Adjusting Entries

Cash 55,000.00
Withholding Tax 55,000.00

Cash 204,783.70
SSS Payable 6,394.30
PhilHealth Payable 4,812.50
Pag-IBIG Payable 1,100.00
Withholding Tax Payable 192,476.90

SSS/PhilHealth/Pag-IBIG Contribution Expense 19,208.20

SSS Payable 13,295.70
PhilHealth Payable 4,812.50
Pag-IBIG Payable 1,100.00

SSS Payable 19,690.00

PhilHealth Payable 9,625.00
Pag-IBIG Payable 2,200.00
Withholding Tax Payable 247,476.90
Cash 278,991.90

557,983.80 557,983.80
 TRIAL BALANCE
Cash 320,791.80
Accounts Receivable
Prepaid Insurance
Computer Equipment 1,400,000.00
Accumulated Depreciation 240,000
SSS Payable
PhilHealth Payable
Pag-IBIG Payable
Withholding Tax Payable
Loans Payable 1,000,000
Owner's Equity 1,254,000
Owner's Drawings 3,300,000.00
Service Fees 4,890,000
Salaries Exp 990,000.00
SSS/PhilHealth/Pag-IBIG Contribution Expense 19,208.20
Rent Exp 1,100,000.00
Utilities Exp 165,000.00
Office Supplies Exp 84,000.00
Insurance Exp 5,000.00

Total 7,384,000.00 7,384,000.00

 Journal
Rent Expense 100,000.00
Withholding Tax
Cash

Cash 262,000.00
Service fees

Office supplies expense 20,000.00

Cash

Cash 100,000.00
Service fees

Salaries expense 45,000.00

SSS Payable
PhilHealth Payable
Pag-IBIG Payable
Withholding Tax Payable
Cash

SSS/PhilHealth/Pag-IBIG Expense 1,746.20

SSS Payable
PhilHealth Payable
Pag-IBIG Payable

Computer Equipment 150,000.00

Cash

Utilities Expense 15,000.00

Cash

Cash 37,000.00
Service fees

Salaries expense 90,000.00

Cash

Prepaid insurance 5,000.00

Cash

Cash 350,000.00
Service fees
Salaries expense 45,000.00
Withholding tax Payable
Cash

TOTAL 1,220,746.20
 5,000.00
95,000.00

262,000.00

20,000.00

100,000.00

581.30
437.50
100.00
8,581.13
35,300.07

1,208.70
437.50
100.00

150,000.00

15,000.00

37,000.00

90,000.00

5,000.00

350,000.00
 8,916.77
36,083.23

1,220,746.20
 TRIAL BA

As of Decemb
ASSET

Cash
Accounts Receivable
Prepaid Insurance
Office Supplies
Computer Equipment
Accumulated Depreciation

LIABILITY
SSS pAYABR

Loans Payable

EQUITY

OE
Drawings

REVENUE

Service Fees

EXPENSES

Salaries Exp
Rent Exp
Utilities Exp
Office Supplies Exp
Insurance Exp
 TRIAL BALANCE

As of December 31, 20x1 For the m

Balance per book, end

594,000.00 CM
DM
5,000.00 Book error
Adjusted Balance
1,550,000.00
240,000.00

1,000,000.00

1,254,000.00
3,300,000.00

5,599,000.00

1,155,000.00
1,200,000.00
180,000.00
104,000.00
5,000.00
8,093,000.00 8,093,000.00
 BANK RECONCILIATION

For the month ended December 31,20x1

r book, end 594,000.00 Balance per bank statement, end 305,000.00

56,000.00 DIT 350,000.00
OC -5,000.00
Bank error
650,000.00 Adjusted Balance 650,000.00
537,225.80
 Revenues
Service Fees

Expenses
Salaries Exp
Rent Exp
Utilities Exp
Office Supplies Exp
Insurance Exp
SSS contribution expense
Pag IBIG contribution expense

PhilHealth contribution expen

Depreciation Exp
Interest Exp
taxes and licenses

EMPLOYEE'S SHARE
 0.00
0.00
90,000.00
 Income Statement

Service Fees 0.00

Salaries Exp 1,155,000.00

1,200,000.00
Utilities Exp 187,500.00
Office Supplies Exp 95,000.00
Insurance Exp 5,000.00
SSS contribution expense 2,417.40
Pag IBIG contribution expense 200.00

PhilHealth contribution expense 875.00

Depreciation Exp 126,250.00

Interest Exp 10,000.00
taxes and licenses 500.00
2,782,742.40 0.00
PROFIT -2,782,742.40 2,904,020.00
0.00 0.00 -5,686,762.40

0.00
0.00
0.00
0.00
0.00
 Balance Sheet Statement of C

Rak N' Roll, capital, Decemb

ASSET Add:
Less:
Cash 613,545.60 Rak N' Roll, capital, Decemb
Accounts Receivable 34,000.00
Prepaid Insurance 5,000.00
Office Supplies 9,000.00
Computer Equipment ###
Accumulated Depreciation Err:509

LIABILITY ASSET

Loans Payable 1,000,000.00 Cash

Interest Payab 10,000.00 Accounts Receivable

Utilities Payab 7,500.00 Prepaid Insurance
SSS contribution payable Office Supplies
Pag IBIG contribution payable Computer Equipment
PhilHealth contribution Payable Accumulated Depreciation
Withholding tax payable
TOTAL ASSETS
EQUITY
Owner, Capital 1,254,000.00
Owner, Drawings ### LIABILITY
### Err:509
PROFIT -2,782,742.40 Loans Payable
### Err:509 Interest Payab
Utilities Payab

EQUITY

OE
TOTAL LIAB AND EQUITY
 Statement of Changes in Equity

Rak N' Roll, capital, December 1, 20x1 1,254,000.00

Profit ###
Drawings ###
Rak N' Roll, capital, December 1, 20x1 ###

Balance Sheet

ASSETS
Cash and cash equivalents

613,545.60 Trade and other receivables

Accounts Receivable 34,000.00 Prepaid assets

Prepaid Insurance 5,000.00
Office Supplies 9,000.00 Total current assets
Computer Equipment ###
Accumulated Depreciation Err:509 Property, plant, & equipment
Total non-current assets
TOTAL ASSETS Err:509 TOTAL ASSETS

LIABILITIES
Trade and other payables
Total current liabilities
Loans Payable 1,000,000.00
Interest Payab 10,000.00 Long-term borrowings
Utilities Payab 7,500.00 Total non-current liabilities

EQUITY
### Owner's Capital
TOTAL LIABILITIES and OE
TOTAL LIAB AND EQUITY ###
 Notes
Note 1 : Cash and cash equivalents
ash equivalents 1.00 613,545.60 Cash

other receivables 2.00 34,000.00 cash equivalents

3.00 34,000.00
Note 2: Trade and other receivables
681,545.60 Accounts receivable

lant, & equipment 4.00 Err:509 Note 3 : Prepaid Assets

Err:509 Prepaid Insurance
Err:509 Unused Office Supplies

other payables 5.00 17,500.00 Note 4 : Property, plant, and equipment

Computer Equipment
Accumulated Depreciation
borrowings 6.00 1,000,000.00

Note 5 : Trade and other payables

Interest Payab
### Utilities Payab
### SSS contribution payable
 Pag IBIG contribution payable

PhilHealth contribution Payable

Note 6 : Long-term borrowings

Loan Payab
 Statement

Cash flows from operating activities

PROFIT FOR THE YEAR
Non-cash items
Depreciation
Total
Changes in operating assets & liabilities
Increase in Trade and other receiv

Increase in trade and other payab

sh and cash equivalents Net cash from operating activities
613,545.60

cash equivalents Cash flows from investing activities

Cash payment for acquisition of P

de and other receivables Net cash used in investing activities
Accounts receivable 34,000.00

epaid Assets
Prepaid Insurance 5,000.00
Unused Office Supplies 29,000.00 Cash flows from financing activities
34,000.00 Cash receipts from loans
Cash payments to the owner
operty, plant, and equipment Net cash from financing activities
Computer Equipment 1,550,000.00
Accumulated Depreciation Err:509 Net increase in cash and cash equivalents
Err:509 cash and cash equivalents,beg
Cash and cash equivalents,end
ade and other payables

Interest Payab 10,000.00

Utilities Payab 7,500.00
SSS contribution payable
Pag IBIG contribution payable

PhilHealth contribution Payable

17,500.00

ng-term borrowings
Loan Payab 1,000,000.00
 Statement of Cash Flow

from operating activities

R THE YEAR ### Date
December ###
Depreciation 126,250.00
###
operating assets & liabilities
Increase in Trade and other receivables -34,000.00 ###

Increase in trade and other payables 10,000.00

om operating activities ###

from investing activities

Cash payment for acquisition of PPE -150,000.00

sed in investing activities -150,000.00

from financing activities

Cash receipts from loans 1,000,000.00 ###
Cash payments to the owner ###
om financing activities ###

se in cash and cash equivalents ### ###

ash equivalents,beg 67,500.00
ash equivalents,end ###
 CLOSING ENTRIES

Account Titles and Explanation PR DR CR

Service fees 5,689,000.00
Income Summary 5.689.000
to close revenue account

Income Summary 2,762,742.40

Salaries Exp 1,155,000.00
Rent Exp 1,200,000.00
Utilities Exp 187,500.00
Office Supplies Exp 75,000.00
Insurance Exp 5,000.00

SSS contribution expense 2,417.40

Pag IBIG contribution expense 200.00

PhilHealth contribution expense 875.00
Depreciation Exp 126,250.00
Interest Exp 10,000.00
taxes and licenses 500.00
to close expense accounts

Income Summary -2,782,742.40

Owner, Capital -2,782,742.40
to close net income to capital

Owner, Capital 3,300,000.00

Owner, Drawings 3,300,000.00
to close drawings to capital
 LEDGER
ASSETS
Cash Accounts Receivable
Dec-01 320,791.80 95,000.00 Dec-01
Dec-02 262,000.00 20,000.00 Dec-03
Dec-12 60,000.00 35,300.07 Dec-15
Dec-23 37,000.00 150,000.00 Dec-17
Dec-30 350,000.00 15,000.00
90,000.00 Dec-23
5,000.00 Dec-28
36,083.23 Dec-30
1,029,791.80 446,383.30
583,408.50

Computer Equipment
Dec-01 1,400,000
Dec-17 150,000
1,550,000

LIABILITIES

Loans Payable Withholding Tax Payable

1,000,000 Dec-01

EQUITY

Owner's Equity Drawings

Dec-01 1,254,000 Dec-01 3,300,000
REVENUES

Service Fees
4,890,000.00 37,226.00
262,000.00 37,591.00
60,000.00 41,244.00
37,000.00 45,261.00
350,000.00 11,293.00
5,599,000.00

EXPENSES

Salaries Expense Rent Expense

990,000.00 1,100,000.00
45,000.00 100,000.00
90,000.00 1,200,000.00
45,000.00
1,170,000.00

Office Supplies Expense Insurance Expense

84,000.00 5,000.00
20,000.00
104,000.00
 Accounts Receivable Prepaid Insurance
dec 28 5,000

Computer Equipment Accumulated Depreciation

240,000 1-Dec

Withholding Tax Payable SSS Payable PhilHealth P

0.00 0.00
5,000.00 581.30
8,581.13 1,208.70
8,916.77 1,790.00
22,497.90
Utilities Expense SSS/PhilHealth/Pag-IBIG Expense
19,208.20
165,000.00 1,746.20
15,000.00 20,954.40
180,000.00

Taxes and Licenses

PhilHealth Payable Pag-IBIG Payable
0.00 0.00
437.50 100.00
437.50 100.00
875.00 200.00
alth/Pag-IBIG Expense
 TRIAL BALANCE
Cash 583,408.50
Accounts Receivable
Prepaid Insurance 5,000.00
Computer Equipment 1,550,000.00
Accumulated Depreciation 240,000.00
SSS Payable 1,790.00
PhilHealth Payable 875.00
Pag-IBIG Payable 200.00
Withholding Tax Payable 22,497.90
Loans Payable 1,000,000.00
Owner's Equity 1,254,000.00
Owner's Drawings 3,300,000.00
Service Fees 5,599,000.00
Salaries Exp 1,170,000.00
SSS/PhilHealth/Pag-IBIG Contribution Expense 20,954.40
Rent Exp 1,200,000.00
Utilities Exp 180,000.00
Office Supplies Exp 104,000.00
Insurance Exp 5,000.00
Taxes and Licenses
Total 8,118,362.90 8,118,362.90
Adjustments
b. Office Supplies
c. Depreciation Expense
d. Interest expense
Interest payable
e. Utilities Payable
8,118,362.90 8,118,362.90
 Adjustments Adjusted TB
vi 56,000.00 viii 25,862.90 613,545.60
i 34,000.00 34,000.00
5,000.00
1,550,000.00
iii 126,250.00
viii 1,790.00
875.00
200.00
22,497.90

3,300,000.00
i/vi 90,000.00
1,170,000.00
20,954.40
1,200,000.00
v 7,500.00 187,500.00
ii 9,000.00 95,000.00
5,000.00
vii 500.00 500.00

ii 9,000.00 9,000.00
iii 126,250.00 126,250.00
iv 10,000.00 10,000.00
iv 10,000.00
v 7,500.00
268,612.90 268,612.90 8,326,750.00
Adjusted TB INCOME STATEMENT BALANCE SHEET
613,545.60
34,000.00
5,000.00
1,550,000.00
366,250.00
0.00
0.00
0.00
0.00
1,000,000.00
1,254,000.00
3,300,000.00
5,689,000.00 5,689,000.00
1,170,000.00
20,954.40
1,200,000.00
187,500.00
95,000.00
5,000.00
500.00

9,000.00
126,250.00
10,000.00
10,000.00
7,500.00
8,326,750.00 2,815,204.40 5,689,000.00 5,511,545.60
2,873,795.60
5,689,000.00 5,689,000.00 5,511,545.60
BALANCE SHEET

366,250.00
0.00
0.00
0.00
0.00
1,000,000.00
1,254,000.00

10,000.00
7,500.00
2,637,750.00
2,873,795.60
5,511,545.60
 Adjusting Entries

Accounts Receivable 34,000.00

Service Fees 34,000.00

Office Supplies 9,000.00

Office Supplies Expense 9,000.00

Depreciation Expense 126,250.00

Accumulated Depreciation 126,250.00

Interest Expense 10,000.00

Interest Payable 10,000.00

Utilities Exp 7,500.00

Utilities Payab 7,500.00

Cash 56,000.00
Service Fees 56,000.00

Taxes and Licenses 500.00

Cash 500.00

Withholding tax payable 22,497.90

SSS contribution payable 1,790.00
Pag IBIG contribution payable 200.00
PhilHealth contribution Payable 875.00
Cash 25,362.90
i

ii

iii

iv

vi

vii

viii