Fill in the blanks.

Assets Liabilities Capital, end Capital, Revenue Expenses Profit/Loss

beg
A _________ 120,000 ________ 120,000 108,000 48,000 _________
B 175,000 _________ 137,500 ________ 61,250 35,000 26,250
C _________ 200,000 ________ 450,000 250,000 300,000 _________
D _________ 120,000 80,000 120,000 250,000 290,000 _________
E 350,000 _________ 275.000 _________ 122,500 70,000 _________
360,000 _________ 270,000 250,000 100,000 ________ _________
450,000 100,000 _________ 300,0000 150,000 100,000 _________
__________ 60,000 _________ 300,000 _______ 80,000 (30,000)
180,000 __________ 120,000 144,000 30,000 ________ (24,000)

The following ledger accounts are for Lansangan Services, Inc.

a. Cash m. Accumulated Depreciation

b. Accounts Receivable n. Office Equipment
c. Lansangan, Capital o. Utilities Expense
d. Lansangan, Personal p. Interest payable
e. Service Fees Income q. Unearned Revenues
f. Prepaid Rent r. Notes Receivable
g. Prepaid Insurance s. Interest Expense
h. Trading Securities t. Notes payable
i. Land u. Supplies on Hand
j. Bonds Payable v. Rent Expenses
k. Supplies Expenses w. Interest Receivable
l. Accounts Payable x. Rent Payable

Required: Classify the above ledger accounts as: asset, liability, owner’s capital,
withdrawals,income, expense. Indicate the normal balance for each account. The following table
is recommended.

Account A L OE Income Expense Balance

a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u
v
w
x

Supply the answer:

1. Nelson Photography had the following data for December 2012:

 Income from walk in customers, P95,000.
 Received cash of P20,000 for video coverage for two months which will start on January 2013.
 Paid five months worth of rent of building starting December 1, 2012, P50,000.
 Billed UST for photo coverage services done last month, P15,000.
 Paid for utilities, P5,000.

a. How much is the gross income of Nelson Photography?

b. How much is the profit?

2. The Triple I Agency had the following transactions during the month of November 2012.
 Paid creditors on account, P45,000.
 Billed customers for services rendered on account P50,000.
 Withdrew P10,000 for personal use.
 Received cash from customer on account, P20,000.
 The owner invested additional cash of P100,000.
 Paid the rent for the month, P8,000.
 Received cash from walk in customers, P20,000.
a. How much is the net increase in accounts receivable?
b. How much is the net increase in owner’s equity during the month?
c. How much is the cash balance at the end of the month?

3. On January 1, 2012, Irwin Computer Repair Shop have the following assets and liabilities:

Cash P150,000
Accounts Receivable 30,000
Repair Supplies 10,000
Computer Equipment 80,000
Accounts Payable 75,000

After one month of operation, the shop received cash of P19,000 for services rendered and a
promissory note as payment for services rendered of P25,000, paid P8,000 rent, utilities of P3,000, and
P8,000 of its accounts payable. Unused supplies amount to P8,000.

a. How much is the new assets?

b. How much is the new liabilities?
c. How much is the capital balance one month after?
d. How much is the new income for the month?

4. Financial data of Mr. Michael are as follows:

Jan 1 Dec 31
Total Assets P314,000 P472,000
Total Liabilities 197,000 281,000

Mr. Michael made an additional investment of P204,000 and a cash withdrawal of P76,000 during the
year. What is the profit (loss) of Mr. Michael for the year?

5. The capital account of Irwin had a beginning balance of P140,000. During the period, the business
had a profit of P160,000 and the owner invested an additional of P40,000. The ending capital of Irwin
was P280,000. How much withdrawal did Irwin make during the year?

6. The following accounts are in the trial balance of Unique Co.

Cash P70,000
Accounts Receivable 25,000
Office Equipment 90,000
Accounts Payable 65,000
Jose, Capital 65,000
Fees Income 107,500
Salary Expense 62,500
Rent Expense 5,000
Utilities Expense 1,600
In the process of verifying the amounts, the following errors were discovered:
 A debit of P5,000 was not posted to accounts payable
 A debit to utilities expense for P1,000 was posted as P100
 A debit entry to accounts receivable was posted to the credit side P5,000
 Fees income of P2,500 was posted twice.

a. What will be the correct balance of the Trial Balance?

b. What will be the correct balance of Accounts Receivable?
c. What will be the correct balance of Accounts Payable?
d. What will be the correct net income of Unique Co.?
e. How much is the total assets?
f. How much is the total liabilities?
g. What will be the Capital end of Mr. Jose?

6. A Trial Balance had been prepared for Marble Computer Services as of August 31, 2012:

Debit Credit
Cash ?
Accounts Receivable 184,000
Notes Receivable 300,000
Office Supplies 15,600
Prepaid Insurance 26,400
Computer Equipment 120,500
Office Furniture and Equipment 460,000
Accounts Payable 101,900
Mr. Marble Capital 1,200,000
Mr. Marble, Drawing 40,000
Service Income 340,000
Salaries Expense 30,000
Rent Expense 43,000
Taxes and Licenses 8,600
Advertising Expense 12,000
Utilities Expense 9,400

Transactions for the month of September are given as follows:

Sept
3 Purchased a new computer worth P50,000 paying 30% down and the balance is payable
in two equal monthly installments
6 Cash collected from customers amounted to P62,000 for services rendered
8 Bought supplies worth P12,000 in cash
9 Billed a customer for graphic design, P32,000
15 Paid the following:
Salaries and wages – P17,200
Utilities Expense – P9,400
22 Sold a worn-out computer unit (original cost, P30,000) for P20,000
23 Cash received from customers for services rendered total P38,000
25 Billed a customer P24,000 receiving 50% cash
29 Paid monthly salaries of employees, P20,000
30 Mr. Marble withdrew P12,000 for personal use

Prepare a trial balance as of September 30, 2012.

Mr. Rolando Dominguez opened his RD Promotion Agency on January 1, 2012. His records showed
the following ledger balances on December 31, 2012.

DR CR
Accounts Payable P9,250
Accounts Receivable P2,600
Cash 2,700
Advertising Fees Earned 34,400
Advertising Supplies Used 400
Electricity Expense 800
Gas and Water Expense 200
Misc Expenses 400
Rent Expense 3,680
Salary Expense 10,560
Telephone Expense 240
Office Equipment 20,700
Dominguez, Capital 10,000
Dominguez, Personal 1,450
Notes Payable 1,660
TOTAL P43,330 P55,710
The following errors were discovered:
a. Collected and recorded an account of a customer for P500 but posted to the AR Ledger for P5,000.
b. A note payable for office equipment bought for P2,500 was omitted.
c. Telephone expense recorded at P500 was not posted to the ledger.
d. A debit to Dominguez, Personal for P1,750 was debited to the capital account.
e. Advertising Fees Earned of P500 was posted twice.
f. Footing for cash on the debit side was understated by P450.
g. Accounts Payable paid amounting to P4,065 was posted on the credit side.
h. Advertising supplies used was copied in the trial balance on the credit side.

Prepare a corrected trial balance.