Principles of Accounting with IT Application

Final Exam
Name: ____________________________________
Section: BSIT32A1

March 14, 2016

Permit No. ____________________________

On Oct. 1, 2006, Maria Victoria Santos established City Laundry. The accountant listed the
following accounts in the chart of accounts: Cash; Accounts Receivable; Supplies; Prepaid
Insurance; Laundry Equipment; Furniture and Fixtures; Accounts Payable; Santos, Capital; Santos,
Withdrawals; Laundry Revenues; Salaries Expense; Rent Expense; Utilities Expense and
Miscellaneous Expense.
During October, the following transactions were completed.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m
.
n.
o.

Transferred cash from personal bank account to an account to be used for the
business, 320,000.
Bought tables and chairs for cash, 12,960.
Paid rent for the period Oct. 1 to end of the month, 8,000.
Bought washers and dryers for 163,000, giving 32,000 as down payment, with the
remainder payable within thirty days.
Bought washing supplies on account from Garnea Distributors, 5,190.
Received 17,960 from cash customers for the first half of the month.
Paid P2,140 for a one-year liability insurance policy.
Received a 1,940 utilities bill, due next week.
Paid 1,230 on account for the washing supplies acquired in transactions (e).
Received 27,920 from cash customers for the second half of the month.
Performed services and earned revenues on account, 5,000.
Paid the remaining balance for the purchases of washers and dryers (d).
Paid salaries to employees, 10,350.
Paid miscellaneous expenses, 2,100.
Santos withdrew cash for personal use, 9,500.

Required:
1. Prepare the journal entries.
2. What are the balances of the following account:
a. Cash
b. Laundry Revenue
c. Accounts Payable

Date

Account Titles and Particulars

Po
st
Ref
.

Debit

Credit

Date

Account Titles and Particulars

Po
st
Ref
.

Debit

Credit

Date

Account Titles and Particulars

Po
st
Ref
.

Debit

Credit

Edward Madrigal Co.

Worksheet
For the Year Ended December 31, 2015
Trial Balance

Adjustments

Account Title
Debit
Cash
Accounts Receivable
Supplies Inventory
Equipment
Accumulated Depreciation Equipment
Furniture and Fixtures
Accumulated Depreciation Furn.
& Fix.
Accounts Payable
Unearned Service Revenue
Salary Payable
Edward Madrigal, Capital
Edward, Madrigal, Drawing
Service Revenue
Rent Expense
Utilities Expense
Salaries Expense
Depreciation Expense - Equipment
Depreciation Expense Furn. &
Fix.
Supplies Expense
Total

Credit

Debit

Credit

Adjusted Trial
Balance
Debit
Credit