November 7, 2022

The unadjusted trial balance of the John Bala Company as of Dec. 31, 2020 follows:

John Bala Company

Unadjusted Trial Balance
Dec. 31, 2014
Cash P 31,000
Accounts Receivable 83,000
Merchandise Inventory 627,000
Prepaid Insurance 54,000
Office Supplies 68,000
Office Equipment 370,000
Accumulated Depreciation P 50,000
Accounts Payable 58,000
Bala, Capital 517,000
Bala, Withdrawals 87,000
Sales 2,675,000
Sales Returns and Allowance 26,000
Purchase Discounts 23,000
Purchases 1,512,000
Purchases Returns and Allowances 14,000
Purchase Discounts 19,000
Transportation In 38,000
Salaries Expense 327,000
Advertising Expense 61,000
Rent Expense 26,000
Totals P3,333,000 P3,333,000

Additional information:
a. Merchandise inventory as at Dec. 31, 2014 amounted to P 532,000.
b. Insurance coverage with premiums of P 18,000 has expired during the year.
c. Depreciation for the year amounted to P 25,000.
d. Office Supplies remaining at year-end amounted to P 15,000.
e. Salaries in the amount of P9,000 have accrued as at Dec. 31, 2014.

Required:
1. Adjusting journal Entries.
2. Prepare the worksheet.
3. Income Statement
4. Balance Sheet