GENERAL JOURNAL

TRANSACTION

DATE
2012
Ms. Gemma R. Angeles opened a business in the name of GEMS Haircutters by
investing P500,000 cash on December 1, 2012. The following transactions have
occurred during the month of December, 2012.

December 1 Rented a space for her beauty parlor for P12,000 per month by paying P36,000 for 3
month’s rent
1 Hired 1 Supervisor and 4 Beauticians.
2 Secured business permits and other municipal licenses and paid P10,000
3 Deposited P50,000 with Delmont Bank from the cash investment
3 Paid P3,500 cash for billboard and signage
3 Purchased Shop Equipment for P100,000 on cash
4 Purchased Shop Supplies for P50,000 cash
Purchased the following Furniture:
6 Tables and Chairs – P6,500; Sofa – P15,000; Aircon – P25,000
Note: Paid 50% by issuing check no. 1501 and the balance after 30 days

6 Secured insurance for her parlor for P500,000 and issued Check No. 1502 amounting
to P36,000 representing annual premium
Got a contract from GMA Talent Centers. Rendered service for P100,000 and
7 received 50% down payment and the balance after 30 days.

8 Deposited P50,000 with Delmont Bank

8 Bought additional supplies for P10,000 cash
The customer’s logbook showed total cash receipts of P55,000 for services rendered
14 to walk-in customers for week 1 of operation

Rendered service on account to the following customers:

15 Zeny Alviar – P3,000; Elisa Lopez – P2,500; Samuel Barros – P5,000

15 Paid the semi-monthly salaries of Employees, P30,000.00

16 Rendered service to Ms. Imelda Dela Peña wedding for P50,000 on account
Purchase additional tables and chairs and issued a 60-day 6% promissory note to
16
City Appliance Store, P15,000
16 Paid P15,000 for advertisements and other promotional materials
17 Ms. Gemma R. Angeles withdrew cash for her personal use, P10,000
18 Collected the account of Ms. Imelda Dela Peña

21 The customer’s logbook showed total cash receipts of P47,000 for services rendered
to walk-in customers for week 2 of operation
Paid the following bills: Meralco for electricity – P16,250,Ccheck No. 1503, PLDT for
22
Telephone service – P2,400, Check No. 1504
23 Collected the account of Ms. Zeny Alviar
23 Rendered service to Ms. May Manuel and received a promissory note of P5,000
24 Made the following purchases on account:
Shop Supplies – from HBC - Amount – P31,250, Terms: 30 days
26 Rendered service to Ms. Arlene Dela Paz for cash – P3,500
Rendered service on account to the following customers:
27
Angel Lora – P1,500; Janet Fuentes – P3,500; Jeffrey Reyes – P3,000

27 Ms. Gemma R. Angeles made an additional withdrawal for her personal use, P5,000

The customer’s logbook showed total cash receipts of P84,000 for services rendered
28
to walk-in customers for week 3 of operation
29 Collected half of the balance in December 7 transaction
Received the bill from Maynlad Water Company for water consumption for the
30 month of December, P3,570
30 Paid salaries of employees, P30,000.00

31 The customer’s logbook showed total cash receipts of P28,000 for services rendered
to walk-in customers for 3 days
31 Additional information:
The expense method of recording prepayments is followed
Three percent (3%) of doubtful accounts are allowed on accounts receivable
Shop Equipment are expected to last for 5 years with no salvage value
Furniture and Fixture are expected to have a useful life of 5 years with a salvage
value of P5,000
It is the company’s policy to take full month’s depreciation on the month fixed asset
was purchased
The 2 depreciation expense may be combined
Unused supplies amounted to P35,000
The rent paid is for 3 months
The insurance paid is for 1 year
The notes payable is to be accrued for an interest of 6% for 15 days
 Allowance for doubtful
Cash on Hand Cash in Bank Accounts Receivable
account
Debit Credit Debit Credit Debit Credit Debit

500,000.00

36,000.00

10,000.00
50,000.00 50,000.00
3,500.00
100,000.00
50,000.00

23,250.00

36,000.00

50,000.00 50,000.00

50,000.00
10,000.00

55,000.00

10,500.00

30,000.00
50,000.00

15,000.00
10,000.00
50,000.00 50,000.00

47,000.00

18,650.00

3,000.00 3,000.00
 3,500.00

8,000.00

5,000.00

84,000.00

25,000.00 25,000.00

30,000.00

28,000.00

845,500.00 349,500.00 100,000.00 77,900.00 118,500.00 78,000.00 -

496,000.00 22,100.00 40,500.00
 ASSET

Allowance for doubtful

Notes Receivable Shop Supplies Prepaid Rent
account
Credit Debit Credit Debit Credit Debit Credit

50,000.00

10,000.00

5,000.00
 31,250.00

1,215.00

56,250.00
24,000.00

1,215.00 5,000.00 - 91,250.00 56,250.00 24,000.00 -

1,215.00 5,000.00 35,000.00 24,000.00
 Accumulated Depreciation
Prepaid Insurance Shop Equipment Furniture and Fixture
– Shop Equipment
Debit Credit Debit Credit Debit Credit Debit

100,000.00

46,500.00

15,000.00
 1,666.67

33,000.00

33,000.00 - 100,000.00 - - 1,666.67 61,500.00

33,000.00 100,000.00 1,666.67 61,500.00
 LIABILITIES

Accumulated Depreciation-
Furniture and Fixture Accounts Payable Notes Payable
Furniture & Fixture
Credit Debit Credit Debit Credit Debit Credit

23,250.00

15,000.00
 31,250.00

3,570.00

941.67

- - 941.67 - 34,820.00 - 38,250.00

941.67 34,820.00 38,250.00
ES EQUITY REVENUE

Gemma R. Angeles,
Interest Payable Gemma R. Angeles, Capital Service Revenue
Drawing
Debit Credit Debit Credit Debit Credit Debit

500,000.00

50,000.00

10,000.00
 5,000.00

225.00
- 225.00 - 550,000.00 15,000.00 - -
225.00 550,000.00 15,000.00
 REVENUE

Service Revenue Taxes and Licenses Salaries Expense Shop Supplies Expense

Credit Debit Credit Debit Credit Debit Credit

10,000.00

100,000.00

55,000.00

10,500.00

30,000.00
50,000.00

47,000.00

5,000.00
 3,500.00

8,000.00

84,000.00

30,000.00

28,000.00

56,250.00

391,000.00 10,000.00 - 60,000.00 - 56,250.00 -

391,000.00 10,000.00 60,000.00 56,250.00
 EXPENSES

Rent Expense Utilities Expense Insurance Expense Advertising Expense

Debit Credit Debit Credit Debit Credit Debit

36,000.00

3,500.00

36,000.00

15,000.00

18,650.00
 3,570.00

24,000.00
33,000.00

36,000.00 24,000.00 22,220.00 - 36,000.00 33,000.00 18,500.00

12,000.00 22,220.00 3,000.00 18,500.00
Advertising Expense Interest Expense Employee’s Benefits Doubtful Account Expense

Credit Debit Credit Debit Credit Debit Credit

 1,215.00

225.00
- 225.00 - - - 1,215.00 -
225.00 - 1,215.00
 Income and Expense
Depreciation Expense
Summary
Debit Credit Debit Credit
1,666.67

941.67

2,608.33 - - -
2,608.33 -
 Gems Haircutter Salon
Statement of Profit and Loss
For the month of December 31, 2012

Service Revenue 391,000.00

Operating expenses
Taxes and Licenses 10,000.00
Salaries Expense 60,000.00
Shop Supplies Expense 56,250.00
Rent Expense 12,000.00
Utilities Expense 22,220.00
Insurance Expense 3,000.00
Advertising Expense 18,500.00
Interest Expense 225.00
Employee’s Benefits -
Doubtful Account Expense 1,215.00
Depreciation Expense 2,608.33 186,018.33
Income and Expense Summary 204,981.67
 Gems Haircutter Salon
Statement of Changes on Equity
For the month of December 31, 2012

Gemma R. Angeles, Capital - December 1,2022 500,000.00

Add: I Additional Investment 50,000.00
Income from Operation 204,981.67
Total 754,981.67
Less: Withdrawal (15,000.00)
Gemma R. Angeles, Capital - December 31,2022 739,981.67
 Gems Haircutter Salon
Statement of Financial Position
As of December 31, 2012

Asset
Current Assets
Cash on Hand 496,000.00
Cash in Bank 22,100.00
Accounts Receivable 40,500.00
Allowance for Doubtful Account (1,215.00)
Notes Receivable 5,000.00
Shop Supplies 35,000.00
Prepaid Rent 24,000.00
Prepaid Insurance 33,000.00
Total Current Asset 654,385.00

Noncurrent Assets
Shop Equipment 100,000.00
Accumulated Depreciation – Shop Equipment (1,666.67)
Furniture and Fixture 61,500.00
Accumulated Depreciation- Furniture & Fixture (941.67)
Total Noncurrent Asset 158,891.67
Total Asset 813,276.67

Liabilities and Owner's equity

Current Liabilities
Accounts Payable 34,820.00
Notes Payable 38,250.00
Interest Payable 225.00
Total Liabilities 73,295.00
 Capital
Gemma R. Angeles, Capital 739,981.67
Total Capital 739,981.67
Total Liabilities and Capital 813,276.67