AQE REV.

1: BASIC ACCOUNTING JLAG

Accum. Depn.- Service Truck 20,000
Simulated Exam: Part 3- Procedural Application To record depreciation of various PPE’s

Trias Repair Shop 31 Interest Expense 3,250

Unadjusted Trial Balance Interest Payable 3,250
December 31,2022 To record accrual of interest

110 Cash P 9,000 31 Service Income 9,000

120 Accounts Receivable 12,000 Unearned Service Income 9,000
140 Repair Tools 12,000 To record revenue earned for the next period
150 Repair Supplies 15,000
31 Salaries Expense 2,500
160 Furniture and Fixtures 65,000
Rent Expense 5,000
170 Service Truck 200,000
Salaries Payable 2,500
220 Notes Payable P 32,500
Rent Payable 5,000
310 Trias, Capital 252,000
To record accrual of rent and salaries
320 Trias, Drawings 7,500
410 Service Income 59,000 31 Prepaid Advertising 2,000
510 Advertising Expense 2,500 Advertising Expense 2000
520 Salaries Expense 9,000 To recognized advertising expense paid in advance
530 Utilities Expense 1,500
540 Rent Expense 10,000 2. Adjusted Trial Balance
Total P 343,500 P 343,500
Trias Repair Shop
Adjusted Trial Balance
On December 31, end of the accounting period, the
December 31,2022
following data were taken:
1. An actual count of Repair Supplies showed a
Cash P 9,000
balance of 8,500.
Accounts Receivable 12,000
2. Repair Tools are depreciated at 10% per annum
3. Furniture and Fixtures are estimated to have a Prepaid Advertising 2,000
useful life of 5 years, while the service truck has a Repair Supplies 8,500
useful life of 10 years. Repair Tools 12,000
4. A 10% interest has accrued on the 5-yr notes Accum. Depn.- Repair Tools P 1,200
payable. Furniture and Fixtures 65,000
5. Of the income received, 9,000 is applicable to the
Accum. Depn. - Furnitures 13,000
next accounting period.
and Fix.
6. Accrual of expenses: Salaries- 2,500 and rent 5,000
Service Truck 200,000
7. The balance of advertising expense account
Accum. Depn. – Service 20,000
represents payment for 5 months. Acquired during
Truck
the current month.
Notes Payable 32,500

Required: Interest Payable 3,250

1. Record the necessary adjusting journal entries Salaries Payable 2,500
2. Adjusted Trial Balance Rent Payable 5,000
3. Statement of Financial Performance Unearned Service Income 9,000
4. Statement of Changes in Equity Trias, Capital 252,000
5. Statement of Financial Position Trias, Drawings 7,500
6. Closing Entries Service Income 50,000
7. Post Closing Trial Balance
Advertising Expense 500
Salaries Expense 11,500
1. Adjusting Journal Entries Utilities Expense 1,500
Rent Expense 15,000
Repair Supplies Expense 6,500
Dec. 31 Repair Supplies Expense 6,500
Repair Supplies 6,500 Depn. Exp- Repair Tools 1,200
To record portion of repair supplies used Depn. Exp- Furnitures and 13,000
Fix.
31 Depreciation Expense- Repair Tools 1,200 Depn. Exp- Service Truck 20,000
Accum. Depreciation- Repair Tools 1,200 Interest Expense 3,250
To record annual depreciation of Repair Tools Total P 388,450 P 388,450

31 Depn. Expense- Furnitures and Fix. 13,000

Depn. Expense- Service Truck 20,000
Accum. Depn- Furnitures and Fix. 13,000
AQE REV.1: BASIC ACCOUNTING JLAG

3. Statement of Financial Performance

Trias Repair Shop 5. Statement of Financial Position
Statement of Financial Performance
Trias Repair Shop
For the year ended December 31,2022
Statement of Financial Position

Service Income 50,000 Assets

Current Assets
Less: Expenses
Cash P 9,000
Advertising Expense 500
Accounts Receivable 12,000
Salaries Expense 11,500
Prepaid Advertising 2,000
Utilities Expense 1,500
Repair Supplies 8,500
Rent Expense 15,000
Repair Supplies Expense 6,500 Total Current P 31,500
Assets
Depn. Exp- Repair Tools 1,200
Non-Current Assets
Depn. Exp- Furn. and Fix. 13,000
Repair Tools P 12,000
Depn. Exp- Service Truck 20,000
Less: Accum. Depn.-
Interest Expense 3,250 72,450
Repair Tools 1,200 10,800
Net Loss (22,450)
Furnitures and P 65,000
Fixtures
4. Statement of Changes in Equity Less: Accum. Depn.
Furniture and Fixtures 13,000 52,000
Trias Repair Shop
Service Truck P200,000
Statement of Changes in Equity
Less: Accum. Depn.-
For the year ended December 31,2022
Service Truck 20,000 180,000 242,800
Total Assets P274,300
Trias, Capital-Beginning P 252,000 Liabilities
Current Liabilities
Less: Net Loss P 22,450
Interest Payable P 3,250
Trias, Drawings 7,500 29,950 Salaries Payable 2,500

Trias, Capital- Dec. 31,2022 P 222,050 Rent Payable 5,000

Unearned Service Inc. 9,000
Total Current P 19,750
Liabilities
Non-Current Liabilities
Notes Payable 32,500
Owner’s Equity
Trias,Capital, Dec. 222,050
31,2022
Total Liabilities and P274,300
Owners Equity
As of December 31,2022
AQE REV.1: BASIC ACCOUNTING JLAG

6. Closing Entries

Dec. 31 Service Income 50,000

Income Summary 50,000
To close the income account
31
Income Summary 72,450
Advertising Expense 500
Salaries Expense 11,500
Utilities Expense 1,500
Rent Expense 15,000
Repair Supplies Expense 6,500
Depn. Exp- Repair Tools 1,200
Depn. Exp- Furn. and Fix. 13,000
Depn. Exp- Service Truck 20,000
Interest Expense 3,250
To close various expense accounts

31 Trias, Capital 22,450

Income Summary 22,450
To close income summary to capital
account

31 Trias, Capital 7,500

Trias, Drawings 7,500
To close drawing account to capital account

7. Post-Closing Trial Balance

Trias Repair Shop
Post-Closing Trial Balance
December 31,2022

Cash P 9,000
Accounts Receivable 12,000
Prepaid Advertising 2,000
Repair Supplies 8,500
Repair Tools 12,000
Accum. Depn.- Repair Tools P 1,200
Furniture and Fixtures 65,000
Accum. Depn. - Furnitures 13,000
and Fix.
Service Truck 200,000
Accum. Depn. – Service 20,000
Truck
Notes Payable 32,500
Interest Payable 3,250
Salaries Payable 2,500
Rent Payable 5,000
Unearned Service Income 9,000
Trias, Capital 222,050
Total P 308,500 P 308,500