ADJUSTING ENTRIES

Debit Credit
a. Interest Expense 120,000.00
Interest Payable 120,000.00

b. Salaries Expense 115,200.00

Salaries Payable 115,200.00

c. No entry needed upon mere signing of documents with no work performed.

d. Supplies Expense 41,950.00

Supplies 41,950.00

e. Insurance Expense 31,670.00

Prepaid Insurance 31,670.00

f. Depreciation Expense - Buildings 73,000.00

Accumulated Depreciation - Buildings 73,000.00

Depreciation Expense - Equipment 218,000.00

Accumulated Depreciation - Equipment 218,000.00

g. No entry needed as services will only be performed next year.

h. Accrued receivables 35,000.00

Service Revenues 35,000.00
 ADJUSTING ENTRIES

Debit

d. Supplies
e. Prepaid Insurance
f. Accumulated Depreciation - Buildings
f. Accumulated Depreciation - Equipment
h. Accrued receivables ₱ 35,000.00
f. Depreciation Expense - Buildings 73,000.00
f. Depreciation Expense - Equipment 218,000.00
a. Interest Payable
b. Salaries Payable
h. Service Revenues
a. Interest Expense 120,000.00
b. Salaries Expense 115,200.00
d. Supplies Expense 41,950.00
e. Insurance Expense 31,670.00
₱ 634,820.00
 Credit
.
₱ 41,950.00
31,670.00
73,000.00
218,000.00

120,000.00
115,200.00
35,000.00

₱ 634,820.00
 Neo Aglugub Benedicta Cumagun
Dec. 31, 2019:
Assets ₱ 450,000.00 ₱ 350,000.00
Liabilities 235,000.00 225,000.00

Dec. 31. 2020:

Assets 480,000.00 410,000.00
Liabilities ? 275,000.00

During 2020:
Add'l Investment 50,000.00 15,000.00
Profit 75,000.00 ?
Withdrawals 25,000.00 30,000.00

Required:
1. Refer to Neo Aglugub:
a. What is the owner's equity as at Dec. 31, 2019?
₱ 215,000.00
b. What is the owner's equity as at Dec. 31, 2020?
₱ 100,000.00
c. What is the amount of liabilities as at Dec. 31, 2020?
₱ 380,000.00

2. Refer to Benedicta Cumagun:

a. What is the owner's equity as at Dec. 31, 2019?
₱ 125,000.00
b. What is the owner's equity as at Dec. 31, 2020?
₱ 135,000.00
c. What is the profit for 2020?
₱ 150,000.00

3. What is the amount of assets owned by Beatriz Onate as at Dec. 31, 2020?
₱ 318,750.00

4. What is the amount of additional investment in Placido Tuddao made during 2020?
₱ 490,000.00
 Beatriz Onate Placido Tuddao

₱ 290,000.00 ₱ 800,000.00
140,000.00 380,000.00

? 1,250,000.00
190,000.00 640,000.00

77,500.00 ?
90,000.00 120,000.00
38,750.00 -

at Dec. 31, 2020?

ddao made during 2020?