The following are the Business Transactions of MARCHAKENYANT

COMPANY for January 2015.

Date Transaction
Jan 2 An amount of P36,000 was paid as advance rent for three
months.
Jan 4 Purchased office supplies costing P17,600 on account.
Jan Provided services to its customers and received P28,500 in
13 cash.
Jan Paid the accounts payable on the office supplies purchased on
13 January 4.
Jan Paid wages to its employees for first two weeks of January,
14 aggregating P19,100.
Jan Provided P54,100 worth of services to its customers. They
18 paid P32,900 and promised to pay the remaining amount.
Jan Received P15,300 from customers for the services provided on
23 January 18.
Jan Received P4,000 as an advance payment from customers.
25
Jan Purchased office supplies costing P5,200 on account.
26
Jan Received electricity bill of P2,470.
31
Jan Received telephone bill of P1,494.
31
Jan Miscellaneous expenses paid during the month totaled P3,470
31
The following table shows the journal entries for the above events.
Date Account Debit Credit
Jan 2 Prepaid Rent 36,000
Cash 36,000
Jan 4 Office Supplies 17,600
Accounts 17,600
Payable
Jan 13 Cash 28,500
Service Revenue 28,500
Jan 13 Accounts Payable 17,600
Cash 17,600
Jan 14 Wages Expense 19,100
Cash 19,100
Jan 18 Cash 32,900
Accounts Receivable 21,200
Service Revenue 54,100
Jan 23 Cash 15,300
Accounts 15,300
Receivable
Jan 25 Cash 4,000
Unearned 4,000
Revenue
Jan 26 Office Supplies 5,200
Accounts 5,200
Payable
Jan 31 Electricity Expense 2,470
Utilities 2,470
Payable
Jan 31 Telephone Expense 1,494
Utilities 1,494
Payable
Jan 31 Miscellaneous 3,470
Expense
Cash 3,470

Posted to Ledger: (T- Accounts)

Cash Accounts Receivable

28,500 $36,000 $21,200 $15,300
32,900 17,600
15,300 19,100
4,000 3,470

P4530 P5900
Office Supplies Prepaid Rent
P17,600 P36,000
5,200
P22,800 P36,000

Liability Accounts
Accounts Payable
P17,600 $17,600
5,200
$5,200
Utilities Payable Unearned Revenue
$2,470 $4,000
1,494
$3,964 $4,000

Revenue, Dividend and Expense Accounts

 Service Revenue
$28,500
54,100
$82,600
Wages Expense Miscellaneous
Expense
P19100 $3,470

P19100 $3,470
Electricity Expense Telephone Expense
$2,470 $1,494
$2,470 $1,494

Company A
 Unadjusted Trial Balance
January 31, 2010

Debit Credit
Cash $20,430
Accounts Receivable 5,900
Office Supplies 22,800
Prepaid Rent 36,000
Equipment 80,000
Accounts Payable $5,200
Notes Payable 20,000
Utilities Payable 3,964
Unearned Revenue 4,000
Common Stock 100,000
Service Revenue 82,600
Wages Expense 38,200
Miscellaneous Expense 3,470
Electricity Expense 2,470
Telephone Expense 1,494
Dividend 5,000
Total $215,764 $215,764

Adjusting Entries:
Date Account Debit Credit
Jan 31 Supplies Expense 18,480
Office Supplies 18,480
Supplies Expense = $22,800 $4,320 = $18,480
Jan 31 Rent Expense 12,000
Prepaid Rent 12,000
Rent Expense = $36,000 3 = $12,000
Jan 31 Depreciation Expense 1,100
Accumulated Depreciation 1,100
Depreciation Expense = ($80,000 $14,000) (5 12) = $1,100
Jan 31 Interest Expense 150
Interest Payable 150
Interest Expense = $20,000 (9% 12) = $150
Jan 31 Unearned Revenue 3,000
Service Revenue 3,000
 Company A
Adjusted Trial Balance
January 31, 2010

Debit Credit
Cash $20,430
Accounts Receivable 5,900
Office Supplies 4,320
Prepaid Rent 24,000
Equipment 80,000
Accumulated Depreciation $1,100
Accounts Payable 5,200
Utilities Payable 3,964
Unearned Revenue 1,000
Interest Payable 150
Notes Payable 20,000
Common Stock 100,000
Service Revenue 85,600
Wages Expense 38,200
Supplies Expense 18,480
Rent Expense 12,000
Miscellaneous Expense 3,470
Electricity Expense 2,470
Telephone Expense 1,494
Depreciation Expense 1,100
Interest Expense 150
Dividend 5,000
Total $217,014 $217,014

The following example shows the closing entries based on the adjusted trial
balance of Company A.
Not Credi
Date Account Debit
e t
1 Jan 31 Service Revenue 85,600
Income Summary 85,600
2 Jan 31 Income Summary 77,364
Wages Expense 38,200
Supplies Expense 18,480
Rent Expense 12,000
Miscellaneous 3,470
Expense
Electricity 2,470
Expense
Telephone Expense 1,494
Depreciation 1,100
Expense
Interest Expense 150
3 Jan 31 Income Summary 8,236
Retained Earnings 8,236
4 Jan 31 Retained Earnings 5,000
Not Credi
Date Account Debit
e t
Dividend 5,000

Company A
Adjusted Trial Balance
January 31, 2010

Debit Credit
Cash $20,430
Accounts Receivable 5,900
Office Supplies 4,320
Prepaid Rent 24,000
Equipment 80,000
Accumulated Depreciation $1,100
Accounts Payable 5,200
Utilities Payable 3,964
Unearned Revenue 1,000
Interest Payable 150
Notes Payable 20,000
Common Stock 100,000
Retained Earnings 3,236
Total $134,650 $134,650