Requirement 1:

Cagayan Mac
Works
For the quarter end

Unadjusted trial balance Adjustments

Account title Debit Credit Debit
Cash in bank 310,000 7,000
Accounts receivable 85,000
Estimated Uncollectible 3,000
Supplies Inventory 15,000
Prepaid Rent 8,500
Prepaid Advertising 10,000
Machine 720,000
Acc. Depreciation-Machine 105,000
Accounts payable 35,000 8,000
Notes payable 100,000
F. Niza, Capital 783,500
F. Niza, Drawings 18,000
Shop Revenue 235,000
Taxes & Licenses 3,000 5,000
Salaries and Wages 72,000 10,000
Utilities Expense 20,000
Supplies Used 12,000
Depreciation Expense 85,000
Advertising Expense 4,000
Rent Expense 3,000
Accrued Taxes & Licenses
Accrued Salries & Wages
Total 1,261,500 1,261,500 134,000
Net profit
Total

Requirement 2:
Champion Rental Shop
Income Statement
For the year ended December 31, 2023

Rental Income -
Less: Operating expenses
Utilities expense 3,000
Salaries expense -
Used supplies -
Insurance expense #REF!
Depreciation expense #REF!
Total operating expenses #REF!
Net income #REF!

Requirement 4
Champion Rental Shop
Balance sheet
As of December 31, 2023
ASSETS
Cash in bank 309,000
Unused Supplies -
Prepaid Insurance 18,000
Delivery Equipment -
Accumulated Depreciation - -
Total Assets 327,000

LIABILITIES AND EQUITY

Liabilities
Accounts payable -
Loans Payable -
Accrued salaries expense #REF!
Total Liabilities #REF!
Equity
Casas, Capital #REF!

Total Liabilities and Equity #REF!

 Cagayan Machine Shop
Worksheet
For the quarter ended 31 March 20B

Adjustments Adjusted Trial Balance Income Statement

Credit Debit Credit Debit Credit
8,000 309,000
85,000
3,000
12,000 3,000
3,000 5,500
4,000 6,000
720,000
85,000 190,000
27,000
100,000
783,500
18,000
7,000 242,000 242,000
8,000 8,000
82,000 82,000
20,000 20,000
12,000 12,000
85,000 85,000
4,000 4,000
3,000 3,000
5,000 5,000
10,000 10,000
134,000 1,360,500 1,360,500 214,000 242,000
28,000
242,000 242,000

Requirement 3
Champion Rental Shop
Statement of Changes in Equity
For the year ended December 31, 2023

Casas, Capital-beginning
Add:
Net income(net loss)
Less: Casas, Drawings
Casas, Capital-ending
 Balance Sheet
Debit Credit
309,000
85,000
3,000
3,000
5,500
6,000
720,000
190,000
27,000
100,000
783,500
18,000

5,000
10,000
1,146,500 1,118,500
28,000
1,146,500 1,146,500

ampion Rental Shop

ent of Changes in Equity
r ended December 31, 2023

-
#REF!
- #REF!
#REF!
Requirement 1:
Champion
Wo
For the year ende

Unadjusted trial balance Adjustments

Account title Debit Credit Debit
Cash in bank 20,000
Unused Supplies 15,000
Prepaid Insurance 20,000
Equipment 310,000
Accounts payable 50,000
Notes payable 70,000
Casas, Capital 180,000
Casas, Drawings 20,000
Rental Income 160,000
Utilties expense 25,000
Salaries expenses 50,000 5,000
Adjustments:
Supplies expense/ Used Supplies 7,000
Insurance expense 12,000
Depreciation expense 27,500
Accumulated Depreciation
Salaries payable/ Acc. Salaries exp.
Total 460,000 460,000 51,500
Net profit
Total

Requirement 2:
Champion Rental Shop
Income Statement
For the year ended December 31, 2023

Rental Income 160,000

Less: Operating expenses
Utilities expense 25,000
Salaries expense 55,000
Used supplies 7,000
Insurance expense 12,000
 Depreciation expense 27,500
Total operating expenses 126,500
Net income 33,500

Requirement 4
Champion Rental Shop
Balance sheet
As of December 31, 2023
ASSETS
Current Assets:
Cash in bank 20,000
Unused Supplies 8,000
Prepaid Insurance 8,000
Total Current Assets 36,000

Noncurrents Assets:
Delivery Equipment 310,000
Accumulated Depreciation (27,500) 282,500
Total Assets 318,500

LIABILITIES AND EQUITY

Liabilities
Current Liabilities:
Accounts payable 50,000
Notes payable 70,000
Accrued salaries expense 5,000
Total Current Liabilities 125,000
Equity
Casas, Capital 193,500

Total Liabilities and Equity 318,500

 Champion Rental Shop
Worksheet
For the year ended December 31, 2023

Adjustments Adjusted Trial Balance Income Statement

Credit Debit Credit Debit Credit
20,000
7,000 8,000
12,000 8,000
310,000
50,000
70,000
180,000
20,000
160,000 160,000
25,000 25,000
55,000 55,000

7,000 7,000
12,000 12,000
27,500 27,500
27,500 27,500
5,000 5,000
51,500 492,500 492,500 126,500 160,000
33,500
160,000 160,000

Requirement 3
Champion Rental Shop
Statement of Changes in Equity
For the year ended December 31, 2023

Casas, Capital-beginning
Add:
Net income(net loss)
Less: Casas, Drawings
Casas, Capital-ending
Closing Entries: Income and Expense Summary

1. Close income accounts to I&E Summary.

2. Close expense accounts to I&E Summary.
3. Close Income & Expense Summary to Capital.
4. Close Drawings to Capital.

1. Close Income Accounts to I&E Summary.

Rental Income 160,000
Income & Expense Summary 160,000
To close the income accounts.

2. Close expense accounts to I&E Summary.

Income & Expense Summary 126,500
Utilities expense 25,000
Salaries expense 55,000
Used Supplies 7,000
Insurance expense 12,000
Depreciation expense 27,500
To close expense accounts.

3. Close Income & Expense Summary to Capital.

Income & Expense Summary

126,500 160,000
33,500 33,500
-
Income & Expense Summary 33,500
Casas, Capital 33,500
To close Income & Expense Summary.

4. Close Drawings to Capital.

Casas, Capital 20,000
Casas, Drawings 20,000
To close the Drawing account.
 Balance Sheet
Debit Credit
20,000
8,000
8,000
310,000
50,000
70,000
180,000
20,000

27,500
5,000
366,000 332,500
33,500
366,000 366,000

mpion Rental Shop

ent of Changes in Equity
r ended December 31, 2023

180,000

33,500
(20,000) 13,500
193,500
 Champion Rental Shop
Post closing Trial Balance
For the year ended December 31, 2023
Particulars
Cash in bank
Unused Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation
Accounts payable
Notes payable
Salaries payable
Casas, Capital
Total
 Rental Shop
g Trial Balance
d December 31, 2023
Debit Credit
20,000
8,000
8,000
310,000
27,500
50,000
70,000
5,000
193,500
346,000 346,000