PROBLEM A - JOURNALIZING, POSTING,AND TRIAL BALANCE

JOURNALIZING
					J-01
DATE		PARTICULARS	PR	DEBIT	CREDIT
DEC	1	Cash	101	200000
		V. Litton Capital	301		200000
		to record initial investment
	1	Rent Expense	501	16400
		Cash	101		16400
		payment of rent
	1	Office Supplies Expense	502	15500
		Cash	101		15500
		bought office supplies
	1	Office Equipment	105	80000
		Cash	101		40000
		Accounts Payable	201		40000
		bought computer paying 50% downpayment
	2	Furniture & Fixtures	104	12500
		Cash	101		12500
		purchased tables and chairs
	2	Cash	101	5600
		Professional Fees	401		5600
		accounting services rendered for cash
	3	Light and Water Expense	503	4000
		Cash	101		4000
		paid meralco
					J-02
DATE		PARTICULARS	PR	DEBIT	CREDIT
DEC	4	Accounts Receivable	102	38000
		Professional Fees	401		38000
		billed several clients
	8	Cash	101	20000
		Loan Payable	203		20000
		borrowed from Metrobank
	10	Note Receivable	103	12000
		Professional Fees	401		12000
		received note for service rendered
	15	Salaries Expense	504	16500
		Cash	101		16500
		paid salaries
	15	V. Litton Drawing	302	10000
		Cash	101		10000
		withdrew cash for personal use
	18	Furniture & Fixtures	104	15000
		Accounts Payable	201		15000
		bought filing cabinets
	20	Office Equipment	105	32000
		Notes Payable	202		32000
		issued note for copying machine bought
					J-03
DATE		PARTICULARS	PR	DEBIT	CREDIT
DEC	31	Taxes and Licenses Expense	505	3000
		Cash	101		3000
		paid municipal license
	31	Salaries Expense	504	14250
		Cash	101		14250
		paid salaries
	31	Accounts Payable	201	4000
		Cash	101		4000
		paid Leeman partially
	31	Cash	101	12800
		Accounts Receivable	102		12800
		partial collection from clients

POSTING
CASH										101
DATE		PARTICULARS	PR	DR	DATE		PARTICULARS	PR		CR
DEC	1		J-01	200000	DEC	1		J-01		16400
	2		J-01	5600		1		J-01		15500
	8		J-02	20000		1		J-01		40000
	31		J-03	12800		2		J-01		12500
						3		J-01		4000
						15		J-02		16500
						15		J-02		10000
						31		J-03		3000
						31		J-03		14250
						31		J-03		4000
				238400						136150
BALANCE				102250
ACCOUNTS RECEIVABLE										102
DEC	4		J-02	38000	DEC	31		J-03		12800
BALANCE				25200
NOTES RECEIVABLE										103
DEC	10		J-02	12000
BALANCE				12000
FURNITURE AND FIXTURES										104
DEC	2		J-01	12500
	18		J-02	15000
BALANCE				27500
OFFICE EQUIPMENT										105
DATE			PR	DR				PR		CR
DEC	1		J-01	80000
	20		J-02	32000
BALANCE				112000
ACCOUNTS PAYABLE										201
DEC	31		J-03	4000	DEC	1		J-01		40000
						18		J-02		15000
					BALANCE					51000
NOTES PAYABLE										202
					DEC	20		J-02		32000
					BALANCE					32000
LOAN PAYABLE										203
					DEC	8		J-02		20000
					BALANCE					20000
V. LITTON CAPITAL										301
					DEC	1		J-01		200000
					BALANCE					200000
V. LITTON DRAWING										302
DEC	15		J-02	10000
BALANCE				10000
PROFESSIONAL FEES										401
					DEC	2		J-01		5600
						4		J-02		38000
						10		J-02		12000
					BALANCE					55600
RENT EXPENSE										501
DATE			PR	DR						CR
DEC	1		J-01	16400
BALANCE				16400
OFFICE SUPPLIES EXPENSE										502
DEC	1		J-01	15500
BALANCE				15500
LIGHT AND WATER EXPENSE										503
DEC	3		J-01	4000
BALANCE				4000
SALARIES EXPENSE										504
DEC	15		J-02	16500
	31		J-03	14250
BALANCE				30750
TAXES AND LICENSES										505
DEC	31		J-03	3000
BALANCE				3000

V. LITTON, CPA
TRIAL BALANCE
DEC 31, 2015
ACCOUNTS				DEBIT	CREDIT
	CASH			102250
	ACCOUNTS RECEIVABLE			25200
	NOTES RECEIVABLE			12000
	FURNITURE & FIXTURES			27500
	OFFICE EQUIPMENT			112000
	ACCOUNTS PAYABLE				51000
	NOTES PAYABLE				32000
	LOAN PAYABLE				20000
	V. LITTON CAPITAL				200000
	V. LITTON DRAWING			10000
	PROFESSIONAL FEES				55600
	RENT EXPENSE			16400
	OFFICE SUPPLIES EXPENSE			15500
	LIGHT AND WATER EXPENSE			4000
	SALARIES EXPENSE			30750
	TAXES AND LICENSES EXPENSE			3000
	TOTAL			358600	358600

V. LITTON, CPA
INCOME STATEMENT
FOR THE MONTH ENDED DEC 31, 2015
PROFESSIONAL FEES					55600
LESS EXPENSES:
	RENT EXPENSE			16400
	OFFICE SUPPLIES EXPENSE			15500
	LIGHT AND WATER EXPENSE			4000
	SALARIES EXPENSE			30750
	TAXES AND LICENSES EXPENSE			3000	69650
NET LOSS					(14,050)
V. LITTON, CPA
STATEMENT OF CHANGES IN OWNER'S EQUITY
FOR THE MONTH ENDED DEC 31, 2015
CAPITAL, DEC 1					200000
ADD: ADDITIONAL INVESTMENT					0
DEDUCT: NET LOSS					(14,050)
		WITHDRAWALS			(10,000)
CAPITAL, DEC 31					175950
V. LITTON, CPA
BALANCE SHEET
AS OF DECEMBER 31
	ASSETS
CASH					102250
ACCOUNTS RECEIVABLE					25200
NOTES RECEIVABLE					12000
FURNITURE & FIXTURES					27500
OFFICE EQUIPMENT					112000
TOTAL ASSETS					278950
	LIABILITIES
ACCOUNTS PAYABLE					51000
NOTES PAYABLE					32000
LOAN PAYABLE					20000
TOTAL LIABILITIES					103000
V. LITTON CAPITAL					175950
TOTAL LIABILITIES & OWNER'S EQUITY					278950