DATE PARTICULARS DEBIT CREDIT

Dec-31 Adjusting entries

a) Rent Exoense 7,200
Prepaid Rent 7,200
19,200 X 3/8 = 7,200

b) Depreciation Expense - Equipment 7,125

Acumulated Depreciation - Equipment 7,125
177,500 - 35,000 X 5% = 7,125

c) Salaries Expense 12,000

Salaries Payable 12,000

d) Interest Expense 80
Interest Payable 80
12,000 x 12% x 20/360= 80

e) Bad Debt Expense 3,560

Allowance For Bad Debts 3,560
71,200 x 5% = 3,560

f) Supplies 5,000
Supplies Expense 5,000
Dian Margallo, Interior Decorator
Income Statement
For the year ended, Dec 31, 2018

Revenues: 276,300
Expenses Salaries Expense 82500+12000 94,500
Supplies Expense 17,000-5,000 12,000
Utilities Expense 37,800
Interest Expense 1600+80 1,680
Rent Expense 7,200
Depreciation Expense 7,125
Bad Debt Expense 3,560
Net Income: 112,435
Dian Margallo, Interior Decorator
Capital Statements
For the year ended, Dec 31, 2018 Cash
Account Receivable
Margallo,Capital Jan 1 300,000 Prepaid Rent
Add Net Income 112,435 Equipment
Total 412,435 Accumulated Depreciation-Equipment
Less Margallo, Drawings 19,000 Account Payable
Margallo,Capital Dec 31 393,435 Notes Payable
Margallo, Capital
Dian Margallo, Interior Decorator Margallo, Drawings
Statement of Financial Position Professional Fees
December 31,2018 Salaries Expense
Assets Supplies Expense
Current Asset Utilities Expense
Cash 186,000 Interest Expense
Account Receivable 71,200 Totals
Prepaid Rent 12,000
Supplies 5,000 Rent Expense
Total 274,200 Depreciation Expense-Equipment
Supplies
Non Current Assets Interest Payable
Equipment 177,500 Salaries Payable
Total Assets 451,700 Bad Debt Expense
Allowance for bad debts
Liabilities and Owner's Equity
Accumulated Depreciation-Equipmet 11,875
Account Payable 18,750
Notes Payable 12,000
Interest Payable 80
Salaries Payable 12,000
Allowance for Bad debt 3,560
58,265
Owner's Equity 393,435
Total Liabilities and owners equity 451,700
 Unadjusted Trial Balance Adjustment Adjusted trial balance
Debit Credit Debit Credit
186,000 186,000
Account Receivable 71,200 71,200
Prepaid Rent 19,200 7,200 12,000
Equipment 177,500 177,500
Accumulated Depreciation-Equipment 4,750 7,125 11,875
Account Payable 18,750 18,750
Notes Payable 12,000 12,000
Margallo, Capital 300,000 300,000
Margallo, Drawings 19,000 19,000
Professional Fees 276,300 276,300
Salaries Expense 82,500 12,000 94,500
Supplies Expense 17,000 5,000 12,000
Utilities Expense 37,800 37,800
Interest Expense 1,600 80 1,680
611,800 611,800

Rent Expense 7,200 7,200

Depreciation Expense-Equipment 7,125 7,125
5,000 5,000
Interest Payable 80 80
Salaries Payable 12,000 12,000
Bad Debt Expense 3,560 3,560
Allowance for bad debts 3,560 3,560
34,965 34,965 634,565 634,565
Income Statement Balance sheet
Debit Credit Debit Credit
186,000
71,200
12,000
177,500
11,875
18,750
12,000
300,000
19,000
276,300
94,500
12,000
37,800
1,680

7,200
7,125
5,000
80
12,000
3,560
3,560
163,865 276,300 470,700 358,265
112,435 112,435
276,300 276,300 470,700 470,700