Adjusting Entry SUBMITTED BY:

PATRICK JAMES PANGILINAN GRADE 11-ABM PYTHAGORAS

A. Accrued supplies expense ₱ 53,030.00
Cash
(To record office supplies expense)
Asset Method OE
Accrued supplies expense Cash
Debit Credit Debit Credit
₱ 53,030.00 ₱ 53,030.00

Asset Method AE
Accrued supplies expense Supplies
Debit Credit Debit Credit
₱ 53,030.00 ₱ 13,970.00 ₱ 13,970.00
39,060.00

Expense Method OE
Accrued supplies expense Cash
Debit Credit Debit Credit
₱ 53,030.00 ₱ 53,030.00

Expense Method AE
Accrued supplies expense Expense
Debit Credit Debit Credit
₱ 13,970.00 ₱ 53,030.00 ₱ 13,970.00
39,060.00

B. Insurance Expense ₱ 64,880.00

Prepaid Insurance Expense
(To record prepaid insurance expense)
Asset Method OE
Insurance Expense Prepaid Insurance Expense
Debit Credit Debit Credit
₱ 64,880.00 ₱ 64,880.00

Asset Method AE
Prepaid Insurance Expense Insurance Expense
Debit Credit Debit Credit
₱ 64,880.00 ₱ 35,800.00 ₱ 35,800.00
29,080.00

Expense Method OE
Insurance Expense Prepaid Insurance Expense
Debit Credit Debit Credit
 ₱ 64,880.00 ₱ 64,880.00

Expense Method AE
Prepaid Insurance Expense Insurance Expense
Debit Credit Debit Credit
₱ 35,800.00 ₱ 64,880.00 ₱ 35,800.00
29,080.00

C. Depreciation Expense 145,000

Accumulated Depreciation- Building
(To record depreciation expense)

Depreciation Expense 354,000

Accumulated Depreciation- Equipment
(To record depreciation expense)
Asset Method OE
Depreciation Expense Accumulated Depreciation- Building
Debit Credit Debit Credit
₱ 145,000.00 ₱ 145,000.00

Asset Method AE
Building Depreciation Expense
Debit Credit Debit Credit
₱ 2,860,000.00 ₱ 145,000.00 ₱ 145,000.00
₱ 2,715,000.00

Asset Method OE
Depreciation Expense Accumulated Depreciation- Equipment
Debit Credit Debit Credit
₱ 354,000.00 ₱ 354,000.00

Equipment Asset Method AE

Debit Credit Depreciation Expense
₱ 3,740,000.00 ₱ 354,000.00 Debit Credit
₱ 3,386,000.00 ₱ 354,000.00

Expense Method OE
Depreciation Expense Accumulated Depreciation- Building
Debit Credit Debit Credit
₱ 145,000.00 ₱ 145,000.00

Expense Method AE
Building Depreciation Expense
Debit Credit Debit Credit
 ₱ 145,000.00 ₱ 2,860,000.00 ₱ 145,000.00
₱ 2,715,000.00

Expense Method OE
Depreciation Expense Accumulated Depreciation- Equipment
Debit Credit Debit Credit
₱ 354,000.00 ₱ 354,000.00

Expense Method AE
Equipment Depreciation Expense
Debit Credit Debit Credit
₱ 354,000.00 ₱ 3,740,000.00 ₱ 354,000.00
₱ 3,386,000.00

D. Cash 168,000
Unearned Service Revenue
(To record unearned revenue)
Income Method AE
Revenue Unearned Service Revenue
Debit Credit Debit Credit
₱ 168,000.00 ₱ 168,000.00

Liability Method AE
Revenue Unearned Service Revenue
Debit Credit Debit Credit
₱ 168,000.00 ₱ 168,000.00

E. Accrued Service Revenue 40,000

Service Revenue
(To record accrued income)
Income Method OE
Accrued Service Revenue Service Revenue
Debit Credit Debit Credit
₱ 40,000.00 ₱ 40,000.00

Income Method AE
Service Revenue Accrued Service Revenue
Debit Credit Debit Credit
₱ 110,000.00 ₱ 40,000.00 ₱ 40,000.00
70,000.00

Liability Method AE
Accrued Service Revenue Service Revenue
Debit Credit Debit Credit
₱ 40,000.00 ₱ 40,000.00
 Service Revenue Accrued Service Revenue
Debit Credit Debit Credit
₱ 40,000.00 ₱ 110,000.00 ₱ 40,000.00
70,000.00

F. Interest Expense 150,000

Interest Payable
(To record accrued expense)

Asset Method OE
Interest Expense Interest Payable
Debit Credit Debit Credit
₱ 150,000.00 ₱ 150,000.00

Asset Method AE
Interest Expense Interest Payable
Debit Credit Debit Credit
₱ 3,000,000.00 ₱ 150,000.00 ₱ 150,000.00
2,850,000.00

Expense Method OE
Interest Expense Interest Payable
Debit Credit Debit Credit
₱ 150,000.00 ₱ 150,000.00

Expense Method AE
Interest Expense Interest Payable
Debit Credit Debit Credit
₱ 13,970.00 ₱ 3,000,000.00 ₱ 150,000.00
2,850,000.00

G. Salaries Expense 61,500

Salaries Payable
(To record accrued expense)
Asset Method AE
Salaries Expense Salaries Payable
Debit Credit Debit Credit
₱ 168,000.00 ₱ 168,000.00

Expense Method AE
Salaries Expense Salaries Payable
Debit Credit Debit Credit
₱ 168,000.00 ₱ 168,000.00
H. No entry since it’s just a signing of contract with no work performed
₱ 53,030.00

₱ 64,880.00
 145,000

354,000

- Equipment
- Equipment

168,000

40,000
150,000

61,500
PREPARATION OF INCOME STATEMENT SUBMITTED BY:
PATRICK JAMES PANGILINAN GRADE 11-ABM PYTHAGORAS
Karl Mitzi Faith Dalman Graphic Arts
Particulars Amount Amount
Revenues
Art revenues PHP 1,437,500.00
Less: Expenses
Advertising Expenses PHP 105,000.00
Depreciation expense - Building 30,000
Depreciation expense - Equipment 30,000
Interest expense 37,000
Miscellaneous expense 24,600
Representation expense 164,000
Salaries expense 673,200
Travel expense 159,000
Total expenses 1,222,800
Net Income 214,700

PREPARATION OF STATEMENT OF CHANGES IN EQUITY

Karl Mitzi Faith Dalman Graphic Arts

For the month ended December 31,2015
Particulars Amount
Owner's Capital as of Jan. 1,2021
Add:
Additional Capital PHP 75,000.00
Net income 214,700
Total
Less:
Dalman, Withdrawals 148,600
Total
Owner's Capital as of Dec 31,2021

PREPARATION OF BALANCE SHEET

ASSETS
Current Assets
Cash
Accounts receivable
Office Supplies
Property, Plant and Equipment
Land
Building
 Less: Accumulated depreciation - building
Equipment
Less: Accumulated depreciation - equipment
Total Assets
Liabilities and Equity
Current liabilities
Accounts payable
Salaries Payable
Long Term liabilities
Mortgage payable
Notes payable
Equity
Dalman, Capital, 31/12/2015
Total liabilities and Equity
NAN GRADE 11-ABM PYTHAGORAS

Amount
PHP 50,500.00

PHP 340,200.00

148,600
PHP 191,600.00

PHP 36,200.00
219,000
17,200 PHP 272,400.00

120,000
450,000
 60,000 390,000
217,000
60,000 157,000
PHP 939,400.00

122,500
17,300 139,800

395,000
213,000 608,000

191,600
939,400