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Purisima, Justine Mae M. Requirement B: Posting

ASSETS
CASH PREPAID RENT
(1) 320,000 (4) 108,000
(2) 200,000 240,000 (3)
(5) 260,000 108,000 (4)
15,000 (6)
50,000 (7)
Bal. 367,000 Bal. 108,000
EQUIPMENT
(3) 240,000
Bal. 240,000
LIABILITIES INCOME
NOTES PAYABLE SERVICE FEES
200,000 (2) 260,000 (5)
Bal. 200,000 Bal. 260,000
A235

Problem 2:

Cash 320,000
1 Owner’s Equity 320,000
Cash 200,000
2 Notes Payable 200,000
Equipment 240,000
3 Cash 240,000
Prepaid rent 108,000
4 Cash 108,000
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Cash 260,000
5 Service fee 260,000
Utilities Expense 15,000
6 Cash 15,000
Owner’s Drawings 50,000
7 Cash 50,000
EQUITY
OWNER’S OWNER’S
EQUITY DRAWINGS

320,000 (1) (7) 50,000

Bal. 320,000 Bal. 50,000
Requirement A: Journal Entries
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EXPENSE
UTILITIES
EXPENSES Requirement D: Unadjusted Trial Balance

(6) 15,000 AJE #1: Salaries expense

Bal. 15,000 Salaries Expense 8,000
8,000
Salaries payable
AJE #2: Interest Expense
Interest expense (300,000 x 12% x 3/12) 2,000
Requirement C: Unadjusted Trial Balance 2,000
Interest payable
AJE #3: Depreciation expense
Entity A Depreciation expense [(240,000 ÷ 4) x 1/12] 5,000
5,000
Unadjusted Trial Balance Accumulated depreciation
December 31, 20x1 AJE #4: Rent expense
Rent expense (108,000 x 1/6) 18,000
Accounts Debits Credits 18,000
Prepaid Rent
Cash 367,000
Prepaid rent 108,000
Equipment 240,000 200,000
Notes payable 320,000 Requirement E: Worksheet
Owner’s equity 50,000
Owner’s drawing 260,000 Entity A
Service fee 15,000 Worksheet
Utilities expenses December 31, 20x1
Total: ₱ 780,000 ₱780,000
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Unadjusted Trial Adjustments Adjustment trial Income Post-closing

Balance sheet Closing entries
Accounts Balance balance statement trial balance
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
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367,00
Cash 367,000 367,000 367,000
0
Prepaid rent 108,000 18,000 90,000 90,000 90,000
240,00
Equipment 240,000 240,000 240,000
0
200,00
Notes Payable 200,000 200,000 200,000
0
320,00
Owner’s Equity 320,000 320,000 50,000 212,000 482,000
0
Owner’s Drawings 50,000 50,000 50,000 50,000
Service Fees 260,000 260,000 260,000 260,000
Utilities Expense 15,000 15,000 15,000 15,000
Total 780,000 780,000
Adjustments:
Salaries Expense 8,000 8,000 8,000 8,000
Salaries Payable 8,000 8,000 8,000 8,000
Interest Expense 2,000 2,000 2,000 2,000
Interest Payable 2,000 2,000 2,000 2,000
Depreciation Expense 5,000 5,000 5,000 5,000
Accumulated Depreciation 5,000 5,000 5,000 5,000
Rent Expense 18,000 18,000 18,000 18,000
535,00 697,00
33,000 33,000 795,000 795,000 48,000 260,000 747,000 310,000 310,000 697,000
0 0
212,00
212,000
0
260,000 260,000 747,000 747,00
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Requirement F: Closing Entries Requirement F: Balance sheet and Income statement

Entity B
Entity B Income Statement
CLE#1 Balance Sheet For the 2 months ended December 31,20x1
Services Fee 260,000 As of December 31,20x1
Utilities Expense 15,000 ASSETS INCOME
Salaries Expense 8,000 Cash 367,000 Service Fee 260,000
Interest Expense 2,000 Prepaid 90,000
Depreciation Expense 5,000 Equipment 240,000 EXPENSES
Rent Expense 18,000 Accumulated Depreciation (5,000) Utilities expense (15,000)
Income Summary 212,00 Total assets: 692,000 Salaries expense (8,000)
CLE#2 Interest expense (2,000)
Income Summary 212,000 LIABILITIES Depreciation expense (5,000)
Owner’s Equity 212,000 Notes payable 200,000 Rent expense (18,000)
CLE#3 Salaries payable 8,000 Total Expenses: (48,000)
Owner’s Equity 50,000 Interest payable 2,000
Owner’s Drawings 50,000 Total Liabilities: 210,000 Profit for the period: 212,000

EQUITY
Owner’s Equity 482,000
Total Equity: 482,000
TOTAL LIABILITIES AND EQUITY 692,000