EXERCISES

A. BB Apartments is in the business of offering residential and commercial spaces for rent. The
following are the details of its income and expenses for the year.

Rent income ₱ 200,000

Salaries Expense 35,000

Utilities Expense 15,000

Interest Expense 2,500

The owner of BB Apartments, Mr. B. Bridges has made withdrawals of ₱ 20,000 during the year.
Prepare the necessary closing entries to close the nominal accounts.

B. Prepare the closing entries necessary to close the nominal accounts of ABC Cinema for the
period ending Dec. 31, 2015. Some of the business’ adjusted ending balances are as follows:

Andres, Capital ₱ 867,000

Andres, Drawing 20,000

Service Income 1,500,000

Salaries Expense 195,000

Utilities Expense 135,000