On July 31, 2023 Freedom Wa

Trial Balances
Make the appropria

7/31/2023
Freedom Wash Co.
Unadjusted Trial Balance
Dec 31, 2023
Particulars Notes Debit Credit
Cash 440,000 12/31/2023
Accounts Receivables 20,000
Notes Receivables 10,000
Prepaid Insurance 25,000
Building 700,000 On December 1, 2022 Freedom
Equipment 150,000 value of Php200,000 with a 2
Furnitures and Fixtures 50,000
Accounts Payables 50,000 1/12/2022
Utilities Payables 15,000
Unearned Income 50,000
Freedom, Capital 1,200,000
Freedom, Drawings 20,000
Service Income 250,000 12/31/2023
Insurance Expense 30,000
Utilities Expense 120,000
1,565,000 1,565,000

Freedom Wash Co. Debit

Adjusted Trial Balance 440,000
Dec 31, 2023 390,000
Particulars Notes Debit Credit
Cash 390,000
Accounts Receivables 20,000
Notes Receivables 10,000 Debit
Interest Receivables 500
Prepaid Insurance 12,500
Building 700,000
Equipment 150,000
Furnitures and Fixtures 50,000 Step 1: Closin
Accumelated Depreciation 1 43,000 Particulars
Utilities Payables 25,000 Service Income
Unearned Income 25,000 Interest Income
Freedom, Capital 1,200,000 Income Summary
Freedom, Drawings 20,000 To close revenue accoun
Service Income 275,000 Note 1
Interest Income 500 Accumulated Depreciaion
Depreciation Expense 43,000 Building
Insurance Expense 42,500 Equipment
 Utilities Expense 130,000 Furnitures and Fixtur
1,568,500 1,568,500
Freedom Wash Co.
Post Closing Trial Balance
Dec 31, 2023
Particulars Notes Debit Credit
Cash 390,000
Accounts Receivables 20,000
Notes Receivables 10,000
Interest Receivables 500
Prepaid Insurance 12,500
Building 700,000
Equipment 150,000
Furnitures and Fixtures 50,000
Accumelated Depreciation 43,000
Utilities Payables 25,000
Unearned Income 25,000
Freedom, Capital 1,240,000
1,333,000 1,333,000
On July 31, 2023 Freedom Wash Co. purchased prepaid insurance worth Php25,000 for 10 months Solving
Make the appropriate original and adjusting journal entry using asset method 25,000
* 5 = 12,500
Original Entry 10
Particulars Debit Credit
Prepaid Insurance 25,000
Cash 25,000
To record purchased insurance
Adjusted Journal Entry
Particulars Debit Credit
Insurance Expense 12,500
Prepaid Insurance 12,500
To record expired insurance
n December 1, 2022 Freedom Wash Co. purchased a building at a cost of Php700,000 and a salvage Solving
value of Php200,000 with a 20 years useful life make an appropriate orginal and adjusting entry 700,000 - 200,000
Original Entry 20
Particulars Debit Credit 500,000
Building 700,000 20
Cash 700,000 Annual Depreciation = 25,000
To record building purchased
Adjusted Journal Entry
Particulars Debit Credit
Depreciation Expense 25,000
Accumelated Depreciation -Building 25,000
To record depreciation - Building
Cash Accounts Receivables
Debit Credit Debit Credit Debit
440,000 50,000 20,000 10,000
390,000 20,000 10,000

Utilities Payables Unearned Income

Debit Credit Debit Credit Debit
15,000 25,000 50,000
10,000 25,000
25,000

Step 1: Closing Revenue Account Step 2: Closing Expense and Contra Revenue A
Particulars Debit Credit Particulars
Service Income 275,000 Income Summary
Interest Income 500 Depreciation Expense
Income Summary 275,500 Insurance Expense
To close revenue account Utilities Expense
To close revenue account
Accumulated Depreciaion
25,000 Notes
Equipment 13,500
Furnitures and Fixtur 4,500
 Solving On January 5, 2023 Freedom Wash Co. purchased equipment worth Php 150,000 with an salvage
value of 15,000 and a useful life of 10 years make the appropriate original and adjusting entry
* 5 = 12,500
Original Entry
5/1/2023 Particulars Debit Credit
Equipment 150,000
Cash 150,000
To record purchased equipment
Adjusted Journal Entry
12/31/2023 Particulars Debit Credit
Depreciation Expense 13,500
Accumelated Depreciation - Equipment 13,500
To record depreciation - Equipment
Solving On January 8, 2023 Freedom Wash Co. purchased furnitures on account worth Php 50,000 and a
0,000 - 200,000 salvage value of 5,000 with a useful life of 10 years make the appropriate original and adjusting entry
20 Original Entry
500,000 8/1/2023 Particulars Debit Credit
20 Furnitures and Fixtures 50,000
Depreciation = 25,000 Accounts Payables 50,000
To record purchased equipment
Adjusted Journal Entry
12/31/2023 Particulars Debit Credit
Depreciation Expense 4,500
Accumelated Depreciation - F & F 4,500
To record depreciation - F & F
Notes Receivables Interest Receivables
Debit Credit Debit Credit Debit
10,000 500 25,000
10,000 500 12,500

Freedom, Capital Freedom, Drawings

Debit Credit Debit Credit Debit
1,200,000 20,000
1,200,000 20,000

Expense and Contra Revenue Accounts Income Summary Step 3: Closin

culars Debit Credit Debit Credit Particulars
215,500 215,500 275,500 Income Summary
pense 43,000 60,000 Freedom, Capital
nse 42,500 To close income summar
e 130,000
e account
 Solving On January 8, 2023 Freedom Wash Co. purchased furnitures on account worth Php 50,000 to
150,000 - 15,000 monthly for 1 year make the appropriate original and adjusting entry.
10 Original Entry
135,000 8/1/2023 Particulars Debit
10 Furnitures and Fixtures 50,000
Annual Depreciaton = 13,500 Accounts Payables
To record purchased equipment
Adjusted Journal Entry
12/31/2023 Particulars Debit
Accounts Payables 50,000
Cash
To record purchased equipment
Solving On December 20, 2023 the company received a water bill for Php10,000 the company plans to
50,000 - 5,000 pay the bill on January 10, 2024 make the appropriate adjusting entry
10 Adjusted Journal Entry
45,000 12/31/2023 Particulars Debit
10 Utilities Expense 10,000
Annual Depreciaton = 4,500 Utilities Payables
To record received water bill

Prepaid Insurance Building

Debit Credit Debit Credit Debit
25,000 12,500 700,000 150,000
12,500 700,000 150,000

Service Income Interest Income

Debit Credit Debit Credit Debit
250,000 500 25,000
25,000 500 13,500
275,000 4,500
43,000
Step 3: Closing Income Summary Step 4: Closing Drawings Account
Particulars Debit Credit Particulars
Income Summary 60,000 Freedom, Capital
Freedom, Capital 60,000 Freedom, Drawings
To close income summary To close income summary
account worth Php 50,000 to be p Solving On November 31, 2023 a customer received a service worth Php 10,000
entry. 50,000 gave a promissory note to pay in 2 months make the appropriate origin
* 12 = 50,000
12 Original Entry
Credit 11/31/2023 Particulars
Notes Receivables
50,000 Service Income
To record services rendered
Adjusted Journal Entry
Credit 12/31/2023 Particulars
Interest Receivables
50,000 Interest Income
To record interest earned
hp10,000 the company plans to On September 31, 2023 a company bought washing services for the nex
entry Php50,000. Make the appropriate original and adjusting entry using liab
Original Entry
Credit 9/31/2023 Particulars
Cash
10,000 Unearned Income
To record services rendered
Adjusted Journal Entry
12/31/2023 Particulars
Unearned Income
Service Income
To record services earned
Equipment Furnitures and Fixture Accumelated Deprec
Debit Credit Debit Credit Debit
150,000 50,000
150,000 50,000

Depreciation Expense Insurance Expense

Debit Credit Debit Credit Debit
25,000 30,000 120,000
13,500 12,500 10,000
4,500 42,500 130,000
43,000
4: Closing Drawings Account Freedom, Capital

Clo
culars Debit Credit Debit Credit
20,000 20,000 1,200,000
ngs 20,000 60,000
summary 20,000 1,260,000
1,240,000
ed a service worth Php 10,000 with 5% interest they Solving

Adjusting Journ
s make the appropriate original and adjusting entry I = PRT
Original Entry 10,000 * 5% * 2
Debit Credit 1,000
*1
10,000 2
10,000 500

sted Journal Entry

Debit Credit
500
500

t washing services for the next 6 months worth Solving

and adjusting entry using liability method 50,000
* 3 = 25,000
Original Entry 6
Debit Credit
50,000
50,000

sted Journal Entry

Debit Credit
25,000
25,000

Accumelated Depreciation Accounts Payable

Led
Debit Credit Debit Credit
25,000 50,000 50,000
13,500 0
4,500
43,000
Utilities Expense
Debit Credit
120,000
10,000
130,000

Closing Entries
ting Journal Entries

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