Scribd
Upload
186 views

Comprehensive Problem

The document provides the unadjusted trial balance of Iladia Vedasto Appraisers as of December 31, 2019 along with additional information about various accounts. It requires preparing adjusting entries, a ten-column worksheet, adjusted trial balance, financial statements, and closing entries.

Uploaded by

ish knows
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
186 views

Comprehensive Problem

The document provides the unadjusted trial balance of Iladia Vedasto Appraisers as of December 31, 2019 along with additional information about various accounts. It requires preparing adjusting entries, a ten-column worksheet, adjusted trial balance, financial statements, and closing entries.

Uploaded by

ish knows
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

CA5101

Comprehensive Problem
On December 31, 2019, Iladia Vedasto Appraisers presented its unadjusted trial
balance as follows:

Iladia Vedasto Appraisers


Unadjusted Trial Balance
December 31, 2019

Debit Credit
Cash 300,000
Accounts Receivable 125,000
Allow. for Impairment Loss 8,000
Office Supplies 5,000
Equipment 900,000
Accum. Depreciation - Equipt. 180,000
Accounts Payable 80,000
Unearned Service Income 120,000
Notes Payable 200,000
Vedasto, Drawing 4,000
Vedasto, Capital 391,000
Service Income 790,000
Advertising Expense 30,000
Salaries Expense 180,000
Lease Expense 120,000
Insurance Expense - Equipt. 60,000
Utilities Expense 45,000
Totals 1,769,000 1,769,000

Additional information:
a. 10% of the accounts receivable are determined to be doubtful accounts. Vedasto uses
the allowance method of recording doubtful accounts.

b. Inventory of the office supplies account on December 31, 2019 showed P1,200 cost.

c. The equipment was purchased on December 31, 2016 with no salvage value.

d. The unearned service income was credited when Vedasto received annual retainers fee
from one of its clients on September 1, 2019.

e. The notes payable is dated October 2, 2019 with 6% interest.

f. Vedasto advertises on a quarterly basis. The amount debited to advertising expense is


for the quarter beginning November 1, 2019.

g. The lease and the insurance expenses are for the annual rental and insurance paid by
Vedasto on May 1, 2019.

h. The utilities expense does not include the December 1 - 15, 2019 billing amounting to
P4,000.

Required:
1. Prepare the adjusting entries.
2. Prepare a ten-column worksheet.
3. Prepare the adjusted trial balance, statement of profit or loss, statement of changes
in equity, and the statement of financial position.
4. Prepare the closing entries.

You might also like