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Evangeline Jamili Landscaping Service had various business transactions throughout the month of March. These transactions include depositing cash into the business bank account, investing personal equipment into the business, purchasing equipment and supplies on account and for cash, providing landscaping services to various customers, paying expenses such as rent, insurance and salaries, collecting cash from customers, and withdrawing cash for personal use. The owner was required to prepare journal entries for each of these March transactions using the appropriate accounts.

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1K views

FundamentalsofAccounting IDS

Evangeline Jamili Landscaping Service had various business transactions throughout the month of March. These transactions include depositing cash into the business bank account, investing personal equipment into the business, purchasing equipment and supplies on account and for cash, providing landscaping services to various customers, paying expenses such as rent, insurance and salaries, collecting cash from customers, and withdrawing cash for personal use. The owner was required to prepare journal entries for each of these March transactions using the appropriate accounts.

Uploaded by

Yu Babylan
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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UNIVERSITY OF ST LA SALLE

COLLEGE OF BUSINESS AND ACCOUNTANCY


BACOLOD CITY
ACCOUNTING FOR NON ACCOUNTANTS - IDS
PRELIM EXAM
AY 2015-2016, 1st Semester
Name _________________________________________________________ Date __________ Score __________
I. True or False: Write True if the statement is correct and False if the statement is incorrect in the space provided
before each number. STRICTLY NO ERASURES.
__________ 1. When revenue has been earned, no entry is recorded until the related cash has been collected.
__________ 2. When the owner makes an investment, the owners capital account is debited.
__________ 3. The journal is a chronological record of all transactions.
__________ 4. The chart of accounts makes finding accounts in the ledger easier.
__________ 5. Another name for the ledger is the book of original entry.
__________ 6. Every business transaction affects minimum of two accounts.
__________ 7. The accounting cycle begins with the recording of the transactions and ends with the preparation of
the financial statements.
__________ 8. A journal entry may include debits to more than one account and credits to more than one account,
but the total of the debits must always equal the total of the credits.
__________ 9. When payment is received for services not yet rendered, no entry is recorded until that service has
been rendered.
__________ 10. When a withdrawal is made, the owners withdrawals account is debited and cash is credited.
__________ 11. The normal balance of any account refers to the side of the account debit or credit where
decreases are recorded.
__________ 12. Entering transactions into the journal is called posting.
__________ 13. A basic storage unit for accounting data is the account.
__________ 14. Normally, income accounts have debit balances.
__________ 15. An increase in revenue is recorded with a credit.
__________ 16. An increase in asset is recorded with a debit.
__________ 17. A decrease in owners equity is recorded with a credit.
__________ 18. A trial balance may balance but may not be correct.
__________ 19. A credit entry to an expense account will increase it.
__________ 20. A decrease in a liability is recorded by a debit.
II. Journalizing Transactions: Use a separate yellow paper.
Evangeline Jamili Landscaping Service has the following completed transactions:
Mar 01 Jamili deposited P200, 000 in a bank account in the name of the business.
04 Jamili invested personal gardening equipment, with a fair market value of P10, 000, in the business.
06 Bought a used trailer on account from Sala Sales, P8, 500.
07 Paid rent for the month, P6, 000.
09 Bought a used backhoe from Mobile Equipment, P62, 000, paying P30, 000 in cash and the balance on
account.
1

10 Bought liability insurance for one year, P9, 000.


13 Performed landscaping services on account for Tindoy Company, P34, 200.
14 Bought supplies on account from Office Dcor, P2, 400.
15 Performed landscaping services on account for Urios University, P25, 600.
17 Received and paid the bill from De Leon Services for gas and oil for the equipment, P1, 400.
19 Performed landscaping services for Calimpusan on cash basis, P18, 800.
22 Paid accounts to Sala Sales, P4, 000.
24 Collected amounts from Tindoy Company, P7, 000.
28 Performed landscaping services on account for Guela Company, P16, 250.
29 Received and paid the telephone bill, P1, 860.
30 Paid the salaries of the employees, P13, 400.
31 Jamili withdrew cash for personal use, P14, 000.
Required:
Prepare the journal entries in good format for the March transactions. Use the following accounts: Cash; Accounts
Receivable; Prepaid Insurance; Equipment; Accounts Payable; Jamili, Capital; Jamili, Withdrawals; Landscaping
Revenues; Salaries Expense; Rent Expense; Gas and Oil Expense; Supplies Expense; Utilities Expense and
Miscellaneous Expense.

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