PETA 3: Worksheet

Matata Posna Co., a company engaged in rendering accounting services, has the following
account balances before adjustment for December 31, 2018:

Account Title Debit Credit

Cash PhP 36,500
Accounts Receivable 26,375
Allowance for Bad Debts
Supplies
Prepaid Rent
Equipment 16,225
Accumulated Depreciation PhP 4,450
Accounts Payable 13,000
Notes Payable 10,250
Wages Payable
Capital 35,000
Unearned Fees 3,500
Fees Earned 48,975
Wages Expense 19,700
Rent Expense 15,000
Depreciation Expense
Supplies Expense 1,375
Bad Debts Expense
Total 115,175 115,175

Data needed for year-end adjustments are as follows:

1. Unbilled fees at December 31, P1,575.
2. Supplies on hand at December 31, P278
3. Rent expired during the year, P9,000.
4. The equipment is expected to be sold at P2,875 at the end of its 3-year useful life.
5. Unearned Fees at December 31, P2,700.
6. Wages accrued but unpaid at December 31, P438.
7. Bad debts is estimated to be at 5% of credit service fees. The company renders all
services of account.
Required:
a. Prepare the adjusting journal entries on December 31, 2018.
b. Prepare the adjusted trial balance.
c. Based on the adjusted trial balance, prepare the income statement and balance sheet
for the company.