Completing the Accounting Cycle from Journal Entries to Post Closing Trial Balance with a provided

worksheet and answer keys.

On December 1, Mark Rivera began an AUTO REPAIR SHOP, Rivera’s Quality Automotive. The following
transactions occurred during December:

December 1 Rivera contributed P200,000.00 cash to the business in exchange of shares of

common stocks.

December 1 Purchased P12,000.00 of computer equipment aid thru cash.

December 1 Paid a 3 months insurance policy starting December 1, 202X, P9,000.00.

December 5 Purchased Office supplies on account, P5,800.00

December 8 Borrowed P80,000.00 from the bank for business use. Rivera prepared and sines
promissory notes Payable to bank under the name of his business.

December 9 Paid advertising expense for only P1,580.00

December 10 Paid half of supplies on account.

December 13 Reivera’s Quality Automotive paid registration and licensing fees for the
business, P30,000.00

December 16 The company acquired tables, chairs, shelves, and other fixtures for a total of
P30,000.00. The entire amount was paid in cash.

December 17 The company acquired service equipment for P16,000.00. The company paid 50%
down payment and the balance will be paid after 60 days.

December 17 The company received P10,900.00 for services rendered.

December 17 Rendered service on account, P78,000.00. As per agreement with Rapid

Automotive, the amount is to be collected after 10 days.

December 19 Mr. Rivera invested an additional P53,200 into the business.

December 20 Rendered services to a big corporation on December 20. As per the agreement,
the P33,400.00 amount due will be collected after 30 days.

December 21 Paid in full the supplies on account.

December 22 Paid rent for December, P1,500.00.

December 23 Paid salaries to employees, P3,500.00.

December 27 Collected from the Rapid Automotive full amount.

December 28 Paid bank 30% of loan payable.

Rivera’s Quality Automotive
Charts of Accounts
101 Cash
102 Accounts Receivable
103 Office Supplies
104 Prepaid Insurance
105 Computer Equipment
106 Accumulated Depreciation – Equipment
107 Furniture and Fixtures
108 Service Equipment
109 Accumulated Depreciation – service Equipment
201 Accounts Payable
202 Notes Payable
203 Interest Payable
204 Loan Payable
205 Unearned Revenue
301 Capital
302 Withdrawal
303 Income Summary Account
401 Service Revenue
601 Salaries Expense
602 Rent Expense
603 Utilities Expense
604 Supplies Expense
605 Insurance Expense
606 Taxes and Licenses
607 Advertising Expense
608 Depreciation Expense – Computer Equipment
609 Depreciation Expense – Service Equipment

ADJUSTMENT DATA:
A. Office Supplies used during the month, P3,800.00
B. Depreciation of the computer for the month, P2,400.00
C. Depreciation of the service equipment for the month, P3,200.00
D. One-month insurance was expired.

REQUIREMENTS:
1. Prepare the journal entries and post to the T-Accounts.
2. Prepare unadjusted Trial Balance.
3. Prepare the adjusting journal entries and post to the T-Accounts
4. Prepare adjusted trial balance.
5. Prepare the financial statements: (Income Statements, Statements of Owner’s Equity, Balance
Sheet)
6. Prepare the closing entries and post to T-Accounts
7. Prepare post-closing trial balance
PREPARE JOURNAL ENTRIES
JOURNAL ENTRIES

Date Particulars Dr Cr

JOURNAL ENTRIES

Date Particulars Dr Cr
T-ACCOUNTS

CASH ACCOUNTS RECEIVABLE

TOTAL TOTAL TOTAL TOTAL
Balance Balance

OFFICE SUPPLIES PREPAID INSURANCE

TOTAL TOTAL TOTAL TOTAL

Balance Balance
SERVICE EQUIPMENT Accumulated Depreciation –
Service Equipment
TOTAL TOTAL TOTAL TOTAL
Balance Balance

Accounts Payable Notes Payable

TOTAL TOTAL TOTAL TOTAL

Balance Balance

Loan Payable Unearned Revenue

TOTAL TOTAL TOTAL TOTAL
Balance Balance

Capital Withdrawal

TOTAL TOTAL TOTAL TOTAL

Balance Balance

Income Summary Account Service Revenue

TOTAL TOTAL TOTAL TOTAL
Balance Balance

Salaries Expense Rent Expense

TOTAL TOTAL TOTAL TOTAL

Balance Balance

Utilities Expense Supplies Expense

TOTAL TOTAL TOTAL TOTAL
Balance Balance

Insurance Expense Taxes and Licenses

TOTAL TOTAL TOTAL TOTAL

Balance Balance

Depreciation Expense – Computer Equipment Depreciation Expense – Service

 Equipment

TOTAL TOTAL TOTAL TOTAL

Balance Balance

RIVERA’S QUALITY AUTOMOTIVE

UNADJUSTED TRIAL BALANCE
DECEMBER 31, 202X
RIVERA’S QUALITY AUTOMOTIVE
ADJUSTED TRIAL BALANCE
DECEMBER 31, 202X
RIVERA’S QUALITY AUTOMOTIVE
INCOME STATEMENT
DECEMBER 31, 202X
RIVERA’S QUALITY AUTOMOTIVE
STATEMENT OF ACCOUNT
DECEMBER 31, 202X
RIVERA’S QUALITY AUTOMOTIVE
STATEMENT OF CASH FLOW
DECEMBER 31, 202X
RIVERA’S QUALITY AUTOMOTIVE
BALANCE SHEET
DECEMBER 31, 202X
RIVERA’S QUALITY AUTOMOTIVE
POST CLOSING TRIAL BALANCE
DECEMBER 31, 202X