ABC Company

Trial Balance
December 31, 2021

Cash ₱18,700.00
Accounts Receivable 3,400.00
Marketable Securities 5,000.00
Prepaid Insurance 12,000.00
Prepaid Rent 30,000.00
Office Supplies 4,500.00
Furniture and Fixtures 12,000.00
Machinery 370,000.00
Building 850,000.00
Land 1,000,000.00
Accounts Payable ₱21,000.00
Notes Payable 15,000.00
Interest Payable ₱3,500.00
Unearned Service Income 180,000.00
Salaries Payable 24,000.00
Long-Term Payable 1,600,000.00
Mortgage Payable 450,000.00
Service Income 37,900.00
Advertising Expense 16,000.00
Interest Expense 2,300.00
Taxes and Licenses 1,800.00
Utilities Expense 5,700.00
Total ₱3,123,000.00 ₱3,314,000.00

Below are the necessary adjustments for December 31, 2021:

a. Machinery was bought on July 31 and its estimated useful life is 4 years with a P25, 000 disposal value
b. The construction of the building was finished last March 31 and its estimated life is 10 years
c. Purchased P7, 100 office supplies at the beginning of the year. Office supplies remaining at the end of the year amounted to P2, 900.
d. Unpaid salaries worth P15, 000
e. Received a water bill on December 29, which is intented to settle on January 03, 2022, P800
d. 5% of the Accounts Receivable was considered uncollectible.