Cash

Transactions
Date Description Dr Cr
1-Dec Opening Balance

Computer Equipment
1-Dec Opening Balance
Accum. depreciation 240,000.00

Loans Payable
1-Dec Opening Balance

Owner's Equity
1-Dec Opening Balance
Owner's Drawings 3,300,000.00
Net Income 2,546,000.00

Journal
Date Particulars Dr Cr
1-Dec Rent Expense 100,000.00
Cash 100,000.00

2-Dec Cash 262,000.00

Service Fees 262,000.00

3-Dec Office supplies Expense 20,000.00

Cash 20,000.00

12-Dec Cash 60,000.00

Service Fees 60,000.00

15-Dec salaries expense 45,000.00

cash 45,000.00

17-Dec Utilities expense 15,000.00

Cash 15,000.00

Computer Equipment 150,000.00

Cash 150,000.00

23-Dec Cash 37,000.00

 Service Fees 37,000.00

salaries expense 75,000.00

Cash 75,000.00

28-Dec Prepaid insurance 5,000.00

Cash 5,000.00

30-Dec Cash 350,000.00

Service Fees 350,000.00

salaries expense 45,000.00

Cash 45,000.00
Balance
340,000.00 DR

1,400,000.00 DR
1,160,000.00 DR

1,000,000.00 CR

1,254,000.00 CR
2,046,000.00 DR
500,000.00 CR
Cash
Transaction
Date Item DR CR
20x1 Previous Balance
30-Dec Cash receipt 709,000.00
Check Disbursement 455,000.00

Prepaid Insurance
30-Dec fire Insurance 5,000.00

Computer equipment
20x1 Previous Balance
30-Dec Laptop Computers 150,000.00

Accum. Depreciation
Previous Balance

Loans Payable
20x1 Previous Balance

Owner's Equity
20x1 Previous Balance

Owner's Drawing Previous Balance

Service Fees
Previous Balance
30-Dec 709,000.00

Salaries Expense
Previous Balance
30-Dec DEC. 15 Salaries 45,000.00
13th Month Pay 75,000.00
DEC. 31 Salaries 45,000.00

Rent Expense
Previous Balance
 30-Dec December Rent 100,000.00

Utilities Expense
Previous Balance
Utilities for Noc.15 to Dec. 15 15,000.00

Office Supplies Exprense

Previous Balance
Office Supplies 20,000.00

Insurance Expense
Previous Balance
 Balance Items
DR CR Previous Balance
340,000.00 1-Dec December rent
1,049,000.00 2-Dec Bandolin enterprise
594,000.00 3-Dec Office supplies Expense
12-Dec Red Greorge Cars
15-Dec DEC. 15 Salaries
5,000.00 17-Dec Utilities expense for Nov. 15 to Dec. 15
Computer Equipment
23-Dec Tender guitars
13th month pay
1,400,000.00 28-Dec Prepaid Insurance
1,550,000.00 30-Dec Moon Bliss Manpower Inc.
Dec. 31 Salaries

240,000.00

1,000,000.00

1,254,000.00

3,300,000.00

4,890,000.00
5,599,000.00

990,000.00
1,035,000.00
1,110,000.00
1,155,000.00

1,100,000.00
1,200,000.00

165,000.00
180,000.00

84,000.00
104,000.00

5,000.00
Dr CR Balance
340,000.00
100,000.00 240,000.00
262,000.00 502,000.00
20,000.00 482,000.00
60,000.00 542,000.00
45,000.00 497,000.00
15,000.00 482,000.00
150,000.00 332,000.00
37,000.00 369,000.00
75,000.00 294,000.00
5,000.00 289,000.00
350,000.00 639,000.00
45,000.00 594,000.00
Accounts DR CR
Cash 594,000.00
Prepaid Insurance 5,000.00
Computer equipment 1,550,000.00
Accum. Depreciation 240,000.00
Loans Payable 1,000,000.00
Owner's Equity 1,254,000.00
Owner's Drawing 3,300,000.00
Service Fees 5,599,000.00
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 180,000.00
Office Supplies Exprense 104,000.00
Insurance Expense 5,000.00
8,093,000.00 8,093,000.00
Bal. Book End 594,000.00
Add: Credit Memo 56,000.00
Less:Debit Memo -
Adjusted balance 650,000.00

Bal. Bank End 305,000.00

Add: DIT 350,000.00
Less: OC 5,000.00
650,000.00
Accounts Dr Cr
: Cash 56,000.00
:Service Income 56,000.00

1 Accounts receivable 34,000.00

1 Service Income 34,000.00

2 Office Supplies 9,000.00

2 Office Supplies Expense 9,000.00

3 Depreciation Expense 126,250.00

3 Accum. Depreciation -computer Equipment 126,250.00

4 Interest expense 2,000.00

4 Accrued Interest Payable 2,000.00

5 Utilities Expense 7,500.00

5 Accrued Utilities Payable 7,500.00
 ACCOUNTS UNADJUSTMENT TRIAL BALANCE ADJUSTMENT
DR CR DR
Cash 594,000.00 (a) 56,000
Prepaid insurance 5,000.00
Computer equipment 1,550,000.00
Accum. depreciation 240,000.00
Loans payable 1,000,000.00
Owner's equity 1,254,000.00
Owner's Drawing 3,300,000.00
Service fees 5,599,000.00
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 180,000.00 (d) 7,500
Office Supplies Expense 104,000.00 (b) 95,000
Insurance Expense 5,000.00
Total 8,093,000.00 8,093,000.00
Adjustment:
Accounts receivable
Prepaid Office Supplies
Depreciation expense (c) 120,000
Accrued Utilities Payable
278,500.00

4,890,000.00
990,000.00
1,100,000.00
165,000.00
84,000.00
5,000.00
2,344,000.00
2,546,000.00
ADJUSTMENT ADJUSTED TRIAL BALANCE IC BALANCE SHEET
CR DR CR DR CR DR
650,000.00 650,000.00
5,000.00 5,000.00
1,550,000.00 1,550,000.00
(c) 120,000 360,000.00
1,000,000.00
1,254,000.00
3,300,000.00 3,300,000.00
5,599,000.00 5,599,000.00
1,155,000.00 1,155,000.00
1,200,000.00 1,200,000.00
187,500.00 187,500.00
199,000.00 199,000.00
5,000.00 5,000.00

(a) 56,000 56,000.00

(b) 95,000 95,000.00
120,000.00 120,000.00
(d) 7,500 7,500.00
278,500.00 8,371,500.00 8,371,500.00 2,866,500.00 5,599,000.00 5,505,000.00
2,732,500.00
5,599,000.00 5,599,000.00 5,505,000.00
BALANCE SHEET
CR

360,000.00
1,000,000.00
1,254,000.00

56,000.00
95,000.00

7,500.00
2,772,500.00
2,732,500.00
5,505,000.00
 Unadjusted Trial Balance Adjustment
Accounts
DR CR DR
Cash 594,000.00 56,000.00
Prepaid Insurance 5,000.00
Computer equipment 1,550,000.00
Accum. Depreciation 240,000.00
Loans Payable 1,000,000.00
Owner's Equity 1,254,000.00
Owner's Drawing 3,300,000.00
Service Fees 5,599,000.00
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 180,000.00 7,500.00
Office Supplies Exprense 104,000.00
Insurance Expense 5,000.00
Total 8,093,000.00 8,093,000.00
Adjustment:
1 Accounts receivable 34,000.00
2 Office Supplies 9,000.00
3 Depreciation Expense 126,250.00
4 Interest expense 2,000.00
4 Accrued Interest Payable
5 Accrued Utilities Payable
TOTAL 234,750.00
Adjustment Adjusted Trial Balance Income Statement Balance sheet
CR DR CR DR CR DR
650,000.00 650,000.00
5,000.00 5,000.00
1,550,000.00 1,550,000.00
126,250.00 366,250.00
1,000,000.00
1,254,000.00
3,300,000.00 3,300,000.00
90,000.00 5,689,000.00 5,689,000.00
1,155,000.00 1,155,000.00
1,200,000.00 1,200,000.00
187,500.00 187,500.00
9,000.00 95,000.00 95,000.00
5,000.00 5,000.00

34,000.00 34,000.00
9,000.00 9,000.00
126,250.00 126,250.00
2,000.00 2,000.00
2,000.00 2,000.00
7,500.00 7,500.00
234,750.00 8,318,750.00 8,318,750.00 2,770,750.00 5,689,000.00 5,548,000.00
2,918,250.00
5,689,000.00 5,689,000.00 5,548,000.00
Balance sheet
CR

366,250.00
1,000,000.00
1,254,000.00

2,000.00
7,500.00
2,629,750.00
2,918,250.00
5,548,000.00
 Unadjusted Trial Balance Adjustment
Accounts
DR CR DR
Cash 594,000.00 56,000.00
Prepaid Insurance 5,000.00
Computer equipment 1,550,000.00
Accum. Depreciation 240,000.00
Loans Payable 1,000,000.00
Owner's Equity 1,254,000.00
Owner's Drawing 3,300,000.00
Service Fees 5,599,000.00
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 180,000.00 7,500.00
Office Supplies Exprense 104,000.00
Insurance Expense 5,000.00
Total 8,093,000.00 8,093,000.00
Adjustment:
1 Accounts receivable 34,000.00
2 Office Supplies 9,000.00
3 Depreciation Expense 126,250.00
4 Interest expense 10,000.00
4 Accrued Interest Payable
5 Accrued Utilities Payable
TOTAL 242,750.00
 RAK N' KOLL
Worksheet
For the year ended December 31, 20x1

Adjustment Adjusted Trial Balance Income Statement

CR DR CR DR CR
650,000.00
5,000.00
1,550,000.00
126,250.00 366,250.00
1,000,000.00
1,254,000.00
3,300,000.00
90,000.00 5,689,000.00 5,689,000.00
1,155,000.00 1,155,000.00
1,200,000.00 1,200,000.00
187,500.00 187,500.00
9,000.00 95,000.00 95,000.00
5,000.00 5,000.00

34,000.00
9,000.00
126,250.00 126,250.00
10,000.00 10,000.00
10,000.00 10,000.00
7,500.00 7,500.00
242,750.00 8,326,750.00 8,326,750.00 2,778,750.00 5,689,000.00
2,910,250.00
5,689,000.00 5,689,000.00
 Balance sheet Closing Entries Post-closing Entries
DR CR DR CR DR
650,000.00 650,000.00
5,000.00 5,000.00
1,550,000.00 1,550,000.00
366,250.00
1,000,000.00
1,254,000.00 3,300,000.00 2,910,250.00
3,300,000.00 3,300,000.00
5,689,000.00
1,155,000.00
1,200,000.00
187,500.00
95,000.00
5,000.00

34,000.00 34,000.00
9,000.00 9,000.00
126,250.00
10,000.00
10,000.00
7,500.00
5,548,000.00 2,637,750.00 8,989,000.00 8,989,000.00 2,248,000.00
2,910,250.00
5,548,000.00 5,548,000.00
Post-closing Entries
CR

366,250.00
1,000,000.00
864,250.00

10,000.00
7,500.00
2,248,000.00
 Unadjusted Trial Balance Adjustment
Accounts
DR CR DR
Cash 594,000.00 56,000.00
1 Accounts receivable 34,000.00
Prepaid Insurance 5,000.00
Computer equipment 1,550,000.00
Accum. Depreciation 240,000.00
Loans Payable 1,000,000.00
Owner's Equity 1,254,000.00
Owner's Drawing 3,300,000.00
Service Fees 5,599,000.00
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 180,000.00 7,500.00
Office Supplies Exprense 104,000.00
Insurance Expense 5,000.00
Total 8,093,000.00 8,093,000.00
Adjustment:
2 Office Supplies 9,000.00
3 Depreciation Expense 5,000.00
4 Interest expense 10,000.00
4 Accrued Interest Payable
5 Accrued Utilities Payable
TOTAL 121,500.00
 RAK N' KOLL
Worksheet
For the year ended December 31, 20x1

Adjustment Adjusted Trial Balance Income Statement

CR DR CR DR CR
650,000.00
34,000.00
5,000.00
1,550,000.00
5,000.00 245,000.00
1,000,000.00
1,254,000.00
3,300,000.00
90,000.00 5,689,000.00 5,689,000.00
1,155,000.00 1,155,000.00
1,200,000.00 1,200,000.00
187,500.00 187,500.00
9,000.00 95,000.00 95,000.00
5,000.00 5,000.00

9,000.00
5,000.00 5,000.00
10,000.00 10,000.00
10,000.00 10,000.00
7,500.00 7,500.00
121,500.00 8,205,500.00 8,205,500.00 2,657,500.00 5,689,000.00
3,031,500.00
5,689,000.00 5,689,000.00
 Balance sheet Closing Entries Post-closing Entries
DR CR DR CR DR
650,000.00 650,000.00
34,000.00 34,000.00
5,000.00 5,000.00
1,550,000.00 1,550,000.00
245,000.00
1,000,000.00
1,254,000.00 3,300,000.00 3,031,500.00
3,300,000.00 3,300,000.00
5,689,000.00
1,155,000.00
1,200,000.00
187,500.00
95,000.00
5,000.00

9,000.00 9,000.00
5,000.00
10,000.00
10,000.00
7,500.00
5,548,000.00 2,516,500.00
3,031,500.00 2,657,500.00 5,689,000.00
5,548,000.00 5,548,000.00 3,031,500.00
14,678,000.00 14,678,000.00 2,248,000.00
Post-closing Entries
CR

245,000.00
1,000,000.00
985,500.00

10,000.00
7,500.00

2,248,000.00
Date Description DR CR
31-Dec Service Fees 5,689,000.00
Income Summary 5,689,000.00
To close revenue Account

Income Summary 2,778,750.00

Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 187,500.00
Office Supplies Exprense 95,000.00
Insurance Expense 5,000.00
3 Depreciation Expense 126,250.00
4 Interest expense 10,000.00
To close the Expense accounts

Income Summary 2,910,250.00

Owner's Capital 2,910,250.00
to Close the net income to the Capital account

Owner's Capital 3,300,000.00

Owner's Drawing 3,300,000.00
To close the drawing accounts
Asset Notes 20x0
Cash and Cash Equivalent 1 650,000.00 67,500.00
Trade and other receivable 2 34,000.00 -
Prepaid Assets 3 14,000.00 34,000.00

Total current asset 698,000.00

Property,Plant, and Equipment 4 1,183,750.00

Total noncurrent assets 1,183,750.00

Total Assets 1,881,750.00

Liabilities
Trade Payables and other Payable 5 17,500.00 7,500.00
Total current liabilities 17,500.00
Long-Term borrowings 6 1,000,000.00 -
Total noncurrent Liabilities 1,000,000.00

Total Liabilities 1,017,500.00

Owners's Equity
Owner's Capital 864,250.00
Total Liabilities and Owner's Equity 1,881,750.00

Comprensive Income

Service Fees 5,689,000.00

Total Revenue 5,689,000.00
Less: Operating Expense:
Salaries Expense 1,155,000.00
Rent Expense 1,200,000.00
Utilities Expense 187,500.00
Office Supplies Exprense 95,000.00
Insurance Expense 5,000.00
3 Depreciation Expense 126,250.00 2,768,750.00
Operating Income 2,920,250.00
Less: Finance Cost
4 Interest expense 10,000.00
Net Income 2,910,250.00

Cash Flow
Cash Flow from operating activities:
Profit for the year 2,910,250.00
Non-Cash items:
3 Depreciation Expense 126,250.00
Total 3,036,500.00
Changes in operating assets and liabilities
Increase in Trade and other receivables -34,000.00
Decrease in Prepaid Asset 20,000.00
Increase in Trade and other payable 10,000.00
Net cash from operating activities 3,032,500.00
Cash Flow from investing activities:
Cash paid for the acquisition of equipment -150,000.00
Net cash used in investing actvities -150,000.00
Cash Flow from financing activities
Cash proceed from loan borrowed 1,000,000.00
Cash payment to owner -3,300,000.00
Net Cash used in financing activities -2,300,000.00

Net increase in cash and cash equivalents 582,500.00

Cash and Cash equivalents, beginning 67,500.00
Cash and cash equivalent, ending 650,000.00

Changes in equity
Owners's Capital-beg 1,254,000.00
Additional Investment -
Drawings -3,300,000.00
Profit 2,910,250.00
Owners's Capital- End 864,250.00
Notes 1: Cash and Cash Equivalent
Cash 650,000.00
Cash equivalent -
650,000.00

Notes 2: Trade and other receivable

Accounts Receivable 34,000.00
34,000.00

Notes 3: Prepaid Asset

Prepaid Insurance 5,000.00
2 Office Supplies 9,000.00
14,000.00

Notes 4: Property,Plant, and Equipment

Computer equipment 1,550,000.00
Accum. depreciation 366,250.00
1,183,750.00

Notes 5: Trade Payables and other Payable

4 Accrued Interest Payable 10,000.00
5 Accrued Utilities Payable 7,500.00
17,500.00

Notes 6: Long-Terms Borrowings

Loans Payables 1,000,000.00
1,000,000.00
Current ratio
Current assets 698,000.00
Current ratio = =
current liabilities 17,500.00

Quick (Acid-Test) ratio

Cash+Marketable securities+Acc. rec, ne (650000+0+34000)

Quick (Acid-Test) ratio = =
Current liabilities 17,500.00

Working Capital

Working Capital Current assets-Current liabilities 698,000.00

= =

Debt ratio

Total liabilities 1,017,500.00

Debt ratio = =
Total assets 1,881,750.00

Equity ratio

Total equity 864,250.00

Equity ratio = =
Total assets 1,881,750.00

Debt-to-equity ratio

Total liabilities 1,017,500.00

Debt-to-equity ratio = =
Total equity 864,250.00

Net profit ratio

Profit for the year 2,910,250.00

Net profit ratio =
Service fees 5,689,000.00

Return on assets

Profit for the year 2,910,250.00

Return on assets = =
Total assets 1,881,750.00

Return on equity
 Profit for the year 2,910,250.00
Return on equity = =
Total equity 864,250.00
 698,000.00
= 39.89
17,500.00

(650000+0+34000) 684,000.00
= = 39.09
17,500.00 17,500.00

17,500.00 = 680,500.00

1,017,500.00
= 0.54
1,881,750.00

864,250.00
= 0.46
1,881,750.00

1,017,500.00
= 1.18
864,250.00

2,910,250.00
= 0.51
5,689,000.00

2,910,250.00
= 1.55
1,881,750.00
2,910,250.00
= 3.37
864,250.00
Date Particulars Sundry Acct CREDIT
2-Dec Bandolin Enterprise (Service Fees) 262,000.00
12-Dec Red George Cars (Service Fees) 60,000.00
23-Dec Tender Guitars (Service Fees) 37,000.00
30-Dec Moon Bliss Manpower, Inc. (Service Fees) 350,000.00
Total 709,000.00
Sales CREDIT Acct. Receivable CREDIT Sales Discount DEBIT Cash DEBIT
262,000.00
60,000.00
37,000.00
350,000.00
709,000.00
Date Check no. Particulars Sundry Acct.Debit Accts. Payable Debit
1-Dec 3455 December Rent 100,000.00
3-Dec 3456 Office Supplies 20,000.00
15-Dec 3457 DEC. 15 Salaries 45,000.00
17-Dec 3458 Computer Equipment 150,000.00
3459 Utilities Expense 15,000.00
23-Dec 3460 13th Month Pay 75,000.00
28-Dec 3461 Prepaid Insurance 5,000.00
30-Dec 3462 DEC. 31 Salaries 45,000.00
Total 455,000.00
Purchase Discount Credit Cash Credit
100,000.00
20,000.00
45,000.00
150,000.00
15,000.00
75,000.00
5,000.00
45,000.00
455,000.00