GENERAL JOURNAL

Date Account Titles Debit Credit

1 INVENTORY -₱ 420,000.00-
ACCOUNTS PAYABLE -₱ 420,000.00-

2 ACCOUNTS RECEIVABLE -₱ 900,000.00-

SALES REVENUE -₱ 900,000.00-

COST OF GOODS SOLD -₱ 430,000.00-

INVENTORY -₱ 430,000.00-

3 CASH -₱ 870,000.00-
ACCOUNTS RECEIVABLE -₱ 870,000.00-

4 ACCOUNTS PAYABLE -₱ 390,000.00-

CASH -₱ 390,000.00-

5 SALARIES EXPENSE -₱ 520,000.00-

CASH -₱ 520,000.00-
 CASH INVENTORY ACCOUNTS RECEIVABLE
BEG.BAL 80,000 390,000 4 BEG.BAL 40,000 430,000 2 BEG.BAL 0
3 870,000 520,000 5 1 420,000 2 900,000 870,000 3

900,000 870,000
460,000 430,000
950,000 910,000 BAL -₱ 30,000.00-
BAL -₱ 40,000.00- BAL -₱ 30,000.00-

ACCOUNTS PAYABLE
EQUIPMENT ACCUMULATED DEPRECIATION 4 390,000 420,000 1
BEG .BAL 200,000 20,000 BEG.BAL

BAL -₱ 200,000.00- 390,000 420,000

20,000 -₱ 30,000.00- BAL
-₱ 20,000.00- BAL

ENTITY A,CAPITAL SALES REVENUE SALARIES EXPENSE

300,000 BEG.BAL 900,000 BEG.BAL 5 520,000

-₱ 300,000.00-BAL -₱ 900,000.00-BAL BAL -₱ 520,000.00-

COST OF GOODS SOLD

2 430,000

BAL -₱ 430,000.00-
 ENTITY A
UNADJUSTED TRIAL BALANCE
AS OF JANUARY 31,20x1
ACCOUNT TITLE DEBIT CREDIT
CASH 40,000
ACCOUNTS RECEIVABLE 30,000
INVENTORY 30,000
COST OF GOODS SOLD 430,000
ENTITY A, CAPITAL 300,000
EQUIPMENT 200,000
ACCUMULATED DEPRECIATION 20,000
ACCOUNTS PAYABLES 30,000
SALES REVENUE 900,000
SALARIES EXPENSE 520,000
TOTAL: -₱ 1,250,000.00- -₱ 1,250,000.00-
 ADJUSTING ENTRIES
ACCOUNT TITLE DEBIT CREDIT
1 Depreciation expense -₱ 20,000.00-
Accumulated depreciation -₱ 20,000.00-
 ADJUSTING ENTRIES : ACCUMULATED DEPRECIATION
DEPRECIATION EXPENSE 20,000 BEG.BAL
AJE 1 20,000 20,000 AJE 1

BAL -₱ 20,000.00- -₱ 40,000.00- BAL

 ENTITY A
ADJUSTED TRIAL BALANCE
DECEMBER 31,20x1
ACCOUNT TITLE DEBIT CREDIT
CASH 40,000
ACCOUNTS RECEIVABLE 30,000
INVENTORY 30,000
EQUIPMENT 200,000
ACCUMULATED DEPRECIATION 40,000
ACCOUNTS PAYABLE 30,000
ENTITY A,CAPITAL 300,000
SALES REVENUE 900,000
COST OF GOOD SOLD 430,000
SALARIES EXPENSE 520,000
DEPRECIATION EXPENSE 20,000
TOTAL: -₱ 1,270,000.00- -₱ 1,270,000.00-
 ENTITY A
WORKSHEET
FOR THE MONTH OF DECEMBER 2021
POSTING CLOSING TRIAL
ACCOUNT TITLES UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET CLOSING ENTRIES BALANCE
DR CR DR CR DR CR DR CR DR DR CR DR CR
CASH 40,000 40,000 40,000 40,000
ACCOUNTS RECEIVABLE 30,000 30,000 30,000 30,000
INVENTORY 30,000 30,000 30,000 30,000
COST OF GOODS SOLD 430,000 430,000 430,000 430,000
ENTITY A, CAPITAL 300,000 300,000 300,000 70,000 230,000
EQUIPMENT 200,000 200,000 200,000 200,000
ACCUMULATED DEPRECIATION 20,000 20,000 40,000 40,000 40,000
ACCOUNTS PAYABLES 30,000 30,000 30,000 30,000
SALES REVENUE 900,000 900,000 900,000 900,000
SALARIES EXPENSE 520,000 520,000 520,000 520,000
TOTAL: -₱ 1,250,000.00- -₱ 1,250,000.00-
ADJUSTMENT:
DEPRECIATION EXPENSE 20,000 20,000 20,000 20,000
SUB-TOTALS -₱ 20,000.00--₱ 20,000.00--₱ 1,270,000.00- -₱ 1,270,000.00- -₱ 970,000.00- -₱ 900,000.00- -₱ 300,000.00- -₱ 370,000.00- -₱ 970,000.00- -₱ 970,000.00- -₱ 300,000.00--₱ 300,000.00-
NET INCOME/NET LOSS -₱ 70,000.00- -₱ 70,000.00-
GRAND TOTAL -₱ 970,000.00- -₱ 970,000.00- -₱ 370,000.00- -₱ 370,000.00-
 DEBIT CREDIT
SERVICE INCOME 900,000 REVENUES INCOME SUMMARY
INCOME SUMMARY 900,000 900,000 900,000 970,000 900,000
70,000 70,000
INCOME SUMMARY 970,000
SALARIES EXPENSE 520,000
DEPRECIATION EXPENSE 430,000
COST OF GOODS SOLD 20,000 EXPENSES ENTITY A,CAPITAL
520,000 520,000 300,000
430,000 430,000 70,000
20,000 20,000 -₱ 370,000.00-

ENTITY A,CAPITAL 70,000

INCOME SUMMARY 70,000
 Entity A Entity A
Balance Sheet INCOME STATEMENT
As of December 31, 20x1 FOR THE YEAR ENDED DECEMBER 31, 20x1
ASSETS REVENUES
CURRENT ASSETS: SALES 900,000
CASH 40,000 COST OF GOODS SOLD -430,000
ACCOUNTS RECEIVABLE 30,000 GROSS PROFIT -₱ 470,000.00-
INVENTORY 30,000
TOTAL CURRENT ASSETS -₱ 100,000.00- EXPENSES
SALARIES EXPENSE -520,000
NONCURRENT ASSETS: DEPRECIATION EXPENSE -20,000
EQUIPMENT 200,000 -₱ 540,000.00-
LESS:ACCUMULATED DEPRECIATION -40,000
-₱ 160,000.00- LOSS FOR THE PERIOD -₱ 70,000.00-

TOTAL ASSETS: -₱ 260,000.00-

LIABLITIES AND OWNER'S EQUITY

LIABILITIES:
CURRENT LIABILITY
ACCOUNTS PAYABLE 30,000
TOTAL CURRENT LIABILITIES -₱ 30,000.00-

OWNER'S EQUITY
ENTITY A,CAPITAL 300,000
PROFIT -70,000
230,000

TOTAL LIABILITIES AND OWNER'S EQUITY -₱ 260,000.00-