QUIZ MODULE 6

Date Account Titles and Explanation PR Debit Credit

EM Supplies 22,300 Before adjustments, the Sup

Supplies Expense 22,300

AM Supplies Expense 43,900 Before adjustments, the Sup

Supplies 43,900

12/31 Prepaid Insurance 19,000 On April 1, 2020, a P76,000 

Insurance Expense 19,000

12/31 Insurance Expense 24,000 On July 31, 2020, a P57,600

Prepaid Insurance 24,000

On June 30, 2020, the end o

6/30 Insurance Expense 31,670
AM Prepaid Insurance 31,670 The Prepaid Insurance acco

                        Beginning bala

                        January 1         

EM Prepaid Insurance 46,290                         May                 

Insurance Expense 46,290
Beginning balance represen

The January 1 entry represe

6/30 Unearned Service Revenues 17,500 On June 1, the entity compl

LM Service Revenues 17,500

8/31 Service Revenues 130,500 On June 1, the entity compl

IM Unearned Service Revenues 130,500

11/30 Unearned Cleaning Service Revenues 12,000 On Sept. 1, SB Cleaners sign

LM Cleaning Service Revenues 12,000
11/30 Cleaning Service Revenues 4,000 On Sept. 1, SB Cleaners sign
IM Unearned Cleaning Service Revenues 4,000

140,870 140,870
Before adjustments, the Supplies account has a balance of P35,400. During the year, the entity acquired P26,800 and the co

Before adjustments, the Supplies account has a balance of P26,400. During the year, the entity acquired P39,800 and the co

On April 1, 2020, a P76,000 premium was paid on a one-year insurance policy. The amount of the premium was debited to

On July 31, 2020, a P57,600 premium was paid on a one-year insurance policy. The amount of the premium was debited to

On June 30, 2020, the end of the fiscal year, the following information is available to Shy Pepe's accountants for making adj

The Prepaid Insurance account showed the following entries on June 30:

                        Beginning balance             P   15,300 expired 15,300

                        January 1                                   29,000 1 year 6 months 14,500

                        May                                             33,660 3 years 2 months 1,870

31,670
Beginning balance represents the unexpired portion of a one-year policy purchased in April of the previous year. 

The January 1 entry represented a new one-year policy, and the May 1 is the additional coverage of a three-year policy.

On June 1, the entity completed negotiations with another client and accepted an advance of P210,000 for services to be pe

On June 1, the entity completed negotiations with another client and accepted an advance of P174,000 for services to be pe

On Sept. 1, SB Cleaners signed a contract, effective immediately, with BCC Hospital to dry clean, for a fix monthly charge of
On Sept. 1, SB Cleaners signed a contract, effective immediately, with BCC Hospital to dry clean, for a fix monthly charge of
cquired P26,800 and the count of supplies on hand amounted to P22,300.

cquired P39,800 and the count of supplies on hand amounted to P22,300.

e premium was debited to Insurance Expense.

e premium was debited to Prepaid Insurance.

accountants for making adjusting entries:

he previous year. 

ge of a three-year policy.

10,000 for services to be performed in the next year. The P210,000 was credited to Unearned Service Revenues.

74,000 for services to be performed until the next year. The P174,000 was credited to  Service Revenues.

for a fix monthly charge of P4,000. The hospital paid for four months' cleaning service in advance.
for a fix monthly charge of P4,000. The hospital paid for four months' cleaning service in advance.
vice Revenues.
Lesson 6 Quiz

Date Account Titles and Explanation PR Debit Credit

Dec. 31
a. Prepaid Rent 180,000 Sept . 30
Rent Expense 180,000

b. Office Supplies 18,000

Office Supplies Expense 18,000

c. Depreciation Expense 45,000

Accumulated Depreciation-Furniture 45,000

d. Salaries Expense 42,000

Salaries Payable 42,000

e. Interest Expense 90,000

Interest Payable 90,000

f. Unearned Travel Revenues 54,000

Travel Revenues 54,000

g. Insurance Expense 15,800

Prepaid Insurance 15,800

REVERSING ENTRIES:

a Rent Expense 180,000

Prepaid Rent 180,000

b Office Supplies Expense 18,000

Office Supplies 18,000

d Salaries Payable 42,000

Salaries Expense 42,000

e Interest Payable 90,000

Interest Expense 90,000
429,000 429,000
Dec. 31 3/6
Lesson 5 - Assignment #5

Pressi Coleman Travel Agency

Worksheet
For the Year Ended December 31, 2019
Unadjusted Adjusted Income Balance
Trial Balance Adjustments Trial Balance Statement Sheet
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Cash 164,000 164,000 164,000
Accounts Receivable 645,000 645,000 645,000
Prepaid Insurance 34,000 (g) 15,800 18,200 18,200
Furniture 2,175,000 2,175,000 2,175,000
Accumulated Depreciation-Furniture 435,000 (c) 45,000 480,000 480,000
Notes Payable 900,000 900,000 900,000
Accounts Payable 285,000 285,000 285,000
Unearned Travel Revenues 72,000 (f) 54,000 18,000 18,000
P. Coleman, Capital 1,680,000 1,680,000 1,680,000
P. Coleman, Withdrawals 1,200,000 1,200,000 1,200,000
Travel Revenues 5,133,000 (f) 54,000 5,187,000 5,187,000
Salaries Expense 3,771,000 (d) 42,000 3,813,000 3,813,000
Rent Expense 360,000 (a) 180,000 180,000 180,000
Office Supplies Expense 63,000 (b) 18,000 45,000 45,000
Miscellaneous Expense 93,000 93,000 93,000
Totals 8,505,000 8,505,000
Prepaid Rent (a) 180,000 180,000 180,000
Office Supplies (b) 18,000 18,000 18,000
Depreciation Expense (c) 45,000 45,000 45,000
Salaries Payable (d) 42,000 42,000 42,000
Interest Expense (e) 90,000 90,000 90,000
Interest Payable (e) 90,000 90,000 90,000
Insurance Expense (g) 15,800 15,800 15,800
444,800 444,800 8,682,000 8,682,000 4,281,800 5,187,000 4,400,200 3,495,000
Net Income 905,200 905,200
5,187,000 5,187,000 4,400,200 4,400,200
Financial Statements

Pressi Coleman Travel Agency

Income Statement
For the year ended December 31, 2019

Travel Revenues 5,187,000

Operating Expenses
Salaries Expense 3,813,000
Rent Expense 180,000
Interest Expense 90,000
Office Supplies Expense 45,000
Depreciation Expense 45,000
Insurance Expense 15,800
Miscellaneous Expense 93,000
Total Operating Expenses 4,281,800
Net Income 905,200

Pressi Coleman Travel Agency

Statement of Changes in Owner's Equity
For the year ended December 31, 2019

P. Coleman, Beg. Capital 1,680,000

Net Income for the year 905,200

Less: P. Coleman,Withdrawals 1,200,000

Increase in Owner's Equity (294,800)
P. Coleman, Capital, December 31, 2019 1,385,200

Pressi Coleman Travel Agency

Statement of Financial Position
As of December 31, 2019

Assets
Current Assets
Cash 164,000
Accounts Receivable 645,000
Office Supplies 18,000
Prepaid Insurance 18,200
Prepaid Rent 180,000 1,025,200
Property & Equipment
Furniture 2,175,000
 Less: Accumulated Depreciation 480,000 1,695,000
Total Assets 2,720,200

Liabilities & Owner's Equity

Liabilities
Notes Payable 900,000
Accounts Payable 285,000
Unearned Survey Revenues 18,000
Salaries Payable 42,000
Interest Payable 90,000 1,335,000
Owner's Equity
P. Coleman, Capital 1,385,200
Total Liabilities & Owner's Equity 2,720,200
Lesson 5 - Assignment #5
Closing entries

Date Account Titles and Explanation PR Debit Credit

May-31

1) Close revenue accounts

Travel Revenues 5,187,000

Income Summary 5,187,000

2) Close expense accounts

Income Summary 4,281,800

Salaries Expense 3,813,000
Rent Expense 180,000
Interest Expense 90,000
Office Supplies Expense 45,000
Depreciation Expense 45,000
Insurance Expense 15,800
Miscellaneous Expense 93,000

3) Close income summary account to capital

Income Summary 905,200

P. Coleman, Capital 905,200

4) Close the drawing account

P. Coleman, Capital 1,200,000

P. Coleman, Withdrawals 1,200,000
9,468,800 9,468,800
 Pressi Coleman Travel Agency
Post-Closing Trial Balance
December 31, 2019

Debits Credits

Cash 164,000
Accounts Receivable 645,000
Office Supplies 18,000
Prepaid Insurance 18,200
Prepaid Rent 180,000
Furniture 2,175,000
Accumulated Depreciation - Furniture 480,000
Notes Payable 900,000
Accounts Payable 285,000
Unearned Survey Revenues 18,000
Salaries Payable 42,000
Interest Payable 90,000
P. Coleman, Capital 1,385,200
3,200,200 3,200,200