Central Mindanao University

College of Business and Management

Department of Accountancy

General Instructions:
i. This exam is only good for 30 minutes.
ii. Write final answers visibly at the journal sheets provided.
iii. STRICTLY NO WRITING ON THIS QUESTIONNAIRE.

Edmark Rustico opened a plumbing service, Alabang Plumbing, Alabang Pumbing. Operations began on April 1, 2018, and the following
transactions were recorded in the journal for the month.
2018
Apr. 1 Cash 67,000
Rustico, Capital 67,000
To record investment
2 Service vehicle 81,000
Cash 17,500
Notes Payable 63,500
To record acquisition of vehicle partially paid in cash and balance issued with a note
3 Rent Expense 7,150
Cash 7,150
To record payment of rent
6 Plumbing supplies 15,700
Accounts Payable 15,700
To record purchase of supplies in account
7 Prepaid advertising 6,000
Cash 6,000
To record 3 months payment of advertising
8 Cash 18,350
Plumbing Revenues 18,350
To record services rendered on cash
9 Plumbing supplies 8,050
Cash 8,050
To record purchase of supplies in cash
11 Salaries Expense 11,600
Cash 11,6000
To record payment of salaries
15 Accounts receivable 42,200
Plumbing revenues 42,200
To record services rendered on account
16 Accounts payable 5,700
Cash 5,700
To record partial payment of account made on April 6
19 Miscellaneous Expense 4,300
Cash 4,300
To record payment of miscellaneous expense
20 Cash 21,000
Accounts receivable 21,000
To record collection of account on April 15 transaction
21 Rustico, Withdrawals 14,500
Cash 14,500
To record drawings of owner
22 Salaries Expense 14,100
Cash 14,100
To record payment of salaries
24 Notes Payable 3,850
Cash 3,850
To record first installment payment of note
25 Telephone Expense 1,250
Cash 1,250
To record payment of telephone bills
27 Accounts receivables 14,150
Plumbing revenues 14,150
To record services rendered on account
Required:
1. Create T-accounts on the ledger and post the following transactions.
2. Prepare a trial balance.