Complete the following acounting equation:

Assets Liabilities Equity/Capital

1 727,000.00 457,000.00 270,000.00
2 1,006,000.00 500,000.00 506,000.00
3 309,000.00 189,000.00 120,000.00
4 1,207,000.00 756,000.00 451,000.00
5 895,000.00 148,000.00 747,000.00
6 668,000.00 446,000.00 222,000.00

Expanded Accounting Equation

Assets Liabilities
Investment/s
1 ? 96,000.00 50,000.00
2 151,000.00 ? -
3 350,000.00 65,000.00 ?
4 400,000.00 80,000.00 250,000.00

c
Plus investments, minus withdrawals, plus revenues, minus expense
Revenues > expenses = profit (increases capital)
Revenues < expenses = loss (decreases capital)

Plus investments, minus withdrawals, plus profit

Plus investments, minus withdrawals, minus loss

Capital
 460,000.00
70,000.00
210,000.00

600,000.00

d Capital
460,000.00
245,000.00 90,000.00

295,000.00 (600,000+245000-460000-900
600,000.00

Increase in capital account (600,000-460,000) = 140,000

Withdrawals (245,000.00)
Investments 90,000.00
withdrawals over
investment (155,000.00)

Beginning 460,000.00
Profit (X) 295,000.00
Investment 90,000.00
withdrawals (245,000.00)
Ending 600,000.00 600,000.00

e Beginning 460,000.00
+ Profit (X) 495,000.00
 + Investment 120,000.00
- withdrawals (475,000.00)
Ending 600,000.00 600,000.00

460,000 + X + 120,000 - 475,000 = 600,000

X = 600,000 +475000 - 120,000 -460,000
X = 495,000

f Beginning 460,000.00
+ Profit (X) 6,000.00
+ Investment 150,000.00
- withdrawals (16,000.00)
Ending 600,000.00 600,000.00
 ccounting Equation
Equity/Capital
Drawing/s Revenues Expenses
5,000.00 150,000.00 115,000.00
5,000.00 250,000.00 197,500.00
50,000.00 235,000.00 100,000.00
85,000.00 ? 120,000.00

nues, minus expenses

245000-460000-90000)

140,000
 Problem #12

January 1 balance

a Paid P3,000 of the outstanding accounts

payable

b Received P1,000 from customers as partial

payment of their account.

c Purchased P2,500 worth of supplies on

account (on credit)

d Returned a defective piece of equipment that

e Borrowed P10,000 from a supplier, to repay

the loan in 30 days.

f Paid creditor P2,000 on account (partial

payment).
 Purchased equipment for P10,000, giving
g P2,000 cash and promising to pay the balance
in 60 days.

h Bought supplies,paying P1,650 cash.

i Received a P2,500 check from customer on

account.

Balance

a Accounts payable
Cash
to record payment of accounts payable

b Cash
Accounts receivable
to record collection of accounts receivable

c Supplies
 Accounts payable
to record purchased of supplies on account

d Cash
Equipment
To record refund on a defective equipment
purchased

e Cash
Accounts payable
To record the amount borrowed from a
supplier

f Accounts payable
Cash partial payment of accounts
To record
payable

g Equipment
Cash
Accounts payable
To record purchased of equipment with
partial payment

h Supplies
Cash
 To record purchase of supplies

i Cash
Accounts receivable
To record collection of customer's account
Problem #12 - Financial Transaction Worksheet

Cash Accounts Receivable Supplies

25,000.00 4,000.00 5,000.00

(3,000.00)

1,000.00 (1,000.00)

2,500.00

12,000.00

10,000.00

(2,000.00)
(2,000.00)

(1,650.00) 1,650.00

2,500.00 (2,500.00) -

41,850.00 500.00 9,150.00

Debit Credit
3,000.00
3,000.00

1,000.00
1,000.00

2,500.00
 2,500.00

12,000.00
12,000.00

10,000.00
10,000.00

2,000.00
2,000.00

10,000.00
2,000.00
8,000.00

1,650.00
1,650.00
2,500.00
2,500.00
eet

Equipment Accounts Calamba

Pyable Capital
60,000.00 9,000.00 85,000.00

(3,000.00)

2,500.00

(12,000.00)

10,000.00

(2,000.00)
 10,000.00 8,000.00

- - -

58,000.00 24,500.00 85,000.00

109,500.00 109,500.00
 TRANSACTIONS

1
2
3

4
5
6
7
8
9
10
11
12
 TRANSACTIONS

Mr. Baek invested P300,000 cash into his

catering business.
Bougth office supplies for P10,000 cash.
Bought furnitures and fixtures for P150,000
cash.
Bought a car on account to be used for catering
services, P350,000for P120,000 catering
Billed a customer
services
Rendered catering services for P75,000 cash
Expenses paid for catering services, P100,000
Received electricity and water bill for the
month, P3,500
Rendered catering services for P200,000 cash
Expenses paid for the catering services,
P120,000
Paid P75,000 of the account in transaction #4
Withdraw P25,000 for personal use

Balances
 ASSETS
Accounts
Cash Office Supplies Receivable
 LIABILITIES
Furniture,
Fixtures, Accounts
Payable Utilities Payable
Equipment
 CAPITAL

Investment Withdrawals Revenues

Expenses
1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00
10.00

11.00

12.00

JOURNAL ENTRI

1.00

2.00
3.00

4.00

5.00

6.00

7.00

8.00

9.00
10.00

11.00

12.00
 TRANSACTIONS

Mr. Baek invested P300,000 cash into

his catering business.
Bougth office supplies for P10,000
cash.
Bought furnitures and fixtures for
P150,000 cash.

Bought a car on account to be used

for catering services, P350,000
Billed a customer for P120,000
catering services
Rendered catering services for
P75,000 cash
Expenses paid for catering services,
P100,000
Received electricity and water bill for
the month, P3,500
Rendered catering services for
P200,000 cash
 Expenses paid for the catering
services, P120,000
Paid P75,000 of the account in
transaction #4
Withdraw P25,000 for personal use

Balances

JOURNAL ENTRIES

Cash
Baek, capital
to record the initial investment of Baek

Office Supplies
Cash
to record office supplies purchased
Furnitures, Fixtures, and Equipment
Cash
To record equipment purchased

Furnitures, Fixtures, and Equipment

Accounts payable
To record car purchased

Accounts receivable
Revenues
To record service rendered on account

Cash
Revenues
To record service rendered for cash

Expenses
Cash
To record expenses paid

Expenses
Cash
To record utilities paid

Cash
 Revenues
To record service rendered

Expenses
Cash
To record catering expenses

Accounts payable
Cash
To record partial payment of the car
purchased on account

Baek, drawings
Cash
To record cash withdrawal of Baek for
personal use
 ASSETS
Office Accounts
Cash
Supplies Receivable

300,000.00

(10,000.00) 10,000.00

(150,000.00)

120,000.00

75,000.00

(100,000.00)

200,000.00
 (120,000.00)

(75,000.00)

(25,000.00)

95,000.00 10,000.00 120,000.00

725,000.00
725,000.00

TRIES

Debit Credit
300,000.00
300,000.00
f Baek

10,000.00
10,000.00
 150,000.00
150,000.00

350,000.00
350,000.00

120,000.00
120,000.00
count

75,000.00
75,000.00

100,000.00
100,000.00

3,500.00
3,500.00

200,000.00
 200,000.00

120,000.00
120,000.00

75,000.00
75,000.00

25,000.00
25,000.00
 LIABILITIES
Furniture,
Accounts Utilities
Fixtures,
Payable Payable
Equipment

150,000.00

350,000.00 350,000.00

3,500.00
 (75,000.00)

500,000.00 275,000.00 3,500.00

278,500.00
725,000.00
 CAPITAL

Investment Revenues
Withdrawals

300,000.00

120,000.00

75,000.00

200,000.00
 25,000.00

300,000.00 25,000.00 395,000.00

446,500.00
Expenses

100,000.00

3,500.00
120,000.00

223,500.00
Item Transactions
Cash
a Invested P150,000 in cash to start the business 150,000.00

b Paid P7,500 for one month's rent (7,500.00)

c Bought office furniture for P26,000 in cash. (26,000.00)

d Performed services ofr P10,500 cash. 10,500.00

e Performed services for P12,750 on credit.

Bought a desktop computer for P55,000; paid 50%

f (27,500.00)
down, balance to be paid in 30 days.
Acquired a copier for P39,500 on credit; paid P9,500
g (9,500.00)
cash, balance due in 30 days.

h Received P7,000 from credit clients. 7,000.00

i Bought additional office chairs for P8,000 on credit.

j Issued a check for P32,500 to pay for salaries. (32,500.00)

k Performed services for P10,250 cash. 10,250.00

l Performed services for P11,500 on credit.

m Collected P6,000 on accounts receivable. 6,000.00

Issued a check for P4,000 in partial payment of the

n (4,000.00)
amount owed for office chairs.

o Paid P2,250 for the monthly telephone bill. (2,250.00)

p Paid P2,500 for the monthly electric bill. (2,500.00)

q Trial withdrew P10,000 in cash for personal expenses. (10,000.00)

62,000.00
201,750.00
 JOURNAL ENTRIES
Item Transactions Debit

Cash 150,000.00
a Tria, capital

Rent Expense 7,500.00

b Cash

Office Furniture 26,000.00

c Cash

Cash 10,500.00
d Consulting Revenue

Accounts Receivable 12,750.00

e Consulting Revenue

Office Equipment 55,000.00

Cash
f
Accounts payable

Office Equipment 39,500.00

g Cash
Accounts payable

h Cash 7,000.00
Accounts receivable
Office Furniture 8,000.00
i Accounts payable

Salaries expense 32,500.00

j Cash

Cash 10,250.00
k Consulting Revenue

Accounts Receivable 11,500.00

l Consulting Revenue

Cash 6,000.00
m Accounts receivable

Accounts Payable 4,000.00

n Cash
n

Utilities expense 2,250.00

o Cash

Utilities expense 2,500.00

p Cash

Tria, withdrawals 10,000.00

q Cash

Evelyn Tria, Systems Consultant

Unadjusted Trial Balance

Debit
Cash 62,000.00
Accounts Receivable 11,250.00
Office Furniture 34,000.00
Office Equipment 94,500.00
Accounts Payable
Tria, capital
Tria, withdrawals 10,000.00
Consulting Revenues
Salaries expense 32,500.00
Rent expense 7,500.00
Utilities expense 4,750.00
Miscellaneous expense -
Total 256,500.00
 ASSETS LIABILITIES
Accounts Reivable Office Furniture Office Equipment Accounts Payable

26,000.00

12,750.00

55,000.00 27,500.00

39,500.00 30,000.00

(7,000.00)

8,000.00 8,000.00

11,500.00

(6,000.00)

(4,000.00)

11,250.00 34,000.00 94,500.00 61,500.00

61,500.00
201,750.00
 Cash
150,000.00 7,500.00
10,500.00 26,000.00
Credit
7,000.00 27,500.00
10,250.00 9,500.00
150,000.00 6,000.00 32,500.00
4,000.00
2,250.00
7,500.00 2,500.00
- 10,000.00
183,750.00 121,750.00
26,000.00 62,000.00

10,500.00

12,750.00

27,500.00
27,500.00

9,500.00
30,000.00 Accounts Payable
4,000.00 27,500.00
30,000.00
7,000.00 - 8,000.00
4,000.00 65,500.00
8,000.00 61,500.00

32,500.00

10,250.00

11,500.00

6,000.00

4,000.00
 Salaries expense
32,500.00
2,250.00

2,500.00

10,000.00

Credit

61,500.00
150,000.00

45,000.00

-
256,500.00
 CAPITAL
Tria, capital Tria, withdrawals Consulting Revenues Salaries Expense
150,000.00

10,500.00

12,750.00

32,500.00

10,250.00

11,500.00

10,000.00

150,000.00 10,000.00 45,000.00 32,500.00

140,250.00
Accounts Receivable
12,750.00 7,000.00
11,500.00 6,000.00
24,250.00 13,000.00
11,250.00

Tria, capital
150,000.00
 Rent Expense
7,500.00
TAL
Rent Expense Utilities Expense Miscellaneus Expense

7,500.00

2,250.00

2,500.00

7,500.00 4,750.00 -
 Office Furniture Office Equipment
26,000.00 55,000.00
8,000.00 39,500.00
34,000.00 94,500.00

Tria, withdrawal Consulting Revenues

10,000.00
 Utilities Expense Miscellaneous Expense
2,250.00
2,500.00
4,750.00
 Office Equipment

Consulting Revenues
10,500.00
12,750.00
10,250.00
11,500.00
45,000.00
Miscellaneous Expense
 Journal entries

a Cash
Evangelista, capital

b Furniture and Fixtures

Cash

c Supplies expense
Accounts payable

d Rent expense
Cash

e Equipment
Cash
Accounts payable
f Cash
Laundry revenues

g Prepaid Insurance
Cash

h Accounts payable
Cash

i Utilities expense
Cash

j Cash
Laundry revenues

k Salaries expense
Cash

l Evangelista, withdrawals
Cash
m Accounts payable
Cash

n Miscellaneous expense
Cash
 Debit Credit
250,000.00
250,000.00

6,700.00
6,700.00

3,250.00
3,250.00

5,750.00
5,750.00

115,000.00
35,000.00
80,000.00
19,250.00
19,250.00

5,600.00
5,600.00

7,000.00
7,000.00

2,080.00
2,080.00

12,350.00
12,350.00

7,400.00
7,400.00

5,000.00
5,000.00
2,750.00
2,750.00

2,800.00
2,800.00
 Cash
250,000.00 6,700.00
19,250.00 5,750.00
12,350.00 35,000.00
5,600.00
7,000.00
2,080.00
7,400.00
5,000.00
2,750.00
- 2,800.00
281,600.00 80,080.00
201,520.00

Rent Expense
5,750.00
 Salaries expense
7,400.00
 Evangelista, capital

Equipment
115,000.00
Evangelista, withdrawals
5,000.00
gelista, capital
250,000.00

Equipment
ista, withdrawals
Furniture and Fixtures
6,700.00

Laundry Revenues
19,250.00
- 12,350.00
 31,600.00

Miscellaneous Expense
2,800.00
Supplies expense
3,250.00

Prepaid insurance
5,600.00
Accounts payable
7,000.00 3,250.00
2,750.00 80,000.00
9,750.00 83,250.00
73,500.00

Utilities expense
2,080.00
April
2

6
8

10

13

16

17

18
20

22

23

25

27

29

30
 Journal entries

Cash
Leon, capital

Supplies
Accounts Payable

Bicycles
Cash
Accounts payable

Container
Cash

Cash
 Rental revenues

Container
Cash

no entry

Maintenance expense
Cash

Cash
Rental Revenues

Wages expense
Cash

Accounts payable
Cash

Repair expense
Cash
Cash
Rental revenues

Wages expense
Cash

Accounts receivable
Rental revenues

Concession fee expense

Cash

Cash
Rental revenues

Wages expense
Cash

Leon, withdrawals
Cash
 Leon Bicycle Rentals
Trial Balance
April 30, 2024

Cash
Accounts receivable
Supplies
Container
Bicycles
Accounts payable
Leon, capital
Leon, withdrawals
Rental Revenues
Wages expense
Maintenance expense
Repair expense
Concession fee expense
Total
urnal entries
Debit Credit

₱120,000.00
₱120,000.00

1,500.00
1,500.00

25,000.00
12,000.00
13,000.00

29,000.00
29,000.00

4,700.00
 4,700.00

4,000.00
4,000.00

750.00
750.00

5,000.00
5,000.00

480.00
480.00

1,500.00
1,500.00

550.00
550.00
5,500.00
5,500.00

480.00
480.00

1,100.00
1,100.00

3,000.00
3,000.00

4,100.00
4,100.00

480.00
480.00

5,000.00
5,000.00
 Bicycle Rentals
rial Balance
pril 30, 2024
Debit Credit
₱82,060.00
1,100.00
1,500.00
33,000.00
25,000.00
₱13,000.00
120,000.00
5,000.00
20,400.00
1,440.00
750.00
550.00
3,000.00 -
₱153,400.00 ₱153,400.00
 Cash
₱ 120,000.00
4,700.00
5,000.00
5,500.00
4,100.00

-
₱139,300.00
₱82,060.00

Bicycles
₱25,000.00
Rental revenues

-
₱0.00
Concession fee expense
₱3,000.00
 Ledge
Cash Accounts receivable
₱ 12,000.00 ₱1,100.00
29,000.00
4,000.00
750.00
480.00
1,500.00
550.00
480.00
3,000.00
480.00
5,000.00
₱57,240.00

Bicycles Acconts payable

₱1,500.00
-
 ₱1,500.00

ntal revenues Wages expense

₱4,700.00 ₱480.00
5,000.00 480.00
5,500.00 480.00
1,100.00 ₱1,440.00
4,100.00
₱20,400.00
₱20,400.00
sion fee expense
 Ledgers or T-accounts
unts receivable Supplies
₱1,500.00

onts payable Leon, capital

₱1,500.00
13,000.00
 ₱14,500.00
₱13,000.00

ages expense Maintenance expense

₱750.00
 Supplies Container
₱29,000.00
4,000.00
₱33,000.00

eon, capital Leon, withdrawals

₱120,000.00 ₱5,000.00
enance expense Repair expense
₱550.00
Container

n, withdrawals
pair expense
 Journal entries

Dec.
1.00 Player contracts
Cash
Notes payable

2.00 Cash
Accounts receivable

3.00 Accounts payable

Cash

4.00 Advertising expense

Cash
 5.00 Uniform supplies
Accounts payable

9.00 Accounts receivable

Game attendance revenues

10.00 Notes payable

Cash

11.00 Prepaid insurance

Cash

12.00 Training equipment

Accounts payable

15.00 Salaries expense

Cash
17.00 Cash
Game attendance revenues

19.00 Travel expense

Cash

20.00 Laundry expense

Cash

23.00 Accounts payable

Cash

25.00 Miscellaneous expense

Cash
26.00 Medical expense
Cash

27.00 Utilities expense

Cash

28.00 Salaries expense

Cash

30.00 Fabella, withdrawals

Cash
 Jose Rizal Heavy Bom
Trial Balance
December 31, 202

Cash
Accounts receivable
Uniform supplies
Prepaid insurance
Land
Training facilities
Training equipment
Player contracts
Notes payable
Accounts payable
Mortgage payable
Fabella, capital
Fabella, withdrawals
Game attendance revenues
Salaries expense
Advertising expense
Travel expense
Laundry expense
Medical expense
Utilities expense
Miscellaneous expense
Totals
entries
Debit Credit
Dec. 1
1,875,000.00
225,000.00
1,650,000.00

2,809,500.00
2,809,500.00

1,657,500.00
1,657,500.00

78,600.00
78,600.00
 30,750.00
30,750.00

320,250.00
320,250.00

600,000.00
600,000.00

215,250.00
215,250.00

319,500.00
319,500.00

1,136,250.00
1,136,250.00
3,316,050.00
3,316,050.00

558,000.00
558,000.00

12,600.00
12,600.00

941,850.00
941,850.00

26,850.00
26,850.00
 18,900.00
18,900.00

210,450.00
210,450.00

1,240,650.00
1,240,650.00

250,000.00
250,000.00
 Heavy Bombers
al Balance
mber 31, 2024
Debit Credit
₱83,450.00
1,223,250.00
61,800.00
215,250.00
2,025,000.00
12,750,000.00
2,944,500.00
13,125,000.00
₱2,850,000.00
2,475,900.00
10,500,000.00
17,643,750.00
2,125,000.00
13,761,300.00
7,251,900.00
479,550.00
 2,090,400.00
540,600.00
213,450.00
1,944,450.00
157,350.00 -
₱47,230,950.00 ₱47,230,950.00
 Cash
₱1,129,800.00 ₱225,000.00
2,809,500.00 1,657,500.00
3,316,050.00 78,600.00
600,000.00
215,250.00
1,136,250.00
558,000.00
12,600.00
941,850.00
26,850.00
18,900.00
210,450.00
1,240,650.00
- 250,000.00
₱7,255,350.00 ₱7,171,900.00
₱83,450.00
 Player Contracts
₱11,250,000.00
1,875,000.00
₱13,125,000.00

Fabella, capital
₱17,643,750.00
 Advertising expense
₱400,950.00
78,600.00
₱479,550.00

Utilities expense
₱1,734,000.00
210,450.00
₱1,944,450.00
 Ledgers or T-accounts
Acounts receivable
₱3,712,500.00 ₱2,809,500.00
320,250.00 -
₱1,223,250.00

Land
₱2,025,000.00
 Notes payable
₱600,000.00 ₱1,800,000.00
- 1,650,000.00
600,000.00 3,450,000.00
₱2,850,000.00

Fabella, withdrawals
₱1,875,000.00
250,000.00
₱2,125,000.00
 Travel expense
₱1,532,400.00
558,000.00
₱2,090,400.00

Miscellaneous expense
₱130,500.00
26,850.00
₱157,350.00
or T-accounts
Uniform supplies
₱31,050.00
30,750.00 -
₱61,800.00

Training facilities
₱12,750,000.00
 Accounts payable
₱1,657,500.00 ₱4,725,000.00
941,850.00 30,750.00
- 319,500.00
2,599,350.00 ₱5,075,250.00
₱2,475,900.00

Game attendance revenues

₱10,125,000.00
320,250.00
3,316,050.00
₱13,761,300.00
 Laundry expense
₱528,000.00
12,600.00
₱540,600.00
 Prepaid insurance
-
₱215,250.00

Training equipment
₱2,625,000.00
319,500.00
₱2,944,500.00
 Mortgage payable
₱10,500,000.00

Salaries expense
₱4,875,000.00
1,136,250.00
1,240,650.00
₱7,251,900.00
 Medical expense
194,550.00
18,900.00
₱213,450.00
 Accrued Expense
December 31, Wednesday

Salaries expense
Salaries payable
to record accrual of salaries

January 2, Friday (payment of wages)

Salaries payable
Salaries expense
Cash

Problem 4

1.00 Zero
2.00 16,000.00

6 months interest (600,000 * .08 * 6/12)

Year 2024 (Sept 1 to Dec. 31) (600,000 * .08 * 4/12

or (24,000/6) * 4

Adjusting entry:
 Interest expense
Interest payable

3.00 616,000.00

Loans payable of 600,000 plus the interest payable

4.00 624,000.00

Loans payable of P600,000 plus interest of P24,000

5.00 8,000.00

P600,000 *.08 * 2/12

2 months for January and February

Problem 5

Intest income (1,200,000 * .08) - one year

1.00 Interest income in 2023 (April 1 to Dec. 31)

 (1,200,000 * .08 * 9/12

2.00 increase in asset

no effect on liability
increase in capital

In relation to #1
Adjusting entry:
Interest receivable
Interest income

3.00 cash received for interest income

4.00 Interest receivable

interest for the month of December but will only b

5.00 amount of cash collected for interest revenue in 20

Total interest income minus cash received for inter

6.00
(32,000 - 8,000)
(1,200,000 * .08 * 3/12)
7.00 Zero

Problem 6

Entry prepared

1.00
1-Apr Office Supplies
Cash
to record office supplies purchased
*asset method

1-Aug Cash
Unearned cleaning revenues
to record cleaning services good for 3 years
*liability method

Monthly revenue : 360,000/ (12months x 3 years)

1-Nov Prepaid Rent
Cash
to record payment of annual rent
*asset method

Annual rent (240,000/12 months)

2.00
Entry prepared

1-Apr Office supplies expense

Cash
*expense method

1-Aug Cash
Cleaning Revenues
*revenue method

1-Nov Rent expense

 Cash
*expense method

Problem 14

Unadjusted balance
a
b
c
d
Adjusted balance

Adjusting entries:
a Supplies expense
Supplies

b Accounts receivable
Fees Earned/Revenues

c Depreciation expense
Accumulated Depreciation

d Salaries expense
Salaries payable

Problem 12

a Accounts receivable
Revenues

Understated

b Rent Expense
Prepaid Rent

Overstated
c if interest on notes receivable
Interest receivable
Interest income
Understated

If interest on notes payable

Interest expense
Interest payable
Not affected

d Depreciation expense
Accumulated Depreciation

Overstated

e Salaries expense
Salaries payable
Not affected

f Unearned Revenues
Earned Revenues
Not affected
Problem 13

Revenues
Expenses
Profit (Net income)
Total assets
Total liabilities
Owner's Equity

a Entry prepared: (Wrong entry)

Building
Cash

Should be entry:
Repairs expense
Cash

Adjusting entry/Correcting entry:

Repairs expense
Building
b Entry prepared: (Wrong entry)
Cash
Revenue

Should be entry:
Cash
Accounts receivable

Adjusting entry/Correcting entry:

Revenue
Accounts Receivable

c Entry prepared: (Wrong entry)

Should be entry:

Adjusting entry/Correcting entry:

 Depreciation expense
Accumulated Depreciation

d Entry prepared: (Wrong entry)

Equipment
Accounts payable

Equipment
Accounts payable

Adjusting entry/Correcting entry:

Accounts payable
Equipment

e Entry prepared: (Wrong entry)

Office equipment
Depreciation expense

Should be entry:
Office equipment
Cash
 Adjusting entry/Correcting entry:
Depreciation expense
Cash

f Entry prepared: (Wrong entry)

Repairs Expense
Cash

Should be entry:
Advertising Expense
Cash

Adjusting entry/Correcting entry:

Advertising expense
Repairs expense

g
 1,500.00
1,500.00

1,500.00
1,000.00
2,500.00

24,000.00 from Sept 1, 2024 to February 28, 2025

000 * .08 * 4/12) 16,000.00

 16,000.00
16,000.00

nterest payable of 16,000

erest of P24,000

96,000.00

Dec. 31)
 72,000.00

72,000.00
72,000.00

64,000.00

8,000.00
r but will only be collected in January 1, 2024

st revenue in 2024 32,000.00

eceived for interest income in 2023 (96,000 - 64,000)

24,000.00
ry prepared
Debit Credit

260,000.00
260,000.00

360,000.00
360,000.00
r 3 years

nths x 3 years) 10,000.00

 240,000.00
240,000.00

20,000.00

ry prepared
Debit Credit
260,000.00
260,000.00

360,000.00
360,000.00

240,000.00
 240,000.00

Profit assets
39,750.00 189,700.00
(1,750.00) (1,750.00)
2,900.00 2,900.00
(2,500.00) (2,500.00)
(1,500.00) -
36,900.00 188,350.00

Debit Credit
 1,750.00
1,750.00

2,900.00
2,900.00

2,500.00
2,500.00

1,500.00
1,500.00

xxx
xxx

xxx
xxx
xxx
xxx

xxx
xxx

xxx
xxx

xxx
xxx

xxx
xxx
 a b
o +
- o
+ +
o +
o o
+ +

xxx
xxx

xxx
xxx

xxx
xxx
xxx
xxx

xxx
xxx

xxx
xxx
xxx
xxx

xxx
xxx

xxx
xxx

xxx
xxx

xxx
xxx

xxx
xxx
xxx
xxx

xxx
xxx

xxx
xxx

xxx
xxx
2024 to February 28, 2025
, 2024

000 - 64,000)
liabilities
20,200.00

1,500.00
21,700.00
 c
o
-
+
+
o
+
8, 2025
 Adjusting entry (December 31)
Debit

Office supplies expense 150,000.00

Office supplies

Unearned cleaning revenues 50,000.00

Cleaning Revenues
To record revenue earned for 5 months
Rent expense 40,000.00
Prepaid rent
to record rent incurred for 2 months

Adjusting entry (December 31)

Debit
Office supplies 110,000.00
Office supplies expense

Cleaning revenues 310,000.00

Unearned cleaning revenues

Prepaid rent 200,000.00

Rent expense

capital
169,500.00
(1,750.00)
2,900.00
(2,500.00)
(1,500.00)
166,650.00
 d e
o o
o -
o +
+ +
+ o
o +
31)
Credit

150,000.00

50,000.00
 40,000.00

31)
Credit

110,000.00

310,000.00
200,000.00
 f g
o -
o o
o -
o -
o o
o -
Illy Abella Surveryors
Worksheet

Cash
Accounts receivable
Prepaid advertising
Engineering supplies
Survey equipment
Accumulated Depreciation - Survey equipment
Accounts payable
Unearned survey revenues
Notes payable
Abella, capital
Abella, withdrawals
Survey revenues
Salaries expense
Rent expense
Insurance expense
Utilities expense
Miscellaneous expense
Totals

Advertising Expense
 Supplies expense
Depreciation expense
Salaries payable
Interest expense
Interest payable
Totals
Net income (loss) to balance sheet

ADJUSTING ENTRIES:

a Advertising Expense
Prepaid Advertising
to adjust prepaid advertising

Prepaid Advertising:
P360,000/18 = P20,000(monthly advertising)
used advertising= P20,000 x 7 = P140,000

b Supplies expense
Engineering supplies

c Depreciation Expense
Accum. Depreciation - Survering Equip
d Unearned Survey Revenues
Survey Revenues

e Salaries expense
Salaries payable
To accrue salaries

f Interest Expense
Interest payable
to record accrual of interest on the notes payable

Assumption:
10% allowance for uncollectible account on the accounts recei

Uncollecble accounts expense

Allowance for uncollectible accounts

similar terms:
Doubtful accounts expense
Allowance for doubtful accounts

Bad debts expense

Allowance for bad debts
Accounts receivable
Less: Allowance for uncollectible accounts
Net or carrying value

Survey equipment (Historical costs)

Less Accumulated depreciation
Book value/Carrying value
 Unadjusted Trial Balance Adjustments
Debit Credit Debit
₱210,000.00
930,000.00
360,000.00
270,000.00
1,890,000.00
₱640,000.00
190,000.00
120,000.00 40,000.00
500,000.00
1,120,000.00
700,000.00
6,510,000.00
3,270,000.00 140,000.00
960,000.00
250,000.00
160,000.00
80,000.00 -
₱9,080,000.00 ₱9,080,000.00

140,000.00
 180,000.00
160,000.00

60,000.00
-
720,000.00

DEBIT CREDIT
140,000.00
140,000.00

vertising)
40,000

180,000.00
180,000.00

160,000.00
g Equip 160,000.00
 40,000.00
40,000.00

140,000.00
140,000.00

60,000.00
60,000.00
notes payable

ount on the accounts receivable is to be set up

93,000.00
93,000.00
 930,000.00
93,000.00
837,000.00

1,890,000.00
₱800,000.00
1,090,000.00
Adjustments Adjusted Trial Balance
Credit Debit Credit
₱210,000.00
930,000.00
140,000.00 220,000.00
180,000.00 90,000.00
1,890,000.00
160,000.00 ₱800,000.00
190,000.00
80,000.00
500,000.00
1,120,000.00
700,000.00
40,000.00 6,550,000.00
3,410,000.00
960,000.00
250,000.00
160,000.00
80,000.00

140,000.00
 180,000.00
160,000.00
140,000.00 140,000.00
60,000.00
60,000.00 - 60,000.00
720,000.00 9,440,000.00 9,440,000.00
 Income Statement Balance Sheet
Debit Credit Debit
₱210,000.00
930,000.00
220,000.00
90,000.00
1,890,000.00

700,000.00
6,550,000.00
3,410,000.00
960,000.00
250,000.00
160,000.00
80,000.00

140,000.00
 180,000.00
160,000.00

60,000.00
- - -
5,400,000.00 6,550,000.00 4,040,000.00
1,150,000.00 - -
6,550,000.00 6,550,000.00 4,040,000.00
Balance Sheet
Credit

₱800,000.00
190,000.00
80,000.00
500,000.00
1,120,000.00
 140,000.00

60,000.00
2,890,000.00
1,150,000.00
4,040,000.00
Leah May Santiago Information Systems
Worksheet

Cash
Notes receivable
Accounts receivable
Office supplies
Land
Building
Accumulated Depreciation - building
Equipment
Accumulated Depreciation - equipment
Accounts payable
Unearned consulting revenues
Santiago, capital 1/1/2024
Santiago, withdrawals
Consulting revenues
Salaries expense
Repairs expense
Miscellaneous expense
Totals

Supplies expense
 Depreciation expense
Salaries payable
Interest receivable
Interest income
Totals
Net income to balance sheet

Adjusting entries:

a Supplies expense
Office supplies

b Unearned Consulting Revenues

Consulting Revenues

c Depreciation expense
Accum. Depreciation - Building
Accum. Depreciation - Equipment

d Salaries expense
Salaries payable

e Intest receivable
Interest income
 Interest for year 2024= 360,000 x .20 x 4/12
Interest earned from notes receivable in year 2025 = 360,000 x
Total interest from notes receivable = 360,000 x .20 x 9/12

Sept 1, 2024 to May 31, 2025

CLOSING ENTRIES, Dec. 31, 2024

1.00 Consulting revenues

Interest income
Salaries expense
Repairs expense
Miscellaneous expense
Supplies expense
Depreciation expense
Income Summary (Profit and Loss)

2.00 Income Summary

Santiago, capital

3.00 Santiago, capital

Santiago, withdrawals
POST CLOSING TRIAL BALANCE

Cash
Notes receivable
Interest receivable
Accounts receivable
Office supplies
Land
Building
Accumulated Depreciation - building
Equipment
Accumulated Depreciation - equipment
Accounts payable
Salaries payable
Unearned consulting revenues
Santiago, capital 12/31/2024
Total

Leah May Santiago Information Systems

Income Statement
 For the period ending December 31, 2024

Consulting Revenues
Less operating expenses:
Salaries expense
Repairs expense
Miscellaneous expense
Supplies expense
Depreciation expense
Total expense
Operating income
Add: Interest income
Net income

Leah May Santiago Information Systems

Statement of Changes in Capital/Equity
For the period ending December 31, 2024

Santiago, capital Jan1. 1, 2024

Add: Additional investments
Total
Less: Santiago, withdrawals
Balance
Add/(Deduct): Net income/(Net loss)
Santiago, capital Dec. 31, 2024

Leah May Santiago Information Systems

Balance Sheet (Statement of Financial Position)
As of December 31, 2024

ASSETS
Current Assets:
Cash
Notes receivable
Interest receivable
Accounts receivable
Office supplies
Total current assets

Noncurrent assets:
Land
Building
Accumulated Depreciation - building

Equipment
Accumulated Depreciation - equipment
Total noncurrent assets
Total Assets
LIABILITIES:
Accounts payable
Salaries payable
Unearned consulting revenues
Total liabilities
Santiago, capital
Total liabilitiesa and capital
 Unadjusted Trial Balance Adjustments
Debit Credit Debit
₱45,000.00
360,000.00
156,000.00
63,000.00
300,000.00
1,590,000.00
254,000.00
2,150,000.00
612,000.00
213,000.00
450,000.00 150,000.00
2,655,000.00
600,000.00
2,108,000.00
875,000.00 14,000.00
116,000.00
37,000.00 -
₱6,292,000.00 ₱6,292,000.00

42,000.00
 161,000.00

24,000.00
-
391,000.00

Debit Credit
42,000.00
42,000.00

150,000.00
150,000.00

161,000.00
38,000.00
123,000.00

14,000.00
14,000.00

24,000.00
24,000.00
20 x 4/12 24,000.00
ble in year 2025 = 360,000 x .20 x 5/12 30,000.00
e = 360,000 x .20 x 9/12 54,000.00

Debit Credit
2,258,000.00
24,000.00
889,000.00
116,000.00
37,000.00
42,000.00
161,000.00
1,037,000.00

1,037,000.00
1,037,000.00

600,000.00
600,000.00
 Debit Credit
₱45,000.00
360,000.00
24,000.00
156,000.00
21,000.00
300,000.00
1,590,000.00
292,000.00
2,150,000.00
735,000.00
213,000.00
14,000.00
300,000.00
- 3,092,000.00 (2,655,000 + 1,037,000 - 600,000
₱4,646,000.00 ₱4,646,000.00

go Information Systems
me Statement
ding December 31, 2024

₱ 2,258,000.00

₱ 889,000.00
116,000.00
37,000.00
42,000.00
161,000.00
1,245,000.00
₱ 1,013,000.00
24,000.00
₱ 1,037,000.00

go Information Systems
anges in Capital/Equity
ding December 31, 2024

2,655,000.00
-
2,655,000.00
600,000.00
2,055,000.00
1,037,000.00
 3,092,000.00

go Information Systems
ment of Financial Position)
cember 31, 2024

45,000.00
360,000.00
24,000.00
156,000.00
21,000.00
606,000.00

300,000.00
1,590,000.00
(292,000.00) 1,298,000.00

2,150,000.00
(735,000.00) 1,415,000.00
3,013,000.00
₱ 3,619,000.00
 213,000.00
14,000.00
300,000.00
527,000.00
3,092,000.00
₱ 3,619,000.00
Adjustments Adjusted Trial Balance
Credit Debit Credit
₱45,000.00
360,000.00
156,000.00
42,000.00 21,000.00
300,000.00
1,590,000.00
38,000.00 292,000.00
2,150,000.00
123,000.00 735,000.00
213,000.00
300,000.00
2,655,000.00
600,000.00
150,000.00 2,258,000.00
889,000.00
116,000.00
37,000.00

42,000.00
 161,000.00
14,000.00 14,000.00
24,000.00
24,000.00 - 24,000.00
391,000.00 6,491,000.00 6,491,000.00
+ 1,037,000 - 600,000)
 Income Statement Balance Sheet
Debit Credit Debit
₱45,000.00
360,000.00
156,000.00
21,000.00
300,000.00
1,590,000.00

2,150,000.00

600,000.00
2,258,000.00
889,000.00
116,000.00
37,000.00

42,000.00
 161,000.00

24,000.00
- 24,000.00 -
1,245,000.00 2,282,000.00 5,246,000.00
1,037,000.00 - -
2,282,000.00 2,282,000.00 5,246,000.00
Balance Sheet
Credit

292,000.00

735,000.00
213,000.00
300,000.00
2,655,000.00
 14,000.00

-
4,209,000.00
1,037,000.00
5,246,000.00
1.00 July 1, unearned revenue
Monthly amortization (42,000/12mos)

Earned portion (3,500 x 6) or (42,000 x 6/12)

Add: Earned service revenue, Dec. 31
Total revenues

2.00
October 1, journal entry
Supplies
Accounts payable

December 31: Adjusting entry

Supplies expense
Supplies

3.00 Annual interest (100,000 * .09 )

 Interest from February 1 to Dec. 31
(9,000 * 11/12)
Note: February 1 borrowing

4.00 Annual lease/rent

Rent incurred from February 1 to December31:
(24,000 * 11/12)

Total expenses

5.00 Depreciation: (from Jan. 1 vehicle purchased)

Historical cost
Less: Salvage value
Depreciable cost/value
Divide by useful life
Annual depreciation

Assume the service vehicle was purchased in March

Depreciation expense - 2023(24,000 * 10/12)
 Depreciation expense - 2023
Interest expense - 2023
Rent/Lease
Operating expense incurred
Accrued salaries
Supplies expense
Total expense

6.00 Related to Sept 1 transaction

Selling price of land

Cost
Gain on sale of land

7.00 Total revenues

Total expenses
Operating income/profit
Add: Other income
Interest income
Gain on sale of land
Net income

Interest income from November 1 transaction

Annual interest (50,000 * .06)
Interest income (3,000 * 2/12)
 42,000.00
3,500.00

21,000.00
250,000.00
271,000.00

20,000.00
20,000.00

19,000.00
19,000.00

9,000.00
 8,250.00

24,000.00
mber31:
22,000.00

hased)

80,000.00
8,000.00
72,000.00
3.00
24,000.00

sed in March 1, 2023:

20,000.00
 24,000.00
8,250.00
22,000.00
80,000.00
32,000.00
19,000.00
185,250.00

100,000.00
90,000.00
10,000.00

271,000.00
185,250.00
85,750.00
 500.00
10,000.00
96,250.00

saction
3,000.00
500.00
 Requirement 1.1 Journal Entries
Sept

2 Cash
Revenues

4 Cash
Accounts receivable

7 Rent Expense
Cash

11 Supplies
Cash

17 Equipment
Accounts payable

20 Cash
Revenues

22 Rain drawings
 Cash

24 Accounts receivable
Revenues

25 Transportation expense
Cash

28 Accounts payable
Cash

29 Utilities expense
Cash

31 Salaries expense
Cash
Cash
Accounts Receivable
Supplies
Furniture and Fixtures
Accumulated Depreciation - F&F
Equipment
Accumulated Depreciation - Equipment
Accounts payable
Salaries payable
Utilities payable
Rain, capital
Rain drawings
Revenues
Rent Expense
Salaries expense
Transportation expense
 Utilities expense
Total

Supplies expense
Uncollectible accounts expense
Allowance for uncollectible accounts
Depreciation expense
Balance
Net loss to balance sheet

ADJUSTING ENTRIES, May 31

1 Supplies expense
Supplies

2 Depreciation expense
Accumulated Depreciation - F&F
Accumulated Depreciation - Equipment
3 Uncollectible Accounts Expense
Allowance for uncollectible accounts

4 Salaries expense
Salaries payable

5 Utilities expense
Utilities payable

CLOSING ENTRIES, May 31

1 Revenues
Income Summary (loss)
Rent expense
Salaries expense
Transportation expense
Uncollectible accounts expense
Utilities expense
Supplies expense
Depreciation expense
2 Rain capital
Income Summary

3 Rain, capital
Rain, drawings

Big Bites
Post Closing Trial Balance
30-Sep-24

Cash
Accounts Receivable
Allowance for uncollectible accounts
Supplies
Furniture and Fixtures
Accumulated Depreciation - F&F
Equipment
Accumulated Depreciation - Equipment
Accounts payable
Salaries payable
Utilities payable
Rain, capital
Total

Big Bites
Income Statement
For the month ending September 30,

Revenues
Less operating expenses:
Rent expense
Salaries expense
Transportation expense
Uncollectible accounts expense
Utilities expense
Supplies expense
Depreciation expense
Net loss

Big Bites
Balance Sheet
As of September 30, 2024
 ASSETS
Current assets:
Cash
Accounts receivable
Allowance of uncollectible accounts
Supplies
Total current assets

Non-current assets:
Furniture and Fixtures
Accumulated depreciation - F&F

Equipment
Accumulated depreciation - equipment
Total non-current assets
TOTAL ASSETS

LIABILITIES AND CAPITAL

Accounts payable
Salaries payable
Utilities payable
Total liabilities
Rain, capital
Total liabilities and capital

Big Bites
Statement of Cash flows
For the month ended September 30,

Cash flows from operating activities:

Cash received from customers
Cash paid for rent
Cash paid for supplies
Cash paid for transportation
Cash paid for utilities
Cash paid for accounts payable
Cash paid for salaries
Net cash used by operating activities

Cash flows from investing activities:

Purchased of equipment
Cash flows from financing activities:
Cash withdrawal of the owner
Net cash flow
Cash, September 1, 2024
Cash, September 30, 2024

Big Bites
Post Closing Trial Balance
August 31, 2024

Cash
Accounts receivable
Supplies
Furniture and Fixtures
Accumulated Depreciation - F&F
Equipment
Accumulated Depreciation - Equipment
Accounts payable
Salaries payable
Utilities payable
Rain, capital
Totals

Cash
Accounts Receivable
Supplies
Furniture and Fixtures
Accumulated Depreciation - F&F
Equipment
Accumulated Depreciation - Equipment
Accounts payable
Salaries payable
Utilities payable
Rain, capital
Rain drawings
Revenues
Rent Expense
Salaries expense
Transportation expense
Utilities expense
Total
Debit Credit
10,000.00
10,000.00

18,000.00
18,000.00

5,000.00
5,000.00

25,000.00
25,000.00

30,000.00
30,000.00

15,000.00
15,000.00

25,000.00
 25,000.00

12,000.00
12,000.00

1,500.00
1,500.00

28,000.00
28,000.00

1,500.00
1,500.00

20,000.00
20,000.00
 Rain Co
Work
Septembe
Unadjusted Trial Balance Adjustments
Debit Credit Debit
₱5,300.00
14,000.00
28,000.00
50,000.00
7,500.00
175,000.00
pment ₱16,000.00
31,000.00
2,500.00
300.00
231,000.00
25,000.00
37,000.00
5,000.00
20,000.00 3,000.00
1,500.00
 1,500.00 - 500.00
₱325,300.00 ₱325,300.00

23,000.00
700.00

6,500.00
33,700.00

23,000.00
23,000.00

6,500.00
2,500.00
Equipment 4,000.00
 700.00
ccounts 700.00

3,000.00
3,000.00

500.00
500.00

₱37,000.00
₱24,700.00
₱5,000.00
23,000.00
1,500.00
700.00
2,000.00
23,000.00
6,500.00
 ₱24,700.00
₱24,700.00

25,000.00
25,000.00

g Bites
g Trial Balance
Sep-24

₱5,300.00
14,000.00
700.00
5,000.00
50,000.00
10,000.00
175,000.00
pment ₱20,000.00
31,000.00
5,500.00
800.00
- 181,300.00
 ₱249,300.00 ₱249,300.00

g Bites
Statement
ng September 30, 2024

₱37,000.00

₱5,000.00
23,000.00
1,500.00
700.00
2,000.00
23,000.00
6,500.00 ₱61,700.00
₱ (24,700.00)

g Bites
nce Sheet
ember 30, 2024
 ₱ 5,300.00
₱ 14,000.00
(700.00) 13,300.00
5,000.00
₱ 23,600.00

₱ 50,000.00
(10,000.00) ₱ 40,000.00

₱ 175,000.00
₱ (20,000.00) 155,000.00
₱ 195,000.00
₱ 218,600.00

₱ 31,000.00
5,500.00
800.00
37,300.00
 181,300.00
₱ 218,600.00

g Bites
t of Cash flows
ed September 30, 2024

43,000.00
(5,000.00)
(25,000.00)
(1,500.00)
(1,500.00)

(20,000.00) (53,000.00)
(10,000.00)

-
(28,000.00)

(25,000.00)
(63,000.00)
 68,300.00
5,300.00

g Bites
g Trial Balance
t 31, 2024
Debit Credit
68,300.00
20,000.00
3,000.00
50,000.00
7,500.00
145,000.00
pment 16,000.00
29,000.00
 2,500.00
300.00
- 231,000.00
286,300.00 286,300.00

Rain Co
Work
Septembe
Unadjusted Trial Balance Adjustments
Debit Credit Debit

pment
 Cash
68,300.00 5,000.00
10,000.00 25,000.00
18,000.00 25,000.00
15,000.00 1,500.00
28,000.00
1,500.00
- 20,000.00
111,300.00 106,000.00
5,300.00

Accum. Depreciation - F&F

7,500.00
Salaries payable
2,500.00
 Rent Expense
5,000.00

Salaries expense
20,000.00
 Rain Company
Worksheet
September 30, 2024
Adjustments Adjusted Trial Balance
Credit Debit Credit
₱5,300.00
14,000.00
₱23,000.00 5,000.00
50,000.00
2,500.00 10,000.00
175,000.00
4,000.00 ₱20,000.00
31,000.00
3,000.00 5,500.00
500.00 800.00
231,000.00
25,000.00
37,000.00
5,000.00
23,000.00
1,500.00
 2,000.00

23,000.00
700.00
700.00 700.00
- 6,500.00 -
33,700.00 336,000.00 336,000.00
 Rain Company
Worksheet
September 30, 2024
Adjustments Adjusted Trial Balance
Credit Debit Credit
 Accounts receivable
20,000.00 18,000.00
12,000.00 -
32,000.00 18,000.00
14,000.00

Equipment
145,000.00
30,000.00
175,000.00
Utilities payable
300.00
 Rain drawings
25,000.00
 Income Statement Balance Sheet
Debit Credit Debit
₱5,300.00
14,000.00
5,000.00
50,000.00

175,000.00

25,000.00
₱37,000.00
₱5,000.00
23,000.00
1,500.00
 2,000.00

23,000.00
700.00

6,500.00 -
61,700.00 37,000.00 274,300.00
- 24,700.00 24,700.00
61,700.00 61,700.00 299,000.00
 Income Statement Balance Sheet
Debit Credit Debit
 Supplies
3,000.00
25,000.00
28,000.00

Accum. Depreciation - Equipment

16,000.00
Rain, capital
231,000.00
Transportation expense
1,500.00
Balance Sheet
Credit

10,000.00

₱20,000.00
31,000.00
5,500.00
800.00
231,000.00
 700.00

299,000.00
-
299,000.00
Balance Sheet
Credit
Furniture and Fixtures
50,000.00

Accounts payable
28,000.00 29,000.00
- 30,000.00
28,000.00 59,000.00
 31,000.00

Revenues
10,000.00
15,000.00
12,000.00
37,000.00
Utilities expense
1,500.00
 Unadjusted Trial Balan
Debit
Cash ₱221,180
Accounts Receivable ₱428,000
Merchandise Inventory ₱413,000
Supplies ₱72,000
Prepaid Insurance ₱48,000
Land ₱460,000
Building ₱1,750,000
Accumulated Depreciation - Building
Equipment ₱2,310,000
Accumulated Depreciation - Equipment
Accounts payable
Salaries payable
Mortage payable
Buenaflor, capital
Buenaflor, withdrawals ₱400,000
Income Summary
Sales
Sales Returns and Allowances ₱141,000
Sales Discounts ₱11,840
Purchases ₱668,000
Purchases Returns and Allowances
Purchases Discounts
Transportation In ₱13,000
Salaries Expense ₱51,000
 Supplies Expense
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Equipment
Transportation Out ₱4,000
Advertising Expense ₱6,000
Interest Expense ₱26,000
Miscellaneous Expense ₱ 7,000.00
Total ₱7,030,020

JOURNAL ENTRIES Debit

1 Cash ₱113,000
Accounts receivable

2 Accounts pyable ₱64,000

Purchased discount
Cash

4 Purchases ₱170,000
Accounts payable
5 Accounts receivable ₱270,000
Sales

7 Advertising expense ₱6,000

Cash

Cash ₱250,000
Sales

8 Accounts payable ₱170,000

Purchase discount
Cash

9 Transportation in ₱4,000
Cash

10 Sales returns and allowances ₱70,000

Accounts receivable

12 Cash ₱196,000
Sales discount ₱4,000
Accounts receivable

14 Interest expense ₱26,000

Cash
15 Salaries expense ₱51,000
Cash

16 Accounts receivable ₱392,000

Sales

18 Transportation out ₱4,000

Cash

19 Supplies ₱21,000
Cash

20 Purchases ₱125,000
Accounts payable

22 Miscellaneous expense ₱7,000

Cash

23 Cash ₱384,160
Sales discount ₱7,840
Accounts receivable

24 Purchases ₱373,000
Accounts payable
 Transportation in ₱9,000
Cash

25 Accounts receivable ₱420,000

Sales

26 Sales returns and allowances ₱71,000

Accounts receivable

28 Buenaflor withdrawal ₱400,000

Cash

Accounts payable ₱25,000

Purchase returns and allowance

ADJUSTING ENTRIES

a Salaries expense ₱51,000

Salaries payable

b Insurance expense ₱2,000

Prepaid insurance

c Depreciation expense - building ₱9,000

 Depreciation expense - equipment ₱12,000
Accumu. Deprn - building
Accumu. Deprn - equipment

d Supplies expense ₱58,000

Supplies

Teresita Buenaflor Shoes

Income Statement
For the month ending February 28, 2024

Gross sales
Less:
Sales returns and allowances
Sales discount
Net sales
Less: Cost of goods sold
Merchandise inventrory, beginning
Purchases
Transportation in
Purchase discounts
Purchase returns and allowances
Total goods availasble for sale
Less: Merchandise inventory, ending
Gross profit
Less: Operating expenses
Salaries Expense
Supplies Expense
Insurance Expense
Depreciation Expense - Building
Depreciation Expense - Equipment
Transportation Out
Advertising Expense
Miscellaneous Expense
Operating income
Less: interest expense
Net income

Teresita Buenaflor Shoes

Statement of Financial Position
As of February 28, 2024

ASSETS
Cash
Accounts Receivable
Merchandise Inventory
Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation - Building
Equipment
Accumulated Depreciation - Equipment
Total assets

LIABILITIES AND CAPITAL

Accounts payable
Salaries payable
Mortage payable
TOTAL LIABILITIES

Buenaflor capital, Feb 1

Addional ionvestment
withdrwal
BALNCE
Net income
Total liabilities and capital
 Teresita Buenaflor Shoes
Worksheet
February 28, 2024
sted Trial Balance Adjustments Adjusted Trial Bala
Credit Debit Credit Debit
₱221,180
₱428,000
₱413,000
₱58,000 ₱14,000
₱2,000 ₱46,000
₱460,000
₱1,750,000
₱350,000 ₱9,000
₱2,310,000
₱630,000 ₱12,000
₱517,000
₱51,000
₱2,600,000
₱1,569,000
₱400,000

₱1,332,000
₱141,000
₱11,840
₱668,000
₱25,000
₱7,020
₱13,000
₱51,000 ₱102,000
 ₱58,000 ₱58,000
₱2,000 ₱2,000
₱9,000 ₱9,000
₱12,000 ₱12,000
₱4,000
₱6,000
₱26,000
₱ - ₱ - ₱ - ₱ 7,000.00
₱7,030,020 ₱132,000 ₱132,000 ₱7,102,020

Credit

₱113,000

₱1,920
₱62,080

₱170,000
₱270,000

₱6,000

₱250,000

₱5,100
₱164,900

₱4,000

₱70,000

₱200,000

₱26,000
 ₱51,000

₱392,000

₱4,000

₱21,000

₱125,000

₱7,000

₱392,000

₱373,000
 ₱9,000

₱420,000

₱71,000

₱400,000

₱25,000

₱51,000

₱2,000
 ₱9,000
₱12,000

₱58,000

₱1,332,000

₱ (141,000.00)
₱ (11,840.00)
₱1,179,160

₱413,000
₱668,000
₱13,000
₱ (7,020.00)
₱ (25,000.00)
₱1,061,980
₱ (397,000.00) ₱ 664,980.00
 ₱514,180

₱102,000
₱58,000
₱2,000
₱9,000
₱12,000
₱4,000
₱6,000
₱7,000 ₱200,000
₱314,180
₱26,000
₱288,180

₱221,180
₱428,000
₱397,000
₱14,000
 ₱46,000
₱460,000
₱1,750,000
-₱359,000 ₱1,391,000
₱2,310,000
-₱642,000 ₱1,668,000
₱4,625,180

₱517,000
₱51,000
₱2,600,000
₱3,168,000

₱1,569,000
₱0
-₱400,000
₱1,169,000
₱288,180 ₱1,457,180
₱4,625,180
ed Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit
₱221,180
₱428,000
₱413,000 ₱397,000 ₱397,000
₱14,000
₱46,000
₱460,000
₱1,750,000
₱359,000
₱2,310,000
₱642,000
₱517,000
₱51,000
₱2,600,000
₱1,569,000
₱400,000

₱1,332,000 ₱1,332,000
₱141,000
₱11,840
₱668,000
₱25,000 ₱25,000
₱7,020 ₱7,020
₱13,000
₱102,000
 ₱58,000
₱2,000
₱9,000
₱12,000
₱4,000
₱6,000
₱26,000
₱ - ₱ 7,000.00 ₱ -
₱7,102,020 ₱1,472,840 ₱1,761,020 ₱6,026,180
₱288,180
₱6,026,180
 Cash
33,000 62,080
113,000 6,000
alance Sheet 250,000 164,900
Credit 196,000 4,000
384,160 26,000
51,000
4,000
21,000
7,000
9,000
400,000
₱359,000 221,180 976,160 754,980
Land
₱642,000 460,000
₱517,000
₱51,000
₱2,600,000
₱1,569,000

Accounts Payable
64,000 108,000
170,000 170,000
25,000 125,000
373,000
 259,000 776,000
517,000

₱5,738,000 Sales
₱288,180 270,000
₱6,026,180 250,000
392,000
420,000
###

Purchases Discounts
1,920
5,100
7,020
Dep. Expense - Building

Miscellaneous Expense
7,000
Accounts Receivable Merchandise Inventory
192,000 113,000 413,000
270,000 70,000
392,000 200,000
420,000 392,000
71,000
### 846,000
428,000

Building Accum. Dep. - Building

### 350,000

Salaries Payable Mortage Payable

###
Sales Returns & Allow Sales Discounts
70,000 4,000
71,000 7,840
141,000 11,840

Transportation In Salaries Expense

4,000 51,000
9,000
13,000
Dep. Expense - Equipment Transporation Out
4,000
 Supplies Prepaid Insurance
51,000 48,000
21,000
72,000

Equipment Accum. Dep. - Equipment

### 630,000

Buenaflor, Capital Buenaflor, Withdrawals

### 400,000
 Purchases Purchases Ret. & Allow.
170,000 25,000
125,000
373,000
668,000

Supplies Expense Insurance Expense

Advertising Expense Interest Expense
6,000 26,000
 Unadjusted Trial Balance
Debit Credit
Cash ₱ 100,000.00
Accounts Receivable 500,000.00
Merchandise Inventory 700,000.00
Prepaid rent 300,000.00
Shop Equipment 1,600,000.00
Accumulated Depreciation ₱ 200,000.00
Accounts Payable 400,000.00
Pateno, Capital 1,300,000.00
Pateno, Withdrawals 100,000.00
Sales 2,900,000.00
Sales Discounts 100,000.00
Purchases 800,000.00
Purchases Returns and Allowances 200,000.00
Transportation In 100,000.00
Salaries Expense 400,000.00
Advertising Expense 150,000.00
Utilities Expense 100,000.00
Supplies Expense 50,000.00
Rent expense
Depreciation expense
salaries payable
Totals ₱ 5,000,000.00 ₱ 5,000,000.00

Additional Information

a. Accrued Salaires at year-end amounted to P30,000

b. Rent in the amount of P100,000, has expired durinhg the year

c. Depreciation on shop equipment is 200,000

d. The Dec. 31 merchandise inventory amounted to P500,000

ADJUSTING ENTRIES Debit Credit

 Dores Marie Pateno Hobby Shop
Worksheet

Adjustments Adjusted Trial Balance

Debit Credit Debit Credit

100,000.00

200,000.00

30,000.00

100,000.00
200,000.00
30,000.00
330,000.00 330,000.00
 Income Statement Balance Sheet
Debit Credit Debit Credit

700,000.00 500,000.00 500,000.00