Entity A

General Journal
December 31, 20x1
Date Account Title
1 Cash
Capital
To record owner's investment

2 Equipment
Cash
To record the acquisition of equipment(10 years usefu

3 Cash
Notes Payable
To record the acquisition of a bank loan(1 year, 12% in

4 Prepaid Insurance
Cash
To record the prepayment of insurance( 1 year)

5 Cash
Account Receivable
Service fees
To record the amount to service fees earned

6 Cash
Account Receivable
To record the amount of collected account receiva

7 Salaries Expense
Cash
To record the amount of total salaries paid

8 Utilities expense
Cash
To record the amount of utilities paid

9 Prepaid supplies
Cash
To record the total amount of purchased supplie

10 Owner's drawings
Cash

Adjustment
Dec. 31 Depreciation expense
 Accumulated depreciation - equipment
To record the depreciation amount on equipmen

Dec. 31 Interest expense

Interest payable
To inccur interest payable

Dec. 31 Insurance Expense

Prepaid Insurance
To record used prepaid insurance

Dec. 31 Supplies Expense

Prepaid Supplies
To record used supplies
Closing entries
Dec. 31 Service Fees
Salary Expense
Utilities Expense
Supplies expense
Depreciation expense
Insurance expense
Interest expense
Income Summary

Dec. 31 Income Summary

Owner's capital

Dec 31 Owner's capital

Owner's drawing
 Entity A
General Journal
December 31, 20x1
Account Title Ref No. Debit
110 ₱ 2,000,000.00
Capital 310
record owner's investment

190 ₱ 1,000,000.00
Cash 110
uisition of equipment(10 years useful life)

110 ₱ 500,000.00
Notes Payable 220
isition of a bank loan(1 year, 12% interest)

160 ₱ 160,000.00
Cash 110
he prepayment of insurance( 1 year)

110 ₱ 2,000,000.00
120 ₱ 4,000,000.00
Service fees 410
the amount to service fees earned

110 ₱ 1,800,000.00
Account Receivable 120
amount of collected account receivable

520 ₱ 1,200,000.00
Cash 110
the amount of total salaries paid

530 ₱ 500,000.00
Cash 110
ord the amount of utilities paid

150 ₱ 120,000.00
Cash 110
e total amount of purchased supplies

320 ₱ 1,400,000.00
Cash 110

545 ₱ 100,000.00
ulated depreciation - equipment 195
e depreciation amount on equipment

570 ₱ 30,000.00
Interest payable 230
o inccur interest payable

555 ₱ 40,000.00
Prepaid Insurance 160
ecord used prepaid insurance

535 ₱ 80,000.00
Prepaid Supplies 150
To record used supplies

410 ₱ 6,000,000.00
Salary Expense
Utilities Expense
Supplies expense
Depreciation expense
Insurance expense
Interest expense
Income Summary

₱ 4,050,000.00
Owner's capital

₱ 1,400,000.00
Owner's drawing
 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

₱ 1,200,000.00
₱ 500,000.00
₱ 80,000.00
₱ 100,000.00
₱ 40,000.00
₱ 30,000.00
₱ 4,050,000.00

₱ 4,050,000.00

₱ 1,400,000.00