Assume the following data of EGV Accounting Firm, own and manage by Mr.

Valien
1. Supplies used and paid in December 2018

a. Directly use in service for the following clients ( performance ) (WIP-Work inProgress)
1. Alpha Co. amounted to P20,000
2. Betaa Co. amounted to P10,000

b. Office Supplies used for general purposes and paid during the month, P 25,000

2. Salaries paid During the month:

a. Salaries of Audit Staff direclty involve in the audit service to clients:

1. Alpha Co. amounted to P100,000
2. Betaa Co. amounted to P50,000

b. Salaries in general administrative and office personnel amounting to P150,000.00

3. The Audit of Alpha Company accounts was completed during the month. The company billed the client for

4. Rent Expense paid during the month, P25,000.00

5. Interest Expense incurred and paid during the month, P10,000.00

6. Cash dividend income received , P30,000.00

Beginning Balance
The Book of the EGV Accounting firm as of December 1, 2018 shows the following info

Cash 700,000.00 Note Payable 200,000.00

Account Recievable 100,000.00 Account Payable 40,000.00
Allow. For doubtful accounts (20,000.00)
Valiente, Capital 540,000.00
Total Asset 780,000.00 Total Liabilities and Capital 780,000.00

Adjustment to update the accounting records as of December 31, 2018 are as follows:

1. Accrued supplies Expense , P5,000.00

2. Allowance for doubtful accounts, 5% of the ending adjusted accounts recievables.

Required : ( 10 column worksheet

age by Mr. Valiente:

pany billed the client for P500,000.00:

s the following information (b)

200,000.00
40,000.00

540,000.00
780,000.00

2018 are as follows:

orksheet)
Journal Entries for the transactions during the month of December 2018 are as follows

Dec Description Debit (P) Credit

2018

WIP(work in progress-Alpha Co. 20,000.00

WIP(work in progress-Beta Co. 10,000.00
1
Supplies Expense 25,000.00

Cash 55,000.00

To record supplies used

WIP(work in progress-Alpha Co. 100,000.00

WIP(work in progress-Beta Co. 50,000.00
2
Salary Expense 150,000.00
Cash 300,000.00

To record salaries for the month

Accounts Receivables 500,000.00

Professional Audit fee 500,000.00
3

To record billings to alpha company

cost of service 120,000.00

WIP(work in progress-Alpha Co. 120,000.00
to transfer work in progress to cost of
service account

Rent Expense 25,000.00

4
Cash 25,000.00

Payment of rent incurred

Interst Expense 10,000.00

5
Cash 10,000.00
 Payment of interst cost

cash 30,000.00
6
Devidend income 30,000.00

to record cash devidend

 Law of DR/CR

Mary wellness

NC11 tesda

mary wellness center

PPT law of DR/CR

familiar
cash/payment = did not met in one setting

supplies/labor

1. master dr/cr law Mary well/PPT

2 Explore and practice
standard based on GAAP

BIR
Posting T-Accounts

inflow outflow inflow outflow

Cash Capital
b 700,000.00 55,000.00 1 b 540,000.00
6 30,000.00 300,000.00 2 6
25,000.00 4
10,000.00 5
730,000.00 390,000.00 - 540,000.00

340,000.00 Balance
Cost of service
120,000.00
Accounts Recievables
b 100,000.00
3 500,000.00 5%= 30,000
Rent Expense
4 25,000.00
600,000.00 -

600,000.00 Balance
Supply Expense
25,000.00
WIP -Work in Progress alpha
1 20,000.00 120,000.00
2 100,000.00 Salary Expense
2 150,000.00

120,000.00 120,000.00
Interest Expense
- Balance 5 10,000.00

WIP -Work in Progress Beta

1 10,000.00
2 50,000.00 Professional Audit Fee
500,000.00

60,000.00 -
Dividend Income
60,000.00 Balance 30,000.00

Alowance for doubtful account

20,000.00
legal,
- 20,000.00
Accounts Payable
40,000.00

- 40,000.00

Notes Payable Promisory Agreement ( creditor and the debtor)

200,000.00

- 200,000.00
b

30,000.00

legal fee ( 20k)

OR (BIR)

6
 AGV Accounting Firm
Trial Balance
December 31, 2018

Account Title Debit (P)

Cash 340,000.00

Asset
Account Recievables 600,000.00
Work in progress
Allow for doubful accounts
Work in progress - Beta 60,000.00
Account payable
Liability
Note Payable
expenseOwners Equity

Valeinte, Capital
Professional Audit Fee
Dividend Income

Cost of Service 120,000.00

Salary Expense 150,000.00
Rent Expense 25,000.00
Supply Expense 25,000.00
Interest Expense 10,000.00
1,330,000.00
Firm

018

Credit(P)

20,000.00

40,000.00
200,000.00

540,000.00
500,000.00
30,000.00

1,330,000.00
 AGV Accounting Firm
Income Statement
for the year ended December 31, 2018

Professional Fee (alpha)

Revenue Less : Cost od service 120,000.00
Gross Income

Add : Other Operating Income

Dividend Income

Total Revenue

Less : Operating Exepense

Salary Expense 150,000.00
Supply Expense 30,000.00
Expense

Rent Expense 25,000.00

Doubtful Accounts 10,000.00
Total Expenses

Operating Income
Less : Financial Cost
Interest Expense 10,000.00

Net Income
31, 2018

500,000.00

380,000.00

30,000.00

410,000.00

215,000.00

195,000.00

185,000.00
 AGV Accounting Firm
Statement of Financial Position
As of December 31, 2018

Asset
Current Asset

Asset Cash
Account Recievables 600,000.00
Less : Allow for doubful accounts 30,000.00
Work in progress - Beta

Total Current Asset

Liabilities and Capital

Current Liability
Liability

Account Payable 40,000.00

Notes Payable 200,000.00
Accrued Supplies Payable 5,000.00
Owners Equity

Capital

Valiente, capital 540,000.00

Net Income 185,000.00

Total liabilities and Capital

m
sition
18

340,000.00

570,000.00
60,000.00
1,000,000.00
970,000.00

d Capital

245,000.00

725,000.00

970,000.00
 EGV Accou
Work
Decembe

Unadjusted Trial Balance Adjustment

Account Title Debit Credit Debit

Cash 340,000.00
Account Recievables 600,000.00
Asset Work in progress
Allow for doubful accounts 20,000.00
Dr=CR Work in progress - Beta 60,000.00

Account payable 40,000.00

Liability
Note Payable 200,000.00

Valeinte, Capital 540,000.00

Owners
Equity Professional Audit Fee 500,000.00
Dividend Income 30,000.00

Cost of Service 120,000.00

Salary Expense 150,000.00
expense Rent Expense 25,000.00
Supply Expense 25,000.00 5,000.00
Interest Expense 10,000.00

1,330,000.00 1,330,000.00

Accrued Supply payable

Adjustments:
Doubtful Accts- Exepense 10,000.00

15,000.00
 EGV Accounting Firm
Worksheet
December 31, 2018

Adjustment Adjusted Trial Balance Income Statement Statement of Financial Position

Credit Debit Credit Debit Credit Debit

340,000.00 340,000.00
600,000.00 600,000.00

10,000.00 30,000.00
60,000.00 60,000.00

40,000.00
200,000.00

540,000.00
500,000.00 500,000.00
30,000.00 30,000.00

120,000.00 120,000.00
150,000.00 150,000.00
25,000.00 25,000.00
30,000.00 30,000.00
10,000.00 10,000.00

5,000.00 5,000.00
10,000.00 10,000.00

15,000.00 1,345,000.00 1,345,000.00 345,000.00 530,000.00 1,000,000.00

185,000.00
530,000.00 530,000.00 1,000,000.00
ment of Financial Position
Credit

30,000.00

40,000.00
200,000.00

540,000.00

5,000.00

815,000.00
185,000.00
1,000,000.00
1. Accrued supplies Expense , P5,000.00
Supply Expense 5,000.00 Expense
Supply Payable 5,000.00 Liability

Allow for doubful accounts 10,000.00 Asset

Doubtful Accts- Exepense 10,000.00