DATE ACCOUNT TITLES AND EXPLANATIONS DEBIT

OCTOBER
1 Cash ₱ 2,000,000.00
Capital
To record Investments of owner

2 Equipment 1,000,000.00
Cash
To record acquisition of equipment

3 Cash 500,000.00
Notes Payable
To record obtained one year loan

4 Prepaid Insurance 160,000.00

Cash
To record paid one year insurance

5 Cash 2,000,000.00
Accounts Receivable 4,000,000.00
Service Fees
To record earned service

6 Cash 1,800,000.00
Accounts Receivable
To record collection of receivables

7 Salaries Expense 1,200,000.00

Cash
To record paid salaries

8 Utilities Expense 500,000.00

Cash
To record paid utilities

9 Supplies 120,000.00
Cash
To record purchased of supplies

10 Owner's Drawings 1,400,000.00

Cash
To record owners drawings

ADJUSTING ENTRIES
31 Depreciation Expense- Equipment 100,000.00
 Accumulated Ddepreciation- Equipment
Recognition of depreciation expense of equipment

31 Interest Expense 30,000.00

Interest Payable
Recognition of accrued income

31 Insurance Expense 40,000.00

Prepaid Insurance
Recognition of insurance expense

31 Supplies Expense 80,000.00

Supplies
Recognition of supplies expense
CREDIT

₱ 2,000,000.00

1,000,000.00

500,000.00

160,000.00

6,000,000.00

1,800,000.00

1,200,000.00

500,000.00

120,000.00

1,400,000.00
100,000.00

30,000.00

40,000.00

80,000.00
 CASH ACCOUNTS RECEIVABLE
1 2,000,000.00 2 1,000,000.00 4,000,000.00
3 500,000.00 4 160,000.00 ₱ 2,200,000.00
5 2,000,000.00 7 1,200,000.00
6 1,800,000.00 8 500,000.00
9 120,000.00
10 1,400,000.00
₱ 1,920,000.00 4,380,000.00 SALARIES EXPENSE
1,200,000.00
1,200,000.00

Utilities Expense
500,000.00
500,000.00

Owner's Capital
2,000,000.00
2,000,000.00
NTS RECEIVABLE PREPAID INSURANCE
1,800,000.00 160,000.00
160,000.00
Service Fees
6,000,000.00
6,000,000.00
EQUIPMENT
ES EXPENSE 1,000,000.00 Notes Payable
1,000,000.00 500,000.00
500,000.00

Supplies
120,000.00
120,000.00

Owner's Drawings
1,400,000.00
₱ 1,400,000.00
 TRIAL BALANCE
ACCOUNT TITLES DEBIT CREDIT
Cash ₱ 1,920,000.00
Accounts Receivable 2,200,000.00
Prepaid Insurance 160,000.00
Supplies 120,000.00
Equipment 1,000,000.00
Accumulated Depreciation - Equipment
Notes Payable ₱ 500,000.00
Interest Payable
Owner's Capital 2,000,000.00
Owner's Drawings 1,400,000.00
Service Fees 6,000,000.00
Salaries Expense 1,200,000.00
Utilities Expense 500,000.00
Depreciation Expense - Equipment
interest Expense
Insurance Expense
Supplies Expense
TOTALS ₱ 8,500,000.00 ₱ 8,500,000.00
NET INCOME
 As of Decem

ADJUSTMENTS ADJUSTED TRIAL BALANCE

DEBIT CREDIT DEBIT
₱ 1,920,000.00
2,200,000.00
₱ 40,000.00 120,000.00
80,000.00 40,000.00
1,000,000.00
100,000.00

30,000.00

1,400,000.00

1,200,000.00
500,000.00
₱ 100,000.00 100,000.00
30,000.00 30,000.00
40,000.00 40,000.00
80,000.00 80,000.00
₱ 250,000.00 ₱ 250,000.00 ₱ 8,630,000.00
 As of December 31,20x1

TRIAL BALANCE INCOME STATEMENT BALANCE SHEET

CREDIT DEBIT CREDIT DEBIT
₱ 1,920,000.00
2,200,000.00
120,000.00
40,000.00
1,000,000.00
₱ 100,000.00
500,000.00
30,000.00
2,000,000.00
1,400,000.00
6,000,000.00 ₱ 6,000,000.00
₱ 1,200,000.00
500,000.00
100,000.00
30,000.00
40,000.00
80,000.00
₱ 8,630,000.00 ₱ 1,950,000.00 ₱ 6,000,000.00 ₱ 6,680,000.00
₱ 4,050,000.00
₱ 6,000,000.00 ₱ 6,000,000.00 ₱ 6,680,000.00
BALANCE SHEET CLOSING POST CLOSIN
CREDIT DEBIT CREDIT

₱ 100,000.00
500,000.00
30,000.00
2,000,000.00 ₱ 1,400,000.00 ₱ 4,050,000.00
1,400,000.00
6,000,000.00
1,200,000.00
500,000.00
100,000.00
30,000.00
40,000.00
80,000.00
₱ 2,630,000.00 ₱ 7,400,000.00 ₱ 7,400,000.00
₱ 4,050,000.00
₱ 6,680,000.00
 POST CLOSING
DEBIT CREDIT
₱ 1,920,000.00
2,200,000.00
120,000.00
40,000.00
1,000,000.00
₱ 100,000.00
500,000.00
30,000.00
4,650,000.00

₱ 5,280,000.00 ₱ 5,280,000.00
 Entity A
Balance Sheet
As of December 31, 20x1

ASSETS
CURRENT ASSETS
Cash
Accounts Receivable
Prepaid Insurance
Supplies
TOTAL CURRENT ASSETS

NON CURRENT ASSETS

Equipment
Accumulated Depreciation Equipment
TOTAL NON CURRENT ASSETS

TOTAL ASSETS

LIABILITIES AND OWNER'S EQUITY

CURRENT LIABILITIES
Interest Payable
TOTAL CURRENT LIABILITIES

NON CURRENT LIABILITIES

Notes Payable
TOTAL NON CURRENT LIABILITIES

EQUITY
Owner's Equity
TOTAL OWNER'S EQUITY

TOTAL LIABILITIES AND OWNER'S EQUITY

 Entity A
Balance Sheet
As of December 31, 20x1

1,920,000.00
2,200,000.00
120,000.00
40,000.00
₱ 4,280,000.00

1,000,000
-100,000
₱ 900,000.00

30,000.00
₱ 30,000.00

500,000.00
₱ 500,000.00

4,650,000.00
₱ 4,650,000.00
₱ 5,180,000.00

₱ 5,180,000.00
 Entity A
Income Statement
As of December 31, 20x1

Revenues
Service Fees 6,000,000.00
Total Revenues

Expenses
Salaries Ecpense 1,200,000.00
Utilities Expense 500,000.00
Depreciation Expense - Equipment 100,000.00
Interest Expense 30,000.00
Insurance Expense 40,000.00
Supplies expense 80,000.00
Total Expenses

Net income/ Loss

₱ 6,000,000.00

₱ 1,950,000.00

₱ 4,050,000.00