FABM Journalizing

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Created by
Amieah Pardillo

Cards (33)

  • A customer bought barbecue worth P500 from your barbecue business. He told you that he will pay for it next week.
    Account Receivable Php 500.00
    Sales Php 500.00
    The P500 collectible from the customer is recorded as accounts receivable.
  • The customer with the P500 account receivable is broke. You have estimated that you can only collect P420 from him.
    Bad debts Expense Php 80.00
    Allowance for bad debts Php 80.00
    The P80 (500 - 420) uncollectible account is recorded as bad debts expense and accumulated in the allowance for bad debts account.
  • Your friend borrowed P1,000 from your barbecue business. You required from him a written promissory note to repay money within 30 days plus 1% monthly interest

    Notes Receivable Php 1,000.00
    Cash Php 1,000.00
    The P1,000 collectible from your friend is recorded as notes receivable.
  • You purchased pork worth P1,000 to be marinated and sold as barbecue.

    Inventory Php 1,000.00
    Cash Php 1,000.00
    The cost of the pork purchased is recorded as inventory.
  • You purchased table napkins worth P200 to be used in you barbecue operations. 
    Prepaid Supplies Php 200.00
    Cash Php 200.00
    The table napkins, while still unused are assets recorded as prepaid supplies. When used, they are recorded as supplies expense.
  • You purchased table napkins worth P200 to be used in you barbecue operations. 

    Prepaid Supplies Php 200.00
    Cash Php 200.00
    The table napkins, while still unused are assets recorded as prepaid supplies. When used, they are recorded as supplies expense.
  • You are renting a space for your barbecue stand. The lease contract required you to pay P10,000 rent in advance.

    Prepaid Rent Php 10,000.00
    Cash Php 10,000.00
    The rent paid in advance is an asset recorded as prepaid rent. This amount will be charged as rent expense when incurred
  • You purchased a barbecue grill worth P1,000. 

    Equipment Php 1,000.00
    Cash Php 1,000.00
    The barbecue grill is an asset recorded as equipment.
  • You expect to use the barbecue grill for 5 years 
    Depreciation Expense Equipment Php 200.00 Accumulated Depreciation - Equipment Php 200.00
    The cost of the barbecue grill will be allocated oner the 5-year period that you will be using it. The amount allocated each year is called the "depreciation expense”
  • You expect to use the barbecue grill for 5 years 
    Depreciation Expense Equipment Php 200.00 Accumulated Depreciation - Equipment Php 200.00
    The cost of the barbecue grill will be allocated oner the 5-year period that you will be using it. The amount allocated each year is called the "depreciation expense”
  • You ran out of inventory of barbecue, so you went to Mr. Porky's Meat Shop to buy pork. You don't have the available cash, so you promised orally that you will be paying for the pork, worth P500, next week.

    Inventory Php 1,000.00
    Accounts Payable Php 1,000.00
    â–ª The P500 payable is a Liability recorded under accounts payable.
  • Remember your P1,200 loan from Mr. Bombay. Well, he required you to write to repay the borrowed money at some future date.
    Accounts Payable Php 1,200.00
     Notes Payable Php 1,200.00
    The P1,200 payable is a liability recorded under notes payable.
  • Your loan from Mr. Bombay requires repayment within 30 days plus 20% monthly interest (five-six). At the end of 30 days, you will be incurring interest expenses of P240 (1,200 note payable x20% interest rate)
    Interest Expense Php 240.00
    Interest Payable Php 240.00
    Prior to paying the interest, the accrued interest is recorded as interest payable.
  • By month-end, total salaries earned by an employee during the month amounted to P8,000. However, the employee has not yet claimed the salary.
    Salaries Expenses Php 8,000.00
    Salaries Payable Php 8,000.00
    The unpaid salary already earned by the employee is recorded as salaries payable.
  • Your electricity bill for the month of January amounted to P2,000. The bill is not yet paid. 

    Utilities Expense Php 2,000.00
    Utilities Payable Php 2,000.00
    The unpaid utility already used but not yet paid is recorded as utilities payable.
  • You received an order of barbecue worth P800. The customer paid the sale price but instructed you to deliver the barbecue next week.
    Cash Php 800.00
    Unearned Income Php 800.00
  • You invested P800 to your barbeque business. 

    Cash Php 800.00 
    Owner’s capital Php 800.00 
    Your P800 investment is recorded in the Owner's capital account.
  • You made temporary withdrawals of P200 from your barbeque business.

    Owner’s drawings Php 200.00
    Cash Php 200.00
    Your P200 withdrawals are recorded in the Owner's drawings account.
  • You sold barbecue worth P500.

    Cash Php 500.00
    Sales Php 500.00
    The sale is recorded in the Sales account.
  • After a month, you will have earned the 1% monthly interest on the loan you have extended to your friend.

    Cash Php 500.00
    Sales Php 500.00
    The interest earned is credited to the interest income account.
  • The cost of the barbecue that was sold for P500 is P300. 

    Cost of goods sold Php 300.00 Inventory Php 300.00
  • Your business has a hotline. Customers can order barbecue through phone call, text message, or Facebook Messenger. No delivery charges. During the period, the cost of gasoline for your motorcycle, attributable to delivering barbecue to customers, amounted to P100.
    Freight-out Php 100.00
    Cash Php 100.00
  • You hired a helper in your barbecue business. Your employee earns compensation of P8,000 per month.

    Salaries expense 8,000
    Salaries payable 8,000
  • You are renting a space for your barbecue stand. The rent is P5,000 per month. 

    Rent Expense Php 5,000.00
    Rent Payable Php 5,000.00
  • After a month of operations, your business received electricity bill of P2,000 and water bill of P200.
    Utilities Expense Php 2,200.00
    Utilities Payable
  • The cost of table napkins used during the period amounted to P50. (See also 'Prepaid supplies' above)
    Supplies expenses Php 50.00
    Prepaid supplies Php 50.00
  • Of your total accounts receivable of P500, you expect to collect only about P480. 

    Bad debt expense Php 20.00
    Allowance for bad debt Php 20.00
  • The P1,000 cost of the barbecue grill will be allocated over the 5 years that you will be using it. The amount allocated each year is called the " depreciation expense." The depreciation expense per year is P200 (P1,000 / 5 years). (See also ' Accumulated depreciation' above.)

    Depreciation expense Php 200.00
    Accumulated depreciation equipment Php 200.00
  • You paid Justin Bieber P5,000 to endorse your barbecue business.
    Advertising expense Php 5,000.00
    Cash Php 5,000.00
  • You have obtained a one-year, fire insurance for your barbecue stand for P12,000.
    Insurance expense Php 12,000.00
    Cash Php 12,000.00
  • During the period, you paid local taxes amounting to P500.
    Taxes and licenses expense Php 500.00 Cash Php 500.00
  • (See 'Notes payable' and 'Interest payable' above)
    Interest Expense Php 240.00
    Interest Payable Php 240.00
  • Your barbecue grill is stolen! Oh no!

    Losses Php 600.00
    Equipment Php 600.00