Prelim Exam

1. May 15, 2009 - The company is earning additional revenues by referring consulting clients to friendly
hotels, caterers, printers, and coutouriers. Received P10,000 advance fees for three clients referred.
credit: unearned referral revenue
May 2, 2009 - Ms. Yacapin issued a promissory note with a 20% interest payable in one year. The
principal amount is P210,000
debit: cash
Paid bill for advertising recorded previously, P3,230
Debit: Accounts Payable
Bought computer software for use in the business from De La Tiree Computer Center for
P39,000 (paying P15,000 down and balance is due 30 days).
debit: Licenses
May 10, 2009 - Coordinated and finalized simple bridal arrangements for three couples and
collected fees for P8,800 per couple.
credit: consulting revenues
May 5, 2009 - Acquired office equipment from fair and Square Emporium for P60,000, paying
P15,000 in cash and the balance next month.
credit: accounts payable
Received cash for services rendered, P10,900.
credit: Revenue
Paid bill for advertising recorded previously, P3,230
credit: Cash

2. May 1, 2009 - Virginia Yacapin invested P250,000 for her wedding consultancy business on May 1, 2009.
debit: cash
May 4, 2009- Acquired service vehicle for P420, 000.
debit: service vehicle
May 2, 2009- Acquired service vehicle for P420, 000
credit: cash
Bought office desks and filing cabinet for cash, P15,150.
credit: Cash
Paid rent for the month, P5,300
credit: Cash
Received cash for services rendered, P5,160.
debit: Cash
Mulles withdrew cash for personal use, P4,500.
Debit: Mulles, Withdrawal
May 9, 2009- Paid San Jose Merchandising P10,000 for the amount owed.
credit: cash
Bought computer software for use in the business from De La Tiree Computer Center for
P39,000 (paying P15,000 down and balance is due 30 days).
credit: Accounts Payable
credit: Cash
May 30, 2009- Received P24,000 from two clients for services billed last May 19.
credit: accounts receivable
Utilities Expense Answer 1
Expense
Cash Answer 2
Assets
Prepaid Insurance Answer 3
Assets
Prepaid Rent Answer 4
Assets

3. Accounts Receivable Answer 5
Assets
Supplies Answer 6
Assets
Consulting Revenues Answer 7
Income
Notes Payable Answer 8
Liabilities
Unearned Revenues Answer 9
Liabilities
Accumulated DepreciationAnswer 10
Assets
May 31, 2009 - Settled the electricity bill of P3,000 for the month.
credit: cash
May 8, 2009 - Purchased supplies on credit for 18,000 from San Jose Merchandising.
debit: supplies
May 25, 2009 - Yacapin withdrew P14,000 for personal expenses.
debit: Yacapin, Withdrawals
May 31, 2009 - Settled the electricity bill of P3,000 for the month.
debit: utilities expense
Received and paid electric bill, P1,240.
credit: Cash
May 4, 2009 - Paid Prudential Guarantee and Assurance Inc. P14,400 for one year
comprehensive insurance coverage.
credit: cash
May 4, 2009 - Paid Prudential Guarantee and Assurance Inc. P14,400 for one year
comprehensive insurance coverage.
debit: prepaid insurance
May 1, 2009 - Rented office space and paid two months in advance, P8,000.
credit: cash
Received cash for services rendered, P10,900.
debit: Cash

4. Mulles invested in the business her personal computer with a fair market value of P57,500
credit: Mulles, Capital
Bought office desks and filing cabinet for cash, P15,150.
debit: Office Equipment
May 10, 2009 - Coordinated and finalized simple bridal arrangements for three couples and collected
fees for P8,800 per couple.
debit: cash
May 13, 2009 - Paid salaries, P6,600.
debit: salaries expense
Received and paid electric bill, P1,240.
credit: Cash
May 15, 2009 - The company is earning additional revenues by referring consulting clients to
friendly hotels, caterers, printers, and coutouriers. Received P10,000 advance fees for three
clients referred.
debit: cash
Received cash for services rendered, P5,160.
credit: Revenue
Received bill for advertising from Buy and Sell Newspaper, P3,230
debit: Advertising Expense
Mulles invested P157,000 cash to establish the business
credit: Mulles, Capital
May 1, 2009 - Rented office space and paid two months in advance, P8,000.
debit: prepaid rent
Received and paid electric bill, P1,240.

5. Debit: Utilities Expense
Mulles invested P157,000 cash to establish the business.
debit: Cash
Ordered a panaflex sign for P9,000 with P5,000 down payment and balance due will be
installed.
credit: Cash
credit: Accounts Payable
Mulles invested in the business her personal computer with a fair market value of P57,500
debit: Office Equipment
Paid salaries to employees, P8,400
Debit: Salaries Expense
Received bill for advertising from Buy and Sell Newspaper, P3,230
credit: Accounts Payable
May 2, 2009 - Ms. Yacapin issued a promissory note with a 20% interest payable in one year. The
principal amount is P210,000
credit: notes payable
Bought office desks and filing cabinet for cash, P15,150.
credit: Cash
May 5, 2009 - Acquired office equipment from fair and Square Emporium for P60,000, paying
P15,000 in cash and the balance next month.
debit: office equipment
May 5, 2009 - Acquired office equipment from fair and Square Emporium for P60,000, paying
P15,000 in cash and the balance next month.
credit: accounts payable
Bought print paper and stationery on account, P2,290
Debit: Office Supplies

6. Paid rent for the month, P5,300
debit: Rent Expense
May 30, 2009- Received the ICC-BayanTel telephone bill, P1,400.
debit: utilities expense
May 8, 2009 - Purchased supplies on credit for 18,000 from San Jose Merchandising.
credit: accounts payable
May 19, 2009 - Coordinated and finalized elaborate bridal arrangements for three couples and billed
fees of P12,000 per couple.
debit: accounts receivable
May 1, 2009 - Virginia Yacapin invested P250,000 for her wedding consultancy business on May
1, 2009.
credit: Yacapin, Capital
May 9, 2009- Paid San Jose Merchandising P10,000 for the amount owed.
debit: accounts payable
May 27, 2009 - Paid salaries, P7,200
credit: cash
May 30, 2009- Received the ICC-BayanTel telephone bill, P1,400.
credit: utilities payable
May 13, 2019- Paid salaries, P6,600.
credit: cash
May 27, 2009 - Paid salaries, P7,200
debit: salaries expense
May 30, 2009- Received P24,000 from two clients for services billed last May 19.
debit: cash
May 25, 2009 - Yacapin withdrew P14,000 for personal expenses.

7. credit: cash
May 19, 2009 - Coordinated and finalized elaborate bridal arrangements for three couples and billed
fees of P12,000 per couple.
credit: consulting revenues
Ordered a panaflex sign for P9,000 with P5,000 down payment and balance due will be
installed.
debit: Furnitures and Fixtures
Mulles withdrew cash for personal use, P4,500.
credit: Cash
In the Trial Balance of Wedding "R" Us dated May 31, 2019. Provide the correct balance of:
NOTES PAYABLE
210,000
In the Trial Balance of Wedding "R" Us dated May 31, 2019. Provide the correct balance of:
ACCOUNTS RECEIVABLE
12,000
In the Trial Balance of Wedding "R" Us dated May 31, 2019. Provide the correct balance of:
SALARIES EXPENSE
13,800
In the Trial Balance of Wedding "R" Us dated May 31, 2019. Provide the correct balance of:
CONSULTING REVENUES
62,400
In the Trial Balance of Wedding "R" Us dated May 31, 2019. Provide the correct balance of:
UTILITIES EXPENSE
4,400
In the Trial Balance of Wedding "R" Us dated May 31, 2019. Provide the correct balance of:
CASH
22,200

8. In the Trial Balance of Wedding "R" Us dated May 31, 2019. Provide the correct balance of:
ACCOUNTS PAYABLE
53,000