CHART OF ACCOUNTS

Accounts receivable
Accumulated Depreciation
Cash
Depreciation Expense
Office Equipment
Rent Payable
Owner's equity
Prepaid rent
Rent expense
Salaries Expense
Service fee
Supplies expense
Utilities expense
Income summary
Ref Account Debited Account Credited
1 Cash
1 Owner's equity

2 Office Equipment
2 Cash

3 Prepaid rent
3 Cash

4 Accounts receivable
4 Service fee

5 Supplies expense
5 Cash

6 Utilities expense
6 Cash

7 Salaries Expense
7 Cash

8 Cash
8 Accounts receivable

9
9

10
10

11
11

12
12

13
13

14
14
Dr Cr
2,000,000.00
2,000,000.00

800,000.00
800,000.00

720,000.00
720,000.00

2,900,000.00
2,900,000.00

190,000.00
190,000.00

260,000.00
260,000.00

1,900,000.00
1,900,000.00

2,700,000.00
2,700,000.00
 Update account titles in highlighted cells, using information used in Journal entries

Cash Accounts receivable

1.00 2,000,000.00 - 1.00 -
2.00 - 800,000.00 2.00 -
3.00 - 720,000.00 3.00 -
4.00 - - 4.00 2,900,000.00
5.00 - 190,000.00 5.00 -
6.00 - 260,000.00 6.00 -
7.00 - 1,900,000.00 7.00 -
8.00 2,700,000.00 - 8.00 -
9.00 - - 9.00 -
10.00 - - 10.00 -
11.00 - - 11.00 -
12.00 - - 12.00 -
13.00 - - 13.00 -
14.00 - - 14.00 -
15.00 - - 15.00 -
4,700,000.00 3,870,000.00 2,900,000.00
BAL 830,000.00 - BAL 200,000.00

Rent expense Salaries Expense

1.00 - - 1.00 -
2.00 - - 2.00 -
3.00 - - 3.00 -
4.00 - - 4.00 -
5.00 - - 5.00 -
6.00 - - 6.00 -
7.00 - - 7.00 1,900,000.00
8.00 - - 8.00 -
9.00 - - 9.00 -
10.00 - - 10.00 -
11.00 - - 11.00 -
12.00 - - 12.00 -
13.00 - - 13.00 -
14.00 - - 14.00 -
15.00 - - 15.00 -
- - 1,900,000.00
BAL - - BAL 1,900,000.00
 1.00 - - 1.00 -
2.00 - - 2.00 -
3.00 - - 3.00 -
4.00 - - 4.00 -
5.00 - - 5.00 -
6.00 - - 6.00 -
7.00 - - 7.00 -
8.00 - - 8.00 -
9.00 - - 9.00 -
10.00 - - 10.00 -
11.00 - - 11.00 -
12.00 - - 12.00 -
13.00 - - 13.00 -
14.00 - - 14.00 -
15.00 - - 15.00 -
- - -
BAL - - BAL -
ts receivable Prepaid rent
- 1.00 - - 1.00
- 2.00 - - 2.00
- 3.00 720,000.00 - 3.00
- 4.00 - - 4.00
- 5.00 - - 5.00
- 6.00 - - 6.00
- 7.00 - - 7.00
2,700,000.00 8.00 - - 8.00
- 9.00 - - 9.00
- 10.00 - - 10.00
- 11.00 - - 11.00
- 12.00 - - 12.00
- 13.00 - - 13.00
- 14.00 - - 14.00
- 15.00 - - 15.00
2,700,000.00 720,000.00 -
- BAL 720,000.00 - BAL

Supplies expense
- 1.00 - - 1.00
- 2.00 - - 2.00
- 3.00 - - 3.00
- 4.00 - - 4.00
- 5.00 190,000.00 - 5.00
- 6.00 - - 6.00
- 7.00 - - 7.00
- 8.00 - - 8.00
- 9.00 - - 9.00
- 10.00 - - 10.00
- 11.00 - - 11.00
- 12.00 - - 12.00
- 13.00 - - 13.00
- 14.00 - - 14.00
- 15.00 - - 15.00
- 190,000.00 -
- BAL 190,000.00 - BAL
- 1.00 - - 1.00
- 2.00 - - 2.00
- 3.00 - - 3.00
- 4.00 - - 4.00
- 5.00 - - 5.00
- 6.00 - - 6.00
- 7.00 - - 7.00
- 8.00 - - 8.00
- 9.00 - - 9.00
- 10.00 - - 10.00
- 11.00 - - 11.00
- 12.00 - - 12.00
- 13.00 - - 13.00
- 14.00 - - 14.00
- 15.00 - - 15.00
- - -
- BAL - - BAL
Office Equipment Accumulated Depreciation
- - 1.00 - -
800,000.00 - 2.00 - -
- - 3.00 - -
- - 4.00 - -
- - 5.00 - -
- - 6.00 - -
- - 7.00 - -
- - 8.00 - -
- - 9.00 - -
- - 10.00 - -
- - 11.00 - -
- - 12.00 - -
- - 13.00 - -
- - 14.00 - -
- - 15.00 - -
800,000.00 - - -
800,000.00 - BAL - -

Utilities expense Service fee

- - 1.00 - -
- - 2.00 - -
- - 3.00 - -
- - 4.00 - 2,900,000.00
- - 5.00 - -
260,000.00 - 6.00 - -
- - 7.00 - -
- - 8.00 - -
- - 9.00 - -
- - 10.00 - -
- - 11.00 - -
- - 12.00 - -
- - 13.00 - -
- - 14.00 - -
- - 15.00 - -
260,000.00 - - 2,900,000.00
260,000.00 - BAL - 2,900,000.00
- - 1.00 - -
- - 2.00 - -
- - 3.00 - -
- - 4.00 - -
- - 5.00 - -
- - 6.00 - -
- - 7.00 - -
- - 8.00 - -
- - 9.00 - -
- - 10.00 - -
- - 11.00 - -
- - 12.00 - -
- - 13.00 - -
- - 14.00 - -
- - 15.00 - -
- - - -
- - BAL - -
 Owner's equity Depreciation Expense
1.00 - 2,000,000.00 1.00 - -
2.00 - - 2.00 - -
3.00 - - 3.00 - -
4.00 - - 4.00 - -
5.00 - - 5.00 - -
6.00 - - 6.00 - -
7.00 - - 7.00 - -
8.00 - - 8.00 - -
9.00 - - 9.00 - -
10.00 - - 10.00 - -
11.00 - - 11.00 - -
12.00 - - 12.00 - -
13.00 - - 13.00 - -
14.00 - - 14.00 - -
15.00 - - 15.00 - -
- 2,000,000.00 - -
BAL - 2,000,000.00 BAL - -

1.00 - - 1.00 - -
2.00 - - 2.00 - -
3.00 - - 3.00 - -
4.00 - - 4.00 - -
5.00 - - 5.00 - -
6.00 - - 6.00 - -
7.00 - - 7.00 - -
8.00 - - 8.00 - -
9.00 - - 9.00 - -
10.00 - - 10.00 - -
11.00 - - 11.00 - -
12.00 - - 12.00 - -
13.00 - - 13.00 - -
14.00 - - 14.00 - -
15.00 - - 15.00 - -
- - - -
BAL - - BAL - -
 1.00 - - 1.00 - -
2.00 - - 2.00 - -
3.00 - - 3.00 - -
4.00 - - 4.00 - -
5.00 - - 5.00 - -
6.00 - - 6.00 - -
7.00 - - 7.00 - -
8.00 - - 8.00 - -
9.00 - - 9.00 - -
10.00 - - 10.00 - -
11.00 - - 11.00 - -
12.00 - - 12.00 - -
13.00 - - 13.00 - -
14.00 - - 14.00 - -
15.00 - - 15.00 - -
- - - -
BAL - - BAL - -
 Entity C
Unadjusted Trial Balance
December 31, 20x1
Dr
Cash 830,000.00
Accounts receivable 200,000.00
Prepaid rent 720,000.00
Office Equipment 800,000.00
Accumulated Depreciation
Owner's equity
Depreciation Expense -
Rent expense -
Salaries Expense 1,900,000.00
Supplies expense 190,000.00
Utilities expense 260,000.00
Service fee

4,900,000.00
 Entity C
Unadjusted Trial Balance
December 31, 20x1
Cr

-
2,000,000.00

2,900,000.00

4,900,000.00 1
Account Debited

Depreciation Expense

Rent Expense
Account Credited Dr Cr

80,000.00
Accumulated depreciation 80,000.00

360,000.00
Prepaid rent 360,000.00
 Undadjusted TB Adjustments
Accounts dr cr dr cr
Cash 830,000.00 - -
Accounts receivable 200,000.00 - -
Prepaid rent 720,000.00 - 360,000.00
Office Equipment 800,000.00 - -
Accumulated Depreciation - - 80,000.00
Owner's equity 2,000,000.00 - -
Depreciation Expense - 80,000.00 -
Rent expense - 360,000.00 -
Salaries Expense 1,900,000.00 - -
Supplies expense 190,000.00 - -
Utilities expense 260,000.00 - -
Service fee 2,900,000.00 - -
- -
- -
- - - -
- - - -
4,900,000.00 4,900,000.00 440,000.00 440,000.00
Profit
-
 Entity C
Worksheet
December 31, 20x1

Adjusted TB Income Statement Balance Sheet

dr cr dr cr dr cr
830,000.00 - 830,000.00 -
200,000.00 - 200,000.00 -
360,000.00 - 360,000.00 -
800,000.00 - 800,000.00 -
- 80,000.00 - 80,000.00
- 2,000,000.00 - 2,000,000.00
80,000.00 - 80,000.00
360,000.00 - 360,000.00
1,900,000.00 - 1,900,000.00 -
190,000.00 - 190,000.00 -
260,000.00 - 260,000.00 -
- 2,900,000.00 - 2,900,000.00
- -
- -
- -
- -
4,980,000.00 4,980,000.00 2,790,000.00 2,900,000.00 2,190,000.00 2,080,000.00
110,000.00 - 110,000.00
2,900,000.00 2,900,000.00 2,190,000.00 2,190,000.00
 Closing Entries Post-Closing TB
dr cr dr cr
- - 830,000.00 -
- - 200,000.00 -
- - 360,000.00 -
- - 800,000.00 -
- - - 80,000.00
- 110,000.00 - 2,110,000.00 2,000,000.00
- 80,000.00 -
- 360,000.00 - -
- 1,900,000.00 - -
- 190,000.00 - -
- 260,000.00 - -
2,900,000.00 - - -
- - - -
- - - -
- - - -
- - - -
2,900,000.00 2,900,000.00 2,190,000.00 2,190,000.00
2,110,000.00
Account Debited
Service fee

Income summary
Account Credited Dr Cr
2,900,000.00
Depreciation expense 80,000.00
Rent expense 360,000.00
Salaries Expense 1,900,000.00
Supplies expense 190,000.00
Utilities expense 260,000.00
Income summary 110,000.00

110,000.00
Owner's equity 110,000.00
 Entity C
Statement of Financial Position
As of December 31, 20x1

ASSETS
Cash 830,000.00
Accounts receivable 200,000.00
Prepaid Rent 360,000.00
Equipment 800,000.00
Accumulated Depreciation (80,000.00)
TOTAL ASSETS 2,110,000.00

EQUITY
Owner's Equity 2,110,000.00
TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY 2,110,000.00

 Entity C
Income Statement
For the period ended December 31, 20x1

INCOME
Services Fee 2,900,000.00

EXPENSES
Depreciation expense (80,000.00)
Rent expense (360,000.00)
Utilities Expense (260,000.00)
Salaries Expense (1,900,000.00)
Supplies expense (190,000.00)
TOTAL EXPENSES (2,790,000.00)

PROFIT FOR THE PERIOD 110,000.00

 Entity C
Statement of Changes in Equity
For the period ended December 31, 20x1

Owner's Equity, Beg 2,000,000.00

Add: Net Income 110,000.00
Owner's Equity, End 2,110,000.00
 Entity C
Statement of Cash Flows
For the period ended December 31, 20x1

Cash Flow from Operating Activities

Receipts from clients 2,700,000.00
Payments for office rent (720,000.00)
Payments for salaries (1,900,000.00)
Payment for utilities (260,000.00)
Payments to suppliers (190,000.00)
Net cash used in operating activities (370,000.00)

Cash Flow from Investing Activities

Purchase of equipment (800,000.00)
Net cash used in investing activities (800,000.00)

Cash Flow from Financing Activities

Initial Investment 2,000,000.00
Net cash provided by financing activities 2,000,000.00

Net Increase in Cash 830,000.00

Cash, beginning -
Cash, end 830,000.00
-