INSTRUCTIONS: Using clean sheet of paper or bond paper or general journal, kindly do manually the

requirements below. Then submit your requirements in a jpg file format at the LMS Adelante.

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The following are some of the transactions made by Lebron James Cleaners and Janitorial Services
during 2021:

April 1. Acquired cleaning supplies in the amount of P260,000. The company debited cleaning supplies
at the time of acquisition. A count of Cleaning Supplies on December 31, 2021 amounted to
P110,000.

May 1. Paid annual insurance premium, P48,000. Insurance Expense was debited upon the payment

June 1. Paid P160,000 cash to purchase a delivery van. It is expected to have a 5-year life and a P10,000
salvage value.

Aug 1. Received P360,000 cash in advance from Lakers Co. for cleaning janitorial services over the next
two (2) years. The company credited Unearned Service Revenue upon the receipt of cash.

Sep 1. Paid P 240,000 for annual rent of the office. Prepaid Rent was debited upon the payment.

Oct 1. Received P180,000 cash from New Jersey Co. for cleaning janitorial services over the next twelve
(12) months. It was credited to Service Revenue upon the receipt of cash.

Nov 1. Invested P90,000 cash in a certificate of deposit that paid 5% annual interest. The investment
shall mature on January 31, 2022.

Dec 15. The company paid P250,000 salaries intended for the month of December 2021. The policy was
that the company shall pay the monthly office salary every 15 th day of the month.

Dec. 31. It was noted that the company on Jan 2, 2022, a Friday, paid janitorial salary, P192,000 which is
on a five-day workweek and pays employees weekly.

Required. Prepare the following using clear paper or bond paper:

1. Adjusting journal entries at the end of December 31, 2021 assuming the company adopts
calendar year.
2. Reversing entries on January 1, 2022.
 Lebron James Cleaners and Janitorial Services
AJE
DATE ACCOUNT TITLES AND EXPLNATION PR DEBIT CREDIT
2021

DEC 31 Accrued Cleaning Supplies 150,000

Cleaning Supplies 150,000

To adjust

Insurance Expense 32,000

Prepaid Insurance 32,000

To adjust

Depreciation Expense 30,000

Accumulated Depr.-Service Vehicle 30,000

To adjust

Unearned Cleaning janitorial Revenue 75,000

Cleaning Janitorial Revenue 75,000

To adjust

Rent Expense 80,000

Prepaid Rent 80,000

To adjust

Unearned Cleaning janitorial Revenue 45,000

Cleaning Janitorial Revenue 45,000

To adjust

Accrued Interest 1,125

Interest Income 1,125

To adjust

Salary Expense 250,000

Accrued Salary Payable P250,000

To adjust
 Lebron James Cleaners and Janitorial Services
RE
DATE ACCOUNT TITLES AND EXPLNATION PR DEBIT CREDIT
2022

JAN 1 Cleaning Supplies 150,000

Accrued Cleaning Supplies 150,000

No reversing entry

No reversing Entry

No reversing Entry

No reversing entry

No reversing Entry

Interest income 1,125

Accrued Interest Income

1,125

Accrued Salary Payable 250,000

Salary Expense P250,000