Guitar Doc

Adjusting Entries
Accounts AJE # Debit Credit
Bad Debts expensive 1 10,000
Allowance for bad debts 10,000

Prepaid Supplies 2 20,000

Supplies Expense 20,000
Assets
Salaries Expense 3 30,000
Cash
Salaries Payable 30,000
Accou
Allowa
Prepai
Total Ass

Liabilities
Salaries
Total Liab

Equity
Owner’s E
Total Equ

Total Liab

Guitar Doc
Income Statement
For the month ended of January,20x1

Income
Service Fees 400,000

Expense
Supplies Expense ( 40,000)
Salaries Expense ( 210,000 )
Bad debt Expense ( 10,000 )
Total Expenses ( 260,000 )

Profit for the Period P 140,000