Name: Baltazar, Nikki C. Baltazar .Instructor: Ms.

Danica Siapno
Section: 2BSA-03 Date: 01-15-20

Name of Company: NCB Legal Firm

Business Organization: Sole Proprietorship
Industry: Service
Inventory System: Periodic

NCB Legal Firm

Trial Balance
January 1, 2019

Debits Credits
Cash $67,720
Accounts Receivable 2,700
Prepaid Insurance 4,500
Office Supplies 3,000
Land 18,000
Building 25,000
Equipment 10,800
Accounts Payable 2,000
Utilities Payable 280
Unearned revenue 1,440
Notes Payable 28,000
Bonds Payable 50,000
NCB, Capital 50,000
Total $131,720 $131,720

On Jan 1, 2019, Nikki began a Law Firm, NCB Legal Firm. The following information about January’s
transactions, accounts, and adjustment data is available.

TRANSACTIONS

January 1 NCB contributed $50,000 cash to the business in exchange for capital.
1 Purchased $10,800 of equipment paying cash.
1 Paid $4,500 for a 9-month insurance policy starting on December 1.
9 Paid $18,000 cash to purchase land to be used in operations.
9 Paid $25,000 cash to purchase building to be used in operations.
10 Purchased office supplies on account, $3,000.
19 Borrowed $28,000 from the bank for business use. NCB signed a note
payable to the bank in the name of the business.
22 Paid $800 for advertising expenses.
26 Paid $1,000 on account.
27 Borrowed $50,000 from JCH Corp. for business use. NCB signed a
 bond payable to the bank in the name of the business.
28 The business received a bill for utilities to be paid in January, $280.
31 Revenues earned during the month included $17,500 cash and $2,700 on
account.
31 Paid employees' salaries $3,600 and building rent $700.
31 The business received $1,440 for legal services to be performed next
month.
31 NCB withdrew cash of $3,000.

ACCOUNTS

Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment;; Land; Accumulated
Depreciation-Land ; Building; Accumulated Depreciation-Building; Accounts Payable; Utilities Payable;
Interest Payable; Unearned Revenue; Bonds Payable, Notes Payable; NCB, Capital; NCB, Withdrawals;
Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; Advertising Expense; Supplies Expense;
Insurance Expense; Interest Expense; and Depreciation Expense-PPE.

ADJUSTMENT DATA

a) Office Supplies used during the month, $600.

b) Depreciation for the month of equipment, $180.
c) One month insurance has expired.
d) Accrued Interest Expense, $75.
e) Depreciation for the month of building, $250.
 GENERAL JOURNAL
DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT
Dec. 1 Cash $50,000
NCB, Capital $50,000
#Owner Contribution

Dec. 1 Equipment 10,800

Cash 10,800
#Purchased Equipment

Dec. 1 Pre-paid Insurance 4,500

Cash 4,500
#Paid rent in advance

Dec. 9 Land 18,000

Cash 18,000
#Paid cash for land

Dec. 9 Building 25,000

Cash 25,000
#Paid cash for building

Dec. 10 Office Supplies 3,000

Accounts Payable 3,000
#Purchased office supplies on account

Dec. 19 Cash 28,000

Notes Payable 28,000
#Collected cash on note

Dec. 22 Advertising Expense 800

Cash 800
#Paid cash expense

Dec. 26 Accounts Payable 1,000

Cash 1,000
#Paid cash on account

Dec. 27 Cash 50,000

Bonds Payable 50,000
#Collected cash on bond

Dec. 28 Utilities Payable 280

 Utilities Expense 280
#Accrued Utilities Expense

DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT

Dec. 31 Cash 17,500
Accounts Receivable 2,700
Service Revenue 20,200
#Performed services collected cash and account credit.

Dec. 31 Salaries expense 3,600

Rent Expense 700
Cash 4,300
#Paid cash expenses

Dec. 31 Cash 1,440

Unearned revenue 1,440
#Collected cash for future services.

Dec. 31 NCB, withdrawals 3,000

Cash 3,000
#Owner Withdrawal
 GENERAL LEDGER

Cash Accounts Receivable Office Supplies Prepaid Insurance

50,000 10,800
28,000 4,500 2,700 3,000 600
4,500 500
17,500 18,000
1,440 25,000
50,000 800
1,000
4,300
3,000

Equipment Acc. Depreciation – Land.& Bldg. Land Building

10,800 180 18,000 25,000

250

Accounts Payable Utilities Payable Unearned Revenue Interest Payable

1,000 3,000 280 1,440 75

Notes Payable Bonds Payable NCB, Capital Service Revenue

28,000 50,000 3,000 50,000 20,200

 Rent Expense Utilities Expense Advertising Expense Supplies Expense

700 280 800 600

Insurance Expense Interest Expense Salaries Expense. Depreciation Exp-PPE

500 75 3600 180

250
 Unadjusted Trial Balance

NCB Legal Firm

Unadjusted Trial Balance
January 31, 2019
Debits Credits
Cash $79,540
Accounts Receivable 2,700
Office Supplies 3,000
Prepaid Insurance 4,500
Equipment 10,800
Land 18,000
Building 25,000
Accounts Payable 2,000
Utilities Payable 280
Unearned revenue 1,440
Notes Payable 28,000
Bonds Payable 50,000
NCB, Capital 50,000
NCB, Withdrawals 3,000
Service Revenue 20,200
Salaries expense 3,600
Advertising Expense 800
Rent Expense 700
Utilities expense 280
Total $151,920 $151,920
 Adjusted Trial Bance
NCB Legal Firm
Adjusted Trial Balance
January 31, 2019

Debits Credits
Cash $79,540
Accounts Receivable 2700
Office Supplies 2,400
Prepaid Insurance 4,000
Equipment 10,800
Land 18,000
Accumulated Depreciation – Land 180
Building 25,000
Accumulated Depreciation – Building 250
Accounts Payable 2,000
Utilities Payable 280
Unearned revenue 1,440
Interest Payable 75
Notes Payable 28,000
Bond Payable 50,000
NCB, Capital 50,000
NCB, Withdrawals 3,000
Service Revenue 20,200
Rent Expense 700
Salaries expense 3,600
Advertising Expense 800
Utilities expense 280
Insurance Expense 500
Depreciation Expense – Land 180
Depreciation Expense – Building 250
Supplies Expense 600
Interest Expense 75
Total $152,425 $152,425
 NCB Legal Firm
Income Statement
For the month ended January 31, 2019
Revenues:
Service Revenue 20,200

Expenses:
Rent Expense 700
Salaries expense 3,600
Advertising Expense 800
Utilities expense 280
Insurance Expense 500
Depreciation Expense – Land 180
Depreciation Expense – Building 250
Supplies Expense 600
Interest Expense 75
Total Expenses $6,985
Net Income $13,215

NCB Legal Firm

Statement of Changes in Owner’s Equity
For the month ended January 31, 2019
NCB, Capital December 1 0
Owner Contribution 50,000
Net Income for the month 13,215
63,215
Owner Withdrawal (3,000)
NCB, Capital January31 $60,215
 NCB Legal Firm
Balance Sheet
For the Month Ended January 31, 2019

Assets Liabilities
Cash $79,540 Accounts Payable 2,000
Accounts Receivable 2,700 Utilities Payable 280
Office Supplies 2,400 Unearned revenue 1,440
Prepaid Insurance 4,000 Interest Payable 75
Equipment 10,800 Notes Payable 28,000 5
Land 18,000 Bond Payable 50,000 0
Accum. Dep. – Land (180) Total Liabilities $81,795
Building 25,000
Accum. Dep.- Building (250) Owner’s Equity
Total Assets $142,010 NCB, Capital $60,215
Total Liabilities & Owners Equity $142,010
 NCB Legal Firm
Post-Closing Trial Balance
For the Month Ended January 31, 2019
Debits Credits
Cash $79.540
Accounts Receivable 2,700
Office Supplies 2,400
Prepaid Insurance 4,000
Equipment 10,800
Land 17,820
Building 24,750
Accounts Payable 2,000
Utilities Payable 280
Unearned revenue 1,440
Interest Payable 75
Notes Payable 28,000
Bond Payable 50.000
NCB, Capital 60,215
Total: $142,010 $142,010
Name: Baltazar, Nikki C. Baltazar .Instructor: Ms. Danica Siapno
Section: 2BSA-03 Date: 01-15-20