Charito Couturier Shop

General Journal
AS OF MONTH ENDING ON DECEMBER 31, 2020
DATE PARTICULARS P/R
2020
Dec. 1 Notes recievable 104
Service Income 501
Received 5%, 3-month promissory note

2 Sewing supplies on hand 107

Accounts Payable 301
Cash in Bank 101
Purchased a merchandise from Luz Sewing Supplies Store

3 Advances to Employees 105

Cash in Bank 101
Paid salary advances to the master cutter

4 Cash in Bank 101

Accounts Recievable 103
Collected a balance of the gown from Michelle

5 charito, drawings 401-A

Sewing supplies on Hand 107
Charito withdrew sewing supplies for personal use

6 repairs and maintenance expense 615

Cash in Bank 101
Paid efren repair service for the repair of the sewing machines.

7 Cash in Bank 101

service income 501
Sold a service and received income from rose

8 transportation expensne 615

Cash in Bank 101
Paid transportation fare to the liason officer

9 accounts payable 301

 Cash in Bank 101
paid an account to Jose Building Maintenance Company

10 Charito, Capital 401

Cash in Bank 101
Charito withdrew for personal use

18 Cash in bank 101

unearned service income 306
received a partial payment of 20%

20 Utilities expense 612

Cash in Bank 101
paid the utulities for the month of december

27 accounts recievable 103

service income 501
rendered a service to Mary Renee Dance Company

31 Salaries and Wages Expense 610

Cash in Bank 101
paid the salaries of the employees

ENDING BALANCE
 page 12

MBER 31, 2020

DEBIT CREDIT

30,000.00
30,000.00

14,800.00
7,400.00
7,400.00

3,000.00
3,000.00

52,000.00
52,000.00

500
500

1,500.00
1,500.00
wing machines.

25,000.00
25,000.00

750
750

18,000.00
 18,000.00

20,000.00
20,000.00

70,000.00
70,000.00

1,200.00
1,200.00

75,000.00
75,000.00

89,700.00
89,700.00

401,450.00 401,450.00
 Cash Accounts Payable Salaries and Wages Expens
182,000.00 18,000.00 1,121,250.00
52,000.00 7,400.00 18,000.00 7,400.00 89,700.00
25,000.00 3,000.00
70,000.00 1,500.00 18,000.00 25,400.00 1,210,950.00
750 7,400.00
18,000.00
20,000.00
1,200.00 Unearned Service Income Utilities Expense
89,700.00 85,200.00
329,000.00 141,550.00 70,000.00 1,200.00
187,450.00
70,000.00 86,400.00

Notes Receivable Charito, Capital Repairs and Maintenance Expe

1,284,300.00 18,500.00
30,000.00 20,000.00 1,500.00

30,000.00 1,264,300.00 20,000.00

Accounts Receivable Charito, Drawing Transportation Expense

123,000.00 70,000.00 8,250.00
75,000.00 52,000.00 500 750
198,000.00 52,000.00
146,000.00 70,500.00 9,000.00

Sewing Supplies on Hand Service Income

72,500.00 2,250,000.00
14,800.00 500 30,000.00
87,300.00 500 25,000.00
86,800.00 75,000.00

2,380,000.00
Advances to Employees
3,000.00

3,000
ries and Wages Expense Charito Couturier Shop
Trial Balance
December 31, 2020

Account Title Debit

Cash in Bank ₱ 187,450.00
Petty Cash Fund 10,000.00
Accounts Receivable 146,000.00
Utilities Expense Allowance for Bad Debts ₱
Notes Receivable 30,000.00
Advances to Employees 3,000.00
Sewing Supplies on Hand 86,800.00
Land 700,000.00
Buildings 800,000.00
s and Maintenance Expense Accumulated Depreciation-Building
Shop Equipment 480,000.00
Accumulated Depreciation-Shop Equipment
Furniture and Fixture 150,000.00
Accumulated Depreciation – Furniture and Fixture
Accounts Payable
Notes Payable
ransportation Expense Unearned Service Income
Withholding Taxes Payable
Mortgage Payable
Charito, Capital
Charito, Drawing 70,500.00
Service Income ₱
Salaries and Wages Expense 1,210,950.00
Insurance Expense 68,450.00
Utilities Expense 86,400.00
Repairs and Maintenance Expense 20,000.00
Transportation Expense 9,000.00
SSS, Philhealth, and Pag-ibig Expense 41,550.00
Miscellaneous Expense 18,400.00
Interest Expense 4,400.00
Total ₱ 4,122,900.00 ₱
 Credit

9,500.00

100,000.00

112,500.00

52,000.00
7,400.00
20,000.00
70,000.00
7,200.00
100,000.00
1,264,300.00

2,380,000.00

4,122,900.00
Charito Couturier Shop
Adjusting Entries - DECEMBER 31, 2020
DATE PARTICULARS P/R DEBIT

Dec. 31 Interest Recievable 106 125

a. interest income 502
Interest earned but not yet recorded

31 Utilities expense 612 6,800.00

b. utilities payable 304
electricity bill for the motnh of december

31 Sewing Supplies Expense 614 81,500.00

c. sewing supplies on hand 107
Sewing supplies consumed during the year but not incurred

31 Bad debt Expense 618 2,180.00

d. Allowance for bad debts 103-A
8% of the outstanding Accounts Receivable balance

31 Depreciation Expense — Building 611 50,000.00

e. Accumulated Depreciation — Building 202-A

Depreciation Expense — Equipment 611 56,250.00

Accumulated Depreciation — Equipment 203-A

Depreciation Expense — Furniture 611 26,000.00

Accumulated Depreciation — Furniture 204-A
 A) Interest Income
page 1
CREDIT 125

125
125

B) Utilities Payable

6,800.00 6,800

6,800

81,500.00 C) Sewing Supplies Expense

81,500

81,500
2,180.00

D) Allowance for Bad Debts

9,500
50,000.00 2,180

11,680
56,250.00
E) Accumulated Depreciation-Building
100,000
26,000.00 50,000

150,000

Accumulated Depreciation-Furniture
52,000
26,000

78,000
 Interest Receivable

125

125

Utilities Expense
86,400
6,800

93,200

Sewing Supplies on Hand

86,800
81,500

5,300

Bad Debts Expense

2,180

2,180

Accumulated Depreciation-Shop Equipment

112,500
56,250

168,750

Depreciation Expense

132,250

132,250
 Charito Couturie
Workshee
AS OF MONTH ENDING ON
Unadjusted
Trial balance
Account Title Debit Credit
Cash in Bank 187,450
Petty Cash Fund 10,000
Accounts Receivable 146,000
Allowance for Bad Debts 9,500
Notes Receivable 30,000
Advances to Employees 3,000
Sewing Supplies on Hand 86,800
Land 700,000
Buildings 800,000
Accumulated Depreciation-Building 100,000
Shop Equipment 480,000
Accumulated Depreciation-Shop Equipment 112,500
Furniture and Fixture 150,000
Accumulated Depreciation – Furniture and Fixture 52,000
Accounts Payable 7,400
Notes Payable 20,000
Unearned Service Income 70,000
Withholding Taxes Payable 7,200
Mortgage Payable 100,000
Charito, Capital 1,264,300
Charito, Drawing 70,500
Service Income 2,380,000
Salaries and Wages Expense 1,210,950
Insurance Expense 68,450
Utilities Expense 86,400
Repairs and Maintenance Expense 20,000
Transportation Expense 9,000
SSS, Philhealth, and Pag-ibig Expense 41,550
Miscellaneous Expense 18,400
Interest Expense 4,400
Total 4,122,900 4,122,900

Interest Income
Interest recievable
Utilities Payable
Sewing supplies expense
Bad Debt expense
Depriciation expense

Total:
Net Income:
Total ending balance
 Charito Couturier Shop
Worksheet
AS OF MONTH ENDING ON DECEMBER 31, 2020
Adjusted Income Statement of
Adjustments Trial balance Statement Financial Position
Debit Credit Debit Credit Debit Credit Debit
187,450 187,450
10,000 10,000
146,000 146,000
2,180 11,680
30,000 30,000
3,000 3,000
81,500 5,300 5,300
700,000 700,000
800,000 800,000
50,000 150,000
480,000 480,000
56,250 168,750
150,000 150,000
4,400 78,000
7,400
20,000
70,000
7,200
100,000
1,264,300
70,500 70,500
2,380,000 2,380,000
1,210,950 1,210,950
68,450 68,450
6,800 93,200 93,200
20,000 20,000
9,000 9,000
41,550 41,550
18,400 18,400
4,400 4,400

125 125 125

125 125 125
 6,800 6,800
81,500 81,500 81,500
2,180 2,180 2,180
132,250 132,250 132,250

222,855 222,855 4,264,255 4,264,255 1,681,880 2,380,125 2,582,375

698,245
2,380,125 2,380,125 2,582,375
 Statement of
Financial Position
Credit

11,680

150,000

168,750

78,000
7,400
20,000
70,000
7,200
100,000
1,264,300
 6,800

1,884,130
698,245
2,582,375
 Charito Couturier Shop
Income Statement
For the year ended December 31, 2020

Service Income ₱ 2,380,000

Add: Interest Income 125
Total Income ₱ 2,380,125

Less: Operating Expense

Salaries and Wages Expense ₱ 1,210,950
Depreciation Expense 132,250
Sewing Supplies Expense 81,500
Utilities Expense 93,200
Insurance Expense 68,450
SSS, Philhealth, and Pag-ibig Expense 41,550
Repairs and Maintenance Expense 20,000
Transportatin Expense 9,000
Bad Debts Expense 2,180
Miscellaneous Expense 18,400
Interest Expense 4,400 1,681,880
Net Income ₱ 698,245

Charito Couturier Shop

Statement of Changes in Owner's Equity
For the year ended December 31, 2020
Charito, Capital, December 1,2020 ₱ 1,264,300
Net income 698,245
Sub total ₱ 1,962,545
Less: Withdrawals (70,500)
Charito, Capital, December 31, 2021 ₱ 1,892,045

Charito Couturier Shop

Statement of Cash Flows
For the year ended December 31, 2020
Cash flows from operating activities
Inflow
Cash service fees from designing and sewing ₱ 2,204,000
Collections on accounts receivable 52,000
Cash advance from customer 70,000 ₱ P 2,326,000
Outflow
Payment of account purchases of sewing supplies 685,275
Payment of various operating expenses 1,459,150
Cash advance given to an employee 3,000
Interest Expense 4,400 2,151,825
Net cash from operating activities ₱ 174,175
Cash flows from financing activities
Outflow
Cash withdrawal of Charito 20,000
Partial payment of bank loan (part of mortgage payable) 50,000 70,000
Net increase in Cash in Bank ₱ 104,175
Add: Cash in Bank, January 1 83,275
Cash in Bank, December 31 ₱ 187,450
 Charito Couturier Shop
Statement of Financial Position
December 31, 2020
ASSETS
Current Assets
Cash ₱ 197,450
Trade and Other Receivables 167,445
Sewing Supplies on Hand 5,300 370,195

Non-Current Assets
Property, Land and Equipment 1,733,250
Total Assets ₱ 2,103,445

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Trade and Other Payables ₱ 111,400
Non-Current Liabilities
Mortgage Payable 100,000
Total Liabilities ₱ 211,400

Owner's Equity
Charito, Capital 1,892,045
Total Liabilities and Owner's Equity ₱ 2,103,445

Notes to the Financial Position

Note 1: Cash
Cash in Bank ₱ 187,450
Petty Cash Fund 10,000
Total ₱ 197,450

Note 2: Trade and Other Receivables

Accounts Receivables ₱ 146,000
Allowance for Bad Debts (11,680)
Notes Receivables 30,000
Advances To Employees 3,000
Interest Receivables 125
Total ₱ 167,445
Note 3: Property, Plant and Equipment
Land ₱ P 700,000
Building ₱ 800,000
Less: Accumulated Depreciation (150,000) 650,000
Shop Equipment ₱ 480,000
Less: Accumulated Depreciation (168,750) 311,250
Furniture and Fixtures ₱ 150,000
Less: Accumulated Depreciation (78,000) 72,000
Total ₱ 1,033,250.00

Note 4: Trade and Other Payables

Accounts Payable 7,400
Notes Payables 20,000
Unearned Service Income 70,000
Witholding Taxes Payable 7,200
Utilities Payable 6,800
Total ₱ 111,400
Charito Couturier Shop
Closing Entries - DECEMBER 31, 2020

Date Particulars P/R

Dec. 31 Service Income 501
Interest Income 502
Income Summary
close nominal accounts with normal credit balances

31 Income Summary
Salaries and wages Expense 610
Depreciation Expense 611
Sewing Supplies Expense 614
Utilities Expense 612
Insurance Expense 613
SSS, Philhealth,and Pag-Ibig Expense 617
Repairs and Maintenance Expense 616
Transportation Expense 615
Bad Debts Expense 618
Miscellaneous Expense 619
Interest Expense 630
close nominal accounts with normal debit balances

31 Income Summary
Charito, Drawing 401

31 Charito, Drawing 401-A

Charito, Capital 401
 Charito Couturier Shop
Closing Entries - DECEMBER 31, 2020

Debit Credit DATE

2,380,000 2021
125 Jan. 1
2,380,125

1,681,880 1
1,210,950
132,250
81,500
93,200
68,450
41,550
20,000
9,000
2,180
18,400
4,400

698,245
698,245

627,745
627,745
Charito Couturier Shop
Closing Entries - DECEMBER 31, 2020

PARTICULARS P/R Debit Credit

Interest Income 502 125

Interest Receivable 106 125
Interest earned but not yet recorded

Utilities Payable 304 6,800

Utilities Expense 612 6,800
Electricity bill for the month of December
 Charito Couturier Shop
Post-Closing Trial Balance
December 31, 2020

Account Title Debit

Cash in Bank ₱ 187,450
Petty Cash Fund 10,000
Accounts Receivables 146,000
Allowance for Bad Debts ₱
Notes Receivable 30,000
Advances to Employees 3,000
Interest REceivable 125
Sewing Supplies on Hand 5,300
Land 700,000
Building 800,000
Accumulated Depreciation-Building
Shop Equipment 480,000
Accumulated Depreciation- Shop Equipment
Furniture and Fixture 150,000
Accumulated Depreciation- Furniture and Fixture
Accounts Payable
Notes Payable
Unearned Service Income
Utilities Payable
Withholding Taxes Payable
Mortgage Payable
Charito, Capital
Total ₱ 2,511,875 ₱
Credit

11,680

150,000

168,750

78,000
7,400
20,000
70,000
6,800
7,200
100,000
1,892,045
2,511,875
 Learning Exercise 1
1. Payment of salaries of employees.
2. Purchased of office computers.
3. Collection from customers for services rendered.
4. Payment of municipal taxes and licenses.
5. Purchase of various office supplies.
6. Proceeds of loan made from the bank.
7. Additional cash investment from the owner.
8. Interest earned from money deposited in the bank.
9. Payment of principal of bank loan.
10. Collection of outstanding accounts of customer.
11. Payment of interest expense on the bank loan.
12. Payment of outstanding account to supplier.
13. Sale of used office tables and chairs.
14. Payment of rental of office space.
15. Cash dividend received.
 ANSWER
Operating - Outflow
Investing - Outflow
Operating - Inflow
Operating - Outflow
Operating - Outflow
Financing - Inflow
Financing - Inflow
Operating - Inflow
Financing - Outflow
Operating - Inflow
Operating - Outflow
Investing - Outflow
Investing - Inflow
Investing - Outflow
Financing - Inflow
 RGM Science and Math Tutoring Center
Statement of Cash Flows
For the year ended December 31, 2020
Cash flows from operating activities
Inflow
Receipts collected form tutees ₱ 370,000

Outflow
payment interest expense (7,500)
Operating expenses (185,000)
Net cash provided by operating activities ₱ 177,500

Cash flows from investing activities

Inflow
Sale of old computer ₱ 8,000
Outflow
Purchase of writing tablets 15,000
Net cash used for investing activities (7,000)

Cash flows from financing activities

Inflow
Loan granted by CITIBANK ₱ 150,000
Additional investment by owner 50,000
Outflow
Payment for bank interest and prinicipal 30,000
Withdrawal by Owner 20,000
Net cash provided by financing activities 50,000 150,000
Net increase in cash ₱ 320,500
Cash in Bank, January 1 195,000
Cash in Bank, December 31 ₱ 515,500

1. How much is the net cash provided by operating activities? ₱ 177,500

2. How much is the net cash used for investing activities? ₱ (7,000)
3. How much is the net cash provided by financing activities? ₱ 150,000
4. What is the ending cash balance? ₱ 515,500