Adjusting Entries:

2018 Particulars F Debit Credit

Dec 31 a. Insurance Expense 2 6 0 0 0 -
Prepaid Insurance 2 6 0 0 0 -

b. Cleaning Supplies Expense 5 8 5 0 0 -

Cleaning Supplies 5 8 5 0 0 -

c. Depreciation Expense- Bldg. 1 8 5 0 0 0 -

Accumulated Depreciation- Bldg. 1 8 5 0 0 0 -

d. Interest Expense 2 0 0 0 0 -
Accrued Interest Payable on 2 0 0 0 0 -
Mortgage

e. Salaries Expense 1 5 5 0 0 -
Accrued Salaries Payable 1 5 5 0 0 -

TOTALS 3 0 5 0 0 0 - 3 0 5 0 0 0 -

Juan R US Keepers
Unajusted Trial Balance
December 31, 2018
 Account Titles Debit Credit
Cash 117,880-
Accounts Receivable 214,940-
Prepaid Insurance 34,000-
Cleaning Supplies 73,740-
Land 180,000-
Building 1,850,000-
Accumulated Depreciation 463,000-
Accounts Payable 204,000-
Unearned Cleaning Revenue 16,000-
Mortgage Payable 1,000,000-
Juan, Capital 515,600-
Juan, Withdrawals 50,000-
Cleaning Revenues 1,526,340-
Salaries Expense 913,300-
Cleaning Equipment Rental Expense 77,000-
Delivery Truck Expense 43,740-
Interest Expense 100,000-
Other Expenses 70,340- -
TOTAL 3,724,940- 3,724,940-

Additional Information:
a. A review of insurance policies showed that 8,000 pesos is unexpired at the year
end.
b. An inventory of cleaning supplies showed 15,240 is on hand.
c. Estimate depreciation on the building is 10% per year.
d. Accrued interest on the mortgage payable is 20,000 pesos.
e. Accrued salaries as of the end of the year is 15,500 pesos.
 Juan R US Keepers
Worksheet
December 31, 2018
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
201 Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
8
Cash 117,880- 117,880- 117,880-
Accounts Receivable 214,940- 214,940- 214,940-
Prepaid Insurance 34,000- 26,000- 8,000- 8,000-
Cleaning Supplies 73,740- 58,500- 15,240- 15,240-
Land 180,000- 180,000- 180,000-
Building 1,850,000- 1,850,000- 1,850,000-
Accumulated Depreciation 463,000- 185,000- 648,000- 648,000-
Accounts Payable 204,000- 204,000- 204,000-
Unearned Cleaning Revenue 16,000- 16,000- 16,000-
Mortgage Payable 1,000,000- 1,000,000- 1,000,000-
Juan, Capital 515,600 515,600- 515,600-
Juan, Withdrawals 50,000- 50,000- 50,000-
Cleaning Revenues 1,526,340- 1,526,340- 1,526,340-
Salaries Expense 913,300- 15,500- 928,800- 928,800-
Cleaning Equipment Rental Expense 77,000- 77,000- 77,000-
Delivery Truck Expense 43,740- 43,740- 43,740-
Interest Expense 100,000- 20,000- 120,000- 120,000-
Other Expenses 70,340- - 70,340- 70,340-
TOTAL 3,724,940- 3,724,940-
Insurance Expense 26,000- 26,000- 26,000-
Cleaning Supplies Expense 53,500- 58,500- 58,500-
Depreciation Expense- Bldg. 185,000- 185,000- 185,000-
Accrued Interest Payable on Mortgage 20,000- 20,000- 20,000-
Accrued Salaries Payable - 15,500- - 15,500- - - - 15,500-
TOTALS 305,000- 305,000- 3,945,440- ** 1,509,380- 1,542,340- ** **
Expression Expression Expression
is faulty **- is faulty is faulty **-
**-
NET INCOME 32,960- - - 32,960-
GRAND TOTALS ** 1,542,340- 2,436,060- 2,436,060-
Expression
is faulty **-
 Juan R US Keepers Juan, Capital- ending 498,560-
Statement of Financial Performance
For the Year Ended December 31, 2018

Unearned Cleaning Revenue 16,000-

Cleaning Revenues 1,526,340-
Total Revenue ** Juan R US Keepers
Expression is Statement of Financial Performance
faulty **- As of December 31, 2018
Less: Operating Expenses
Salaries Expense 928,800- ASSETS
Cleaning Equipment Rental Expense 77,000- Current Assets:
Delivery Truck Expense 43,740- Cash 117,880-
120,000- Accounts Receivable 214,940-
Other Expenses 70,340- Prepaid Insurance 8,000-
Insurance Expense 26,000- Cleaning Supplies 15,240-
Cleaning Supplies Expense 58,500- Total Current Assets **
Depreciation Expense- Bldg. 185,000- ** Expression is
Expression is faulty **-
faulty **- Non- Current Assets:
Net Income 32,960- Land 180,000-
Building 1,850,000-
Less: Accumulated Depreciation- Bldg. 648,000- 1,202,000-
Total Non- Current Assets 1,382,000-
TOTAL ASSETS 1,738,060
LIABILITIES
Juan R US Keepers Current Liabilities:
Statement of Changes in Equity Accounts Payable 204,000-
December 31, 2018 Accrued Interest Payable on Mortgage 20,000-
Accrued Salaries Payable 15,500-
Juan, Capital- beginning 515,600- Total Current Liabilities **
Add: Net Income 32,960- Expression is
Total ** faulty **-
Expression is Non-current Liabilities:
faulty **- Mortgage Payable 1,000,000-
Less: Juan, Withdrawals 50,000- Total Non-Current Liabilities 1,000,000-
 OWNER’S EQUITY
Juan, Capital 498,560-
Total Owner’s Equity 498,560-
TOTAL LIABILITIES AND OWNER’S EQUITY 1,738,060-