Regular Transactions

Date Transactions
Jan-01 Salahuddin invested P150,000 in the firm
Feb-14 Paid rent to Recoletos Realty, P8,000
Mar-01 Purchased supplies on account P7,200
Apr-01 Acquired P75,000 of office equipment, paying P37,000 down with the balance due in 30 days
May-05 Paid P7,200 on account for supplies purchased
Jun-06 Paid assistants salaries for two weeks P6,000
Jul-08 Performed consulting services for cash P20,000
Sep-11 Paid utilities for the month, P6,000
Oct-01 Billed clients for the month consulting services P48,000
Dec-30 Salahuddin withdrew P12,000 from the business

Additional Information
a Supplies on hand at Dec 30 amounted to P4,700
b Salaries of P1,800 have accrued at year end
c Depreciation is P800 for December
d Salahuddin has spent 20 hours on a taxfraud case during December. When completed in January ,
his work will be billed at P500 per hour
ted in January ,

CHART OF ACCOUNTS
Balance Sheet Accounts

100
110
120
130
140

150
155

210
220

310
320
 CHART OF ACCOUNTS
Balance Sheet Accounts Income Statement Acc
Assets
Current Assets 410
Cash
Accounts Receivable
Fees Receivable 510
Office Supplies 520
530
540
Non Current Assets 550
Equipment
Accumulated Depreciation-OE

Liabilities
Accounts Payable
Salaries Payable

Equity
Salahuddin's Capital
Salahuddin's Withdrawals
 Income Statement Accounts
Income
Consulting Revenues

Expenses
Utilities Expense
Rent Expense
Salaries Expense
Supplies Expense
Depreciation Expense-OE
Journal Entry
Date Debit
Jan-01 Cash 150,000
Salahuddin, Capital
To record the owner’s initial investment to the businesss
Feb-14 Rent expense 8,000
Cash
to record the rent expense paid for cash
Mar-01 Supplies 7,200
Accounts Payable
To record the purchase of merchandise on account
Apr-01 Office Equipment 75,000
Cash
Accounts Payable
to record the acquisition of equipment
May-05 Accounts Payable 7,200
Cash
to record the settlement of accounts payable
Jun-06 Salaries Expense 6,000
Cash
To record the salaries expense
Jul-08 Cash 20,000
Consulting Revenues
To record the consulting revenues for cash
Sep-11 Utilities expense 6,000
Cash
To record the utilities expense
Oct-01 Fees Receivable 48,000
Consulting Revenues
To record the consulting revenues in account
Dec-30 Salahuddin, Withdrawals 12,000
Cash
to record the withdrawals of the owner
Credit

150,000

8,000

7,200

37,000
35,000

7,200

6,000

20,000

6,000

48,000

12,000
Adjusting Entry Debit Credit
a. Supplies Expense 2,500
Supplies 2,500

b. Salaries Expense 1,800

Salaries Payable 1,800

c. Depreciation Expense-Office Equipment 800

Accumulated Depreciation-Office Equipment 800

d. Fees Receivable 10,000

Consulting Revenues 10,000
 SALAHUDDIN'S TAX CONS
WORKSHEET 20X1
Post Ref. Account Title Unadjusted Trial Balance Adjustments
ASSETS Debit Credit Debit
100 Current Asset
110 Cash 93,800
120 Accounts Receivable 48,000
130 Fees Receivable 10,000
140 Office Supplies 7,200
Non Current Assets
150 Office Equipment 75,000
155 Accumulated Depreciation-Equipment
LIABILITIES
Current Liabilities
210 Accounts Payable 38,000
220 Salaries Payable
EQUITY
310 Salahuddin's Capital 150,000
320 Salahuddin's Withdrawals 12,000
INCOME
410 Consulting Revenues 68,000
EXPENSES
510 Salaries Expense 6,000 1,800
520 utilities Expense 6,000
530 Rent Expense 8,000
540 Supplies Expense 2,500
550 Depreciation Expense- Equipment 800
Total ₱ 256,000 ₱ 256,000 ₱ 15,100
Net Income
LAHUDDIN'S TAX CONSULTANT
WORKSHEET 20X1
Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit Credit

93,800 93,800
48,000 48,000
10,000 10,000
2,500 4,700 4,700

75,000 75,000
800 800 800

38,000 38,000
1,800 1,800 1,800

150,000 150,000
12,000 12,000

10,000 78,000 78,000

7,800 7,800
6,000 6,000
8,000 8,000
2,500 2,500
800 800
₱ 15,100 ₱ 268,600 ₱ 268,600 25,100 78,000 243,500 190,600
52,900 52,900
₱ 78,000 ₱ 78,000 ₱ 243,500 ₱ 243,500
 Salahuddin's Tax Consultant
Statement of Comprehensive Income
for the year ended December 31, 2020

Revenue
Consulting Revenues ₱ 78,000.00

Expenses
Rent Expense 8,000
Salaries Expense 13,800
Supplies Expense 2,500
Depreciation Expense - office equipment 800 25,100

Profit ₱ 52,900
 Salahuddin's Tax Consultant
Statement of Changes in Equity
for the year ended December 31, 2020

Salahuddin, Capital, Jan. 1, 2020 ₱ 190,900

Add: Additional Investment By Owner -
Medz Salahuddin, Profit 52,900
Total ₱ 243,800
Less: Salahuddin, Withdrawals 12,000
Salahuddin, Capital, Dec. 31, 2022 ₱ 231,800
 Salahuddin's Tax Consultant
Statement of Financial Position
for the year ended December 31, 2020

Assets
Current Assets
Cash ₱ 93,800
Fees Receivable 58,000
Supplies 4,700
Total Current Assets 156,500
Non-Current Assets
Office Equipment 75,000
Less: Accumulated Depreciation-Office Equipment 800 74,200
Total Assets ₱ 230,700

Liabilities
Accounts Payable 38,000
Salaries Payable 1,800
Total Current Liabilities 39,800

Owner's Equity
Salahuddin, Capital, Dec. 31, 2022 190,900
Total Liabilities and Owner's Equity ₱ 230,700
 Salahuddin's Tax Consultant
Statement of Cash Flows
For the year ended December 31, 2020

Cash flows from Operating Activities

Cash received from customers ₱ 20,000
Payment to suppliers -7,200
Payment to employees -12,000
Payment for rent -8,000
Net cash flows provided by Operating Activities

Cash flows from Investing Activities

Payment to acquire office equipment -37,000
Net cash flows provided by Investing Activities

Cash flow from Financing Activities

Cash received as investment by owner 150,000
Payment for withdrawal by the owner -12,000
Net cash flows from Financing Activities

Net increase (decrease) in cash

Cash balance, beg.
Cash and Cash Equivalent, end
-₱ 7,200

-37,000

138,000

₱ 93,800
-
₱ 93,800
 Salahuddin's Tax Consultant
Statement of Cash Flows
For the year ended December 31, 2020

Note 1 Cash
Cash on Hand ₱ 93,800

Note 2 Accounts Receivable

All trade receivable are determined to be collectible
Account Receivable ₱ 48,000
Fees Receivable 10,000
₱ 58,000

Note 3 Other Current Assets

This account consistsof the following:
Supplies 4,700
₱ 4,700

Note 4 Property Plant and Equipmet

Office Equipment ₱ 75,000
Accumulated Depreciation- Office Equipment 800
Property Plant and Equipmet ₱ 74,200

Property Plant and Equipment have a useful life of 4 years and

depreciated using the straight-line method

Note 5 Trade and other Payables

This line item consist of the following:
Accounts Payable ₱ 38,000
Salaries Payable 1,800
Trade and other Payables ₱ 39,800

Note 6 Income
Consulting Revenue ₱ 78,000

All sales are assumed to be on an accrual basis, with full-service

requests assumed throughout the operations

Note 7 General and Administrative Expenses

This nominal account consists of the following:
 Salaries Expense 7,800
utilities Expense 6,000
Rent Expense 8,000
Supplies Expense 2,500
Depreciation Expense- Equipment 800
25,100

Note 13 Salahuddin, Capital, Jan. 1, 2020 ₱ 190,900

Add: Additional Investment -
Profit 52,900
Total ₱ 243,800
Less: Salahuddin, Withdrawals 12,000
Salahuddin, Capital, Dec. 31, 2022 ₱ 231,800