Exercise 1.

Worksheet

Donald Electronics an electronics repair shop, prepared the unadjusted trial balance at the end of its first year of operations shown below:

Donald Electronics
Trial Balance
April 30, 2019

Cash P 3,450
Accounts Receivable 22,500
Supplies 5,400
Equipment 113,700
Accounts Payable P 5,250
Unearned Fees 6,000
Hans Donald, Capital 78,000
Hans Donald, Drawings 4,500
Fees earned 135,750
Salaries Expense 31,500
Rent Expense 24,000
Utilities Expense 17,250
Miscellaneous Expense 2,700
P 225,000 P 225,000

For preparing the adjusting entries, the following data were assembled:
a. Fees earned but unbilled on April 30 were P1,775.
b. Supplies on hand on April 30 were P1,200.
c. Depreciation of equipment was estimated to be P4,100 for the year.
d. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only P1,750 of the services was provided
between April 1 and April 30.
e. Unpaid wages accrued on April 30 were P600.

Required:
1. Prepare the adjusting entries necessary on April 30, 2019.
2. Prepare a Ten-Column Worksheet.
3. Prepare Income Statement.
4. Prepare Statement of Changes in Equity.
5. Prepare Balance Sheet.
6. Journalize adjusting entries and prepare closing entries.
 7. Prepare Post Closing Trial Balance. (To be accomplished as a requirement in the next topic)
8. Prepare reversing entries. (To be accomplished as a requirement in the next topic)

Answers:

Post-Closing Trial Balance

Account Title
Cash P 3, 450
Account Receivable 24, 275
Supplies 1, 200
Euipment 113, 700
Accumulated Depreciation P 4, 100
Account Payable 5, 250
Salaries Payable 600
Unearned Revenue General Journal
4, 250
Donald's
Date Capital Account Titles & Explanation PR 128, 425
Debit Credit
2019 142, 625 142, 625
Adjusting Entries
April 30 Account Receivable P 1, 175 P
Fees earned 1, 175
Fees earned but Unbilled

30 Supplies Expense 4, 200

Supplies 4, 200
Supplies on hand were 1,200

30 Depreciation Expense 4, 100

Accumulated Depreciation 4, 100
Depreciation of the equipment every year

30 Unearned Fees 1, 750

Fees earned 1, 750
Unearned fees balances

30 Wages Expense 600

Wages Payable 600
Unpaid wages
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