General Journal
Date Account Titles & Explanation Debit Credit
1 Cash 200,000
Owner’s Equity 200,000
To record the investment to the business
2 Cash 300,000
Notes Payable 300,000
To record the bank loan
3 Equipment 360,000
Cash 360,000
To record the purchase of equipment
4 Supplies 80,000
Cash 80,000
To record the purchase of supplies
5 Cash 180,000
Service Fees 180,000
To record the rendered service for cash
6 Accounts Receivable 420,000
Service Fees 420,000
To record the rendered service on account
7 Cash 370,000
Accounts Receivable 370,000
To record the collection of accounts receivable
8 Utilities Expense 16,000
Cash 16,000
To record the utilities expense
9 Salaries Expense 140,000
Cash 140,000
To record salaries expense
10 Owner’s Drawing 100,000
Cash 100,000
To record the withdrew of cash
General Ledger
ASSET
Cash Accounts Receivable
No. Debit No. Credit No. Debit No. Credit
1 200,000 3 360,000 6 420,000 7 370,000
2 300,000 4 80,000
5 180,000 8 16,000
7 370,000 9 140,000
10 100,000
Bal. P354,000 Bal. P50,000
Equipment Supplies
No. Debit No. Credit No. Debit No. Credit
3 360,000 4 80,000
Bal. P360,000 Bal. P80,000
LIABILITY
Notes Payable
No. Debit No. Credit
2 300,000
Bal. P300,000
EQUITY
Owner’s Equity Owner’s Drawing
No. Debit No. Credit No. Debit No. Credit
1 200,000 10 100,000
Bal. P200,000 Bal. P100,000
INCOME
Service Fees
No. Debit No. Credit
5 180,000
6 420,000
Bal. P600,000
EXPENSE
Salaries Expense Utilities Expense
No. Debit No. Credit No. Debit No. Credit
9 140,000 8 16,000
Bal. P140,000 Bal. P16,000
Entity A
Unadjusted Trial Balance
For the year ended, December 31, 2020
Accounts Debit Credit
Cash 354,000
Accounts Receivable 50,000
Equipment 360,000
Supplies 80,000
Notes Payable 300,000
Owner’s Equity 200,000
Owner’s Drawing 100,000
Service Fees 600,000
Salaries Expense 140,000
Utilities Expense 16,000
TOTALS P1,100,000 P1,100,000
Adjusting Journal Entries
Date Account Titles & Explanation Debit Credit
Dec. 31, Interest Expense 9,000
2020 Interest Payable 9,000
To accrue interest expense incurred but not yet paid
Dec. 31, Depreciation Expense – Equipment 3,000
2020 Accumulated Depreciation 3,000
To record depreciation expense
Dec. 31, Bad Debts Expense 25,200
2020 Allowance for Bad Debts 25,200
To record the bad debts for the period
Dec. Supplies Expense 5,000
31,2020 Supplies 5,000
To record the unused supplies
Entity A
Worksheet
For the Period Ended, December 31, 2020
Unadjusted Trial Adjustments Adjusted Trial
No Accounts Balance Balance
. Dr Cr Dr Cr Dr Cr
1 Cash 354,000 354,000
2 Accounts Receivable 50,000 50,000
3 Equipment 360,000 360,000
4 Supplies 80,000 5,000 75,000
5 Notes Payable 300,000 300,000
6 Owner’s Equity 200,000 200,000
7 Owner’s Drawing 100,000 100,000
8 Service Fees 600,000 600,000
9 Salaries Expense 140,000 140,000
10 Utilities Expense 16,000 16,000
TOTALS P1,100,000 P1,100,000
Adjustments
11 Interest Expense 1 9,000 9,000
12 Interest Payable 9,000 9,000
13 Depreciation 2 3,000 3,000
Expense
14 Accumulated 3,000 3,000
Depreciation
15 Bad Debts Expense 3 25,200 25,200
16 Allowance for 25,200 25,200
Bad Debts
17 Supplies Expense 4 5,000 5,000
TOTALS 42,200 42,200 1,137,200 1,137,200
PROBLEM 2
General Journal
Date Account Titles & Explanation Debit Credit
1 Cash 320,000
Owner’s Equity 320,000
To record the investment
2 Cash 200,000
Notes Payable 200,000
To record the bank loan
3 Equipment 240,000
Cash 240,000
To record the purchase of equipment
4 Prepaid Rent 108,000
Cash 108,000
To record the advance payment of rent
5 Cash 260,000
Service Fees 260,000
To record the service rendered for cash
6 Utilities Expense 15,000
Cash 15,000
To record the utilities expense
7 Owner’s Drawing 50,000
Cash 50,000
To record the withdrawal from the business
General Ledger
ASSET
Cash Equipment
No. Debit No. Credit No. Debit No. Credit
1 320,000 3 240,000 3 240,000
2 200,000 4 108,000
5 260,000 6 15,000
7 50,000
Bal. P367,000 Bal. P240,000
Prepaid Rent
No. Debit No. Credit
4 108,000
Bal. P108,000
LIABILITY
Notes Payable
No. Debit No. Credit
2 200,000
Bal. P200,000
EQUITY
Owner’s Equity Owner’s Drawing
No. Debit No. Credit No. Debit No. Credit
1 320,000 7 50,000
Bal. P320,000 Bal. P50,000
INCOME
Service Fees
No. Debit No. Credit
5 260,000
Bal. P260,000
EXPENSE
Utilities Expense
No. Debit No. Credit
6 15,000
Bal. P15,000
Entity B
Unadjusted Trial Balance
For the Year Ended, December 31, 2020
Accounts Debit Credit
Cash 367,000
Equipment 240,000
Prepaid Rent 108,000
Notes Payable 200,000
Owner’s Equity 320,000
Owner’s Drawing 50,000
Service Fees 260,000
Utilities Expense 15,000
TOTALS P780,000 P780,000
Adjusting Journal Entries
Date Account Titles & Explanation Debit Credit
Dec. 31, Salaries Expense 8,000
2020 Salaries Payable 8,000
To accrue salaries expense
Dec. 31, Depreciation Expense - Equipment 5,000
2020 Accumulated Depreciation 5,000
To record depreciation expense
Dec. 31, Interest Expense 2,000
2020 Interest Payable 2,000
To accrue interest expense incurred but not yet paid
Dec. 31, Rent Expense 18,000
2020 Prepaid Rent 18,000
To record the used portion of prepaid rent
Entity B
Worksheet
For the Period Ended, December 31, 2020
Unadjusted Trial Adjustments Adjusted Trial
No Accounts Balance Balance
. Dr Cr Dr Cr Dr Cr
1 Cash 367,000 367,000
2 Equipment 240,000 240,000
3 Prepaid Rent 108,000 18,000 90,000
4 Notes Payable 200,000 200,000
5 Owner’s Equity 320,000 320,000
6 Owner’s Drawing 50,000 50,000
7 Service Fees 260,000 260,000
8 Utilities Expense 15,000 15,000
TOTALS P780,000 P780,000
Adjustments
9 Salaries Expense 1 8,000 8,000
10 Salaries Payable 8,000 8,000
11 Depreciation 2 5,000 5,000
Expense
12 Accumulated 5,000 5,000
Depreciation
13 Interest Expense 3 2,000 2,000
14 Interest Payable 2,000 2,000
15 Rent Expense 4 18,000 18,000
TOTALS P33,000 P33,000 P795,000 P795,000
PROBLEM 3
General Journal
Date Account Titles & Explanation Debit Credit
1 Cash 100,000
Owner’s Equity 100,000
To record the investment to the business
2 Supplies Expense 60,000
Cash 60,000
To record the purchase of supplies
3 Accounts Receivable 400,000
Cash 400,000
To record service fees on account
4 Cash 270,000
Accounts Receivable 270,000
To record the collection of accounts receivables
5 Owner’s Drawing 60,000
Cash 60,000
To record the owner’s withdrawal
6 Salaries Expense 180,000
Cash 180,000
To record salaries expense
General Ledger
ASSET
Cash Accounts Receivable
No. Debit No. Credit No. Debit No. Credit
1 100,000 2 60,000 3 400,000 4 270,000
4 270,000 5 60,000
6 180,000
Bal. P70,000 Bal. P130,000
EQUITY
Owner’s Equity Owner’s Drawing
No. Debit No. Credit No. Debit No. Credit
1 100,000 5 60,000
Bal. P100,000 Bal. P60,000
INCOME
Service Fees
No. Debit No. Credit
3 400,000
Bal. P400,000
EXPENSE
Salaries Expense Supplies Expense
No. Debit No. Credit No. Debit No. Credit
6 180,000 2 60,000
Bal. P180,000 Bal. P60,000
Guitar Doc.
Unadjusted Trial Balance
For the Year Ended, December 31, 2020
Accounts Debit Credit
Cash 70,000
Accounts Receivable 130,000
Owner’s Equity 100,000
Owner’s Drawing 60,000
Service Fees 400,000
Salaries Expense 180,000
Supplies Expense 60,000
TOTALS P500,000 P500,000
Adjusting Journal Entries
Date Account Titles & Explanation Debit Credit
Dec. 31, Bad Debts Expense 10,000
2020 Allowance for Bad Debts 10,000
To record the bad debts expense for the period
Dec. 31, Supplies 20,000
2020 Supplies Expense 20,000
To record the unused supplies for the period
Dec. 31, Salaries Expense 30,000
2020 Salaries Payable 30,000
To accrue salaries expense
Guitar Doc.
Worksheet
For the Period Ended, December 31, 2020
Unadjusted Trial Adjustments Adjusted Trial
No Accounts Balance Balance
. Dr Cr Dr Cr Dr Cr
1 Cash 70,000 70,000
2 Accounts 130,000 130,000
Receivable
3 Owner’s Equity 100,000 100,000
4 Owner’s Drawing 60,000 60,000
5 Service Fees 400,000 400,000
6 Salaries Expense 180,000 30,000 210,000
7 Supplies Expense 60,000 20,000 40,000
TOTALS P500,000 P500,000
Adjustments
8 Bad Debts 1 10,000 10,000
Expense
9 Allowance for 10,000 10,000
Bad Debts
10 Supplies 2 20,000 20,000
11 Salaries Payable 30,000 30,000
TOTALS P60,000 P60,000 P540,000 P540,000
