Journal Entries

Date Description Debit Credit

2023 Cash 70,000
1-Aug Common Stock 70,000
To record issuance of common stock for cash
3-Aug Equipment 45,000
Cash 37,500
Accounts Payable 7,500
To record purchase of equipment
6-Aug Supplies 300
Cash 300
To record purchase of supplies
10-Aug Accounts Receivable 4,000
Service Revenue 4,000
To record services provided to customer on account
13-Aug Utilities Expense 75
Cash 75
To record payment of utility bill
14-Aug Cash 3,200
Unearned Revenue 3,200
To record cash received in advance for services
16-Aug Dividends 150
Cash 150
To record payment of dividends
17-Aug Cash 5,200
Service Revenue 5,200
To record cash received for services rendered
19-Aug Accounts Payable 2,000
Cash 2,000
To record payment on accounts payable
22-Aug Salaries Expense 4,600
Cash 4,600
To record payment of salaries
28-Aug Cash 1,500
Accounts Receivable 1,500
To record cash received on accounts receivable
 General Ledger
Cash Accounts Payable Common
Aug. 1 70,000 Aug. 3 37,500 Aug. 19 2,000 7,500 Aug. 3
Aug. 14 3,200 Aug. 6 300
Aug. 17 5,200 Aug. 13 75
Aug. 28 1,500 Aug. 16 150
Aug. 19 2,000
Aug. 22 4,600
Bal. 35,275 Bal. 5,500

Accounts Receivable Unearned Revenue Divide

Aug. 10 4,000 Aug. 28 1,500 3,200 Aug. 14 Aug. 16

Bal. 2,500 Bal. 3,200 Bal. 150

Supplies Service R
Aug. 6 300

Bal. 300

Equipment Salaries E
Aug. 3 45,000 Aug. 22

Bal. 45,000 Bal. 4,600

Utility Ex
Aug. 13

Bal. 75
 Mr. Accountant
Common Stock Unadjusted Trial Balance
70,000 Aug. 1 Account Debit Credit
Cash 35,275
Accounts Receivable 2,500
Supplies 300
Equipment 45,000
Accounts Payable 5,500
Bal. 5,500 Unearned Revenue 3,200
Common Stock 70,000
Dividends 150
Dividends Service Revenue 9,200
150 Utilities Expense 75
Salaries Expense 4,600
Bal. 150 Total ₱ 87,900.00 ₱ 87,900.00

Service Revenue
4,000 Aug. 10
5,200 Aug. 17
Bal. 9,200

Salaries Expense
4,600

Bal. 4,600

Utility Expense
75

Bal. 75
 Adjusting Entries
Date Description Debit Credit
Supplies Expense 50
Aug-31 Supplies 50
To recognize supply usage for August
Aug-31 Depreciation Expense 2,500
Accumulated Depreciation 2,500
To recognize depreciation of equipment for August
Aug-31 Unearned Revenue 1,100
Service Revenue 1,100
To recognize revenue earned from Aug. 14 transaction
Aug-31 Interest Receivable 350
Interest Revenue 350
To recognize interest revenue earned but not yet collected
Aug-31 Income Tax Expense 3,400
Income Tax Payable 3,400
To recognize taxes incurred but not yet paid
 General Ledger
Cash Accounts Payable
Aug. 1 70,000 Aug. 3 37,500 Aug. 19 2,000 7,500 Aug. 3
Aug. 14 3,200 Aug. 6 300
Aug. 17 5,200 Aug. 13 75
Aug. 28 1,500 Aug. 16 150
Aug. 19 2,000
Aug. 22 4,600
Bal. 35,275 Bal. 5,500

Accounts Receivable Unearned Revenue

Aug. 10 4,000 Aug. 28 1,500 3,200 Aug. 14

Bal. 2,500 Bal. 3,200

Interest Receivable
Aug. 31 350 Income Tax Payable
3,400 Aug. 31
Bal. 350
Bal. 3,400
Supplies
Aug. 6 300

Bal. 300

Equipment
Aug. 3 45,000

Bal. 45,000

Accumulated Depreciation
2,500 Aug. 31

Bal. 2,500
 Mr. Accountant
Common Stock Adjusted Trial Balance
70,000 Aug. 1 For the Month Ended August 31, 2
Account
Cash
Accounts Receivable
Interest Receivable
Supplies
Bal. 5,500 Equipment
Accumulated Depreciation - Equipment
Accounts Payable
Dividends Unearned Revenue
Aug. 16 150 Income Tax Payable
Common Stock
Bal. 150 Dividends
Interest Revenue
Service Revenue
Service Revenue Supplies Expense
4,000 Aug. 10 Depreciation Expense - Equipment
5,200 Aug. 17 Income Tax Expense
Bal. 9,200 Salaries Expense
Utility Expense
Interest Revenue Total
350 Aug. 31

Bal. 350

Salaries Expense
Aug. 22 4,600

Bal. 4,600

Utility Expense
Aug. 13 75

Bal. 75

Supplies Expense
Aug. 31 2,500

Bal. 2,500
 Depreciation Expense -
Equipment
Aug. 31 2,500

Bal. 2,500

Income Tax Expense

Aug. 31 3,400

Bal. 3,400
 Mr. Accountant
Adjusted Trial Balance
For the Month Ended August 31, 2023
Account Debit Credit
Account Title
35,275
eceivable 2,500 Cash
ceivable 350 Accounts Receivable
250 Supplies
45,000 Equipment
ed Depreciation - Equipment 2,500 Accumulated Depreciation - Equipment
ayable 5,500 Accounts Payable
Revenue 2,100 Unearned Revenue
x Payable 3,400 Common Stock
tock 70,000 Dividends
150 Service Revenue
venue 350 Salaries Expense
venue 10,300 Utility Expense
pense 50 Adjustments:
on Expense - Equipment 2,500 Supplies Expense
x Expense 3,400 Depreciation Expense - Equipment
pense 4,600 Interest Receivable
ense 75 Interest Revenue
Total ₱ 94,150.00 ₱ 94,150.00 Income Tax Expense
Income Tax Payable

Total
 Mr. Accou
Worksh
For the Month Ended
Trial Balance
Account Title
Debit Credit
Cash 35,275
Accounts Receivable 2,500
Supplies 300 a.
Equipment 45,000
Accumulated Depreciation - Equipment b.
Accounts Payable 5,500
Unearned Revenue 3,200 c.
Common Stock 70,000
150
Service Revenue 9,200 c.
Salaries Expense 4,600
Utility Expense 75
Adjustments:
Supplies Expense
Depreciation Expense - Equipment a.
Interest Receivable b.
Interest Revenue d.
Income Tax Expense d.
Income Tax Payable e.
e.
Total ₱ 87,900.00 ₱ 87,900.00
 Mr. Accountant
Worksheet
For the Month Ended August 31, 2023
Adjustments Adjusted Trial Balance Income Statement
Debit Credit Debit Credit Debit
35,275
2,500
50 250
45,000
2,500 2,500
5,500
1,100 2,100
70,000
150
1,100 10,300
4,600 4,600
75 75

50 50 50
2,500 2,500 2,500
350 350
350 350
3,400 3,400 3,400
3,400 3,400
₱ 7,400.00 ₱ 7,400.00 ₱ 94,150.00 ₱ 94,150.00 ₱ 10,625.00
Profit 25.00
₱ 10,650.00
 Mr. Accountant
Income Statement
For the Month Ended August 31, 2
Income Statement Balance Sheet
Credit Debit Credit Revenues
35,275 Interest Revenue
2,500 Service Revenue
250 Total Revenues
45,000
2,500 Expenses
5,500 Supplies Expense
2,100 Depreciation Expense - Equipment
70,000 Salaries Expense
-150 Utility Expense
10,300 Income Tax Expense
Total Expenses

Net Income

350
350

3,400
₱ 10,650.00 ₱ 83,375.00 ₱ 83,350.00
25.00
₱ 10,650.00 ₱ 83,375.00 ₱ 83,375.00
 Mr. Accountant Mr. Accountant
Income Statement Statement of Changes in Equity
For the Month Ended August 31, 2023 For the Month Ended August 31, 2023

Beginning balance
venue 350 Issuance of Common Stock
venue 10,300 Retained Earnings
nues ₱ 10,650.00 Profit
Total

pense 50 Less: Dividends

on Expense - Equipment 2,500 Ending balance
pense 4,600
ense 75
3,400
nses ₱ 10,625.00

e ₱ 25.00
 Accountant Mr. Accountant
of Changes in Equity Statement of Retained Earnings
Ended August 31, 2023 For the Month Ended August 31, 2023

Beginning Retained Earnings (Aug. 01) 0

70,000 Net Income 25
0 Less: Dividends 150
25 69,975 Ending Retained Earnings (Aug. 31) -125
69,975

150
₱ 69,825.00
 Mr. Accountant Date
Statement of Financial Position 2023
As of August 31, 2023 Aug. 31
Assets
Cash 35,275
Accounts Receivable 2,500
Interest Receivable 350
Supplies 250
Equipment 45,000 Date
Accumulated Depreciation - Equipment 2,500 42,500 2023
Total Assets ₱ 80,875.00 Aug. 31

Liabilities
Accounts Payable 5,500
Income Tax Payable 3,400
Unearned Revenue 2,100
Total Liabilities ₱ 11,000.00

Stockholders' Equity
Common Stock 70,000 Date
Ending Retained Earnings 125 2023
Total Stockholder's Equity 69,875 Aug. 31
Total Liabilities and Stockholders' Equity ₱ 80,875.00

Date
2023
Aug. 31
 Closing Entries
Description MR. ACCOU
Post-closing T
Service Revenue For the Month Ende
Interest Revenue Account
Income Summary Cash
To close revenue accounts to Income Summary Accounts Receivable
Interest Receivable
Supplies
Description Equipment
Accumulated Depreciation - Equipment
Income Summary Accounts Payable
Supplies Expense Unearned Revenue
Depreciation Expense - Equipment Income Tax Payable
Income Tax Expense Common Stock
Salaries Expense Retained Earnings
Utility Expense Total
To close expense accounts to Income Summary

Description

Income Summary
Retained Earnings
To close Income Summary to Retained Earnings

Description

Retained Earnings
Dividends
To close Dividends to Retained Earnings
 MR. ACCOUNTANT
Post-closing Trial Balance
For the Month Ended August 31, 2023
Account Debit Credit
35,275
Receivable 2,500
eceivable 350
250
t 45,000
ted Depreciation - Equipment 2,500
Payable 5,500
Revenue 2,100
ax Payable 3,400
Stock 70,000
Earnings 125
Total ₱ 83,500.00 ₱ 83,500.00