FINANCIAL ACCOUNTING and REPORTING

Presented below is the unadjusted trial balance of ABC Beauty Services for the year
ended December 31, 2019.

ABC Beauty Services

Adjusted Trial Balance
December 31, 2019

Cash on hand and in banks P 94,500 A

Notes receivable 200,000 A
Accounts receivable 283,750 A
Office supplies on hand 47,250 A
Prepaid rent 270,000 A
Furniture & fixtures 1,631,250 A
Accumulated depreciation P 326,250 -CA
Accounts payable 213,750 L
12% Note payable 675,000 L
JR, capital 1,421,250 C
JR, drawing 900,000 -C
Service fee 3,849,750 R
Salaries & wages 2,828,250 E
Heat, light, and power 78,750 E
Taxes & licenses 69,750 E
Telephone expenses 82,500 E ________
TOTAL P6,486,000 P6,846,000

REQUIRED:
a. Prepare a Statement of Comprehensive Income, a Statement of
Changes in Owner’s Equity, and a Statement of Financial Position
as at December 31, 2018.
 ABC Beauty Services
Statement of Comprehensive Income
December 31, 2019

Service fee 3,849,750

Less: Operating Expenses
Salaries and wages 2,828,250
Heat, light and power 78,750
Taxes and licenses 69,750
Telephone 82,500 3,059,250
Net income 790,500

ABC Beauty Services

Statement of Changes in Owner’s Equity
December 31, 2019

JR, capital January 1 1,421,250

Add: Net income 790,500
Total 2,211,750
Less: JR, drawing 900,000
JR, capital December 31** 1,311,750

ABC Beauty Services

Statement of Financial Position
December 31, 2019

ASSETS
Current Assets
Cash on hand and in banks 94,500
Notes receivable 200,000
Accounts receivable 283,750
Office supplies on hand 47,250
Prepaid rent 270,000
Total Current Assets 895,500
Non-current Asset
Furniture & fixtures 1,631,250
Less: Accumulated depreciation 326,250
Total Non-current Assets 1,305,000
TOTAL ASSETS 2,200,500

LIABILITIES
 Accounts payable 213,750
12% Notes Payable 675,000
Total Liabilities 888,750
CAPITAL
Jr, Capital** 1,311,750
TOTAL LIABILITIES and CAPITAL 2,200,500

Current assets – are assets that will be realizable to cash within one-year
Non- current assets – ex. Property, Plant and Equipment

Presented below is the unadjusted trial balance of EMMANUEL LAW OFFICE for the
year ended December 31, 2019.

EMMANUEL LAW OFFICE

Adjusted Trial Balance
December 31, 2019

Cash on hand and in banks P 154,500

Notes receivable 200,000
Accounts receivable 350,750
Office supplies on hand 17,250
Prepaid rent 240,000
Prepaid insurance 60,000
Furniture & fixtures 1,800,000
Accumulated depreciation P 360,000
Transportation equipment 1,500,000
Accumulated depreciation 450,000
Accounts payable 213,750
Notes payable 600,000
Utilities payable 75,000
SSS, Medicare payable 25,000
Pag-ibig payable 15,000
Emmanuel, capital 3,426,000
Emmanuel, withdrawals 1,426,000
Legal fees 5,817,000
Salaries & wages 3,870,250
Utilities expense 278,750
Taxes & licenses 369,750
Telephone expenses 82,500
Supplies expense 32,750
Representation expense 187,500
Gasoline expenses 126,500
Medical and hospitalization expense 235,250
Miscellaneous expense 50,000 __________
TOTAL P10,981,750 P10,981,750

REQUIRED:
b. Prepare a Statement of Comprehensive Income, a Statement of
Changes in Owner’s Equity, and a Statement of Financial Position
as at December 31, 2019.

NET INCOME P583,750

CAPITAL, END P2,583,750
TOTAL ASSETS P3,512,500