2014
P
Cash 52,500
Notes Receivable 10,000
Accounts Receivable 21,000
Prepaid Rent 15,000
Beauty Supplies 30,000
Furniture & Fixtures 30,000
Shop Equipment 60,000
Air Conditioning 30,000
P
Notes Payable 30,000
Accounts Payable 15,000
Unearned Service Income 3,000
Mora, Capital 140,000
Mora, Withdrawals 10,000
Service Income 112,000
Advertising Expense 5,000
Wages Expense 30,000
Light and Water 1,500
Communication Expense 1,000
Permits and Licenses 4,000 
P P
ADJUSTING
JOURNAL
ENTRIES
Lives of fixed assets are: Furniture and
Fixtures, 5 years ; Shop Equipment, 5 years
; and Air conditioning, 10 years.

October 3 Depreciation expense 500

1
Accumulated 500
depreciation-
furniture and fixtures

Depreciation expense 1,000

Accumulated 1,000
depreciation-
shop equipment

Depreciation expense 250

Accumulated 250
 The advertising expense paid on October 2
is for 5 months starting the current month.

October 3 Prepaid advertising 4,000

1
Advertising 4,000
expense
 P20,000 worth of beauty supplies were on
hand at the end of October.

October 31 Beauty supplies 10,000

expense
Beauty supplies 10,00
0
 Interests accruing at the end of the month
follow:
On notes payable P100
On notes receivable P200

October 3 Interest expense 100

1
Accrued interest 100
payable

Accrued interest 200

receivable
Interest income 200
 The rent paid to Mahal on October 15 is for
October to December 2014.

October 31 Rent expense 5,000

Prepaid rent 5,000
 The home service to be rendered to Nadine
on October 25 did not materialize due to
bad weather. Both parties agreed that the
same shall be rendered on November 25,
2014.

Octobe 31 Service income 10,000

r
Unearned service 10,00
income 0
 The salon was able to render one (1) home
service to Piolo during the month. The
remaining home services will be made the
following month.

Octobe 31 Unearned service 1,000

r income
Service income 1,000
POSTING OF
ADJUSTING
JOURNAL
ENTRIES
 Cash
50,000 4,000
10,000 5,000
20,000 15,000
10,000 15,000
6,000 15,000
10,000 10,000
3,000 17,500
25,000 
134,000 81,500
52,500 
 Notes Receivable
10,000 
 
 

Accounts Receivable
12,000 6,000
15,000 
27,000 6,000
21,000 
Prepaid Rent
15,000 5,000
10,000 
 

Beauty Supplies
30,000 10,000
20,000 
 
Furniture & Fixtures
30,000 
 
 

Shop Equipment
60,000 
 
 
Air Conditioning
30,000 
 
 

Notes Payable
30,000
 
 
 Accounts Payable
15,000 30,000
15,000
 

Unearned Service Income

1,000 3,000
  10,000
1,000 13,000
12,000
Light & Water Payable
1,500 1,500
0
 

Mora, Capital
140,000
 
 
 Mora, Withdrawals
10,000 
 
 
Service Income
22,000
10,000
20,000
10,000
25,000
  25,000
112,000
10,000 1,000
10,000 113,000
103,000
Advertising Expense
5,000 4000
1,000 
 

Wages Expense
15,000 
15,000 
30,000 
 
 Light and Water
1,500 
 
 

Communication Expense
1,000 
 
 
Permits and Licenses
4,000 
 
 

Rent Expense
5,000 
 
 
Depreciation Expense
500 
1,000 
250 
1,750  
 

Prepaid Advertising
4000 
 
 
Interest Income
200
 
 

Interest Expense
100 
 
 
 Beauty Supplies Expense
10,000 
 
 
Accrued Interest Payable
100
 
 

Accrued Interest Receivable

200 
 
 
Accumulated depreciation-furniture
and fixtures
500
 

Accumulated depreciation-shop
equipment
1000
 

Accumulated depreciation-air
conditioning
250
 
 FINAL
TRIAL
BALANCE
 SuperBonga Beauty Salon
Final Trial Balance
31-Oct-14
Cash 52,500
Notes Receivable 10,000
Accounts Receivable 21,000
Accrued Interest Receivable 200
Prepaid Rent 10,000
Aprepaid
Expense 4,000
Beauty Supplies 20,000
Furniture & Fixtures 30,000
Accumulated depreciation-furniture and fixtures 500
Shop Equipment 60,000
Accumulated depreciation-shop equipment 1,000
Air Conditioning 30,000
Accumulated depreciation-air conditioning 250
Notes Payable 30,000
Accounts Payable 15,000
Accrued Interest Payable 100
Unearned Service Income 12,000
 SuperBonga Beauty Salon
Final Trial Balance
31-Oct-14
Mora, Capital 140,000
Mora, Withdrawals 10,000
Service Income 103,000
Interest Income 200
Rent Expense 5,000
Advertising Expense 1,000
Wages Expense 30,000
Light and Water 1,500
Communication Expense 1,000
Depreciation Expense 1,750
Beauty Supplies Expense 10,000
Permits and Licenses 4,000
Interest Expense 100  
302,050 302,050
 FINANCIAL
STATEMENTS
 SuperBonga Beauty Salon
Statement of Comprehensive Income
For the month ended October 31, 2014

Service Income 103,000

less: Operating expenses
Rent Expense 5,000
Advertising Expense 1,000
Wages Expense 30,000
Light and Water 1,500
Communication Expense 1,000
Depreciation Expense 1,750
Beauty Supplies Expense 10,000
Permits and Licenses 4,000 54,250
Operating Income 48,750
add(deduct): Net Other income (Other expense)
Interest Income 200
Interest Expense 100 100
Net Income 48,850
 SuperBonga Beauty Salon
Statement of Owner’s Equity
October 31, 2014
Mora, Capital 140,000
add: Net Income 48,850
Total 188,850
less: Mora, Withdrawals 10,000
Mora, Capital 178,850
 SuperBonga Beauty Salon
Statement of Financial Position
As of October 31, 2014

ASSETS
Current Assets
Cash 52,500
Notes Receivable 10,000
Accounts Receivable 21,000
Accrued Interest Receivable 200
Prepaid Rent 10,000
Prepaid advertising 4,000
Beauty Supplies 20,000 117,700
Non-current Assets
Furniture & Fixtures 30,000
Accumulated depreciation-furniture and fixtures 500 29,500
Shop Equipment 60,000
Accumulated depreciation-shop equipment 1,000 59,000
Air Conditioning 30,000
Accumulated depreciation-air conditioning 250 29,750 118,250
235,950
 SuperBonga Beauty Salon
Statement of Financial Position
As of October 31, 2014

LIABILITIES and OWNER'S EQUITY

Current Liabilities:
Notes Payable 30,000
Accounts Payable 15,000
Accrued Interest Payable 100
Unearned Service Income 12,000 57,100

Equity

Mora, Capital 178,850

235,950
CLOSING
ENTRIES
October
31 Service Income 103,000

Interest Income 200

Rent Expense 5,000

Advertising
Expense 1,000

Wages Expense 30,000

Light and Water 1,500

Communication Expense 1,000

Depreciation
Expense
Income and Expense Summary 48,850 1,750

Beauty Supplies
Mora, Expense
Capital 10,000
48,850
Permits and
Mora,Licenses
Capital 10,000 4,000
Mora,
Withdrawals
Interest Expense 10,000
100
Income and Expense
POSTING OF
CLOSING
ENTRIES
 Cash
50,000 4,000
10,000 5,000
20,000 15,000
10,000 15,000
6,000 15,000
10,000 10,000
3,000 17,500
25,000 
134,000 81,500
52,500 
 Notes Receivable
10,000 
 
 

Accounts Receivable
12,000 6,000
15,000 
27,000 6,000
21,000 
Prepaid Rent
15,000 5,000
10,000 
 

Beauty Supplies
30,000 10,000
20,000 
 
Furniture & Fixtures
30,000 
 
 

Shop Equipment
60,000 
 
 
Air Conditioning
30,000 
 
 

Notes Payable
30,000
 
 
 Accounts Payable
15,000 30,000
15,000
 

Unearned Service Income

1,000 3,000
  10,000
1,000 13,000
12,000
Light & Water Payable
1,500 1,500
0
 

Mora, Capital
140,000
10,000  48,850
 178,850
 Mora, Withdrawals
10,000 10,000
 
 
Service Income
22,000
10,000
20,000
10,000
25,000
  25,000
112,000
10,000 1,000
10,000 113,000
103,000 103,000
Advertising Expense
5,000 4000
1,000  1000
 

Wages Expense
15,000 
15,000 
30,000  30,000
 
 Light and Water
1,500  1500
 
 

Communication Expense
1,000  1000
 
 
Permits and Licenses
4,000  4,000
 
 

Rent Expense
5,000  5,000
 
 
Depreciation Expense
500 
1,000 
250 
1,750  1,750
 

Prepaid Advertising
4000 
 
 
Interest Income
200 200
 
 

Interest Expense
100  100
 
 
 Beauty Supplies Expense
10,000  10,000
 
 
Accrued Interest Payable
100
 
 

Accrued Interest Receivable

200 
 
 
Accumulated depreciation-furniture
and fixtures
500
 

Accumulated depreciation-shop
equipment
1000
 

Accumulated depreciation-air
conditioning
250
 
POST CLOSING
TRIAL BALANCE
 SuperBonga Beauty Salon
Post Closing Trial Balance
October 31, 2014

Cash 52,500

Notes Receivable 10,000

Accounts
Receivable 21,000

Accrued Interest Receivable 200

Prepaid Rent 10,000

Advertising
Expense 4,000

Beauty Supplies 20,000

Furniture &
Fixtures 30,000
Accumulated depreciation-furniture and -
fixtures 500
-
Shop Equipment 60,000
-
Accumulated depreciation-shop equipment 1,000
-
REVERSING
ENTRIES
Lives of fixed assets are: Furniture and
Fixtures, 5 years ; Shop Equipment, 5 years
; and Air conditioning, 10 years.

October 3 Depreciation expense 500

1
Accumulated 500
depreciation-
furniture and fixtures
NO REVERSING ENTRIES1,000
Depreciation expense
Accumulated 1,000
depreciation-
shop equipment

Depreciation expense 250

Accumulated 250
 The advertising expense paid on October 2
is for 5 months starting the current month.

October 3 Prepaid advertising 4,000

1
Advertising 4,000
expense

November 1 Advertising 4,000

expense
Prepaid 4,000
Advertising
 P20,000 worth of beauty supplies were on
hand at the end of October.

October 31NO REVERSING

Beauty suppliesENTRIES
10,000
expense
Beauty supplies 10,00
0
 Interests accruing at the end of the month follow:
On notes payable P100
On notes receivable P200
October 31 Interest expense 100
Accrued interest 100
payable

Accrued interest 200

receivable
Interest income 200
Novembe 1 Accrued interest 100
r payable
Interest expense 100

Interest income 200

Accrued interest 200
receivable
 The rent paid to Mahal on October 15 is for
October to December 2014.

October 31NO
Rent expense ENTRIES
REVERSING 5,000
Prepaid rent 5,000
 The home service to be rendered to Nadine
on October 25 did not materialized due to
bad weather. Both parties agreed that the
same shall be rendered on November 25,
2014.
Octobe 31 Service income 10,000
r
Unearned service 10,00
income 0
Novembe 1 Unearned service 10,000
r income
Service income 10,00
0
 The salon was able to render one (1) home
service to Piolo during the month. The
remaining home services will be made the
following month.

NO REVERSING ENTRIES1,000
Octobe 31 Unearned service
r income
Service income 1,000
 END
OF PRESENTATION