WORKSHEET PREPARATION

The following data was taken from the books of Labango Dry Cleaners at the end of its
accounting period December 31, 2022

LABAJO DRY CLEANERS

Unadjusted Trial Balance
as of December 31, 2022

Debit Credit
Cash 98,750.00
Accounts Receivable 73,850.00
Allowance for bad debts 1,470.00
Notes Receivable 39,650.00
Supplies 21,995.00
Land 365,000.00
Building 940,000.00
Cleaning Equipment 165,000.00
Accumulated Depreciation - Cleaning Equipment 45,000.00
Delivery Equipment 160,000.00
Accumulated Depreciation - Delivery Equipment 33,000.00
Accounts Payable 95,340.00
Notes Payable 67,000.00
Laba, Capital 1,316,080.00
Laundry Fees 632,625.00
Salary Expense 173,000.00
Supplies Expense 67,000.00
Advertising Expense 18,000.00
Utilities Expense 58,930.00
Delivery Expense 9,340.00
₱ 2,190,515.00 ₱ 2,190,515.00
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Additional Data
Building was acquired on March 2, 2022 with an estimated useful life of 50 years and a salvage value
of ₱ 130,000.00
Cleaning equipment was purchased on July 3, 2020 with an estimated useful life of 5 years and a
salvage value of ₱15,000.00

Delivery equipment was acquired on April 29, 2020 and has an estimated useful life of 7 years and a
salvage value of ₱21,400.00
Unpaid Expenses:
Salary 9,650.00
Electricity 5,968.49
Delivery 4,725.00
Supplies on hand amounted to ₱ 9,400.00
It is estimated that 5% of outstanding accounts receivable will become uncollectible
Accrued interest on notes receivable ₱ 595.00
Accrued interest on notes payable ₱ 787.50
Prepaid advertising, ₱ 1,950.00
 ADJUSTING JOURNAL ENTRIES
GENERAL JOURNAL
2022 Page _1_
Date P.R. Debit Credit
Dec. 31 Depreciation Expense - Building ₱ 1 3 5 0 0
Accumulated depreciation - Building ₱ 1 3 5 0 0
to record depreciation of building for the
period ended 2022

31 Depreciation Expense - Cleaning Equipment 3 0 0 0 0

Accumulated depreciation - Cleaning Equipment 3 0 0 0 0
to record depreciation of cleaning equipment
for the period ended 2022

31 Depreciation Expense - Delivery Equipment 1 9 8 0 0

Accumulated depreciation - Delivery Equipment 1 9 8 0 0
to record depreciation of delivery equipment
for the period ended 2022
ADJUSTING JOURNAL ENTRIES
ADJUSTING JOURNAL ENTRIES
 LABAJO DRY CLEANERS
WORKSHEET
as of December 31, 2022

Unadjusted Trial Balance Adjustment

Account Title Debit Credit Debit Credit
Cash 98,750.00
Accounts Receivable 73,850.00
Allowance for bad debts 1,470.00 2,222.50
Notes Receivable 39,650.00
Supplies 21,995.00 12,595.00
Land 365,000.00
Building 940,000.00
Cleaning Equipment 165,000.00
Accumulated Depreciation - Cleaning Equipment 45,000.00 30,000.00
Delivery Equipment 160,000.00
Accumulated Depreciation - Delivery Equipment 33,000.00 19,800.00
Accounts Payable 95,340.00
Notes Payable 67,000.00
Laba, Capital 1,316,080.00
Laundry Fees 632,625.00
Salary Expense 173,000.00 9,650.00
Supplies Expense 67,000.00 12,595.00
Advertising Expense 18,000.00 1,950.00
Utilities Expense 58,930.00 5,968.49
Delivery Expense 9,340.00 4,725.00

Depreciation Expense - Building 13,500.00

Accumulated Depreciation - Building 13,500.00
Depreciation Expense - Cleaning Equipment 30,000.00
Depreciation Expense - Delivery Equipment 19,800.00
Salaries Expense Payable 9,650.00
Utilities Expense Payable 5,968.49
Delivery Expense Payable 4,725.00
Bad Debts Expense 2,222.50
Interest Receivable 595.00
Interest Income 595.00
Interest Expense 787.50
Interest Payable 787.50
Prepaid Advertising 1,950.00
Net Income
2,190,515.00 2,190,515.00 101,793.49 101,793.49
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LABAJO DRY CLEANERS LABAJO DRY CLEANERS
WORKSHEET WORKSHEET
as of December 31, 2022 as of December 31, 2022

Adjusted Trial Balance Income Statement Balance Sheet

Account Title Debit Credit Debit Credit Debit Credit
Cash 98,750.00 98,750.00
Accounts Receivable 73,850.00 73,850.00
Allowance for bad debts 3,692.50 3,692.50
Notes Receivable 39,650.00 39,650.00
Supplies 9,400.00 9,400.00
Land 365,000.00 365,000.00
Building 940,000.00 940,000.00
Cleaning Equipment 165,000.00 165,000.00
Accumulated Depreciation - Cleaning Equipment 75,000.00 75,000.00
Delivery Equipment 160,000.00 160,000.00
Accumulated Depreciation - Delivery Equipment 52,800.00 52,800.00
Accounts Payable 95,340.00 95,340.00
Notes Payable 67,000.00 67,000.00
Laba, Capital 1,316,080.00 1,316,080.00
Laundry Fees 632,625.00 632,625.00
Salary Expense 182,650.00 182,650.00
Supplies Expense 79,595.00 79,595.00
Advertising Expense 16,050.00 16,050.00
Utilities Expense 64,898.49 64,898.49
Delivery Expense 14,065.00 14,065.00

Depreciation Expense - Building 13,500.00 13,500.00

Accumulated Depreciation - Building 13,500.00 13,500.00
Depreciation Expense - Cleaning Equipment 30,000.00 30,000.00
Depreciation Expense - Delivery Equipment 19,800.00 19,800.00
Salaries Expense Payable 9,650.00 9,650.00
Utilities Expense Payable 5,968.49 5,968.49
Delivery Expense Payable 4,725.00 4,725.00
Bad Debts Expense 2,222.50 2,222.50
Interest Receivable 595.00 595.00
Interest Income 595.00 595.00
Interest Expense 787.50 787.50
Interest Payable 787.50 787.50
Prepaid Advertising 1,950.00 1,950.00
Net Income 209,651.51 209,651.51
2,277,763.49 2,277,763.49 633,220.00 633,220.00 1,854,195.00 1,854,195.00
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CLOSING JOURNAL ENTRIES
CLOSING JOURNAL ENTRIES
CLOSING JOURNAL ENTRIES
 Account Title Debit Credit
Cash 98,750.00
Accounts Receivable 73,850.00
Allowance for bad debts 3,692.50
Notes Receivable 39,650.00
Supplies 9,400.00
Land 365,000.00
Building 940,000.00
Cleaning Equipment 165,000.00
LABAJO DRY CLEANERS Accumulated Depreciation - Cleaning Equipment 75,000.00
Post-Closing Trial Balance Delivery Equipment
Accumulated Depreciation - Delivery Equipment
160,000.00
52,800.00
as of December 31, 2022 Accounts Payable 95,340.00
Notes Payable 67,000.00
Laba, Capital 1,525,731.51
Laundry Fees
Salary Expense
Supplies Expense
Advertising Expense
Utilities Expense
Delivery Expense

Depreciation Expense - Building

Accumulated Depreciation - Building 13,500.00
Depreciation Expense - Cleaning Equipment
Depreciation Expense - Delivery Equipment
Salaries Expense Payable 9,650.00
Utilities Expense Payable 5,968.49
Delivery Expense Payable 4,725.00
Bad Debts Expense
Interest Receivable 595.00
Interest Income
Interest Expense
Interest Payable 787.50
Prepaid Advertising 1,950.00
Net Income
1,854,195.00 1,854,195.00
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