BEAUTY AND BODY SPA

UNADJUSTED TRIAL BALANCE

DECEMBER 31, 2020
Accounts Debit Credit

Cash 50,575.00
Accounts Receivable 18,500.00
Allowance for Bad Debts 1,200.00
Merchandise Inventory 103,505.00
Supplies 750.00
Furniture & Fixtures 27,000.00
Accumulated Depreciation-Furniture 2,700.00
Equipment 15,000.00
Accumulated Depreciation- Equipment 1,900.00
Notes Payable 20,000.00
Accounts Payable 5,770.00
Withholding Taxes Payable 875.00
SS Premiums Payable 525.00
Philhealth Premiums Payable 350.00
Cases, Capital 167,010.00
Cases, Drawings 1,000.00
SPA Treatment Revenue 123,500.00

Cost of Service 52,500.00

Repair Expense 1,500.00
Advertising Expense 6,000.00
Transportation Expense 2,900.00
Rent Expense 20,000.00
Salaries Expense 17,500.00
Taxes Expense 2,000.00
Utilities Expense 6,600.00
Rent Income 1,500.00
325,330.00 325,330.00

1. Allowance for bad debts should be increase to 10% of Accounts receivables

2. Supplies on hand is P500
3. Furniture and fixture have a useful life of 5 years
4. The equipment have a useful life of 3 years.
5. 9% Notes payable is for 90 days and was dated December 1, 2020. Interest expense and payable was still unrecorded for the year. Use 360
days in one year.
6. Unpaid salaries amounted to P2,500.
7. Advertising expense of P6,000 was paid on December 1, 2020 to Philippine Star for 6 Sundays. There were 4 Sundays in December 2020.
8. A corner of our store is being rented out to Mr. S. Mr. S gave an advance rent for 3 months on December 1, 2020.
9. Unpaid Meralco bill for the month of December 2020 amounting to P10,000 was received January 4, 2021.
10. The repair expense amounting to P4,400 for December was erroneously charged to rent expense.
Required :
1. Make the necessary adjusting entries
2. Answer all the questions in the FABM1 google classroom
3. Submit your solutions in the LMS.