Carla Auto Repair and Paint Shop

Ten Column Worksheet

For the year ended December 31, 2019

Trial Balance Adjustments

Debit Credit Debit Credit
Cash 25,000
Cash In Bank 45,000
Accounts Receivable 49,000
Notes Receivable 30,000
Prepaid Insurance 15,000
Machinery and Equipment 150,000
Furniture and Fixtures 25,000
Accounts Payable 26,000
Notes Payable 50,000
Carla, Capital 132,850
Carla, Drawing 5,000
Repair Income 275,000
Referral Income 15,000
Salaries Expense 45,000
Supplies Expense 600
Taxes and Licenses Expense 7,250
Rent Expense 55,000
Utilities Expense 46,750
Interest Expense 250
Total 498,850 498,850
 Repair and Paint Shop
olumn Worksheet
nded December 31, 2019

Adjusted Trial Balance Income Statement Balance Sheet

Debit Credit Debit Credit Debit Credit
1
2
3
4
5
6
7
8
Adjustment data:
1. 10 % of the accounts receivable should be recognized as doubtful of collection
2. Insurance premium recorded as prepaid insurance was for six months starting Sept. 1, 2019
3. Supplies still on hand, P200
4. The note receivable represents a 60-day 12% note received from the customer on Nov. 16, 2019.
5. Machinery and equipment were acquired April 1, 2019 with an estimated useful life of 10 years and scrap value of P50, 000
6. The furniture and fixtures were acquired January 1, 2019 with an estimated useful life of 10 years and scrap value of P2, 500
7. The notes payable is for 60 Days at 18% due to Republic Finance dated December 1, 2019
8. December gross receipts of P4, 333.33 is subject to 3% percentage tax.

49 000 x 10% = 4,900

expired portion is from sept. to dec. or 4 months therefore 15000 x 4/6 = 10, 000 (asset method used)
Expense method was used
30000 x 12% x 45/360 = 450
150 000 -50000 = 10000x9/12 =75000/10years=1500
25000 - 2500 =22500/10= 2250
50000 x.18x30/360 =750
4333.33 x 3% = 130
 Adjusting Entries

Debit Credit
1 Doubtful account 4900
Allowance for doubtful accounts 4900

2 Insurance expense 10 000

Prepaid Insurance 10 000

3 Prepaid Supplies 200

Supplies Expense 200

4 Interest Receivable 450

Interest Income 450

5 Deprecition expense 7500

Accumulated Depreciation 7500

6 Depreciation Expense - F and f 2250

Accumulated Depreciation 2250

7 Interest Expense 750

Interest Payable 750

8 Taxes and Licenses expense 130

Taxex Payable 130
 Carla Auto Repair and Paint Shop
Ten Column Worksheet
For the year ended December 31, 201

Trial Balance Adjustments

Debit Credit Debit
Cash 25,000
Cash In Bank 45,000
Accounts Receivable 49,000
Notes Receivable 30,000
Prepaid Insurance 15,000
Machinery and Equipment 150,000
Furniture and Fixtures 25,000
Accounts Payable 26,000
Notes Payable 50,000
Carla, Capital 132,850
Carla, Drawing 5,000
Repair Income 275,000
Referral Income 15,000
Salaries Expense 45,000
Supplies Expense 600
Taxes and Licenses Expense 7,250 8) 130
Rent Expense 55,000
Utilities Expense 46,750
Interest Expense 250 7) 750
Total 498,850 498,850
Doubful accounts 1) 4,900
Allowance for Doubtful accounts
Insurance Expense 2) 10, 000
Prepaid Supplies 3) 200
Interest Receivable 4) 450
Interest Income
Depreciation Expenses - Machinery & Equipment 5) 7,500
Accumulated Depreciation - Machinery & Equipment
Depreciation Expenses - Furniture & Fixture 6) 2,250
Accumulated Depreciation - Furniture & Fixture
Interest Payable
Taxes Payable
Totals 26,180
Net Income
to Repair and Paint Shop
Column Worksheet
r ended December 31, 2019

Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Credit Debit Credit Debit Credit Debit Credit
25,000 25,000
45,000 45,000
49,000 49,000
30,000 30,000
2) 10,000 5,000 5,000
150,000 150,000
25,000 25,000
26,000 26,000
50,000 50,000
132,850 132,850
5,000 5,000
275,000 275,000
15,000 15,000
45,000 45,000
3) 200 400 400
7,380 7,380
55,000 55,000
46,750 46,750
1,000 1,000

4,900 4,900
1)4,900 4,900 4,900
10, 000 10,000
200 200
450 450
4) 450 450 450
7,500 7,500 7,500
5) 7,500 7,500
2,250 2,250
6) 2,250 2,250 2,250
7) 750 750 750
8) 130 130 130
26,180 514,830 514,830 180180 290450 334,650 224380
110,270 110,270
290450 290450 334,650 334650
 Carla Auto Repair Shop
Income Statement
For the Period Ended December 31, 2019

Revenue:
Repair Income ₱ 275,000
Other Operationg income (note 1) 15,450

Expenses:
Rent Expense ₱ 55,000
Utilities Expense 46,750
Salaries Expense 45,000
Depreciation Expense (note 2) 9,750
other Expense (note 3) 22,650 -179180
Interest Expense -1,000
Profit for the period Ended ₱ 110,270.00
Note 1: Other Income
Referral Income ₱ 15,000
Interest Income 450
Total ₱ 15,450

Note 2: Depreciation Expense

Depreciation - Machinery & Equipment ₱ 7,500
Depreciation- Furniture and Fixture 2,250
Total ₱ 9,750

Note 3 Other Expense

Insurance Expense 10,000
Taxes and Licenses 7,380
Bad Debts Expense 4,900
Supplies Expense 400
Tatal ₱ 22,680
 Carla Auto Repair Shop
Statement of Changes in Owner's Equity
For the Year Ended December 31, 2019

Carla, Capital, Beg. 132,850

Add:Profit 110,270
Total 243,120
Less: Withdrawals 5,000
Carla, Capital, End 238,120
 Carla Auto Repair Shop
Statement of Financial Position
As of December 31, 2019

ASSETS
Current Assets:
Cash (Note 1) ₱ 70,000
Trade and Other Receivable (Note 2) 74,550
Prepaid Expenses (Note 3) 5,200
Total 149,750
Non-Current Assets:
Property & Equipment (Note 4) 165,250
Ttal Assets 315,000

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Trade and other Payable ( Note 5) ₱ 76,880
Owner's Equity
Carla, Capital 238,120
Total Liabilities & Owner's Equity 315,000
Note 1 Cash on Hand ₱ 25,000
Cash In Bank 45,000
Total ₱ 70,000

Note 2 Accounts Receivable ₱ 49,000

Less: Allowance for Bad Debts 4,900 44,100
Notes Receibale 30,000
Interest Receivable 450
Total ₱ 74,550

Note 3 Prepaid Insurance ₱ 5,000

Prepaid Supplies 200
Total ₱ 5,200

Note 4 Machinery & Equipment ₱ 150,000

Less: Accumulated Depreciation 7,500 142,500
Furniture & Fixtures ₱ 25,000
Less: Accumulated Depreciation 2,250 22,750
Total 165,250

Note 5 Accounts Payable ₱ 26,000

Notes Payable 50,000
Interest Payable 750
Taxes Payable 130
Total 76,880
 Carla Auto Repair Shop
Statement of Cash Flow
For the Year ended December 31, 2019

Cash flowsfrom operating activities:

Collection from customer Schedule 1
Collection for referrals made
Payment for Rent
Payment for Utilities
Payment for salaries
Payment for insurance Schedule 2
Payment for taxes Schedule 3
Payment for supplies Schedule 4
Payment for interest expense Schedule 5
Net cash inflows from operating activities

Cash flows from investing activities

Purchase of machinery and equipment Schedule 6
Acquisition of furniture
Net cash outflows from investing activities

Cash flows from financing activities

Investment by the owner
Cash withdrawals
Loan from Republic Finance
Decrease in cash
Cash , January 1
Cash, December 31
9

Schedule 1 Repair Income

196,000 Accounts Receivable, Dec. 31
15,000 Notes Receivable, Dec.31
-55,000 Collection from customers
-46,750
-45,000 Schedule 2 Insurance Expense
-15,000 Prepaid Insurance, Dec. 31
-7,250 Insurance paid
-600
-250 Schedule 3 Taxes and Licenses Expense
41,150 Taxes Payable
Taxes and Licenses Paid

-124,000 Schedule 4 Supplies Expense

-25,000 Prepaid supplies
149,000

32,850
-5,000
50,000 77,850
-30,000
100,000
70,000
 Carla Auto Repair Shop
Closing Entries
December 31, 2019

Particulars Debit Credit

Step 1 Repair Income 275,000 Step 3
Referral Income 15,000
Interest Income 450
Income Summary 290,450
To close the credit accounts Step 4

Step 2 Income Summary 180,180

Salaries Expense 45,000
Supplies Expense 400
Taxes & Lincenses 7,380
Rent Expense 55,000
Utilities 46,750
Interest Expense 1,000
Bad Debts 4,900
Insurance Expense 10,000
Depreciation Expense- Machinery 7,500
Depreciation Expense- Furniture 2,250
To close the debit accounts
 Particulars Debit Credit
Income Summary 110,270
Carla, Capital 110,270
To close profit to capital

Carla, Capital 5,000

Carla, Drawing 5,000
To close drawing to capital
 Auto Repair and Paint Shop
Post Closing Trial Balance
December 31, 2019

Cash 25,000
Cash In Bank 45,000
Accounts Receivable 49,000
Allowance for Bad Debts 4,900
Notes Receivable 30,000
Interest Receivable 450
Prepaid Insurance 5,000
Prepaid Supplies 200
Machinery & Equipment 150,000
Accumulated Depreciation - Machinery & Equipment 7,500
Furniture & Fixtures 25,000
Accumulated Depreciation- Furniture & Fixtures 2,250
Accounts Payable 26,000
Notes Payable 50,000
Interest Payable 750
Taxes Payable 130
Carla, Capital 238,120
Totals 329,650 329,650
Carla, Capital Debit Credit Balance

Beginning Balance 132,850

Net Income 110,270 243,120
Ownes, drawing 5,000 238,120
Beginning Balance 238,120
 Auto Repair and Paint Shop
Reversing Entries
January 1, 2020

Supplies Expense 200

Prepaid Supplies 200

Interest Payable 750

Interest Expense 750

Interest Income 450

Interest Receivable 450

Taxes Payable 130

Taxes and Licenses Expense 130