Reference no: EM132699060
Question - For the past several years, Kaz Zionra has operated a part-time consulting business from her home. As of September 1, 2020 Ms. Zionra decided to move to a rented quarters and to operate the business, which was to be known as Simple Consulting, on a full time basis. Simple Consulting entered into the following transactions during September:
Sept 1 - The following assets were received from Kaz Zionra: Accounts receivable, P15,000; Supplies, P12,500; Office equipment, P75,000.
Kaz opened a checking/savings account with BDO for an amount of P100,000.
Issued BDO Check 001 in payment for three months' rent on a lease contract, P45,000.
Signed contracts with Clients A, B, C to render a per project consulting service.
Hired a part-time receptionist who started to work immediately
Sept 2 - Issued CK 002 to pay the premiums on property and casualty insurance policies for a 12-month coverage starting Sept 1, 2020, to August 31, 2021, P18,000.
Sept 4 - Issued OR 001 for cash received from Client D as an advance payment for services to be provided on a monthly basis over a period of three months starting September, P30,000.
Sept 5 - Purchased additional office equipment on account from SM Homes, P18,000.
Sept 6 - Issued OR 002 for cash received from a client in payment of an account, P8,000.
Sept 10 - Issued CK 003 to SunStar Daily for a newspaper advertising, P1,200.
Sept 12 - Issued CK 004 to SM Homes in partial payment of the debt incurred in Sept 5, P8,000.
Sept 14 - Issued CK 005 in payment of the part-time receptionist two-weeks' salary, P4,000.
Sept 17 - Issued OR 003 to client A in payment of consulting services rendered, P31,750.
Sept 18 - Purchased supplies from National Bookstore issued CK006, P7,500.
Sept 24 - Issued OR 004 to client B in payment of consulting services rendered, P18,500.
Sept 27 - Issued OR 005 to client C in payment of services rendered, P16,000.
SEPT 28 - Issued CK 006 to Kaz for personal use, P45,000. Issued CK 007 in payment of the part-time receptionist two-weeks' salary, P4,000.
SEPT 29 - Issued OR 006 to Client X, P20,500.
Instructions -
1. Journalize each transaction using the special and general journals. Refer to the following chart of accounts in selecting the accounts to be debited or credited. (There is no need to use the account numbers in journalizing and posting at this time)
2. Post the journal to the ledger.
3. Prepare a trial balance
4. On October 10, 2020 you were asked by Ms. Zionra to prepare the Financial Statements for the month of September. Ms. Zionra also gave you the following data/information on this date.
The company received a bill from Visayas Electric Co. on October 5 for electricity consumption in the month of September which was paid October 8, P2,000.
The company received and paid a bill from Metro Cebu Water System on October 6, P500 for its water consumption in the month of September.
The company received a bill from Smart Telecom on October 3 for its postpaid plan, P1,500.
The receptionist gave a list of the unused supplies on September 30 amounting to P10,200.
The receptionist also gave a list of customers who were not yet billed for the services already rendered by the Simple Consulting, total amount P43,500.
It was determined that the office equipment have an estimated useful life of 5 years.
The receptionist resigned on September 30 and she was paid her salaries for two days amounting to P800. A new receptionist was already hired as a replacement on Oct 1.
Required: adjusting entry and adjusting balance.