Wellness Massage

General Journal
For the period ended December 31, 20x1
Date Particulars
20x1
1 Cash
Equity, Mr. A
to record the owner's initial investment to the business
2 Computer Equipment
Cash
to record the acquisition of computer equipment
3 Taxes and licenses expense
Cash
to record the cost of taxes and licenses as expense
4 Insurance Expense
Cash
to record the the prepayment of 1-year insurance
5 Accounts Receivable
Service Fees
to record credit sevice fees
6 Utilities Expense
Cash
to record the cost of utilities as expense
7 Salaries Expense
Cash
to record the the cost of salaries as expense
8 Cash
Accounts Receivable
to record the collection of accounts receivable
 W
G
er 31, 20x1 For the perio
Debit Credit

1,000,000.00 Date
1,000,000.00 20x1
1
700,000.00 2
700,000.00 3
4
200,000.00 6
200,000.00 7
8
42,000.00
42,000.00 ACCO

3,200,000.00 Date
3,200,000.00 20x1
5
420,000.00 8
420,000.00
COMP
2,400,000.00
2,400,000.00 Date
20x1
2,900,000.00 2
2,900,000.00
E

Date
20x1
1

Date
20x1
5
 SAL

Date
20x1
7

UT

Date
20x1
5

INSU

Date
20x1
4

TAXES AN

Date
20x1
3
 Wellness Massage
General Ledger
For the period ended December 31, 20x1
CASH

Particulars Debit Credit

Invested cash in the business 1,000,000.00

Acquired computer equipment 700,000.00
Paid taxes and licenses expense 200,000.00
Paid insurance expense 42,000.00
Paid utilities expense 420,000.00
Paid salaries expense 2,400,000.00
Collects accounts receivable 2,900,000.00

ACCOUNTS RECEIVABLE

Particulars Debit Credit

Billed clients on account 3,200,000.00

Collects accounts receivable 2,900,000.00

COMPUTER EQUIPMENT

Particulars Debit Credit

Acquired computer equipment 700,000.00

EQUITY, MR. A

Particulars Debit Credit

Invested to the business 1,000,000.00

SERVICE FEES

Particulars Debit Credit

Service fees billed to clients on account 3,200,000.00

 SALARIES EXPENSE

Particulars Debit Credit

Paid salaries expense 2,400,000.00

UTILITIES EXPENSE

Particulars Debit Credit

Paid utilities expense 420,000.00

INSURANCE EXPENSE

Particulars Debit Credit

Paid one-year insurance 42,000.00

TAXES AND LICENSES EXPENSE

Particulars Debit Credit

Paid taxes and licenses expense 200,000.00

 Balance
Debit Credit

1,000,000.00
300,000.00
100,000.00
58,000.00
362,000.00
2,762,000.00
138,000.00

Balance
Debit Credit

3,200,000.00
300,000.00

Balance
Debit Credit

700,000.00

Balance
Debit Credit

1,000,000.00

Balance
Debit Credit

3,200,000.00
 Balance
Debit Credit

2,400,000.00

Balance
Debit Credit

420,000.00

Balance
Debit Credit

42,000.00

Balance
Debit Credit

200,000.00
 UNADJUSTED TRIAL
ACCOUNT TITLE
BALANCE
Dr. Cr.
Cash 138,000.00
Accounts Receivable 300,000.00
Allowance for bad debts
Prepaid Insurance
Computer Equipment 700,000.00
Accumulated Depreciation - Computer Equipment
Rent Payable
Mr. A, Equity 1,000,000.00
Service Fees 3,200,000.00
Salaries Expense 2,400,000.00
Rent Expense
Utilities Expense 420,000.00
Bad debt Expense
Depreciation Expense - Computer Equipment
Insurance Expense 42,000.00
Taxes and Licenses 200,000.00
4,200,000.00 4,200,000.00
 Wellness Massage
Worksheet
December 31, 20x1
ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT
Dr. Cr. Dr. Cr. Dr. Cr.
138,000.00
300,000.00
30,000.00 30,000.00
31,500.00 31,500.00
700,000.00
35,000.00 35,000.00
120,000.00 120,000.00
1,000,000.00
3,200,000.00 3,200,000.00
2,400,000.00 2,400,000.00
120,000.00 120,000.00 120,000.00
420,000.00 420,000.00
30,000.00 30,000.00 30,000.00
35,000.00 35,000.00 35,000.00
31,500.00 10,500.00 10,500.00
200,000.00 200,000.00
216,500.00 216,500.00 4,385,000.00 4,385,000.00 3,215,500.00 3,200,000.00
15,500.00
3,215,500.00 3,215,500.00
 POST CLOSING TRIAL
BALANCE SHEET CLOSING ENTRIES
BALANCE
Dr. Cr. Dr. Cr. Dr. Cr.
138,000.00 138,000.00
300,000.00 300,000.00
30,000.00 30,000.00
31,500.00 31,500.00
700,000.00 700,000.00
35,000.00 35,000.00
120,000.00 120,000.00
1,000,000.00 15,500.00 984,500.00
3,200,000.00
2,400,000.00
120,000.00
420,000.00
30,000.00
35,000.00
10,500.00
200,000.00
1,169,500.00 1,185,000.00 3,215,500.00 3,215,500.00 1,169,500.00 1,169,500.00
15,500.00
1,185,000.00 1,185,000.00
 Wellness Massage
Balance Sheet
As of December 31, 20x1

ASSETS
Current Asset
Cash ₱138,000.00
Accounts Receivable 300,000.00
Allowance for bad debts -30,000.00
Receivable, Net 270,000.00
Noncurrent Asset
Prepaid Insurance ₱31,500.00
Computer Equipment 700,000.00
Accumulated Depreciation - Computer Equipment -35,000.00
Equipment, Net 665,000.00
TOTAL ASSETS ₱1,104,500.00

LIABILITIES
Rent Payable ₱120,000.00
TOTAL LIABILITIES 120,000.00

EQUITY
Owner's Equity 984,500.00
TOTAL EQUITY 984,500.00

TOTAL LIABILITIES & EQUITY ₱1,104,500.00

 Wellness Massage Date
Income Statement 1/1/20x2
For the month ended December 31, 20x1

INCOME
Service Fees ₱3,200,000.00

EXPENSES
Salaries Expense -₱2,400,000.00
Rent Expense -120,000.00
Utilities Expense -420,000.00
Bad debt Expense -30,000.00
Depreciation Expense - Computer Equipment -35,000.00
Insurance Expense -10,500.00
Taxes and Licenses -200,000.00
TOTAL EXPENSES -₱3,215,500.00

LOSS FOR THE PERIOD -₱15,500.00

 Reversing Entries
Particulars Debit Credit
Rent Payable 120,000.00
Rent Expense 120,000.00
Insurance Expense 31,500.00
Prepaid Insurance 31,500.00
to record the reversing entry
 Rak N' Koll Co.
General Journal
For the period ended December 31, 20x1
Date Particulars Debit
20x1 Dec.
1 Rent Expense 100,000.00
Cash
to record the cost of rent as expense
2 Cash 262,000.00
Service Fees
to record cash service fees
3 Office Supplies Expense 20,000.00
Cash
to record the cost of office supplies as expense
12 Cash 60,000.00
Service Fees
to record cash service fees
15 Salaries Expense 45,000.00
Cash
to record the cost of salary as expense
17 Computer Equipment 150,000.00
Cash
to record the acquisition of computer equipment
17 Utilities Expense 15,000.00
Cash
to record the the cost of utilities as expense
23 Cash 37,000.00
Service Fees
to record cash service fees
23 Salaries Expense 75,000.00
Cash
to record the cost of salary as expense
28 Prepaid Insurance 5,000.00
Cash
to record the the prepayment of 1-year insurance
30 Cash 350,000.00
Service Fees
to record cash service fees
30 Salaries Expense 45,000.00
Cash
to record the cost of salary as expense
Credit CASH

Date Particulars
100,000.00 20x1
Nov. 30 Beggining balance
Dec. 1 Payment of rent expense
262,000.00 2 Rendered services on cash basis
3 Paid office supplies expense
12 Rendered services on cash basis
20,000.00 15 Paid salaries expense
17 Acquired computer equipment
17 Paid utilities expense
60,000.00 23 Rendered services on cash basis
23 Paid salaries expense
28 Prepayments of one-year insurance
45,000.00 30 Rendered services on cash basis
30 Paid salaries expense
PREPAID INSURANCE
150,000.00
Date Particulars
20x1
15,000.00 Dec. 28 Prepayments of one-year insurance
COMPUTER EQUIPMENT

37,000.00 Date Particulars

20x1
Nov. 30 Beginning balance
75,000.00 17 Acquired computer equipment
ACCUMULATED DEPRECIATIO

5,000.00 Date Particulars

20x1
Nov. 30 Beginning balance
350,000.00 NOTES PAYABLE

Date Particulars
45,000.00 20x1
Nov. 30 Beginning balance
OWNER'S EQUITY

Date Particulars
20x1
Nov. 30 Beginning balance
OWNER'S DRAWING

Date Particulars
20x1
Nov. 30 Beginning balance
SERVICE FEES

Date Particulars
20x1
Nov. 30 Beginning balance
Dec. 2 Rendered services on cash basis
12 Rendered services on cash basis
23 Rendered services on cash basis
30 Rendered services on cash basis
 Rak N' Koll Co.
General Ledger
For the period ended December 31, 20x1
CASH
Balance
Debit Credit Debit Credit Date
20x1
396,000.00 396,000.00 Nov. 30
100,000.00 296,000.00 Dec. 15
262,000.00 558,000.00 23
20,000.00 538,000.00 30
60,000.00 598,000.00
45,000.00 553,000.00
150,000.00 403,000.00 Date
15,000.00 388,000.00 20x1
37,000.00 425,000.00 Nov. 30
75,000.00 350,000.00 Dec. 1
5,000.00 345,000.00
350,000.00 695,000.00
45,000.00 650,000.00 Date
PREPAID INSURANCE 20x1
Balance Nov. 30
Debit Credit Debit Credit Dec. 17

5,000.00 5,000.00
OMPUTER EQUIPMENT Date
Balance 20x1
Debit Credit Debit Credit Nov. 30
Dec. 3
1,400,000.00 1,400,000.00
150,000.00 1,550,000.00
MULATED DEPRECIATION Date
Balance 20x1
Debit Credit Debit Credit Nov. 30

240,000.00 240,000.00
NOTES PAYABLE
Balance
Debit Credit Debit Credit
 1,000,000.00 1,000,000.00
OWNER'S EQUITY
Balance
Debit Credit Debit Credit

1,254,000.00 1,254,000.00
OWNER'S DRAWING
Balance
Debit Credit Debit Credit

3,300,000.00 3,300,000.00
SERVICE FEES
Balance
Debit Credit Debit Credit

4,946,000.00 4,946,000.00
262,000.00 5,208,000.00
60,000.00 5,268,000.00
37,000.00 5,305,000.00
350,000.00 5,655,000.00
Co.
ger
cember 31, 20x1
SALARIES EXPENSE
Balance
Particulars Debit Credit Debit

Beginning balance 990,000.00 990,000.00

Paid Dec. 15 salaries 45,000.00 1,035,000.00
Paid 13 month pay 75,000.00 1,110,000.00
Paid Dec. 31 salaries 45,000.00 1,155,000.00
RENT EXPENSE
Balance
Particulars Debit Credit Debit

Beginning balance 1,100,000.00 1,100,000.00

Paid rent for the month of december 100,000.00 1,200,000.00
UTILITIES EXPENSE
Balance
Particulars Debit Credit Debit

Beginning balance 165,000.00 165,000.00

Paid utilities expense 15,000.00 180,000.00
COMPUTER EQUIPMENT
Balance
Particulars Debit Credit Debit

Beginning balance 84,000.00 84,000.00

Paid office supplies expense 20,000.00 104,000.00
INSURANCE EXPENSE
Balance
Particulars Debit Credit Debit

Beginning balance 5,000.00 5,000.00

Balance
Credit

Balance
Credit

Balance
Credit

Balance
Credit

Balance
Credit
 UNADJUSTED TRIAL
ACCOUNT TITLE
BALANCE
Dr. Cr.
Cash 650,000.00
Accounts Receivable
Office Supplies
Prepaid Insurance 5,000.00
Computer Equipment 1,550,000.00
Accumulated Depreciation 240,000.00
Notes Payable 1,000,000.00
Interest Payable
Utilities Payable
Owner's Equity 1,254,000.00
Owner's Drawing 3,300,000.00
Service Fees 5,655,000.00
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 180,000.00
Office supplies expense 104,000.00
Depreciation Expense
Insurance Expense 5,000.00
Interest Expense
8,149,000.00 8,149,000.00
 Rak N' Koll
Worksheet
December 31, 20x1
ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT
Dr. Cr. Dr. Cr. Dr. Cr.
650,000.00
34,000.00 34,000.00
9,000.00 9,000.00
5,000.00
1,550,000.00
126,250.00 366,250.00
1,000,000.00
10,000.00 10,000.00
7,500.00 7,500.00
1,254,000.00
3,300,000.00
34,000.00 5,689,000.00 5,689,000.00
1,155,000.00 1,155,000.00
1,200,000.00 1,200,000.00
7,500.00 187,500.00 187,500.00
9,000.00 95,000.00 95,000.00
126,250.00 126,250.00 126,250.00
5,000.00 5,000.00
10,000.00 10,000.00 10,000.00
186,750.00 186,750.00 8,326,750.00 8,326,750.00 2,778,750.00 5,689,000.00
2,910,250.00
5,689,000.00 5,689,000.00
 POST CLOSING TRIAL
BALANCE SHEET CLOSING ENTRIES
BALANCE
Dr. Cr. Dr. Cr. Dr. Cr.
650,000.00 650,000.00
34,000.00 34,000.00
9,000.00 9,000.00
5,000.00 5,000.00
1,550,000.00 1,550,000.00
366,250.00 366,250.00
1,000,000.00 1,000,000.00
10,000.00 10,000.00
7,500.00 7,500.00
1,254,000.00 3,300,000.00 2,910,250.00 864,250.00
3,300,000.00 3,300,000.00
5,689,000.00
1,155,000.00
1,200,000.00
187,500.00
95,000.00
126,250.00
5,000.00
10,000.00
5,548,000.00 2,637,750.00 8,989,000.00 8,989,000.00 2,248,000.00 2,248,000.00
2,910,250.00
5,548,000.00 5,548,000.00
 Rak N' Koll
Balance Sheet
As of December 31, 20x1

ASSETS
Current Asset
Cash ₱650,000.00
Accounts Receivable 34,000.00
Prepaid Office Supplies 9,000.00
Prepaid Insurance 5,000.00
Total Current Asset ₱698,000.00
Noncurrent Asset
Computer Equipment 1,550,000.00
Accumulated Depreciation - Computer Equipment -366,250.00
Equipment, Net 1,183,750.00
TOTAL ASSETS ₱1,881,750.00

LIABILITIES
Notes Payable ₱1,000,000.00
Interest Payable 10,000.00
Utilities Payable 7,500.00
TOTAL LIABILITIES ₱1,017,500.00

EQUITY
Owner's Equity 864,250.00
TOTAL EQUITY 864,250.00

TOTAL LIABILITIES & EQUITY ₱1,881,750.00

 Rak N' Koll
Income Statement
For the month ended December 31, 20x1

INCOME
Service Fees ₱5,689,000.00
EXPENSES
Salaries Expense -₱1,155,000.00
Rent Expense -1,200,000.00
Utilities Expense -187,500.00
Office Supplies Expense -95,000.00
Depreciation Expense - Computer Equipment -126,250.00
Insurance Expense -5,000.00
Interest Expense -10,000.00
TOTAL EXPENSES -₱2,778,750.00

PROFIT FOR THE PERIOD ₱2,910,250.00