PRELIM

JOURNALIZING

Assets Liabilities Owner’s Equity

1 Cash 125,000 - Mr. Garcia Capital 125,000-

Total 125,000- 125,000-

2 Cash 125,000- Mr. Garcia Capital 125,000-

Supplies 5,500-
Cash (5,500-)
Total 125,500- 125,500-

3 Cash 119,500- Account Payable 50,000- Mr. Garcia Capital 125,500-

Supplies 5,500-
Furniture 50,000-
Total 175,000- 50,000- 125,500-

4 Cash 119,500- Account Payable 50,000- Mr. Garcia Capital 125,500-

Supplies 5,500- Capital 20,000-
Furniture 50,000-
Cash 20,000-
Total 195,000- 50,000- 145,000-

5 Cash 139,500- Account Payable 50,000- Mr. Garcia Capital 145,000-

Supplies 5,500- Personal (10,00-)
Furniture 50,000-
Cash (10,000-)
Total 195,000- 50,000- 145,000-

6 Cash 129,500- Account Payable 50,000- Mr. Garcia Capital 145,000-

Supplies 5,500- Personal (10,000-)
Furniture 50,000- Revenue 10,000-
Cash 10,000-
Total 195,000- 50,000- 145,000-

7 Cash 139,000- Account Payable 50,000- Mr. Garcia Capital 145,000-

Supplies 5,500- Personal
(10,000-)
Furniture 50,000- Revenue 10,000-
Cash (10,000-) Salaries Expense (4,000-)
Total 191,000- 50,000- 141,000-
8 Cash 135,500- Account Payable 50,000- Mr. Garcia Capital 145,000-
Supplies 5,500- Account Payable (20,000-) Personal (10,000-)
Furniture 50,000- Reveue 10,000-
Cash (20,000-) Salaries Expense (4,000-)
Total 171,000- 30,000- 141,000-

9 Cash 110,000- Account Payable 50,000- Mr. Garcia Capital 145,000-

Supplies 5,500- Account Payable (20,000-) Personal (10,000-)
Furniture 50,000- Account Receivable 5,500- Revenue 10,000-
Cash 5,5000- Salaries Expense (4,000-)
Rent Expense (5,000-)
Total 166,000- 30,000- 136,000-

10 Cash 110,500- Account Payable 50,000- Mr. Garcia Capital 145,000-

Supplies 5,500- Account Payable (20,000-) Personal (10,000-)
Furniture 50,000- Account Recievable 5,000- Revenue 10,000-
Cash 5,000- Salaries Expense (4,000-)
Rent Expense (5,000-)
Total 171,000- 35,000- 136,000-

11 Cash 115,000- Account Payable 50,000- Mr. Garcia Capital 145,000-

Supplies 5,500- Account Payable (20,000-) Personal (10,000-)
Furniture 50,000- Account Receivable 5,500- Revenue 10,000-
Cash (30,000-) Account Payable (30,000-) Salaries Expense (4,000-)
Rent Expense (5,000-)
Total 141,000- 5,000- 136,000-

GENERAL JOURNAL

Date Explanation Debit Credit

AUG
2021 1 Cash 300,000
Capital 300,000
Mr. Quares initial investment

3 Equipment 120,000
Cash 120,000
Bought an equipment

5 Office Supplies 5,500

Cash 5,500
Bought some office supplies

8 Equipment 110,000
Cash 110,000
Bought two additional videoke machine

11 Cash 15,000
Revenue 15,000
Service rendered
14 Utility Expense 4,200
Salary Expense 3,500
Cash 7,700
Paid for Utility and salary expense

17 No transaction

20 Office Furniture 35,250

Cash 25,250
Notes Payable 10,000
Purchased furniture, paid cash and issue promissory notes for the remaining balance

21 Cash 10,000
Account Receivable 12,500
Revenue 22,500
Services Rendered

23 Office Supplies 1,750

Cash 1,750
Bought office supplies

25 Cash 12,500
Revenue 12,500
Received full payment from customer on August 21

27 Account Payable 10,000

Cash 10,000

29 Personal 1,500
Cash 1,500
Mr. Quares withdrawal

30 Salary Expense 3,000

Miscellaneous Expense 1,750
Cash 4.750
Paid for Salary and Miscellaneous Expense

30 cash 25,000
Revenue 25,000
Service Rendered
TRIAL BALANCE

Accounts Debit Credit

Cash 362,500
Accounts Receivable 12,500
Office Supplies 7,250
Office Furniture 35,250
Equipment 230,000
Accounts Payable 10,000
Notes Payable 10,000
Mr. Quarez Capital 300,000
Mr. Quarez Personal 1,500
Service Income 75,000
Salary Expense 6,500
Miscellaneous Expense 1,750
Utility Expense 4,200
Total
MIDTERM

B.

Saibatsu Services
Trial Balance
December 31, 2021

Accounts Debit Credits

Cash 107,300
Accounts Receivable 55,000
Notes Receivable 75,000
Office Supplies 5,000
Furniture 50,000
Office Equipment 17,000
Delivery Equipment 105,000
Accounts Payable 25,000
Notes Payable 35,000
S, Capital 260,000
S, Personal 10,000
Service Income 197,000
Supplies Used 6,000
Salaries and Wages 30,000
Rent Expense 18,000
Insurance Expense 25,000
Advertising Expense 1,550
Miscellaneous Expense 1,900
Utilities Expense 10,500
Interest Income 500
Interest Expense 250

Totals 517,500 517,500

 Saibatsu Services
Income Statement
December 31, 2021

Service Income 197,000

Less: Expenses
Advertising Expense 1,550
Utilities Expense 10,500
Supplies Used 6,000
Salaries and Wages 30,000
Insurance Expense 25,000
Rent Expense 18,000
Miscellaneous Expense 1,900 92,950
Net Operating Income: 104,050
Other Income/expense:
Add: Interest Income 500
Less: Interest Expense 250 250
Net Income 104,300

Saibatsu Services
Balance Sheet
December 31, 2021

Assets Liabilities

Current Assets Current Liabilities

Cash 107,300 Accounts Payable 25,000
Account Receivable 55,000 Notes Payable 35,000
Notes Receivable 75,000 Total Current liabilities 60,000
Office Supplies 5,000
Total Current Assets 242,300 Owner’s Equity

Long term/Fixed Assets Capital 260,000

Furniture 50,000 Less: Personal 10,000
Office Equipment 17,000 Net Capital Balance 250,000
Delivery Equipment 105,000 Add: Net Income 104,300
Total Fixed Assets 172,000 Total Liabilities and Owner’s Equity 414,300
Total Assets 414,300
PRE-FINALS

Adjustment Entry

Date Particular/Explanation Debit Credit

2014
DEC 31 Bad debts 700
Provision for bad debts 700

Supplies Unused 2,500

Supplies Used 2,500

Depreciation Expense -Delivery Equipment 77,500

Accumulated Expense- Delivery Equipment 77,500

Depreciation Expense- office Equipment 11,000

Accumulated Expense- Office Equipment 11,000

Insurance Expense 17,143

Prepaid Insurance 17,143