Republic of the Philippines

DEPARTMENT OF EDUCATION
Region IV – A (CALABARZON)
Division of Cavite
ANGELO L. LOYOLA SENIOR HIGH SCHOOL
Carmona, Cavite
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1
(SLAS) Student’s Learning Activity Sheet 3rd Quarter SY 2020-2021
Name: Cubel,Kim Kara A. Teacher: Ms. JENNIFER G. HERNANDEZ
Strand and Section: 11-abm E Date: ________________________
WEEK 7-8
ACCOUNTING CYCLE (Service Business)– Part 2

What's New
PRE-TEST
1. Which of the following does not correctly define a business transaction?
A. an exchange between at least two parties
B. an exchange involving money, goods, or services
C. an activity involving changes on the assets, liabilities, and owner’s equity
D. an act of providing something to oneself
2. When is the post-closing trial balance prepared?
a before the closing entries have been posted
b. after the balance sheet is prepared
c. after the closing entries have been posted
d. before the balance sheet is prepared
3. What is profit?
a. the difference between the amount received from customer for goods or services and the amounts paid for the inputs
used to provide the goods or services
b. amount received from customers
c. amounts paid for the inputs used to provide the services or goods
d. the cash received from the company
4. What is exchange in a transaction involving service business?
A. Money and property B Money and franchise
C. Money and goods D. Money and service
5. What should temporary accounts have at the beginning of the next period?
A they should have credit balances
B they should have zero balance
C they should have debit balance
D they should have the retained earnings

ACTIVITY 1 – Transaction Analysis! Write your analysis. Letter A is already given.

A. February 14, 2018 – Juan dela Cruz invested PHP200,000 into his Minesgate Computer Repair business.
Following the three simple steps, our analysis shall be:
1. It is a business transaction since it affects the accounting equation.
2. The major accounts affected are assets and owner’s equity. More specifically, the account titles affected are Cash (increase
through a debit) and dela Cruz, capital (increase through credit).
3. The amount to be debited is P200,000 for Cash (accounts with normal debit balances are increased through a debit) and the
amount to be credited is P200,000 for dela Cruz, Capital (accounts with normal credit balances are increased through a credit).
B. February 15, 2018 - Juan dela Cruz purchased one computer unit from Octagon Computer Store to be used for his
business. He issued a check number 001 amounting to PHP25,000.
1. It is a business transaction since it affects the accounting equation.
2. The account titles affected are office equipment and cash.
3. The amount to be debited is P25,000 for office equipment and the amount to be credited is P25,000 for cash

Week 7-8 PAGE 1

 C. February 16, 2018 - Juan dela Cruz hired Perla Silangan, an experienced secretary.
1. No entry. This is not a financial transaction.
D. February 17, 2018 – Repaired the computer of Jose and collected PHP10,000.
1. It is a business transaction since it affects the accounting equation.
2. The account titles affected are cash and service revenue.
3. The amount to be debited is P10,000 for cash and the amount to be credited is P10,000 for service revenue
E. February 18, 2018 – Repaired the computer of Maria. However, Maria will pay PHP15,000 only on March 18, 2018.
1. It is a business transaction since it affects the accounting equation.
2. The account titles affected are accounts receivable and service revenue
3. The amount to be debited is P15,000 for accounts receivable and the amount to be credited is P15,000 for service revenue
F. February 19, 2018 – Juan dela Cruz purchased office supplies from J&R Merchandise amounting to PHP5,000 on the
account. Juan dela Cruz will pay this on March 30, 2018.
1. It is a business transaction since it affects the accounting equation.
2. The accounts titles affected are supplies expense and accounts payable
3. the amount to be debited is P5,000 for supplies expense and the amount to be credited is P5,000 for accounts payable
G. February 25, 2018 – Paid the salary of Perla Silangan amounting to PHP4,000.
1. It is a business transaction since it affects the accounting equation.
2. The accounts titles affected are salaries expense and cash
3. The amount to be debited is P4,000 for salaries expense and the amount for credited is P4,000 for cash.
CASE 1
Spencer Company has a fiscal year-end of June 30th. The following adjusting journal entries must be prepared in order
to bring the accounting records up to date for the preparation of year-end financial statements. Interest on notes payable
of PHP400 is accrued. Fees earned but unbilled total PHP1,400. Salaries earned by employees of PHP700 have not been
recorded. Bad debt expense for year is PHP900. Each adjustment is journalized (using general journal format):

General Ledger
Date Account title and Explanation Ref Dr Cr
3/30/06 Interest expense 400
Interest payable 4000
~to accrue interest on note payable through june 30,2006

3/30/06 Account receivable 1400

Service revenue 1400
~to record service revenue for services unbilled at year
end

3/30/06 Salaries expense 700

Salaries payable 700
~to accrue salaries through june 30,2006

3/30/06 Bad debt expense 900

Allowance for doubtful accounts 900
~to record bad debt expense for the year ended june

Week 7-8 PAGE 2

 30,2006

What's More
CASE 2

Instructions:
1. Prepare the adjusting entries necessary for the above problem
2. Prepare an adjusted trial balance
3. Prepare an income statement ending November 30, 2016
4. Prepare closing entries
Kay Travel was organized on September 1, 2016. Assume that the accounts are closed and financial statements are
prepared each month. The company occupies rented office space but owns office equipment estimated to have a useful life
of 10 years from date of acquisition, September 1, 2016. The unadjusted trial balance for Kay at November 30, 2016 is
shown below:

UNADJUSTED TRIAL BALANCE

Account Title Debit Credit
cash 1,750
Accounts receivable 1,210
Office equipment 4,800
Accum. Deprn-off eqpt 80
Accounts payable 1,640
Kay,capital 7,490
Kay,withdrawal 500
Service revenue 4,220
Advertising expense 800
Salaries expense 3,600
Rent expense 700
13,430 13,430
ADJUSTING ENTRIES:

GENERAL JOURNAL
Date Account Title/Explanation Ref Dr Cr
Prepaid expense 385
Rental expense 385
Depreciation expense 40
Accumulated depreciation office 40
equipment

ADJUSTED TRIAL BALANCE

Account Title Debit Credit

Week 7-8 PAGE 3

 cash 1,750
Accounts receivable 1,210
Prepaid expense 385
Office equipment 4,800
Accumulated depreciation office 120
equipment
Accounts payable 1,640
Kay,kapital 7,490
Kay,withdrawal 500
Service revenue 4,220
Advertising expense 800
Salaries expense 3,600
Rent expense 385
Depreciation expense 40
13,470 13,470
STATEMENT OF COMPREHENSIVE INCOME:
KAY TRAVEL
Statement of Comprehensive Income
For the month ended _________________
SERVICE REVENUE 4,220
LESS: EXPENSES
Advertisings Expense 800
Salaries Expense 3,600
Rental Expense 365
Depreciation Expense 40
. Total Expenses 4,825
NET INCOME (Net Loss) (60 .
CLOSING ENTRIES:
GENERAL JOURNAL
Date Account Title/Explanation Ref Dr Cr
Feb.29,2016 Service revenue 4,220
Income summary 4,220
~to close revenue account

Income summary 4,825

Advertising expense 800
Salaries expense 3,600
Rental expense 385

Week 7-8 PAGE 4

 Depreciation expense 40
~to close expense accounts

Kay, capital 500

Kay,withdrawal 500
~to close withdrawal accounts

Kay, capital 605

Income summary 605
~to close income summary accounts

What I Can Do

USE YOUR COLUMNAR NOTEBOOK

Continuation from Week 6
1. Prepare the general journal entries for the above transactions (ignore giving explanations after every entry)
2. Post the following transactions to the general ledger.
3. Prepare the unadjusted trial balance as of January 30, 2016
Required Tasks – Week 7-8
4. Prepare the Worksheet
5. Prepare Adjusting Journal Entries
6. Financial Statement
7 Closing the Book

Mr. Jeremy Richardson o/p\ened his laundry business in Iloilo City on January 2, 2016. The following transactions
occurred during the month of January 2016:
DATE TRANSACTIONS
1/2/16 Invested PHP500,000 to his business. The trade name of the business was “Ocean Laundry Shop”
1/3/16 Hired Dahlen and Karl who will manage his business
1/4/16 Collections from various customers for the day - PHP3,000
1/5/16 Purchase store supplies from Jade Waterfalls - PHP10,000
1/7/16 Collections from various customers for the day - PHP8,000
1/8/16 Mr. Richardson entered into an exclusive contract with Kassandra Hotel where the business will do all the
laundry of the hotel.
1/9/16 Kassandra Hotel availed the services of Mr. Richardson amounting to PHP15,000. Payment will be made on
January 20, 2016.
1/10/16 Collections from various customers for the day - PHP12,000
1/12/16 Purchase a washing machine amounting to PHP50,000
1/15/16 Collections from various customers for the day - PHP20,000
1/19/16 Paid electricity bill for the month amounting to PHP18,000
1/20/16 Received payment from Kassandra Hotel amounting to PHP15,000
1/21/16 Paid salaries of Dahlen and Karl - PHP15,000

Week 7-8 PAGE 5

 1/22/16 Mr. Jeremy Richardson needed money for the hospitalization of his son. He withdrew PHP18,000 from the Business
1/25/16 Paid airfare ticket of PHP1,500 for the travel of Mr. Richardson to Manila to negotiate a contract with Tyler Gab Hotel
1/26/16 Paid taxes to the City of Iloilo, PHP4,000
1/27/16 Purchased office supplies amounting to PHP12,500
1/28/16 Collections from various customer for the day - PHP5,000
1/29/16 Tyler Gab Hotel availed the services of Mr. Jeremy Richardson amounting to PHP15,000 payable on Feb 25, 2016.

Assessment

Let us check how much you learned from this lesson

A. Compute the depreciation expense for the following independent cases. Use the straight line method of
depreciation.

1. San Pedro purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is

estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful
life. If the accounting period being reported by Pedro is one (1) year from January – December 2016, how much is
the depreciation expense
Solution: Formula - Annual Depreciation =(Acquisition Cost – Salvage or Residual Value) / Useful Life

Annual Depreciation = (250,000 -10,000) / 10

Answer = PHP24,000

2. San Pedro purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It is

estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful
life. If the accounting period being reported by Pedro is one (1) year from January-December 2016, how much is the
depreciation expense?
Solution: Formula - Annual Depreciation =(Acquisition Cost – Salvage or Residual Value) / Useful Life

Annual Depreciation = (250,000 -10,000) / 10

Answer = PHP 24,000

Final = PHP18,000

3. San Pedro purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated that the
vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period
being reported by San Pedro is one (1) month (January 2016), how much is the depreciation expense for the month?
Solution: Formula - Annual Depreciation = (Acquisition Cost – Salvage or Residual Value) / Useful Life
Annual Depreciation = (250,000 -10,000) / 10 = P24,000

Answer = PHP24,000 / 12 = PHP2,000 for January 2016

B. Evergreen Laundry carried out the following transactions during May. Which of these transactions represented
expenses in May? Explain.
1. Paid an attorney PHP500 for legal services rendered in April.
Answer: April expense because it was incurred in April even the payment was made in May.

2. The owner withdrew PHP1,600 from the business for personal use.
Answer: It was recorded as a withdrawal made by the owner, Owner’s withdrawal are considered

Week 7-8 PAGE 6

 separate from the transaction.

3. Purchased a copying machine for PHP25,000 cash. The machine has a useful life of 25 months.
Answer:The cost of the machine is expense for May of 25,000/ 25 ,Which is Php 1,000 per month. It will benefit.

4. Paid PHP450 gasoline for the delivery truck used in business during May.
Answer: May expense incurred during the month.

5. Paid salaries of employees for time worked during May - PHP3,000.

Answer: Expense of May incurred during the month.

What I Have Learned

REFLECTIVE JOURNAL
TG Week 7-9
Lesson: ACCOUNTING CYCLE OF A SERVICE BUSINESS – Part 2
(Based from your own understanding and own words)
I understand that

The accounting cycle is the holistic process of recording and processing all financial

transactions of a company, from when the transaction occurs, to its representation on the financial

statements, to closing the accounts. One of the main duties of a bookkeeper is to keep track of the

full accounting cycle from start to finish. The cycle repeats itself every fiscal year as long as a

company remains in business.

I realized that

An accounting cycle enables the financial accounting that businesses need to perform to be

in compliance with federal regulations and tax codes. The government requires companies of all

sizes to disclose their financial results and pay taxes on their profits, which they must calculate

on their own.

Starting today

I underdstand how to evaluate the seven accounting cycle of business.

Week 7-8 PAGE 7

_____________________ Name of Parents ____________________________
Student’s Signature
email add / Contact No. ____________________________
Self-Check!
Before going to the next lesson, check the icon that best shows your learning experience.

I have understood the lesson well and I can even teach what I learned
to others.
I have understood the lesson but there are still other things that I
need to review and relearn.
I need to do additional work to be able to master the lesson. I need
If you checked the first icon, you are ready for next lesson.
help inicon,
If you have checked the second someyoutasks.
need to review the things that you need to relearn.
If you have checked the third icon, it would be best if you read more and ask help from your teacher, parents or peers in
clarifying the lessons that you find it difficult.
BE HONEST so that you will truly improve. = Ma’am JENI =

Week 7-8 PAGE 8