ADJUSTING JOURNAL ENTRIES

a. Rent expense 120,000

Prepaid rent 120,000
(360,000/6 months)*2 months

b. Office Supplies expense 36,000

Office Supplies 36,000
63,000-27,000

c. Depreciation expense 75,000

Accumulated depreciation 75,000

d. Salaries expense 105,000

Salaries payable 105,000

e. Interest expense 54,000

Interest payable 54,000
(900,000*0.24)*(3/12)
 Unadjusted Trial
Adjustments Adjusted Trial Balance Income Statement
Balance
Debit Credit Debit Credit Debit Credit Debit
Cash 126,000 126,000
Accounts Receivable 645,000 645,000
Prepaid Rent 360,000 120,000 240,000
Office Supplies 63,000 36,000 27,000
Furniture 2,175,000 2,175,000
Accumulated Depreciation 435,000 75,000 510,000
Notes Payable 900,000 900,000
Accounts Payable 285,000 285,000
Salaries Payable 105,000 105,000
Interest Payable 54,000 54,000
Rialubin, Capital 1,680,000 1,680,000
Rialubin, Withdrawals 1,200,000 1,200,000
Travel Revenues 5,133,000 5,133,000
Salaries Expense 3,771,000 105,000 3,876,000 3,876,000
Rent Expense 120,000 120,000 120,000
Office Supplies Expense 36,000 36,000 36,000
Depreciation Expense 75,000 75,000 75,000
Interest Expense 54,000 54,000 54,000
Misellaneous Expense 93,000 93,000 93,000
8,433,000 8,433,000 390,000 390,000 8,667,000 8,667,000 4,254,000
879,000
TOTAL 5,133,000

CR>DR = income

CR<DR = loss
 Income Statement Balance Sheet

Credit Debit Credit Income Statement

126,000
645,000 Travel Revenues 5,133,000
240,000
27,000 Expenses
2,175,000 Salaries Expense 3,876,000
510,000 Rent Expense 120,000
900,000 Office Supplies Expense 36,000
285,000 Depreciation Expense 75,000
105,000 Interest Expense 54,000
54,000 Misellaneous Expense 93,000 4,254,000
1,680,000 Net Income 879,000
1,200,000
5,133,000

5,133,000 4,413,000 3,534,000

879,000
5,133,000 4,413,000 4,413,000

CR>DR = income DR>CR = Income

CR<DR = loss DR<CR = loss

 Balance Sheet
Statement of Changes in Owner's Equity
Current Assets
Rialubin, Capital, Beginning 1,680,000 Cash
Add: Additional Investement 0 Accounts Receivable
Net Income 879,000 879,000 Prepaid Rent
Total 2,559,000 Office Supplies
Less: Withdrawals 1,200,000 Total Current Assets
Rialubin, Capital, Ending 1,359,000
Property, Plant, and Equipment (net)
Furniture
Accumulated Depreciation
Total Assets

Liabilities and Owner's Equity

Liabilities
Current Liabilities
Notes Payable
Accounts Payable
Salaries Payable
Interest Payable
Total current liabilities

Owner's Equity
Rialubin, Capital, Ending
Total Liabilities and Owner's Equity
 Balance Sheet
Assets

126,000
645,000
240,000
27,000
1,038,000

d Equipment (net)
2,175,000
510,000 1,665,000
2,703,000

Liabilities and Owner's Equity

900,000
285,000
105,000
54,000
1,344,000

1,359,000
d Owner's Equity 2,703,000
 Adjusting Entries

a. Advertising Expense 140,000

Prepaid Advertising 140,000

b. Engineering Supplies Expense 180,000

Engineering Supplies 180,000

c. Depreciation Expense 160,000

Accumulated Depreciaton 160,000

d. Unearned Survey Revenues 40,000

Survey Revenue 40,000

e. Salaries Expense 140,000

Salaries Payable 140,000

f. Interest Expense 60,000

Interest Payable 60,000
 Unadjusted Trial Balance Adjustments

Debit Credit Debit Credit

Cash 210,000
Accounts Receivable 930,000
Prepaid Advertising 360,000 140,000
Engineering Supplies 270,000 180,000
Survey Equipment 1,890,000
Accumulated Depreciation - Survey Equipt. 640,000 160,000
Accounts Payable 190,000
Salaries Payable 140,000
Interest Payable 60,000
Unearned Survey Revenues 120,000 40,000
Notes Payable 500,000
Abella, Capital 1,120,000
Abella, Withdrawals 700,000
Survey Revenues 6,510,000 40,000
Salaries Expense 3,270,000 140,000
Rent Expense 960,000
Insurance Expense 250,000
Utilities Expense 160,000
Depreciation Expense 160,000
Engineering Supplies Expense 180,000
Advertising Expense 140,000
Interest Expense 60,000
Misellaneous Expense 80,000
Totals 9,080,000 9,080,000 720,000 720,000
 Ily Abe
Adjusted Trial Balance Income Statement Balance Sheet
Incom
Debit Credit Debit Credit Debit Credit For the Year E
210,000 210,000
930,000 930,000 Survey Revenues
220,000 220,000
90,000 90,000 Expenses
1,890,000 1,890,000
800,000 800,000
190,000 190,000
140,000 140,000
60,000 60,000
80,000 80,000
500,000 500,000
1,120,000 1,120,000
700,000 700,000
6,550,000 6,550,000 Net Income
3,410,000 3,410,000
960,000 960,000
250,000 250,000
160,000 160,000
160,000 160,000
180,000 180,000
140,000 140,000
60,000 60,000
80,000 80,000
9,440,000 9,440,000 5,400,000 6,550,000 4,040,000 2,890,000
1,150,000 1,150,000
6,550,000 6,550,000 4,040,000 4,040,000
 Ily Abella Surveyors Ily Abella Surveyors
Income Statement Statement of Changes in Owner's Equtiy
For the Year Ended May 31, 2021 For the Year Ended May 31, 2021

urvey Revenues 6,550,000 Abella, Capital, Beginning

Add: Additional investment
Net Income
Salaries Expense 3,410,000 Total
Rent Expense 960,000 Less: Withdrawals
Insurance Expense 250,000 Abella, Capital, Ending
Utilities Expense 160,000
Depreciation Expense 160,000
Engineering Supplies Expense 180,000
Advertising Expense 140,000
Interest Expense 60,000
Misellaneous Expense 80,000 5,400,000
1,150,000
bella Surveyors Ily Abella Surveyors
hanges in Owner's Equtiy Balance Sheet
r Ended May 31, 2021 As of May 31, 2021

1,120,000 Assets
0 Current Assets
1,150,000 1,150,000 Cash 210,000
2,270,000 Accounts Receivable 930,000
700,000 Prepaid Advertising 220,000
1,570,000 Engineering Supplies 90,000
Total Current Assets 1,450,000

Property, Plant, and Equipment (net)

Survey Equipment 1,890,000
Accumulated Depreciation 800,000 1,090,000
Total Assets 2,540,000

Liabilities
Current Liabilities
Accounts Payable 190,000
Salaries Payable 140,000
Interest Payable 60,000
Unearned Service Revenue 80,000
Notes Payable 500,000
Total current liabilities 970,000

Owner's Equity
Rialubin, Capital, Ending 1,570,000
Total Liabilities and Owner's Equity 2,540,000
 Adjusting Entries

a. Supplies Expense 42,000

Office supplies 42,000

b. Unearned Consulting Revenue 150,000

Consulting Revenue 150,000

c. Depreciation Expense - Building 38,000

Depreciation Expense - Equipment 123,000
Accumulated Depreciation - Buidling 38,000
Accumulated Depreciation - Euipment 123,000

d. Salaries Expense 14,000

Salaries Payable 14,000

e. Interest Receivable 24,000

Interest Income 24,000

360,000 x 20% = 72,000/12 mos = 6,000 x 4 = 24,000

 Unadjusted Trial Adjustments Adjusted Trial Balance
Balance
Debit Credit Debit Credit Debit Credit
Cash 45,000 45,000
Accounts Receivable 156,000 156,000
Notes Receivable 360,000 360,000
Interest Receivable 24,000 24,000
Office Supplies 63,000 42,000 21,000
Land 300,000 300,000
Buidling 1,590,000 1,590,000
Accumulated Depreciation - Building 254,000 38,000 292,000
Equipment 2,150,000 2,150,000
Accumulated Depreciation - Equipment 612,000 123,000 735,000
Accounts Payable 213,000 213,000
Salaries Payable 14,000 14,000
Unearned Consulting Revenue 450,000 150,000 300,000
Santiago, Capital, 1/1/2021 2,655,000 2,655,000
Santiago, Withdrawals 600,000 600,000
Consulting Revenues 2,108,000 150,000 2,258,000
Interest Income 24,000 24,000
Salaries Expense 875,000 14,000 889,000
Repairs Expense 116,000 116,000
Supplies Expense 42,000 42,000
Depreciation Expense - Building 38,000 38,000
Depreciation Expense - Equipment 123,000 123,000
Misellaneous Expense 37,000 37,000
Totals 6,292,000 6,292,000 391,000 391,000 6,491,000 6,491,000
 Lea Mae Santiago Information Systems
Income Statement Balance Sheet
Income Statement
Debit Credit Debit Credit For the Year Ended December 31, 2021
45,000
156,000 Revenues:
360,000 Consulting Revenues 2,258,000
24,000 Interest Income 24,000
21,000 Total Revenues
300,000
1,590,000 Less: Operating Expenses
292,000 Salaries Expense 889,000
2,150,000 Repairs Expense 116,000
735,000 Supplies Expense 42,000
213,000 Depreciation Expense - Building 38,000
14,000 Depreciation Expense - Equipme 123,000
300,000 Misellaneous Expense 37,000
2,655,000 Net Income
600,000
2,258,000
24,000
889,000
116,000
42,000
38,000
123,000
37,000
1,245,000 2,282,000 5,246,000 4,209,000
1,037,000 1,037,000
2,282,000 2,282,000 5,246,000 5,246,000
 tion Systems Lea Mae Santiago Information Systems Lea Mae Santiago In
nt Statement of Changes in Owner's Equtiy Balance
mber 31, 2021 For the Year Ended December 31, 2021 As of Decem

Santiago, Capital, Beginning 2,655,000

Add: Additional investment 0 Current Assets
Net Income 1,037,000 1,037,000 Cash
2,282,000 Total 3,692,000 Accounts Receivable
Less: Withdrawals 600,000 Notes Receivable
Santiago, Capital, Ending 3,092,000 Interest Receivable
Office Supplies
Total Current Assets

Property, Plant, and Equipment (ne

Land
1,245,000 Building
1,037,000 Less: Accumulated Depreciation
Equipment
Less: Accumulated Depreciation
Total Assets

Current Liabilities
Accounts Payable
Salaries Payable
Unearned Consulting Revenue
Total current liabilities

Santiago, Capital, Ending

Total Liabilities and Owner's Equity
 Lea Mae Santiago Information Systems
Balance Sheet
As of December 31, 2021

Assets

45,000
ccounts Receivable 156,000
otes Receivable 360,000
nterest Receivable 24,000
ffice Supplies 21,000
otal Current Assets 606,000

erty, Plant, and Equipment (net)

300,000
1,590,000
ess: Accumulated Depreciation-Building 292,000 1,298,000
2,150,000
ess: Accumulated Depreciation - Equip 735,000 1,415,000 3,013,000
3,619,000

Liabilities
nt Liabilities
ccounts Payable 213,000
alaries Payable 14,000
nearned Consulting Revenue 300,000
otal current liabilities 527,000

Owner's Equity
ago, Capital, Ending 3,092,000
Liabilities and Owner's Equity 3,619,000
 Journal Entries
Jan 1 Cash 100,000 Accounts Receivable
Viesca, Capital 100,000

Service Vehicle 80,000 Cash

Cash 80,000

Feb 1 Cash 100,000 Miscellaneous Expenses

Notes Payable 100,000

Prepaid Rent 24,000 Salaries Expenses

Cash 24,000

Mar 1 Viesca, Withdrawals 30,000 Supplies Expense

Cash 30,000

April 1 Land 70,000 Depreciation Expense

Cash 70,000

May 1 Accounts Payable 15,000 Interest Expense

Cash 15,000

July 1 Cash 42,000 Rent Expense

Unearned Service Revenue 42,000

Sept 1 Cash 100,000 Unearned Service Revenue

Land 90,000
Gain on Sale of Land 10,000
Interest Receivable
Oct 1 Supplies 20,000
Accounts Payable 20,000

Nov 1 Certificate of Deposit 50,000

Cash 50,000
 Adjusting Entries
Accounts Receivable 250,000
Service Revenue 250,000

Cash 200,000
Accounts Receivable 200,000

Miscellaneous Expenses 80,000

Account Payable 80,000

Salaries Expenses 32,000

Salaries payable 32,000

Supplies Expense 19,000

Supplies 19,000

Depreciation Expense 24,000

Accumulated Depreciation-Serviceh Vehicle 24,000

Interest Expense 8,250

Interest Payable 8,250

Rent Expense 22,000

Prepaid Rent 22,000

Unearned Service Revenue 21,000

Service Revenue 21,000

Interest Receivable 500

Interest Income 500
 Adjusted Trial Balance Income Statement Balance Sheet

Debit Credit Debit Credit Debit

Cash 453,000 453,000
Accounts Receivable 160,000 160,000
Certificate of Deposit 50,000 50,000
Prepaid Rent 2,000 2,000
Interest Receivable 500 500
Supplies 1,000 1,000
Land 70,000 70,000
Service Vehicle 80,000 80,000
Accumulated Depreciation - Service Vehicle 24,000
Accounts Payable 119,000
Notes Payable 100,000
Salaries Payable 32,000
Interest Payable 8,250
Unearned Service Revenue 21,000
Viesco, Capital 446,000
Viesco, Withdrawals 30,000 30,000
Service Revenue 271,000 271,000
Interest Income 500 500
Gain on Sale of Land 10,000 10,000
Salaries Expense 32,000 32,000
Supplies Expense 19,000 19,000
Rent Expense 22,000 22,000
Depreciation Expense 24,000 24,000
Interest Expense 8,250 8,250
Miscellaneous Expense 80,000 80,000
1,031,750 1,031,750 185,250 281,500 846,500
96,250
281,500 281,500 846,500

1 281,500
2 19,000
3 8,250
4 22,000
5 185,250
6 10,000
7 96,250
8 21,000
9 8,250
10 280,250
Balance Sheet

Credit

24,000
119,000
100,000
32,000
8,250
21,000
446,000

750,250
96,250
846,500
 Nora Manliquiz Real Estate Agency
Income Statement
For the month Ended June 30, 2021

Real Estate Revenues 1,250,000

Less: Operating Expenses

Advertising Expense 163,000
Commissions Expense 475,000
Office Supplies Expense 27,000
Rent Expense 48,000
Salaries Expense 264,000
Utilities Expense 42,000
Depreciation Expense 5,000 1,024,000
Net Income 226,000
 Nora Manliquiz Real Estate Agency
Statement of changes in Owner's Equity
For the month Ended June 30, 2021

Manliquiz, Capital Beginning 123,000

Add: Additional Investment 16,000
Net Income 226,000 242,000
Total 365,000
Less: Withdrawals 250,000
Manliquiz, Capital Ending 115,000
 Problem 3
Closing Entries
1 Printing Revenue 8,130,000
Income Summary 8,130,000 Cash
Accounts Receivable
2 Income summary 3,730,000 Prepaid Insurance
Supplies Expense 710,000 Supplies
Salaries Expense 2,270,000 Prepaid Advertising
Depreciation Expense 250,000 Printing Equipmment
Repairs Expense 10,000 Accounts Payable
Telephone Expense 20,000 Notes Payable
Utilities Expense 80,000 Salaries Payable
Interest Expense 300,000 Unearned Revenues
Miscellaneous Expense 90,000 Interes Payable
Labalan, Capital
3 Income Summary 4,400,000 Total
Labalan, Capital 4,400,000

4 Labalan, Capital 1,500,000

Labalan, Wthdrawals 1,500,000
 Post Closing Trial Balance Problem 5
Debits 197,000 Espense Accounts Closed
160,000 Credits 190,000 Revenue Accouts Closed
Receivable 260,000 Net Loss (7,000) (debit)
320,000
160,000 Espanol, Capital 7,000
70,000 Income Summary 7,000
Equipmment 5,520,000
190,000
2,500,000
310,000
210,000
40,000
3,240,000
6,490,000 6,490,000
 Problem 6 - Reversing Entries

Insurance Expense 25,000

Prepaid Insurance 25,000

Interest Income 17,000

Interest Receivable 17,000

Salaries Payable 35,000

Salaries Expense 35,000

Unearned Rent Revenue 80,000

Rent Revenues 80,000