Suggested Answer

Note: Explanations should be provided in the formal journalizing of transactions.

GENERAL JOURNAL Page 01

DATE Account Title and Explanation P. R DEBIT CREDIT

2021
Jan 3 Cash 101 P 100,000
Whatzons, Capital 301 P 100,000

 Vehicle 106 80,000

Cash 101 80,000

Feb. 3 Cash 101 100,000

Notes Payable 202 100,000

Mar. 1 Prepaid Rent 103 24,000

Cash 101 24,000

2 Whatzons, Withdrawals 302 30,000

Cash 101 30,000

Apr. 9 Land 105 60,000

Cash 101 60,000

May 8 Accounts Payable 201 15,000

Cash 101 15,000

June 1 Cash 101 42,000

Unearned Service Income 203 42,000

Sept. 3 Supplies 104 20,000

Accounts Payable 201 20,000

Dec. 22 Accounts Receivable 102 250,000

Service Revenues 401 250,000

. 31 Cash 101 100,000

Accounts Receivable 102 100,000

Adjusting Entries:
NOTE: See T-accounts, posted adjusting entries in RED color

a. Dec. 31 Operating Expense 503 50,000

Accounts Payable 201 50,000

b.  Salaries Expense 501 32,000

Salaries Payable 204 32,000

c.  Supplies Expense 502 19,000

Supplies 104 19,000

d.  Depreciation Expense 505 P 24,000

Accumulated Depreciation -Vehicle 106-A P 24,000

e.  Interest Expense 504 8,250

Interest Payable 205 8,250

f.  Rent Expense 506 20,000

Prepaid Rent 103 20,000
Closing Entries
NOTE: See T-accounts, posted adjusting entries in PURPLE color
Dec. 31 Service Revenues 401 250,000
Income Summary 303 250,000
To close revenue accounts

 Income Summary 303 153,250

Salaries Expense 501 32,000
Supplies Expense 502 19,000
Operating Expense 503 50,000
Depreciation Expense 505 24,000
Rent Expense 506 20,000
Interest Expense 507 8,250
To close expenses accounts

 Income Summary 303 96,750

Whatzons, Capital 301 96,750
To close Income Summary account to capital (profit)

 Whatzons, Capital 301 30,000

Whatzons, Withdrawal 302 30,000
To close withdrawal account to capital account

T-Accounts
Cash 101 Accounts Receivable 102

Beginning P 180,000 Beginning P 110,000

Jan. 03 100,000 Dec. 22 250,000
P 80,000 Jan. 03 P 100,000 Dec. 31
Feb. 03 100,000
24,000 Mar. 01 Balance P 260,000
30,000 Mar. 02
60,000 Apr.09
15,000 May 08
Jun 01 42,000
Dec. 31 100,000
Balance P 313,000

Prepaid Rent 103 Supplies 104

Mar. 1 2021 P 24,000 Sept. 03 P 20,000

P 20,000 Dec. 31 P 19,000 Dec. 31
P 4,000 Balance P 1,000

Vehicle 106

Land 105 Mar. 1 2021 P 80,000

Beginning P 90,000
Apr. 9 60,000 Balance P 80,000
Balance P 150,000
 Accumulated Depreciation-Vehicle 106-A Accounts Payable 201
P 24,000 Dec. 31 P 34,000 Beginning
May 8 2021 P 15,000
P 24,000 20,000 Sept. 3
Balance P 39,000 Balance

50,000 Dec. 31
P 89,000 Balance

Unearned Service Income 203

Notes Payable 202 P 42,000 Jun. 1

P 100,000 Feb.3 P 42,000 Balance

P 100,000 Balance

Interest Payable 205

Salaries Payable 204

P 32,000 Dec. 31 P 8,250 Dec. 31

P 32,000 Balance P 8,250 Balance

Whatzons, Withdrawals 302

Whatzons, Capital 301

346,000 Beginning Mar. 2 P 30,000
100,000 Jan. 3 P 30,000 Dec. 31
0
P 446,000 Balance

Dec. 31 P 30,000 P 96,750 Dec. 31

P 512,750

Income Summary 303 Service Revenues 401

P 250,000 Dec. 31 Dec. 22 P 250,000

Dec. 31 P 153,250
Dec. 31 96,750 Dec. 31 P 250,000
0 0

Salaries Expense 501 Supplies Expense 502

Dec. 31 P 32,000 Dec. 31 P 19,000

P 32,000 Dec. 31 P 19,000 Dec. 31
0 0

Operating Expense 503 Interest Expense 504

Dec. 31 P 50,000 Dec. 31 P 8,250

P 50,000 Dec. 31 P 8,250 Dec. 31
P0 P0
 Depreciation Expense 505 Rent Expense 506

Dec. 31 P 24,000 Dec. 31 P 20,000

24,000 Dec. 31 P 20,000 Dec. 31
P0 P0

IMMO WHATZONS Ad CONCEPTS

Adjusted Trial Balance
December 31, 2021

ACCOUNT TITLES DEBIT CREDIT

Cash P 313,000
Accounts receivable 260,000
Prepaid rent 4,000
Supplies 1,000
Land 150,000
Vehicle 80,000
Accumulated depreciation-vehicle P 24,000
Accounts payable 89,000
Notes payable 100,000
Unearned service income 42,000
Salaries payable 32,000
Interest payable 8,250
Whatzons, capital 446,000
Whatzons, withdrawals 30,000
Service revenues 250,000
Salaries expense 32,000
Supplies expense 19,000
Operating expense 50,000
Interest expense 8,250
Depreciation expense 24,000
Rent expense 20,000
TOTAL P 991,250 P 991,250
 IMMO WHATZONS Ad CONCEPTS
Income Statement
December 31, 2021
Revenues
Service Revenues P 250,000
Total P 250,000
Expenses
Salaries Expense P32,000
Supplies Expense 19,000
Operating Expense 50,000
Interest Expense 8,250
Depreciation Expense 24,000
Rent Expense 20,000
Total (P 153,250)
NET INCOME P 96,750

IMMO WHATZONS Ad CONCEPTS

Statement of Changes in Equity
December 31, 2021

Whatzons, Capital 1/1/2021 P 346,000

Add:
Additional Investment 100,000
Net Income 96,750 196,750
Total P 542,750
Less:
Withdrawals 30,000
Whatzons, Capital end, P 512,750
 IMMO WHATZONS Ad CONCEPTS
Statement of Financial Position
December 31, 2021

ASSET
Current
Cash P 313,000
Accounts Receivable 260,000
Prepaid Rent 4,000
Supplies 1,000
Total Current Asset P 578,000
Non-Current
Land P 150,000
Vehicle 80,000
Accumulated Depreciation-Vehicle (24,000) 56,000
Total Non-Current Asset P 206,000
Total Asset P784,000
LIABILITIES and EQUITY
Current Liabilities
Accounts Payable P 89,000
Notes Payable 100,000
Unearned Service Income 42,000
Salaries Payable 32,000
Interest Payable 8,250
Total Current Liabilities P 271,250
Owner’s Equity
Whatzons, Capital, end P 512,750
Total Liabilities and Capital P 784,000

(Optional)
IMMO WHATZONS Ad CONCEPTS
Post-Closing Trial Balance
December 31, 2021

ACCOUNT TITLES DEBIT CREDIT

Cash P 313,000
Accounts Receivable 260,000
Prepaid Rent 4,000
Supplies 1,000
Land 150,000
Vehicle 80,000
Accumulated Depreciation-Vehicle P 24,000
Accounts Payable 89,000
Notes Payable 100,000
Unearned Service Income 42,000
Salaries Payable 32,000
Interest Payable 8,250
Whatzons, Capital 512,750
TOTAL: P 808,000 P 808,000
 Sample Worksheet

IMMO WHATZONS Ad CONCEPTS

Worksheet
December 31, 2021

Account Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Name
Code Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
101 Cash 313,000 313,000 313,000
102 Accounts receivable 260,000 260,000 260,000
103 Prepaid rent 24,000 f. 20,000 4,000 4,000
104 Supplies 20,000 c. 19,000 1,000 1,000
105 Land 150,000 150,000 150,000
106 Vehicle 80,000 80,000 80,000
201 Accounts payable 39,000 a. 50,000 89,000 89,000
202 Notes payable 100,000 100,000 100,000
203 Unearned service income 42,000 42,000 42,000
301 Whatzons, capital 446,000 446,000 446,000
302 Whatzons, withdrawals 30,000 30,000 30,000
401 Service revenues 250,000 250,000 250,000
Total 877,000 877,000
106-A Accumulated depreciation-vehicle d. 24,000 24,000 24,000
204 Salaries payable b. 32,000 32,000 32,000
205 Interest payable e. 8,250 8,250 8,250
503 Operating expense a. 50,000 50,000 50,000
501 Salaries expense b. 32,000 32,000 32,000
502 Supplies expense c. 19,000 19,000 19,000
505 Depreciation expense d. 24,000 24,000 24,000
504 Interest expense e. 8,250 8,250 8,250
506 Rent expense f. 20,000 20,000 20,000
153,250 153,250 991,250 991,250 153,250 250000 838,000 741,250
Net Income 96,750 96,750
250,000 250,000 838,000 838,000