(1)

8
 Accounts Dr Cr
Cash 1,000,000
Owner's Equity 1,000,000

Computer Equipment 700,000

Cash 700,000

Taxes and Licenses 200,000

Cash 200,000

Insurance Expense 42,000

Cash 42,000

Accounts Receivable 3,200,000

Service Fee 3,200,000

Utilities Expense 420,000

Cash 420,000

Salaries Expense 2,400,000

Cash 2,400,000

Cash 2,900,000
Accounts Receivable 2,900,000
ASSETS
Cash Accounts Receivable
1,000,000 700,000 3,200,000 2,900,000
2,900,000 200,000
42,000
420,000
2,400,000

138,000 300,000

EQUITY
Owner's Equity
1,000,000

1,000,000

INCOME
Service Fees
3,200,000

3,200,000

EXPENSES
Taxes and Licenses Insurance Expense Utilities Expense
200,000 42,000 420,000

200,000 42,000 420,000

 Computer Equipment
700,000

700,000

Salaries Expense
2,400,000

2,400,000
 WELLNESS MASSAGE
Unadjusted Trial Balance
December 31, 2021

Accounts Debits Credits

Cash ₱138,000
Accounts receivable 300,000
Computer equipment 700,000
Owner's Equity 1,000,000
Service Fees ₱3,200,000
Taxes and Licenses 200,000
Insurance Expense 42,000
Utilities Expense 420,000
Salaries Expenses 2,400,000

Totals ₱4,200,000 ₱4,200,000

AJE 1:

AJE 2:

AJE 3:

AJE 4:
Depreciation Expense 35,000
Accum Dep 35,000
700,000/5yrs * 3/12

Bad Debt Expense 30,000

ABD 30,000
10% * 300,000

Rent Expense 120,000

Rent Payable 120,000

Prepaid Insurance 31,500

Insurance Expense 31,500
42,000 * 9/12
 WELLNESS MASSAGE
Worksheet
December 31, 20x1

Adjusted Trial Balance Income Statement

Accounts
Debit Credit Debit Credit
Cash ₱138,000
Accounts receivable 300,000
Computer equipment 700,000
Owner's Equity 1,000,000
Service Fees ₱3,200,000 ₱3,200,000
Taxes and Licenses 200,000 200,000
Insurance Expense 10,500 10,500
Utilities Expense 420,000 420,000
Salaries Expenses 2,400,000 2,400,000

Totals
Adjustments:
Dep Expense 35,000 35,000
Accumulated Dep 35,000
BDE 30,000 30,000
Allow for Bad Debts 30,000
Rent Expense 120,000 120,000
Rent Payable 120,000
Prepaid Insurance 31,500
TOTALS ₱4,385,000 ₱4,385,000 ₱3,215,500 ₱3,200,000
₱15,500
₱3,215,500 ₱3,215,500
WELLNESS MASSAGE
Worksheet
December 31, 20x1

Balance Sheet Closing Entries Post Closing Trial Balance

Debit Credit Debit Credit Debit Credit
₱138,000 ₱138,000
300,000 300,000
700,000 700,000
1,000,000 15,500 984,500
3,200,000
200,000
10,500
420,000
2,400,000

35,000
35,000 35,000
30,000
30,000 30,000
120,000
120,000 120,000
31,500 31,500
₱1,169,500 ₱1,185,000 ₱3,215,500 ₱3,215,500 ₱1,169,500 ₱1,169,500
₱15,500
₱1,185,000 ₱1,185,000
CLE 1: Service fees 3,200,000
Income Summary 15,500
Taxes and Licenses 200,000
Insurance exp 10,500
Sal Exp 2,400,000
Utilities Exp 420,000
Dep Exp 35,000
BDE 30,000
Rent Expense 120,000

CLE 2: Owner's Equity 15,500

Income Summary 15,500
 WELLNESS MASSAGE Entity A
Balance Sheet Income Statem
As of December 31, 20x1 For the two months ended D

ASSETS INCOME
Cash ₱138,000 Service Fees
Accounts receivable 300,000
Allowance for Bad Debts -30,000
Prepaid Insurance 31,500
Computer equipment 700,000 EXPENSES
Accumulated Depreciation -35,000 Taxes and Licenses
Insurance Expense
Utilities Expense
TOTAL ASSETS ₱1,104,500 Salaries Expenses
Dep
LIABILITIES BDE
Rent Payable ₱120,000 Rent expense

LOSS FOR THE PERIOD

EQUITY 984,500

TOTAL LIABILITIES & EQUITY ₱1,104,500

 Entity A
Income Statement
e two months ended December 31, 20x1

₱3,200,000

-200,000
-10,500
-420,000
-2,400,000
-35,000
-30,000
-120,000

(P15,500)
Rent payable 120,000
Rent Expense 120,000

Insurance Expense 31,500

Prepaid Insurance 31,500