Reynaldo Gulane Cleaners

Worksheet
Sept. 30, 2014

Particulars Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Cash 117,880 117,880 117,880

Accounts Receivable 264,940 264,940 264,940
Prepaid Insurance 34,000 27,200 6,800 6,800
Cleaning Supplies 73,740 61,300 12,440 12,440
Land 180,000 180,000 180,000
Building 1,850,000 1,850,000 1,850,000
Accum. Depreciation-Building 456,000 128,000 584,000 584,000
Accounts Payable 204,000 204,000 204,000
Unearned Cleaning Revenues 16,000 4,000 12,000 12,000
Mortgage Payable 1,100,000 1,100,000 1,100,000
Gulane, Capital 565,600 565,600 565,600
Gulane, Withdrawals 100,000 100,000 100,000
Cleaning Revenues 1,576,340 4,000 1,580,340 1,580,340
Salaries Expense 1,013,300 16,800 1,030,100 1,030,100
Cleaning Equipment Rental Expens 60,000 60,000 60,000
Delivery Truck Expense 43,740 43,740 43,740
Interest Expense 110,000 10,000 120,000 120,000
Other Expense 70,340 70,340 70,340
Total 3,917,940 3,917,940
Insurance Expense 27,200 27,200 27,200
Cleaning Supplies Expense 61,300 61,300 61,300
Depreciation Expense 128,000 128,000 128,000
Interest Payable 10,000 10,000 10,000
Salaries Payable 16,800 16,800 16,800
TOTAL 247,300 247,300 4,072,740 4,072,740 1,540,680 1,580,340 2,532,060 2,492,400
PROFIT 39,660 39,660
Total 1,580,340 1,580,340 2,532,060 2,532,060
 Reynaldo Gulane Cleaners
Income Statement
For the year ended September 30, 2014

Revenues
Cleaning Revenues P 1,580,340
Less: Expenses
Salaries Expense P 1,030,100
Cleaning Equipment Rental Expense 60,000
Delivery Truck Expense 43,740
Interest Expense 120,000
Other Expense 70,340
Insurance Expense 27,200
Cleaning Supplies Expense 61,300
Depreciation Expense 128,000
Total Expenses 1,540,680
Profit P 39,660
 Reynaldo Gulane Cleaners
Statement of Changes in Owner's Equity
For the year ended Sept. 30, 2014

Gulane, Capital - beg P 565,600

Add: Profit 39,660
Total 605,260
Less: Withdrawals 100,000
Gulane, Capital - Sept. 30, 2014 P 505,260
 Reynaldo Gulane Cleaners
Statement of Financial Position
As of Sept. 30, 2014

ASSETS

Current Assets
Cash P 117,880
Accounts Receivable 264,940
Prepaid Insurance 6,800
Cleaning Supplies 12,440
Total Current Assets P 402,060
Non-Current Assets
Land 180,000
Building 1,850,000
Less: Accum. Depreciation 584,000 1,266,000
Total Non-Current Assets P 1,446,000
TOTAL ASSETS P 1,848,060

LIABILITIES & OWNER'S EQUITY

Liabilities
Current Liabilities
Accounts Payable P 204,000
Unearned Cleaning Revenues 12,000
Interest Payable 10,000
Salaries Payable 16,800
Total Current Liabilities 242,800
Non-Current Liability
Mortgage Payable 1,100,000
Total Liabilities P 1,342,800

Owner's Equity
Gulane, Capital 505,260
TOTAL LIABILITIES & OWNER'S EQUITY P 1,848,060
-
 Reynaldo Gulane Cleaners
Statement of Financial Position
As of Sept. 30, 2014

ASSETS LIABILITIES & OWNER'S EQUITY

Current Assets Liabilities

Cash P 117,880 Current Liabilities
Accounts Receivable 264,940 Accounts Payable P 204,000
Prepaid Insurance 6,800 Unearned Cleaning Revenues 12,000
Cleaning Supplies 12,440 Interest Payable 10,000
Total Current Assets P 402,060 Salaries Payable 16,800
Non-Current Assets Total Current Liabilities 242,800
Land 180,000 Non-Current Liability
Building 1,850,000 Mortgage Payable 1,100,000
Less: Accum. Depreciation 584,000 1,266,000 Total Liabilities P 1,342,800
Total Non-Current Assets P 1,446,000
Owner's Equity
Gulane, Capital 505,260
TOTAL ASSETS P 1,848,060 TOTAL LIABILITIES & OWNER'S EQUITY P1,848,060
###
Closing Entries:
Cleaning Revenues
1. To close the revenue accounts. 1,580,340 1,580,340
-
Cleaning Revenues 1,580,340
Income Summary 1,580,340

2. To close the expense accounts.

Income Summary 1,540,680 Income Summary

Salaries Expense 1,030,100 1,540,680 1,580,340
Cleaning Equipment Rental Expense 60,000
Delivery Truck Expense 43,740 39,660 39,660
Interest Expense 120,000 -
Other Expense 70,340
Insurance Expense 27,200
Cleaning Supplies Expense 61,300
Depreciation Expense 128,000

3. To close the income summary account. Gulane, Capital

100,000 565,600
Income Summary 39,660 39,660
Gulane, Capital 39,660 100,000 605,260
505,260

4. To close the withdrawals.

Gulane, Capital 100,000

Gulane, Withdrawals 100,000
 Reynaldo Gulane Cleaners
Post-closing Trial Balance
Sept. 30, 2014

Debit Credit
Cash P 117,880
Accounts Receivable 264,940
Prepaid Insurance 6,800
Cleaning Supplies 12,440
Land 180,000
Building 1,850,000
Accum. Depreciation 584,000
Accounts Payable 204,000
Unearned Cleaning Revenues 12,000
Interest Payable 10,000
Salaries Payable 16,800
Mortgage Payable 1,100,000
Gulane, Capital 505,260
P 2,432,060 P 2,432,060
-
 Sept. 30, 2014 October 1, 2014 Adjusting Entries that can be reversed:
Adjusting Entries Reversing Entries Accrual
Accrued Income
a Insurance Expense 27,200 n/a Accrued Expense
Prepaid Insurance 27,200 Deferral
Prepayment - Expense Method
b Cleaning Supplies Expense 61,300 n/a Precollection- Income Method
Cleaning Supplies 61,300

c Depreciation Expense 128,000 n/a

Accum. Depreciation-Building 128,000

d Interest Expense 10,000 Interest Payable 10,000

Interest Payable 10,000 Interest Expense 10,000

e Unearned Cleaning Revenues 4,000 n/a

Cleaning Revenues 4,000

f Salaries Expense 16,800 Salaries Payable 16,800

Salaries Payable 16,800 Salaries Expense 16,800
at can be reversed:

nse Method
me Method