ALVAREZ THERAPY CONSULTING CO.

CHART OF ACCOUNTS

Account Title
101 Cash
102 Accounts Receivable
103 Allowance for Bad Debts
104 Office Supplies
105 Equipment
106 Accumulated Depreciation
201 Interest Payable
202 Loan Payable
301 Alvarez, Capital
302 Alvarez, Drawing
401 Service Revenue
501 Bad Debts Expense
502 Depreciation Expense
503 Interest Expense
504 Office Supplies Expense
505 Salaries Expense
506 Utilities Expense
 ALVAREZ THERAPY CONSULTING CO.
GENERAL JOURNAL

Date Particulars F Dr Cr
20x1 Jan 1 Cash 101 200,000.00
Alvarez, Capital 301 200,000.00
Initial investment

Oct 1 Cash 101 300,000.00

Loan Payable 202 300,000.00
Obtained 12%, one-year bank loan

Nov 1 Equipment 105 360,000.00

Cash 101 360,000.00
Purchased equipment

Dec 4 Office Supplies 104 80,000.00

Cash 101 80,000.00
Purchased office supplies

5 Cash 101 180,000.00

Service Revenue 401 180,000.00
Rendered services

6 Accounts Receivable 102 420,000.00

Service Revenue 401 420,000.00
Rendered services on account

7 Cash 101 370,000.00

Accounts Receivable 102 370,000.00
Partial collection of account

8 Utilities Expense 506 16,000.00

Cash 101 16,000.00
Paid utilities

9 Salaries Expense 505 140,000.00

Cash 101 140,000.00
Paid salaries

10 Alvarez, Drawing 302 100,000.00

Cash 101 100,000.00
Withdrew cash for personal use

31 Depreciation Expense 502 12,000.00

Accumulated Depreciation 106 12,000.00
To record depreciation expense
Date Particulars F Dr Cr
20x1 Dec 31 Bad Debts Expense 501 3,000.00
Allowance for Bad Debts 103 3,000.00
To record allowance for bad debts

31 Office Supplies Expense 504 75,000.00

Office Supplies 104 75,000.00
To record used portion of office supplies

31 Interest Expense 503 9,000.00

Interest Payable 201 9,000.00
To record accrued interest expense

31 Service Revenue 401 600,000.00

Bad Debts Expense 501 3,000.00
Depreciation Expense 502 12,000.00
Interest Expense 503 9,000.00
Office Supplies Expense 504 75,000.00
Salaries Expense 505 140,000.00
Utilities Expense 506 16,000.00
Income Summary 345,000.00
To close revenue and expense accounts

31 Income Summary 345,000.00

Alvarez, Capital 301 345,000.00
To close income summary account

31 Alvarez, Capital 301 100,000.00

Alvarez, Drawing 302 100,000.00
To close drawing account
 ALVAREZ THERAPY CONSULTING CO.
GENERAL LEDGER

CASH 101
Date Particulars F Dr. Date Particulars F Cr.
20x1 Jan 1 GJ1 200,000.00 20x1 Nov 1 GJ1 360,000.00
Oct 1 GJ1 300,000.00 Dec 4 GJ1 80,000.00
Dec 5 GJ1 180,000.00 8 GJ1 16,000.00
7 GJ1 370,000.00 9 GJ1 140,000.00
10 GJ1 100,000.00
354,000.00

ACCOUNTS RECEIVABLE 102

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 6 GJ1 420,000.00 20x1 Dec 7 GJ1 370,000.00
50,000.00

ALLOWANCE FOR BAD DEBTS 103

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 3,000.00
3,000.00

OFFICE SUPPLIES 104

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 4 GJ 80,000.00 20x1 Dec 31 GJ2 75,000.00
5,000.00

EQUIPMENT 105
Date Particulars F Dr. Date Particulars F Cr.
20x1 Nov 1 GJ1 360,000.00
360,000.00

ACCUMULATED DEPRECIATION 106

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ1 12,000.00
12,000.00

INTEREST PAYABLE 201

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 9,000.00
9,000.00

LOAN PAYABLE 202

Date Particulars F Dr. Date Particulars F Cr.
20x1 Oct 1 GJ1 300,000.00
300,000.00
 INTEREST PAYABLE 201
Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 9,000.00
9,000.00

LOAN PAYABLE 202

Date Particulars F Dr. Date Particulars F Cr.
20x1 Oct 1 GJ1 300,000.00
300,000.00

ALVAREZ, CAPITAL 301

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 100,000.00 20x1 Jan 1 GJ1 200,000.00
20x1 Dec 31 GJ2 345,000.00
445,000.00

ALVAREZ, DRAWING 302

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 10 GJ1 100,000.00 20x1 Dec 31 GJ2 100,000.00
-

INCOME SUMMARY
Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 345,000.00 20x1 Dec 31 GJ2 345,000.00
-

SERVICE REVENUE 401

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 600,000.00 2023 Dec 5 GJ1 180,000.00
6 GJ1 420,000.00
-

BAD DEBTS EXPENSE 501

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 3,000.00 20x1 Dec 31 GJ2 3,000.00
-

DEPRECIATION EXPENSE 502

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ1 12,000.00 20x1 Dec 31 GJ2 12,000.00
-

INTEREST EXPENSE 503

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 9,000.00 20x1 Dec 31 GJ2 9,000.00
-
 OFFICE SUPPLIES EXPENSE 504
Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 31 GJ2 75,000.00 20x1 Dec 31 GJ2 75,000.00
-

SALARIES EXPENSE 505

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 9 GJ1 140,000.00 20x1 Dec 31 GJ2 140,000.00
-

UTILITIES EXPENSE 506

Date Particulars F Dr. Date Particulars F Cr.
20x1 Dec 8 GJ1 16,000.00 20x1 Dec 31 GJ2 16,000.00
-
 ALVAREZ THERAPY CONSULTING CO.
ACCOUNTING WORKSHEET
December 31, 20x1

Accounts Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Closing Entries Post-closing Trial Balance

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Cash 354,000.00 354,000.00 354,000.00 354,000.00
Accounts Receivable 50,000.00 50,000.00 50,000.00 50,000.00
Office Supplies 80,000.00 75,000.00 5,000.00 5,000.00 5,000.00
Equipment 360,000.00 360,000.00 360,000.00 360,000.00
Loan Payable 300,000.00 300,000.00 300,000.00 300,000.00
Alvarez, Capital 200,000.00 200,000.00 200,000.00 100,000.00 345,000.00 445,000.00
Alvarez, Drawing 100,000.00 100,000.00 100,000.00 100,000.00
Service Revenue 600,000.00 600,000.00 600,000.00 600,000.00
Salaries Expense 140,000.00 140,000.00 140,000.00 140,000.00
Utilities Expense 16,000.00 16,000.00 16,000.00 16,000.00
Totals 1,100,000.00 1,100,000.00
Adjustments
Depreciation Expense 12,000.00 12,000.00 12,000.00 12,000.00
Accumulated Depreciation 12,000.00 12,000.00 12,000.00 12,000.00
Bad Debts Expense 3,000.00 3,000.00 3,000.00 3,000.00
Allowance for Bad Debts 3,000.00 3,000.00 3,000.00 3,000.00
Office Supplies Expense 75,000.00 75,000.00 75,000.00 75,000.00
Interest Expense 9,000.00 9,000.00 9,000.00 9,000.00
Interest Payable 9,000.00 9,000.00 9,000.00 9,000.00
Totals 99,000.00 99,000.00 1,124,000.00 1,124,000.00 255,000.00 600,000.00 869,000.00 524,000.00 700,000.00 700,000.00 769,000.00 769,000.00
Net Income 345,000.00 345,000.00
600,000.00 600,000.00 869,000.00 869,000.00