Duran, Glaezee Anne C.

September 9, 2021
ACCNTG4 - AAI 20191394@s.ubaguio.edu

A. Prepare the year-end adjusting entries

1 Bad Debt Expense (50,000*0.02) 1,000

Allowance of Bad Debts 1,000
To record the 2% allowance for bad debts

2 Depreciation Expense 10,000

Accumulated Depreciation Expense 10,000
To record the depreciation expense of the equipment

3 Interest Expense (24,000 x 0.10 x 4/12) 800

Interest Payable 800
To record the accrued interest expense for 4 months

4 Rent Expense 2,000

Rent Payable 2,000
To record the accrued rent expense for the month of December

B. Prepare a 10-column worksheet

 Sunray Co.
Worksheet
For the Year Ended December 31, 20x1

Unadjusted Trial
Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Balance
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash ₱ 60,000 ₱ 60,000 ₱ 60,000
Accounts Receivable 50,000 50,000 50,000
Inventory 40,000 40,000 40,000
Equipment 100,000 100,000 100,000
Accumulated Depreciation ₱ 10,000 ₱ 10,000 ₱ 20,000 ₱ 20,000
Accounts Payable 5,000 5,000 5,000
Notes Payable 24,000 24,000 24,000
Sunray, Capital 109,000 109,000 109,000
Service Fees 220,000 220,000 ₱ 220,000
Salaries Expense 96,000 96,000 ₱ 96,000
Rent Expense 22,000 ₱ 2,000 24,000 24,000
Totals ₱ 368,000 ₱ 368,000
Adjustments:
Bad debt Expense 1,000 1,000 1,000
Allowance for bad debts 1,000 1,000 1,000
Depreciation Expense 10,000 10,000 10,000
Interest Expense 800 800 800
Interest Payable 800 800 800
Rent Payable 2,000 2,000 2,000
Totals ₱ 13,800 ₱ 13,800 ₱ 381,800 ₱ 381,800 ₱ 131,800 ₱ 220,000 ₱ 250,000 ₱ 161,800
Net Income 88,200 88,200
Totals ₱ 220,000 ₱ 220,000 ₱ 250,000 ₱ 250,000