Helena Serrano is a lawyer specializing in corporate tax law.

Provided below is
a trial balance taken on December 31 2021:

Serrano Legal Services

Trial Balance
December 31, 2021

Cash ₱ 75,000
Office Supplies 8,000
Prepaid Insurance 12,000
Office Equipment 150,000
Computer Equipment 60,000
Notes Payable ₱ 50,000
Accounts Payable 5,000
Serrano, Capital 114,000
Serrano, Withdrawals 35,000
Consulting Revenues 390,000
Rent Expense 50,000
Salaries Expense 120,000
Telephone Expense 10,000
Utilities Expense 39,000
₱ 559,000.00 ₱ 559,000.00

Information for year-end adjustments:

a. Office Supplies on hand at year-end amounted to P3,000.
b. On Jan. 1 of the current year, Serrano purchased office equipment which cost P150,000 with an e
c. Computer Equipment costing P60,000 with an expected life of three years and no salvage value w
d. A premium of P12,000 for a one-year insurance policy was paid on Dec. 1.
e. Salaries earned by legal aide, which have not yet been paid, amounted to P3,000.

Required:
1. Prepare the adjustments on the worksheet and complete the worksheet.
2. Journalize the adjusting entries.
 Worksheet Unadjusted Adjusting
Debit Credit Debit Credit
Cash ₱ 75,000
Office Supplies 8,000 5,000
Prepaid Insurance 12,000 12,000
Office Equipment 150,000
Accum. Dep'n-Office Eqpt. 30,000
Computer Equipment 60,000
Accum. Dep'n-Comp Eqpt. 10,000
Notes Payable ₱ 50,000
Accounts Payable 5,000
Salaries Payable 3,000
Serrano, Capital 114,000
Serrano, Withdrawals 35,000
Consulting Revenues 390,000
Rent Expense 50,000
Salaries Expense 120,000 3,000
Telephone Expense 10,000
Utilities Expense 39,000
Supplies Expense 5,000
Depreciation Expense 40,000
Insurance Expense 12,000
Total ₱ 559,000 559,000 60000 60000
Net Income
ent which cost P150,000 with an expected life of 5 year and no salvage value.
hree years and no salvage value was purchased on July 1 of the current year.

ounted to P3,000. Adjusting Entries

Supplies Expense
Supplies

Depreciation-Office eqpt.
Accum. Dep'n

Depreciation-Comp. eqpt.
Accum. Dep'n

Insurance Expense
Prepaid Insurance
Salaries Expense
Salaries Payable
Adjusted Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit
75,000 75,000
3,000 3,000
0 0
150,000 150,000
30,000 30,000
60,000 60,000
10,000 10,000
50,000 50,000
5,000 5,000
3,000 3,000
114,000 114,000
35,000 35,000
390,000 390,000
50,000 50,000
123,000 123,000
10,000 10,000
39,000 39,000
5,000 5,000
40,000 40,000
12,000 12,000
602,000 602000 314,000 504,000
190,000 190,000
504,000 504,000 288,000 288000

5000
5000

30000
30000

10000
10000

12000
12000
3000
3000