PROBLEM Vertek Consulting

Trial Balance
as at 31 May 2013

Acct.No. Dr Cr
101 Cash 15400 A BS Cash
110 Accounts Receivable 8000 A BS Accounts Receivable
129 Prepaid Insurance 4800 A BS Prepaid Insurance
130 Supplies 3000 A BS Supplies
135 Office Furnitures 24000 A BS Office Furnitures
200 Accounts Payable 7000 L BS Accounts Payable
Unearned Service Unearned Service
230 Revenue 6000 L BS Revenue
300 M.Griffin Capital 38200 C BS M.Griffin Capital
400 Service Revenue 12000 R IS Service Revenue
510 Salaries Expense 6000 E IS Salaries Expense
520 Rent Expense 2000 E IS Rent Expense
63200 63200 Sub-Totals

In addition to those accts listed on the TB, the chart of accouts of Accum. Depre.-Office
Vektek Consulting also contains the ff. accounts and acct. no.: No. 136 C.A BS Fur.
Accumulated Depreciation-Office Furniture, No. 210 Travel Payable,
No. 220 Salaries Payable, No. 530 Depr Exp, No. 540 Insurance Exp, L BS Travel Payable
NO.550 Travel Exp and No. 560 Supplies Exp L BS Salaries Payable
Other data: E IS Depreciation Expense
1. P1,000 of supplies had been used during the month. E IS Insurance Expense
2. Travel exp incurred but not paid, P400. E IS Travel Expense
4. P2000 of the balance in unearned service revenue account remains E IS Supplies Expense
unearned at the end of the month. Subtotals
5.May 31 is a Wednesday, and employees are paid on Fridays. Two Profit
employees are paid P1,000 each for a 5-day work week.
6. Office furniture has a 5 year life with no residual value. It is being Totals
depreciated at P400 per month
3. Insurance policy is for 2 years.
7. Invoices represing P2,000 of services performed during the month
have not been recorded as at May 31.

Required. Prepare the following:

1. Adjusting entriesfor the month of May.
2. Worksheet
3. Financial Statements
 Vektek Consulting
WORKSHEET
Profit or loss
Trial Balance Adustment Adjusted Trial Balance Income Statement
Debit Credit Debit Credit Debit Credit Debit Credit
15,400 15,400
8,000 8,000
4,800 4,800
3,000 3,000
24,000 24,000
7,000 7,000

6,000 6,000
38,200 38,200
12,000 12,000
6,000 6,000
2,000 2,000
63,200 63,200

-
-
-
-
-
-
-

- - 63,200 63,200 - -

Income & Expense Summary (P

Exp

-
ng

Statement of Financial Position

Balance Sheet Closing Entries Post Closing Trial Balance
Debit Credit Debit Credit Debit Credit

- -

ncome & Expense Summary (P or L)

Inc

-
NI or P -
Name of Entity
Profit or loss
For the period ended

Service Income
Other income
Total Income
Salaries Expense
Repairs & Maintenance

Utilities Expense
Communication Epense
Taxes & Licenses
Depreciation Expense - Building
Depreciation Expense -Office Equipment
Depreciation Expense -Furnitures & Fixtures
Office Supplies Expense

Interest Expense
Total Expenses
Profit or Loss 0

Name of Entity
Statement of Changes in Owner's Equity
For the period ended

Owner Capital, Beginning

Changes
Profit or Loss 0
Drawing
Total Changes - Inc (D 0
Owner Capital, Ending 0

Name of Entity
Statement of Financial Position
As of the period ended

ASSETS
Cash
Accounts Receivable
Office Supplies
Research Resources
Land
Building
Accumulated Deprecia 0
Office Equipment
Accumulated Deprecia 0
Furnitures & Fixtures
Accumulated Depreciat 0
Total Assets 0

LIABILITIES & OWNER'S EQUITY

Accounts Payable
Notes Payable
Unearned Revenues
Interest Payable
Utilities Payable
Salaries Payable
Total Liabiltiies 0
Owner Capital, Ending 0
Total Liabiltiies & Ow 0

Name of Entity
Statement of Cash Flows
As of the period ended

Operating Activities
Receipts
Less Payments
Net inflow (outflow) f 0

Investing Activities
Receipts
Less Payments
Net inflow (outflow) from investing activities

Financing Activities
Receipts
Less Payments
Net inflow (outflow) from financing activities

Total increase (decrease) in cash

Cash Beginning balance
Cash Ending balance 0
The balances in the ledger of Landscape Services as of
December 31, 2007 before adjustments, are as follows:

Cash 4500
Supplies 4,150
Prepaid Insurance 8,700 Cash
Equipment 42,000 Supplies
Accumulated Depr 10,200 Prepaid Insurance
Tim Welch, Capital 33050 Land
Tim Welch, Drawing 2,900 Buildings
Service Revenue 52,500 Furniture
Salary Expense 26,600 Accounts Payable
Rent Expense 5,000 Unearned Rent Revenue (L)
Miscellaneous Expense 1,900 Mortagage Payable
95,750 95,750 Sue Philips Capital
Rent Revenue
Advertising Expense
Adjustment data are as follows: supplies on hand, Salaries Expense
December 31, P1,000; insurance expired for
Utilities Expense
December, P900; depreciation on equipment for
December, P1,500; salaries accrued, December 31, Sub-Totals
P1,000.

Accumulated Depreciation-Bldg
Accumulated Depreciation-
Required. Prepare the following: Furniture
1. Adjusting entriesfor the month of May. Salaries Payable
2. Worksheet Interest Payable
3. Financial Statements Depreciation Exp-Bldg
Depreciation Exp-Furniture
Supplies Expense
Interest Expense
Insurance Expense
Sub-Totals
Profit
Totals
2400/12mos=200 mo
3000/12mos=250 mo
Int=35000x.12x1/12=350

Sub-Totals
Profit
Totals
 Landscape
WORKSHEET

Unadjusted Trial Balance Adustment Adjusted Trial Balance

Debit Credit Debit Credit Debit Credit
2,500 2,500
1,900 1,900
2,400 2,400
15,000 15,000
70,000 70,000
16,800 16,800
5,300 5,300
3,600 3,600
35,000 35,000
60,000 60,000
9,200 9,200
500 500
3,000 3,000
1,000 1,000
113,100 113,100

-
-
-
-
-
-
-
-
- - 113,100 113,100

Income Statement Balance Sheet

DR Exp < CR Income DR A,D > CR CALC Bal Figure
7,300 9,200 107,400 105,500 Capital
1,900 1,900 +Profit (I-E)
9,200 9,200 107,400 107,400
 Landscape
WORKSHEET

Profit or loss Statement of Financial Position

Income Statement Balance Sheet Closing Entries
Debit Credit Debit Credit Debit Credit

- - - -
1,900 1,900
1,900 - - 1,900

Net income Net income

 Landscape
Profit or loss
For the period ended
Post Closing Trial Balance
Debit Credit Service Income
Other income
Total Income
Salaries Expense
Repairs & Maintenance
Utilities Expense
Communication Epense
Taxes & Licenses
Depreciation Expense - Building
Depreciation Expense -Office Equipment
Depreciation Expense -Furnitures & Fixtures
Office Supplies Expense
Interest Expense
Total Expenses
Profit or Loss

Name of Entity

Statement of Changes in Owner's Equity

For the period ended

Owner Capital, Beginning

Changes
Profit or Loss
Drawing
Total Changes - Inc (Dec)
Owner Capital, Ending

Name of Entity
Statement of Financial Position
As of the period ended

ASSETS

Cash
Accounts Receivable
Office Supplies
Research Resources
Land
Building
Accumulated Depreciation-Building
Office Equipment
Accumulated Depreciation-Office Equipment
Furnitures & Fixtures
Accumulated Depreciation-Furnitures & Fixtures
Total Assets

LIABILITIES & OWNER'S EQUITY

Accounts Payable
Notes Payable
Unearned Revenues
Interest Payable
Utilities Payable
Salaries Payable
Total Liabiltiies
Owner Capital, Ending
Total Liabiltiies & Owner's Equity

Name of Entity
Statement of Cash Flows
As of the period ended

Operating Activities
Receipts
Less Payments
Net inflow (outflow) from operating activities

Investing Activities
Receipts
Less Payments
Net inflow (outflow) from investing activities

Financing Activities
Receipts
Less Payments
Net inflow (outflow) from financing activities

Total increase (decrease) in cash

Cash Beginning balance
Cash Ending balance
0

0
0
 0

0
0

TY

0
0
0

0
Presented below is the December 31 trial balance of Cassini Studios.

Cassini Studios
Trial Balance
December 31, 2008

Debit Credit
Cash $ 14,800
Accounts Receivable 33,600
Allowances for Doubtful Accounts $ 2,160
Inventory, January 1 62,400
Furniture and Equipment 67,200
Accumulated Depreciation-Furniture and Equip. 26,880

Prepaid Insurance ............................ 4,080

Notes Payable ................................ 22,400
Cassini, Capital ............................. 72,000
Sales ........................................ 480,000
Purchases .................................... 320,000
Sales Salaries Expense ....................... 40,000
Advertising Expense .......................... 5,360
Administrative Salaries Expense .............. 52,000
Office Expense ...............................    4,000         
$603,440 $603,440

-1 Prepare adjusting journal entries for the following items:

(a) Adjust the Allowance for Doubtful Accounts to 8 percent of the accoun
(b) Furniture and equipment is depreciated at 20 percent per year.
(c) Insurance expired during the year, $2,040.
(d) Interest accrued on notes payable, $2,688.
(e) Sales salaries earned but not paid, $1,920.
(f) Advertising paid in advance, $560.
(g) Office supplies on hand, $1,200, charged to Office Expense when purch
-2 Prepare closing entries for Cassini after the above adjusting entries have been mad
ts to 8 percent of the accounts receivable.
20 percent per year.

o Office Expense when purchased.

justing entries have been made. Additional information shows the inventory on December 31 was $64,000.
PROB:The Mercury Motel opened for business on May 1, 2013, its trial balance
before adjustment is as follows
Mercury Motel
Trial Balance
as at 31 May 2013
Acct.No. Dr Cr
101 Cash 2500

126 Supplies 1900

130 Prepaid Insurance 2400
140 Land 15000
141\ Buildings 70000
149 Furniture 16800

201 Accounts Payable 5300

Unearned Rent
208 Revenue (L) 3600
275 Mortagage Payable 35000
301 Sue Philips Capital 60000
429 Rent Revenue 9200
610 Advertising Expense 500
726 Salaries Expense 3000
732 Utilities Expense 1000
113100 113100

In addition to those accts listed on the TB, the chart of accouts of Mercury
Motel also contains the ff. accounts and acct. no.: No. 142 Accumulated
Depreciation-Furniture, No. 212 Salaries Payable, No. 230 Interest
Payable, No. 619 Depr Exp-Bldg , No. 620 Depr Exp-Furniture, No. 631
Supplies Exp, No. 718 Interest Exp, No. 722 Insurance Exp.
Other data:

1. Insurance expires at the rate of P200 per month.

2. A count of supplies shows P900 of unused supplies on May 31
3. Annual depreciation is P2,400 on the building and P3,000 on furniture
4. The mortgage interest rate is 12%. The mortgage was taken out on 1 May.
5. Unearned rent of P2,500 has been earned.
6. Salaries of P800 are accrued and unpaid as at 31 May.

Required. Prepare the following:

1. Adjusting entriesfor the month of May.

2. Worksheet
3. Financial Statements
 Unadjusted Trial Balance Adustment
Debit Credit Debit Credit
Cash 2,500
Supplies 1,900

Prepaid Insurance
Expense (A) 2,400
Land 15,000
Buildings 70,000
Furniture 16,800
Accounts Payable 5,300

Unearned Rent Revenue

(L) 3,600

Mortagage Payable 35,000

Sue Philips Capital 60,000
Rent Revenue 9,200
Advertising Expense 500
Salaries Expense 3,000
Utilities Expense 1,000
Sub-Totals 113,100 113,100

Accumulated
Depreciation-Bldg
Accumulated
Depreciation-Furniture
Salaries Payable
Interest Payable
Depreciation Exp-Bldg
Depreciation Exp-
Furniture
Supplies Expense
Interest Expense
Insurance Expense
Sub-Totals - -
Profit
Totals
2400/12mos=200 mo
3000/12mos=250 mo

Int=35000x.12x1/12=350
Income Statement Balance Sheet
DR Exp < CR Income DR A,D > CR CALC
Sub-Totals
Profit
Totals
 Mercury Motel
WORKSHEET
Profit or loss Statement of Financial Position
Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit
2,500
1,900

2,400
15,000
70,000
16,800
5,300

3,600

35,000
60,000
9,200
500
3,000
1,000

-
-
-
-

-
-
-
-
113,100 113,100
 - - - -

Bal Figure Net income Net income

Capital
+Profit (I-E)
 Name of Entity
Closing Entries Post Closing Trial Balance Profit or loss
Debit Credit Debit Credit For the period ended

Service Income

Other income
Total Income
Salaries Expense
Repairs & Maintenance
Utilities Expense

Communication Epense

Taxes & Licenses

Depreciation Expense - Build
Depreciation Expense -Office
Depreciation Expense -Furnit
Office Supplies Expense
Interest Expense
Total Expenses
Profit or Loss

Name of Entity
Statement of Changes in Ow
For the period ended

Owner Capital, Beginning

Changes
Profit or Loss
Drawing
 Total Changes - Inc (D
- - - - Owner Capital, Ending

Name of Entity

Statement of Financial Positi

As of the period ended

ASSETS
Cash
Accounts Receivable
Office Supplies
Research Resources
Land
Building
Accumulated Deprecia
Office Equipment
Accumulated Deprecia
Furnitures & Fixtures
Accumulated Depreciat
Total Assets

LIABILITIES & OWNER'S EQU

Accounts Payable
Notes Payable
Unearned Revenues
Interest Payable
Utilities Payable
Salaries Payable
Total Liabiltiies
Owner Capital, Ending
Total Liabiltiies & Ow

Name of Entity
Statement of Cash Flows
As of the period ended

Operating Activities
Receipts
Less Payments
Net inflow (outflow) f

Investing Activities
Receipts
Less Payments
Net inflow (outflow) from inv

Financing Activities
Receipts
Less Payments
Net inflow (outflow) from fin

Total increase (decrease) in c

Cash Beginning balance
Cash Ending balance
Name of Entity
Profit or loss
For the period ended

Service Income

Other income
Total Income
Salaries Expense
Repairs & Maintenance
Utilities Expense

Communication Epense

Taxes & Licenses

Depreciation Expense - Building
Depreciation Expense -Office Equipment
Depreciation Expense -Furnitures & Fixtures
Office Supplies Expense
Interest Expense
Total Expenses
Profit or Loss 0

Name of Entity
Statement of Changes in Owner's Equity
For the period ended

Owner Capital, Beginning

Profit or Loss 0
Total Changes - Inc (D 0
Owner Capital, Ending 0

Name of Entity

Statement of Financial Position

As of the period ended

ASSETS

Accounts Receivable
Office Supplies
Research Resources

Accumulated Deprecia 0
Office Equipment
Accumulated Deprecia 0
Furnitures & Fixtures
Accumulated Depreciat 0
Total Assets 0

LIABILITIES & OWNER'S EQUITY

Accounts Payable
Notes Payable
Unearned Revenues
Interest Payable
Utilities Payable
Salaries Payable
Total Liabiltiies 0
Owner Capital, Ending 0
Total Liabiltiies & Ow 0

Name of Entity
Statement of Cash Flows
As of the period ended

Operating Activities

Less Payments
Net inflow (outflow) f 0

Investing Activities

Less Payments
Net inflow (outflow) from investing activities

Financing Activities

Less Payments
Net inflow (outflow) from financing activities

Total increase (decrease) in cash

Cash Beginning balance
Cash Ending balance 0
 ATB IS BS

A 100 100
L 20 20
C 50 50

R 70 70
E 40 40
140 140 40 70 100 70
PROFIT 30 30
70 70 100 100

ATB IS BS

A 70 70
L 50 50
C 50 50

R 40 40
E 70 70
140 140 70 40 70 100
LOSS 30 30
70 70 100 100

ATB IS BS

A 70 70
L 20 20
C 50 50

R 40 40
E 40 40
110 110 40 40 70 70
NO PROFIT NO LOSS (BREAK EVEN)
40 40 70 70
Name of Entity
Profit or loss
For the period ended

Service Income
Other income
Total Income
Salaries Expense
Repairs & Maintenance
Utilities Expense
Communication Epense
Taxes & Licenses
Depreciation Expense - Building
Depreciation Expense -Office Equipment
Depreciation Expense -Furnitures & Fixtures
Office Supplies Expense
Interest Expense
Total Expenses
Profit or Loss 0

Name of Entity
Statement of Changes in Owner's Equity
For the period ended

Owner Capital, Beginning

Changes
Profit or Loss 0
Drawing
Total Changes - Inc (Dec) 0
Owner Capital, Ending 0

Name of Entity
Statement of Financial Position
As of the period ended

ASSETS
Cash
Accounts Receivable
Office Supplies
Research Resources
Land
Building
Accumulated Depreciation-Building 0
Office Equipment
Accumulated Depreciation-Office Equipment 0
Furnitures & Fixtures
Accumulated Depreciation-Furnitures & Fixtures 0
Total Assets 0

LIABILITIES & OWNER'S EQUITY

Accounts Payable
Notes Payable
Unearned Revenues
Interest Payable
Utilities Payable
Salaries Payable
Total Liabiltiies 0
Owner Capital, Ending 0
Total Liabiltiies & Owner's Equity 0

Name of Entity
Statement of Cash Flows
As of the period ended

Operating Activities
Receipts
Less Payments
Net inflow (outflow) from operating activities 0

Investing Activities
Receipts
Less Payments
Net inflow (outflow) from investing activities

Financing Activities
Receipts
Less Payments
Net inflow (outflow) from financing activities

Total increase (decrease) in cash

Cash Beginning balance
Cash Ending balance 0