FINANCIAL ACCOUNTING AND REPORTING

1ST LONG QUIZ – FINAL GRADING

NAME: __________________________________ SCORE:____________

YEAR AND SECTION:______________________ DATE:______________

A trial balance and additional information for adjustments appear below for Darla Auto Repair Shop after one year
of operation:

DARLA AUTO REPAIR SHOP

TRIAL BALANCE
December 31, 2018

Account Titles Debit Credit

Cash on Hand 25,000

Cash in Bank 45,000
Accounts Receivable 49,000
Notes Receivable 30,000
Prepaid Insurance 15,000
Machinery & Equipment 150,000
Furniture & Fixtures 25,000
Accounts Payable 26,000
Notes Payable 50,000
Darla, Capital 132,850
Darla, Personal 5,000
Repair Income 275,000
Referral Income 15,000
Salaries Expense 45,000
Supplies Expense 600
Rent Expense 55,000
Taxes & Licenses Expense 7,250
Utilities Expense 46,750
Interest Expense 250
Totals Php 498,850 Php 498,850

Additional Information:

1. 10% of the accounts receivable should be recognized as doubtful of collection.

2. Insurance premium recorded as Prepaid Insurance was for six months starting Sept 1, 2018.
3. Supplies still on hand, 200.
4. The note receivable represents a 60-day 12% note received from the customer on November 16, 2018.
5. Machinery and equipment were acquired April 1, 2018 with an estimated useful life of 10 year and scrap
scrap value of Php 50,000.00
6. The furniture and fixtures were acquired January 1 2018 with an estimated useful life of 10 years and a
scrap value of Php 2,500.00
7. The notes payable is for 60 days at 18% due to Republic Finance dated December 1, 2018.
8. December gross receipts is one third of gross revenue of Php 13,000 subject to 3% percentage tax.

REQUIRED:

1. Prepare a 10-column working paper.

2. Prepare a properly classified Statement of Financial Position and an Income Statement.
3. Prepare the closing entries and post-closing trial balance.