Tibans Shoe Repair Shop

Unadjusted Trial Balance

For the month ended March 31, 2020

Acct. No. ACCOUN TITLE DR CR

Cash 9,000.00
Accounts Receivable 12,000
Repair Supplies 15,000
Repair Tools 12,000
Furniture & Fixtures 65,000
Service Equipment 200,000
Notes Payable 32,500
Mr. Tibans, Capital 202,000
Mr. Tibans, Drawing 7,500
Service Income 109,000
Advertising 2,500
Salaries Expense 9,000
Utilities Expense 1,500
Rent Expense 10,000
TOTAL PHP 343,500 PHP 343,500

On December 31, the end of the accounting period, the following date were taken:
1. An actual count of repair supplies showed a balance of P 8,500.
2. Furniture
3. Repair tools
andare depreciated
fixtures at 10% per
are estimated annum.
to have a useful life of 5 years while service equipment has a useful life of 10
4. A 10% interest has accrued on the Note Payable.
5. Of the income received, P 9,000 is applicable to the next accounting period.
6. Accrual of expenses: Salaries and Wages P 2,500; Rent P 5,000.
7. The balance of the Advertising Expense represents payments for five months paid on September 1 of the current
 Service Business Transactions and Their Analysis as Applied to the Accounting Cycle Part 2 2.1
The learners should be able to:
Identify situations requiring adjustments at year-end
Prepare the correct adjusting entries, the adjusted trial balance and the basic statements

e equipment has a useful life of 10 years. Both assets were bought on September 1 of the current year.

aid on September 1 of the current year.

ycle Part 2 2.1
 Date Particulars F Dr
DEC.31, 200A Repair Supplies Used 6,250
Repair Supplies
(P 15,000 - P8,500 = P 6,500)

Depreciation- Repair Tools 1,220

Accumulated Depreciation – Repair Tools
( P 12,000 - .10 = P 1,200)

Depreciation – Furniture and Fixtures 4,333

Accumulated Depreciation – Furniture and
Fixtures
( P 65,000 / 5 = P 13,000/year *1/3 = P 4,333)

Depreciation – Service Equipment 6,667

Accumulated Depreciation – Service Equipment
( P 200,000 / 10 = P 20,000/year * 1/3 = P
6,667)

Interest Expense 3,250

Accrued Interest Expense
( P 32,500 * 10% = P 3,250)

Service Income 9,000

Unearned Service Income

Salaries and Wages 2,500

Accrued Salaries and Wages

Rent Expense 5,000

Accrued Rent Expense
(P 15,000 - P8,500 = P 6,500)

Prepaid Advertising 500

Advertising
( P 2,500 / 5 = P 500/mons. * 4 = P 2,000 from Sept.
to Dec. P 2,500 – P 2,000 = P 500)
Date Particulars F Dr

Date Particulars F Dr
Date Particulars F Dr
GJ1
Cr

6,250

1,220

4,333

6,667

3,250

9,000

2,500

5,000

500
GJ2
Cr

GJ3
Cr
GJ4
Cr
 TIBANS SHOE
WORK
For the month end

Unadjusted Trial Balance

Account Title
DR CR
Cash 9,000
Accounts Receivable 12,000
Repair Supplies 15,000
Repair Tools 12,000
Furniture & Fixtures 65,000
Service Equipment 200,000
Notes Payable 32,500
Mr. Tibans, Capital 202,000
Mr. Tibans, Drawing 7,500
Service Income 109,000
Advertising 2,500
Salaries Expense 9,000
Utilities Expense 1,500
Rent Expense 10,000
PHP 343,500 PHP 343,500
Repair Supplies Used
Depreciation-Repair Tools
Accumulated Depreciation-Repair Tools
Depreciation-Furniture&Fixtures
Accumulated Depreciation-Furniture&Fixtures
Depreciation-Service Equipment
Accumulated Depreciation-Service Equipment
Interest Expense
Accrued Interest Expense
Unearned Service Income
Accrued Salaries & Wages
Accrued Rent Expense
Prepaid Advertising

What is an Accounting Worksheet?

An accounting worksheet is a tool used to help bookkeepers and accountants complete the 
and prepare year-end reports like unadjusted trial balances, adjusting journal entries, adjusted trial balanc
Format
The accounting worksheet is essentially a spreadsheet that tracks each step of the accounting cycle.
The spreadsheet typically has five sets of columns that start with the unadjusted trial balance accounts an
In other words, an accounting worksheet is basically a spreadsheet that shows all of the major steps in the

Each step lists its debits and credits with totals calculated at the bottom.
Just like the trial balances, the work sheet also has a heading that consists of the company name, title of th
 TIBANS SHOE REPAIR SHOP
WORKSHEET
For the month ended March 31,2020

Adjustments Adjusted Trial Balance Income Statemnet

DR CR DR CR DR
9,000
12,000
6,500 8,500
12,000
65,000
200,000
32,500
202,000
7,500
9,000 100,000
500 2,000 2,000
2,500 11,500 11,500
1,500 1,500
5,000 15,000 15,000

6,500 6,500 6,500

1,200 1,200 1,200
1,200 1,200
4,333 4,333 4,333
4,333 4,333
6,667 6,667 6,667
6,667 6,667
3,250 3,250 3,250
3,250 3,250
9,000 9,000
2,500 2,500
5,000 5,000
500 500
PHP 38,950 PHP 38,950 366,450 366,450 51,950
48,050
PHP 100,000

untants complete the accounting cycle 

ournal entries, adjusted trial balances, and financial statements.
h step of the accounting cycle.
nadjusted trial balance accounts and end with the financial statements.
at shows all of the major steps in the accounting cycle side by side.

sists of the company name, title of the report, and time period the report documents.
Income Statemnet Balance Sheet
CR DR CR
9,000
12,000
8,500
12,000
65,000
200,000
32,500
202,000
7,500
100,000

1,200

4,333

6,667

3,250
9,000
2,500
5,000
500
100,000 314,500 266,450
48,050
PHP 100,000 PHP 314,500 PHP 314,500
 TIBANS SHOE REPAIRSHOP
Adjusted Trial Balance
For the month ended March 31, 2020

Acct. No. ACCOUN TITLE DR CR

Cash 9,000
Accounts Receivables 12,000
Prepaid Advertising 500
Repair Tools 8,500
Repair Supplies 12,000
Accumulated Depreciation-Repair Tools 1,200
Furniture and Fixtures 65,000
Accumulated Depreciation-Furniture and Fixtures 4,333
Service Equipment 200,000
Accumulated Depreciation-Service Equipment 6,667
Notes Payable 32,500
Accrued Interest Expense 3,250
Unearned Service Income 9,000
Accrued Salaries and Wages 2,500
Accrued Rent Expense 5,000
Tibans, Capital 202,000
Tibans, Drawing 7,500

Service Income 100,000

Advertising 2,000
Salaries and Wages 11,500
Utilities Expense 1,500
Rent Expense 15,000
Repair Supplies Used 6,500
Depreciation-Repair Tools 1,200
Depreciation-Furniture and Fixtures 4,333
Depreciation-Service Equipment 6,667
Interest Expense 3,250

366,450 366,450

What is an adjusted trial balance in accounting?

An adjusted trial balance is created after all adjusting entries have been posted into
The adjusted trial balance is completed to ensure that the period ending financial st
In addition, an adjusted trial balance is used to prepare closing entries.

How to prepare an adjusted trial balance?

Preparing an adjusted trial balance is the sixth step in the accounting cycle.

An adjusted trial balance is prepared by creating a series of journal entries that are

These items include payroll expenses, prepaid expenses, and depreciation expens

1. Run an unadjusted trial balance. This provides an initial summary of your genera
2. Make any adjusting entries that are needed. Adjusting entries can include adjust
3. Run the adjusted trial balance. You can ensure that the entries have posted corr
 A

L
E
I

e been posted into the appropriate general ledger account.

ending financial statements will be accurate and in balance.
ting cycle.
al entries that are designed to account for any transactions that have not yet been completed.

preciation expenses. Here are the steps used to prepare an adjusted trial balanc:
ary of your general ledger accounts prior to entering any adjusting entries.
can include adjustments for prepayments, interest and depreciation expense, and payroll accruals.
have posted correctly by comparing the initial trial balance totals with the adjusted trial balance tota
 een completed.

and payroll accruals.

sted trial balance totals.
 TIBANS SHOE REPAIR SHOP
Income Statement
For the month ended March 31,2020

Service Income 100,000

Less:
Advertising 2,000
Salaries and Wages 11,500
Utilities Expense 1,500
Rent Expense 15,000
Repair Supplies Used 6,500
Depreciation- Repair Tools 1,200
Depreciation- Furniture & Fistures 4,333
Depreciation- ServiceEquipment 6,667
Interest Expense 3,250 (51,950)

Net Profit PHP 48,050

What is the Statement of Comprehensive Income?

The statement of comprehensive income is a financial statement that summarizes both standard

The net income is the result obtained by preparing an income statement.
Whereas, other comprehensive income consists of all unrealized gains and losses on assets that
It is a more robust document that often is used by large corporations with investments in multiple

Formats of SCI
1.Single-step - called single-step because all revenues are listed down in one section whil
2.Multi-step - called multi-step because there are several steps needed in order to arrive a
t summarizes both standard net income and other comprehensive income.

ns and losses on assets that are not reflected in the income statement.  
with investments in multiple countries.

ted down in one section while all expenses are listed in another.
ps needed in order to arrive at the company’s net income.
 TIBANS SHOE REPAIR SHOP
Statement of Changes in Owner's Equity
For the month ended March 31,2020

Tibans, Capital 202,000

Less: Tibans, Drawing 7,500
Net Capital 194,500
Add: Net Income 48,050
Total Capital PHP 242,550

What is the Statement of Changes in Equity?

The statement of changes in equity is a reconciliation of the beginning and ending balances in a company’
It is not considered an essential part of the monthly financial statements, and so is the most likely of all the
However, it is a common part of the annual financial statements.
The statement starts with the beginning equity balance, and then adds or subtracts such items as profits a
The general calculation structure of the statement is as follows:
Beginning equity + Net income – Dividends +/- Other changes = Ending equity

Contents of the Statement of Changes in Equity

The transactions most likely to appear on this statement are as follows:

Net profit or loss

Dividend payments
Proceeds from the sale of stock
Treasury stock purchases
Gains and losses recognized directly in equity
Effects of changes due to errors in prior periods
Effects of changes in fair value for certain assets
alances in a company’s equity during a reporting period.
e most likely of all the financial statements not to be issued.

uch items as profits and dividend payments to arrive at the ending ending balance.
 What Is a Balance Sheet or Statement of Financial Position?
A balance sheet is a financial statement that reports a company's assets, liabili
The balance sheet is one of the three core financial statements that are used to
It provides a snapshot of a company's finances (what it owns and owes) as of th
Note The balance sheet provides an overview of the state of a company's finances at a
It cannot give a sense of the trends playing out over a longer period on its own.

Report Form
TIBANS SHOE REPAIR SHOP
Statement of Financial Position
As of March 31,2020

ASSETS
Current Assets:
Cash
Account Receivables
Repair Supplies
Prepaid Advertising
Total Current Assets
Properties and Equipmet
Repair Tools 12,000
Less: Accumulated Depreciation-Repair Tools 1,200
Furniture and Fixtures 65,000
Less: Accumulated Depreciation- Furniture and Fixtures 4,333
Service Equipment 200,000
Less: Accumulated Depreciation- Service Equipment 6,667
Total Properties & Equipment
Total Assets

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
Notes Payable
Accrued Interest Expense
Unearned Service Income
Accrued Salaries and Wages
Accrued Rent Expense
Total Liabilities
Owner's Equity
Tibans, Capital
Less: Tibans, Drawing
Net Capital
 Add: Net Income
Total Capital
Total Liabilities and Owner's Equity

A report form balance sheet is a balance sheet that presents asset, li

In financial reporting, there are two general formats for balance sheets: the a

The account format presents the asset accounts on the left side and the
The report format presents all the accounts vertically. Although both balance

Account Form
TIBANS SHOE REPAIR S
Statement of Financial Po
As of March 31,202

ASSETS
Current Assets:
Cash
Account Receivables
Repair Supplies
Prepaid Advertising
Total Current Assets
Properties and Equipmet
Repair Tools 12,000
Less: Accumulated Depreciation-Repair Tools 1,200
Furniture and Fixtures 65,000
Less: Accumulated Depreciation- Furniture and Fixtures 4,333
Service Equipment 200,000
Less: Accumulated Depreciation- Service Equipment 6,667
Total Properties & Equipment
Total Assets

The account form balance sheet is a financial statement format wher

The account format is kind of a visual representation of the accounting equati

The assets are listed on the left alone. The liabilities and owner’s equity
Both the left and right sides are totaled at the bottom of the report and must
Position?
a company's assets, liabilities, and shareholder equity.
atements that are used to evaluate a business.
t owns and owes) as of the date of publication.
a company's finances at a moment in time.
longer period on its own. For this reason, the balance sheet should be compared with those of previ

9,000
12,000
8,500
500

30,000

10,800

60,667

193,333
264,800
294,800

32,500
3,250
9,000
2,500
5,000
52,250

202,000
7,500
194,500
 48,050
242,550
294,800

 that presents asset, liability, and equity accounts in a vertical format.

for balance sheets: the account format and the report format.

on the left side and the liabilities and equity accounts on the right.
y. Although both balance sheet formats are acceptable, the report form is much more popular.

TIBANS SHOE REPAIR SHOP

Statement of Financial Position
As of March 31,2020

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
9,000 Notes Payable
12,000 Accrued Interest Expense
8,500 Unearned Service Income
500 Accrued Salaries and Wages
30,000 Accrued Rent Expense
Total Liabilities
Owner's Equity
10,800 Tibans, Capital
Less: Tibans, Drawing
60,667 Net Capital
Add: Net Income
193,333 Total Capital
264,800
294,800 Total Liabilities and Owner's Equity

statement format where the assets are reported on the left side and the liabilities and eq
of the accounting equation.

ties and owner’s equity are added together and listed on the right.
m of the report and must always equal each other. Just like the accounting equation (assets = lia
d with those of previous periods.
uch more popular.

32,500
3,250
9,000
2,500
5,000
52,250

202,000
7,500
194,500
48,050
242,550

294,800

e liabilities and equity are reported on the right side.

uation (assets = liabilities + owner’s equity).

 TIBANS SHOE REPAIR SHOP
STATEMENT OF CASH FLOW
For the month ended March 31, 2020

ACCOUN TITLE DR CR
CASH FLOW FROM OPERATING ACTIVITIES
Cash Received From:
Cash Sales 26,000
Collections from Clients 1,200
Payments of Salaries (2,000)
Payments for Rent (2,000)
Payment for Utilities (1,500) 21,700
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Furniture and Fixtures (16,500)
Purchase of Repair Supplies (15,000)
Purchase of Service Equipment (120,000) (151,500)
CASH FLOW FROM FINANCING ACTIVITIES
Initial Investment 190,000
Withdrawals by the owner (3,500) 186,500
Net Cash Inflow (Outflow) 56,700
Cash Beginning Balance
Cash, Ending Balance 56,700

What Is a Cash Flow Statement?

A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a compan
It also includes all cash outflows that pay for business activities and investments during a given period. 
A company's financial statements offer investors and analysts a portrait of all the transactions that go t
The cash flow statement is believed to be the most intuitive of all the financial statements because it fo
the cash made by the business in three main ways—through operations, investment, and financing
These three different sections of the cash flow statement can help investors determine the value of a c
all cash inflows a company receives from its ongoing operations and external investment sources.
g a given period. 
e transactions that go through the business, where every transaction contributes to its success.
tatements because it follows
stment, and financing. The sum of these three segments is called net cash flow.
ermine the value of a company's stock or  the company as a whole.