Tresha Borja

11 Caladium
PERFORMANCE TASK IN FABM 1

Step 1 & 2 Understanding and Journalizing the transactions Step 3 - Posting to the General Ledger.
Horizon Innovations Horizon Innovations

Descriptio Customer Descriptio

Date Debit ($) Credit ($) Date
n Name n
Cash
Office
1-Sep 1000 Cash 1-Sep-22 Marites Receipt -
Supplies
Services
Accounts
Cash
Computer Payable
2-Sep 4,500 5-Sep-22 Marisol Receipt -
Equipment (Tech
Product
Solutions)
Utilities Cash
Accounts
3-Sep Expense 1,000 8-Sep-22 Jeffrey Receipt -
Payable
(Invoice) Services
Cash
Cash
(Service Service
4-Sep 2,000 15-Sep-22 Mark Receipt -
Revenue Revenue
Consulting
Receipt)
Utilities
Accounts
5-Sep Expense 1000 Cash 1-Sep-22 Marites
Receivable
(Payment)
Accounts
Advertising Payable Accounts
7-Sep 800 5-Sep-22 Marisol
Expense (Marketing Receivable
Solutions)

Rent Accounts
15-Sep 1,000 Cash 8-Sep-22 Jeffrey
Expense Receivable

Accounts
Total 10,300 10,300 15-Sep-22 Mark
Receivable

CASH RECEIPT JOURNAL

 Customer Invoice Descripti Amount
Date
Name Number on ($)

Services
1-Sep-22 Love INV-001 2,500
Rendered

Product
5-Sep-22 Joy INV-002 1,800
Sales

Service
8-Sep-22 David INV-003 Subscripti 1,000
on

Consultin
15-Sep-22 Salomon INV-004 3,500
g Services

Step 7- Preparation of Financial Statements Step 8- Closing Entries

Horizon Innovations Horizon Innovations

Amount Amount
Revenue Assets Close Revenue Accounts: Description: Transfer th
($) ($)
Service
2,000 Cash 2,500 Close Expense Accounts: Description: Transfer th
Revenue
Sales Accounts
1,800 7,700 Close Income Summary to Retained Earnings: De
Revenue Receivable
Total Office
3,800 500 Close Dividends to Retained Earnings: Descriptio
Revenue Supplies
Amount Computer
Expenses 5,000 Here's a summary of the closing entries:
($) Equipment
Less:
Accumulat
Advertising
300 ed -400 Account Description
Expense
Depreciatio
n
Close
Utilities Total Service
2,000 15,300 Revenue
Expense Assets Revenue
Accounts
Close
Rent Amount Sales
1,500 Liabilities Revenue
Expense ($) Revenue
Accounts

Close
Depreciatio Accounts Advertising
400 2,200 Expense
n Expense Payable Expense
Accounts

Accrued Close
Total Utilities
4,200 Expenses 300 Expense
Expenses Expense
Payable Accounts
 Close
Total Rent
2,500 Expense
Liabilities Expense
Accounts
Close
Amount Depreciation
Equity Expense
($) Expense
Accounts
Close
Income
Retained Income
-400 Summary to
Earnings Summary
Retained
Earnings
Close
Total Income Dividends to
-400
Equity Summary Retained
Earnings
Close
Retained Dividends to
Earnings Retained
Earnings
he General Ledger. Step 4 & 5 -Prepare the Unadjusted Trial Balance and preparation of Worksheet.
Horizon Innovations

Debit ($) Credit ($) Account Debit ($) Credit ($)

1,000 Cash 2,500

Accounts
2,250 7,700
Receivable

Office
1,200 500
Supplies

Computer
3,000 5,000
Equipment

Accounts
1,000 2,200
Payable

Service
2,250 2,000
Revenue

Sales
1,200 1,800
Revenue

Advertising
3,000 300
Expense

Utilities
2,000
Expense

Rent
1,500
Expense

Total 13,700 13,700

osing Entries

unts: Description: Transfer the balances of revenue accounts to the Income Summary account. Debit: Service Revenue Debit: Sales Revenue C

unts: Description: Transfer the balances of expense accounts to the Income Summary account. Debit: Income Summary Credit: Advertising Ex

ary to Retained Earnings: Description: Close the Income Summary account to Retained Earnings. Debit: Income Summary Credit: Retained Ea

etained Earnings: Description: Close the Dividends account to Retained Earnings. Debit: Retained Earnings Credit: Dividends

he closing entries:

Debit ($) Credit ($)

2,000

1,800

300

2,000
 1,500

400

4,800

400

400
ation of Worksheet. Step 6-Preparing adjusting entries.
Horizon Innovations

Accrued Revenue: Description: Recognize revenue earned but not yet recorded. Debit: Accounts Receiva

Prepaid Expense: Description: Allocate prepaid expenses to the appropriate period. Debit: Expense Acco

Accrued Expense: Description: Recognize expenses incurred but not yet recorded. Debit: Expense Accoun

Depreciation: Description: Allocate the cost of long-term assets over their useful lives. Debit: Depreciatio

These are just a few examples of adjusting entries, and the specific entries required may vary based on t

Descripti
Date Account Debit ($) Credit ($)
on

Accounts
Accrued
30-Sep-22 Receivabl 1,000
Revenue
e
Service Accrued
30-Sep-22 1,000
Revenue Revenue
Prepaid
Rent Expense
30-Sep-22 500
Expense Adjustme
nt

Prepaid
Prepaid Expense
30-Sep-22 500
Expense Adjustme
nt
Utilities Accrued
30-Sep-22 300
Expense Expense
 Accrued
Accrued
30-Sep-22 Expenses 300
Expense
Payable
Depreciati
Depreciati
on
30-Sep-22 on 400
Adjustme
Expense
nt

Accumula Depreciati
ted on
30-Sep-22 400
Depreciati Adjustme
on nt

evenue Debit: Sales Revenue Credit: Income Summary

ummary Credit: Advertising Expense Credit: Utilities Expense Credit: Rent Expense Credit: Depreciation Expense

Summary Credit: Retained Earnings

dit: Dividends
ded. Debit: Accounts Receivable Credit: Service Revenue Explanation: Increase the Accounts Receivable account and recognize the corresp

period. Debit: Expense Account (e.g., Rent Expense, Utilities Expense) Credit: Prepaid Expense Explanation: Recognize a portion of the pre

orded. Debit: Expense Account (e.g., Salary Expense, Interest Expense) Credit: Accrued Expenses Payable Explanation: Record the expense

seful lives. Debit: Depreciation Expense Credit: Accumulated Depreciation Explanation: Recognize a portion of the asset's cost as an expen

equired may vary based on the business's circumstances and accounting policies. It is essential to review the financial records and consult
ount and recognize the corresponding Service Revenue.

Recognize a portion of the prepaid expense as an expense for the current period.

planation: Record the expenses incurred but not yet paid or recorded.

of the asset's cost as an expense and reduce the asset's carrying value.

e financial records and consult with an accountant or financial professional to determine the appropriate adjusting entries for Envision Co.
usting entries for Envision Co.