ACTIVITY 1 Mabala

ACTIVITY 1.
1
Directions: Check the appropriate box and identify the following transactions if these
would be recognized in the accounting records of Nemlise Consultants on the date
indicated.
Event YE N
S O
On March 15, Nemlise Consultants offered to buy a piece of land for ✔

P2,500,000. There is a likelihood that the offer wil be accepted.
On April 5, Nemlise Consultants received a notice that its rentals for an ✔

office space increase from P20,000 to P 30,000 per month effective on
May 1.
On June 20, Nemlise Consultants receives water bill for the month of June. ✔
The bill is due July 3.
On August 15, Nemlise Consultants placed an order for an office ✔

equipment costing P60,000.
On August 28, the equipment ordered last August 15 was received and ✔
paid.
On August 28 ,the equipment ordered last August 15 wa received and ✔

paid.
On September 7, Nemlise Consultants signed a contract with Lowindy Inc. ✔

for its services.
On November 7, Nemlise billed Lowindy for its 2month service worth ✔

P75,000.
On December 9, Lowindy Inc. paid Nemlise ,P 75,000 ✔
ACTIVITY 1.2
Directions: Check the appropriate box to indicate the normal balance of the account titles
below.

ACCOUNT TITLES DEBIT CREDIT
1. Interest expense ✔
2. Furniture and Fixture ✔
3. Store Building ✔
4. Gasoline and Oil ✔
5. Owner’s drawing ✔
6. Depreciation expense ✔
7. Accounts Payable ✔
8. Service Income ✔
9. Unused supplies ✔
10. Accrued interest income ✔
11. Land ✔
12. Repairs and Maintenance ✔
13. Pretty Cash Fund ✔
14. Mortgage Payable ✔
15. Ria ,Capital ✔

16. Accrued salaries expense ✔
17. Accounts Receivable ✔
18. Cash and cash equivalent ✔
19. Commission Income ✔
20. Prepaid Rent expense ✔
ACTIVITY 1.3
Required: Journalize the following transactions.
Mr. Justin Bieber is a professional accountant. He ventured in a milling business to serve
the needs of farmers in the rural areas of Ozamiz City. With a given chart of accounts,
record in a two-column General Journal the transactions for the first month of
operations on March 2013.
Transactions for the month:
March 1 - Mr. Justin Bieber invests cash of 300,000. He deposited 297, 000 in BDO and
kept the 3,000 as petty cash fund to oak for small expenses. He also invests a Satake
Rice Mill which includes installation cost worth 760,000 and Furniture amounting to
60,000 for a total investment of 1,120,000.
3 - Purchased diesoline worth 13, 000 account from Phoenix Philippines.
5 - Paid licenses and business permits to the city government, 3,600.
7 - Salary advance of an employee deductible from payroll, 6,000.
8 - Paid minor repairs, 600. This was taken from Petty Cash Fund.
14 - Received cash for milling services, 7, 000.
18 - Withdrew 6, 000 cash for personal use.
20 - Rendered milling services to Molave Traders, 10, 000.
23 - Paid in full the account with Phoenix Philippines, 13, 000.
27 - Collected partially the account of Molave Traders, 7, 000.
28 - Received cash in advance but service is still to be rendered, 6,000.
29 - Paid light and water for the month, 7, 000.
30 - Total payroll for the month, 13, 000, less salary advances of 3,000.
- Billed Ozamiz Farms for milling services rendered, 25, 000.
DATE PARTICULARS DEBIT CREDIT
March 1 Cash in Bank 297,000

Pretty Cash Fund 3,000
Satake Rice Mill 760,000
Furniture and 60,000
Fixture
E. Bieber, Capital 1,120,00
March 3 Diesoline Inventory 13,000

Accounts Payable 13,000
March 5 Taxes and Licenses 3,600

Cash in a Bank 3,600
March 7 Salaries and Wages 6,000

Advances to 6,000
Employees
March 8 Repairs and 600

Maintenance 600
Pretty Cash Fund

Milling Income 7,000
March 18 E. Bieber, Drawing 6,000

Cash in Bank 6,000
March 20 Account Receivable 10,000

March 23 Account Payable 13,000
Cash in Bank 13,000

Account Receivable 7,000

Unearned Milling 6,000
Income
March 29 Light and Water 7,000

Cash in Bank 7,000
March 30 Salaries and Wages 13,000

3,000
Advances to 10,000
Employees
Cash in Bank
Account Receivable 25,000

JULIE M. MABALA
BSBA-FM 101

ACTIVITY 1 Mabala

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ACTIVITY 1.

On March 15, Nemlise Consultants offered to buy a piece of land for ✔

On April 5, Nemlise Consultants received a notice that its rentals for an ✔

On August 15, Nemlise Consultants placed an order for an office ✔

On August 28 ,the equipment ordered last August 15 wa received and ✔

On September 7, Nemlise Consultants signed a contract with Lowindy Inc. ✔

On November 7, Nemlise billed Lowindy for its 2month service worth ✔

On December 9, Lowindy Inc. paid Nemlise ,P 75,000 ✔

ACCOUNT TITLES DEBIT CREDIT

2. Furniture and Fixture ✔

4. Gasoline and Oil ✔

10. Accrued interest income ✔

12. Repairs and Maintenance ✔

13. Pretty Cash Fund ✔

14. Mortgage Payable ✔

15. Ria ,Capital ✔

17. Accounts Receivable ✔

18. Cash and cash equivalent ✔

19. Commission Income ✔

20. Prepaid Rent expense ✔

DATE PARTICULARS DEBIT CREDIT

March 1 Cash in Bank 297,000

March 3 Diesoline Inventory 13,000

March 5 Taxes and Licenses 3,600

March 7 Salaries and Wages 6,000

March 8 Repairs and 600

March 14 Cash in Bank 7,000

March 18 E. Bieber, Drawing 6,000

March 20 Account Receivable 10,000

March 27 Cash in Bank 7,000

March 28 Cash in Bank 6,000

March 29 Light and Water 7,000

March 30 Salaries and Wages 13,000

Account Receivable 25,000

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