Activity 22.

You are required to: 1. Prepare the worksheet

2. Prepare Financial Statements (Income Statement, Statement of Financial Position, and Statement of
Changes in Equity).
 ADJUSTING JOURNAL ENTRIES

a. Office Supplies on hand as of Dec. 31, 2019 is 21,000

Office Supplies Expense 42,000

Office Supplies 42,000
To recognize the expense portion

b. Three-fourth of the unearned revenues is applicable to the next accounting period.

Unearned Revenue 112,500

Service Revenue 112,500
To recognized the earned portion

c. Depreciation for the year as follows: Building - 38,000; Equipment - 123,000

Depreciation Expense 161,000

Accumulated Depreciation - Building 38,000
Accumulated Depreciation - Equipment 123,000
To provide for the depreciation of building and equipment

d. Salaries in the amount of 14,000 have accrued at year-end

Salaries Expense 14,000

Accrued Salaries Payable 14,000
To recognize the unpaid salaries
e. The notes receivable was accepted from several customers. The notes were issued on Sept. 1, 2019 and will settled together
with the 20% interest on May 31, 2020

Interest Receivable 32,000

Interest Income 32,000
To recognized accrued interest on notes receivable

f. 5% of the accounts receivable is doubtful of collection.

Doubtful Account Expense 7,800

Allowance for Doubtful Account 7,800
Provision for the allowance for doubtful accounts.
 JAY CESAR SYSTEM DEVELOPER
WORKSHEET
DECEMBER 31, 2019
UNAJUSTED TRIAL BALANCE REF ADJUSMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET

DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
CASH 45,000 45,000 45,000
NOTES RECEIVABLE 360,000 360,000 360,000
ACCOUNTS RECEIVABLE 156,000 156,000 156,000
OFFICE SUPPLIES 63,000 A. 42,000 21,000 21,000
LAND 300,000 300,000 300,000
BUILDING 1,590,000 1,590,000 1,590,000
ACCUM. DEPRECIATION-BLDG 254,000 C. 38,000 292,000 292,000
EQUIPMENT 2,150,000 2,150,000 2,150,000
ACCUM. DEPRECIATION-EQUIPMENT 612,000 C. 123,000 735,000 735,000
ACCOUNTS PAYABLE 213,000 213,000 213,000
UNEARNED REVENUE 450,000 B. 112,500 337,000 337,000
JAY CAPITAL 2,655,000 2,655,000 2,655,000
JAY WITHDRAWAL 600,000 600,000 600,000
SERVICE REVENUE 2,108,000 B. 112,500 2,220,500 2,220,500
SALARIES EXPENSE 875,000 D. 14,000 889,000 889,000
REPAIRS EXPENSE 116,000 116,000 116,000
MISCELLANEOUS EXPENSE 37,000 37,000 37,000
TOTAL 6,292,000 6,292,000

OFFICE SUPPLIES EXPENSE A. 42,000 42,000 42,000

DEPRECIATION EXPENSE C. 161,000 161,000 161,000
SALARIES PAYABLE D. 14,000 14,000 14,000
INTEREST RECEIVBLE E. 32,000 32,000 32,000
INTEREST INCOME E. 32,000 32,000 32,000
DOUBTFUL ACCOUNT EXPENSE F. 7,800 7,800 7,800
ALLOWANCE FOR DOUBTFUL ACCOUNT F. 7,800 7,800 7,800
TOTAL 369,300 369,300 6,506,800 6,506,800 1,252,800 2,252,500 5,254,000 4,254,300
NET INCOME 999,700 0 999,700
TOTAL 2,252,500 2,252,500 5,254,000 5,254,000
 JAY CESAR SYSTEM DEVELOPER
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2019

Revenues:
SERVICE REVENUE P 2,220,500
INTEREST INCOME 32,000

Operating Expenses:
P 889,000
SALARIES EXPENSE
REPAIRS EXPENSE 116,000
37,000
MISCELLANEOUS EXPENSE
OFFICE SUPPLIES EXPENSE 42,000

DEPRECIATION EXPENSE 161,000

DOUBTFUL ACCOUNT EXPENSE 7,800 1,252,800

NET INCOME P 999,700

 JAY CESAR SYSTEM DEVELOPER
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2019

ASSET
Current Assets
CASH P 45,000
360,000
NOTES RECEIVABLE
32,000
INTEREST RECEIVBLE
156,000
ACCOUNTS RECEIVABLE
OFFICE SUPPLIES 21,000

LESS: ALLOWANCE FOR DOUBTFUL ACCOUNT (7,800)

Total Current Asset P 606,200

Non-Current Assets
300,000
LAND
BUILDING 1,590,000
(292,000)
LESS: ACCUM. DEPRECIATION-BLDG
2,150,000
EQUIPMENT
(735,000)
LESS: ACCUM. DEPRECIATION-EQUIPMENT

NET BOOK VALUE 3,013,000

Total Non-Current Asset P 3,013,000
TOTAL ASSETS P 3,619,200
 LIABILITIES AND OWNER’S EQUITY
LIABILITIES
Current Liabilities
ACCOUNTS PAYABLE P 213,000

SALARIES PAYABLE 14,000

UNEARNED REVENUE 337,500

TOTAL CURRENT LIABILITY P 564,500

OWNER’S EQUITY
JAY, CAPITAL P 2,655,000
ADD: NET INCOME 999,700
TOTAL P 3,654,700
LESS: JAY, DRAWING (600,000)

Equity balance end P 3,054,700

TOTAL LIABILITY AND OWNER’S EQUITY P 3,619,200
 JAY CESAR SYSTEM DEVELOPER
STATEMENT OF CHANGES IN OWNER’S EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2019

JAY CAPITAL P 2,655,000

ADD: ADDITIONAL INVESTMENT P
NET INCOME 999,700 999,700
TOTAL P 3,654,700
LESS: JAY, DRAWING 600,000
JAY, ENDING CAPITAL-DEC 31, 2019 P 3,054,700