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Background of the Company Jeralyn Catam-isan loves to dance as well as teach others how to dance. She conducts weekly dance sessions with fellow schoolmates and friends and to her surprise many are willing to pay for her dance sessions. Thus, she decided to open JC Dance Class officially operating on January 1, 2019. She’s an official sole owner and service provider of her very own business and sometimes invite dance instructors to aid in her endeavor. JC Dance Class Chart of Accounts Balance Sheet Accounts Assets Liabilities 110 Cash 210 Accounts Payable 120 Accounts Receivable 220 Notes Payable 130 Studio Supplies 230 Salaries Payable 140 Prepaid Rent 240 Utilities Payable 150 Prepaid Insurance 250 Interest Payable 160 Studio Equipment 260 Unearned Service Revenue 165 Accumulated Depreciation: Studio Equipment Owner’s Equity 170 Furniture and Fixture 310 Catam-isan, Capital 175 Accumulated Depreciation: 320 Catam-isan, Drawing Furniture and Fixture 330 Income Summary Income Statement Accounts Income Expenses 410 Service Revenue 510 Salaries Expense 520 Studio Supplies Expense 530 Rent Expense 540 Insurance Expense 550 Utilities Expense 560 Depreciation Expense: Studio Equipment 570 Depreciation Expense: Furniture and Fixture
Business Transactions 2019 January 1 Miss Jeralyn Catam-isan invested ₱ 725,000 in the business. 3 Paid ₱ 18,000 studio rent for the month 5 Purchased studio equipment from Maganda Ka company; ₱ 95,000 on account 10 Bought supplies for the studio; ₱ 16,000 on credit 15 Cash collected from various customers, ₱ 20, 17 Paid ₱ 45,000 as partial payment for the studio equipment 20 Miss Jeralyn Catam-isan withdrew ₱ 5,000 for personal use. 21 Billed StaySexy company ₱ 5 ,000 for personal dance lessons services 30 Paid assistant dance instructor’s salary for the month, ₱ 1 5, 000 31 Paid utilities for the month ₱ 4, 500 Journal Entries Date Particulars P.R. Debit Credit 2019 Jan. 1 Cash 110 725, Catam-isan, Capital 310 725,
3 Prepaid Rent 140 18,0 00 Cash 110 18,
5 Studio Equipment 160 95 , Accounts Payable 210 95,
10 Studio Supplies 130 16 , Accounts Payable 210 16 ,
15 Cash 110 20, Service Revenue 410 20,
17 Accounts Payable 210 45 , Cash 110 45 ,00 0
20 Catam-isan, Drawing 320 5 , Cash 110 5 ,
21 Accounts Receivable 120 5 , Service Revenue 410 5 ,
Ledger (T-accounts) Account No. 110 Cash Page 1 Date Amount Date Amount 1/1/2019 ₱ 725 ,000 1/3/2019 ₱ 18, 1/1 5 /2019 20 ,000 1/ 17 /2019 45 , 1/ 20 /2019 5 , 1/ 30 /2019 15 , 1/ 31 /2019 4 , 500 Total ₱ 745,000 Total ₱ 87 , 500 Balance ₱ 657 , 500 Account No. 120 Accounts Receivable Page 2 Date Amount Date Amount 1/ 2 1/2019 ₱ 5 , Account No. 130 Studio Supplies Page 3 Date Amount Date Amount 1/1/2019 ₱ 16 ,
Account No. 130 Prepaid Rent Page 4 Date Amount Date Amount 1/ 3 /2019 ₱ 18 , Account No. 160 Studio Equipment Page 5 Date Amount Date Amount 1/ 5 /2019 ₱ 95 , Account No. 210 Accounts Payable Page 6 Date Amount Date Amount 1/1 7 /2019 ₱ 45 ,000 1/ 5 /2019 ₱ 95 , 1/ 10 /2019 16 , 000 Total ₱ 45,000 Total ₱ 111 , 000 Balance ₱ 66 , 000
Account No. 510 Salaries Expense Page 10 Date Amount Date Amount 1/ 30 /2019 ₱ 15 , Account No. 550 Salaries Expense Page 10 Date Amount Date Amount 1/ 31 /2019 ₱ 4 , 500
JC Dance Class
- January 31 , Trial Balance
- Cash ₱ 657,
- Accounts Receivable 5,
- Studio Supplies 16,
- Prepaid Rent 18,
- Studio Equipment 95,
- Accounts Payable ₱ 66,
- Catam-isan, Capital 725,
- Catam-isan, Drawing 5,
- Service Revenue 25,
- Salaries Expense 15,
- Utilities Expense 4, - ₱ 816,000 ₱816,
JC Dance Class Statement of Financial Position As of January 31 , 2019 Assets Current Assets Cash ₱ 657, Accounts Receivable 5, Studio Supplies 16, Prepaid Rent 18, Total Current Assets ₱ 696, Non-Current Assets Studio Equipment 95, Total Assets ₱ 79 1,5 00 Liabilities & Owner’s Equity Cuurent Liabilities Accounts Payable ₱ 66, Owner’s Equity Catam-isan, Capital 725, Total Liabilities & Owner’s Equity ₱ 791, 500 *Assuming no adjusting entries have been made for the month
JC Dance Class Statement of Changes in Owner’s Equity For the month ended January 31 , 2019 Catam-isan, Capital, Beginning ₱ --- Add: Initial Investment ₱ 725, Net Income 5, 500 730, Total ₱ 730, Less: Drawings 5, Catam-isan, Capital, End ₱ 72 5, *The ending capital of ₱ 72 5,5 00 is the owner’s equity in the statement of financial position
