Praktiswan

Adjusting Journal Entries

as of Dec. 31, 201x

a. Interest Receivable 150

Interest Income 150
I = Prt
P30,000 x 12% x 15/360

b. Interest Expense 10,000

Interest Payable 10,000
I = Prt
P100,000 x 10% x 1

c. Office Supplies Expense 13,000

Office Supplies 13,000

d. Insurance Expense 36,000

Prepaid Insurance 36,000

e. Rent Expense 15,000

Prepaid Rent 15,000

f Service Income 5,000

Unearned Service Income 5,000

g Salaries Expense 10,000

Salaries Payable 10,000

h Utilities Expense 4,000

Utilities Payable 4,000

i Doubtful Accounts Expense 4,000

Allow for Doubtful Accounts 4,000

j Dep'n Exp - F&F 6,000

Accum. Dep'n - F&F 6,000

k Dep'n Exp - Mach 3,500

Accum. Dep'n - Mach 3,500

Acq Cost 50,000

Less SV 1,000
Depreciable Cost 49,000
Div by Est useful life 7
Annual Dep'n 7,000 x6/12
 PRAKTISWAN
Complete Worksheet
December 31, 201x
Unadjusted Adjusted Income
Trial Balance Adjustments Trial Balance Statement
Debits Credits Debits Credits Debits Credits Debits
Cash 30,000 30,000
Accounts Receivable 80,000 80,000
Allow. for Doubtful Accts 300 4,000 4,300
Notes Receivable 30,000 30,000
Interest Receivable 150 150
Office Supplies 20,000 13,000 7,000
Prepaid Insurance 45,000 36,000 9,000
Prepaid Rent 60,000 15,000 45,000
Furniture & Fixtures 30,000 30,000
Accum. Dep'n - F&F 6,000 6,000
Machineries 50,000 50,000
Accum. Dep'n - Mach. 3,500 3,500
Accounts Payable 75,000 75,000
Salaries Payable 10,000 10,000
Interest Payable 10,000 10,000
Unearned Service Inc. 5,000 5,000
Utilities Payable 4,000 4,000
Notes Payable 15,000 15,000
Loan Payable 100,000 100,000
Praktiswan, Capital 134,700 134,700
Praktiswan, Withdrawals 15,000 15,000
Service Income 405,000 5,000 400,000
Interest Income 150 150
Salaries Expense 170,000 10,000 180,000 180,000
Rent Expense 165,000 15,000 180,000 180,000
Utilities Expense 35,000 4,000 39,000 39,000
Interest Expense 10,000 10,000 10,000
Office Supplies Expense 13,000 13,000 13,000
Insurance Expense 36,000 36,000 36,000
Doubtful Accts Exp. 4,000 4,000 4,000
Dep'n Exp - F&F 6,000 6,000 6,000
Dep'n Exp - Mach 3,500 3,500 3,500
Sub Totals 730,000 730,000 106,650 106,650 767,650 767,650 471,500
Net Loss
Grand Totals 471,500
 ADJUSTING JOURNAL ENTRIES
Income Balance
Statement Sheet a. Interest Receivable 150
Credits Debits Credits Interest Income 150
30,000 #
80,000 b. Interest Expense 10,000
4,300 Interest Payable 10,000
30,000 #
150 c. Office Supplies Expense 13,000
7,000 Office Supplies 13,000
9,000 #
45,000 d. Insurance Expense 36,000
30,000 Prepaid Insurance 36,000
6,000 #
50,000 e. Rent Expense 15,000
3,500 Prepaid Rent 15,000
75,000 #
10,000 f. Service Income 5,000
10,000 Unearned Service Inc. 5,000
5,000 #
4,000 g. Salaries Expense 10,000
15,000 Salaries Payable 10,000
100,000 #
134,700 h. Utilities Expense 4,000
15,000 Utilities Payable 4,000
400,000 #
150 i. Doubtful Accts Exp. 4,000
Allow. for Doubtful Accts 4,000
#
j. Dep'n Exp - F&F 6,000
Accum. Dep'n - F&F 6,000
#
k. Dep'n Exp - Mach 3,500
Accum. Dep'n - Mach. 3,500
#

400,150 296,150 367,500

71,350 71,350
471,500 367,500 367,500
 PRAKTISWAN PRAKTISWAN
Income Statement CLOSING ENTRIES
December 31, 201x December 31, 201x

Service Income 400,000 Debit

Interest Income 150 400,150 Service Income 400,000
Interest Income 150
Income Summary
Less Operating Expenses #
Salaries Expense 180,000 Income Summary 471,500
Rent Expense 180,000 Salaries Expense
Utilities Expense 39,000 Rent Expense
Interest Expense 10,000 Utilities Expense
Office Supplies Expense 13,000 Interest Expense
Insurance Expense 36,000 Office Supplies Expense
Doubtful Accts Exp. 4,000 Insurance Expense
Dep'n Exp - F&F 6,000 Doubtful Accts Exp.
Dep'n Exp - Mach 3,500 471,500 Dep'n Exp - F&F
Net Loss - 71,350 Dep'n Exp - Mach
#
Praktiswan, Capital 71,350
PRAKTISWAN Income Summary
Statement of Changes in Equity #
December 31, 201x Praktiswan, Capital 15,000
Praktiswan, Withdrawals
Praktiswan, Capital - Beginning 134,700
Add: Additional Investment -
Net Income - -
Total 134,700
Less: Praktiswan Withdrawal 15,000
Net Loss 71,350 86,350 PRAKTISWAN
Praktiswan, Capital - End 48,350 POST-CLOSING TRIAL BALANCE
December 31, 201x

PRAKTISWAN Debit
Statement of Financial Position (Balance Sheet) Cash 30,000
December 31, 201x Accounts Receivable 80,000
Allow. for Doubtful Accts
ASSETS Notes Receivable 30,000
Current Assets Interest Receivable 150
Cash 30,000 Office Supplies 7,000
Accounts Receivable 80,000 Prepaid Insurance 9,000
Less: Allow. for Doubtful Accts 4,300 75,700 Prepaid Rent 45,000
Notes Receivable 30,000 Furniture & Fixtures 30,000
Interest Receivable 150 Accum. Dep'n - F&F
Office Supplies 7,000 Machineries 50,000
Prepaid Insurance 9,000 Accum. Dep'n - Mach.
Prepaid Rent 45,000 Accounts Payable
Total Current Assets 196,850 Salaries Payable
Interest Payable
Non-Current Assets Unearned Service Inc.
 Furniture & Fixtures 30,000 Utilities Payable
Less Accum. Dep'n - F&F 6,000 Notes Payable
24,000 Loan Payable
Praktiswan, Capital
Machineries 50,000 281,150
Less Accum. Dep'n - Mach. 3,500
Total Non-Current Assets 46,500 70,500
TOTAL ASSETS 267,350

LIABILITIES AND OWNER'S EQUITY

Liabilities
Accounts Payable 75,000
Salaries Payable 10,000
Interest Payable 10,000
Unearned Service Inc. 5,000
Utilities Payable 4,000
Notes Payable 15,000
Loan Payable 100,000 219,000

Praktiswan, Capital - End 48,350

TOTAL LIABILITIES AND OWNER'S EQUITY 267,350
ES
01x

Credit

400,150

180,000
180,000
39,000
10,000
13,000
36,000
4,000
6,000
3,500

71,350

15,000

BALANCE
01x

Credit

4,300

6,000

3,500
75,000
10,000
10,000
5,000
 4,000
15,000
100,000
48,350
281,150
 Unadjusted Adjusted
Trial Balance Adjustments Trial Balance Net Income
Debit Credit Debit Credit Debit Credit Debit
Cash 30,000 30,000
Accounts Receivable 80,000 80,000
Allowance for Doubtful Accounts 300 4,000 4,300
Notes Receivable 30,000 30,000
Office Supplies 20,000 13,000 7,000
Prepaid Insurance 45,000 36,000 9,000
Prepaid Rent 60,000 15,000 45,000
Furniture and Fixtures 30,000 30,000
Machineries 50,000 50,000
Accounts Payable 75,000 75,000
Notes Payable 15,000 15,000
Loan Payable 100,000 100,000
Praktiswan, Capital 134,700 134,700
Praktiswan, Withdrawals 15,000 15,000
Service Income 405,000 5,000 400,000
Salaries Expense 170,000 10,000 180,000 180,000
Rent Expense 165,000 15,000 180,000 180,000
Utilities Expense 35,000 4,000 39,000 39,000

Interest Receivable 150 150

Interest Income 150 150
Interest Expense 10,000 10,000 10,000
Interest Payable 10,000 10,000
Office Supplies Expense 13,000 13,000 13,000
Insurance Expense 36,000 36,000 36,000
Unearned Service Income 5,000 5,000
Salaries Payable 10,000 10,000
Utilities Payable 4,000 4,000
Doubtful Accounts Expense 4,000 4,000 4,000
Dep'n Exp - F&F 6,000 6,000 6,000
Accum. Dep'n - F&F 6,000 6,000
Dep'n Exp - Mach 3,500 3,500 3,500
Accum. Dep'n - Mach 3,500 3,500
730,000 730,000 106,650 106,650 767,650 767,650 471,500
NET LOSS
471,500
Net Income Balance Sheet
Credit Debit Credit Praktiswan
30,000 Income Statement
80,000 Dec. 31, 201X
4,300
30,000 Service Income 400,000
7,000 Interest Income 150
9,000 Total 400,150
45,000
30,000 Operating Expenses
50,000 Salaries Expense 180,000
75,000 Rent Expense 180,000
15,000 Utilities Expense 39,000
100,000 Interest Expense 10,000
134,700 Office Supplies Expense 13,000
15,000 Insurance Expense 36,000
400,000 Doubtful Accounts Expens 4,000
Dep'n Exp - F&F 6,000
Dep'n Exp - Mach 3,500 471,500
Net Loss (71,350)

150 Praktiswan
150 Statement of Changes in Equity
Dec. 31, 201X
10,000
Beg. Praktiswan, Capital 134,700
Add: Net Income -
5,000 Add'l Investments - -
10,000 Total 134,700
4,000 Less: Net Loss 71,350
Praktiswan, Withdrawals 15,000 86,350
End. Praktiswan, Capital 48,350
6,000

3,500
400,150 296,150 367,500
71,350 71,350
471,500 367,500 367,500
 Praktiswan
Balance Sheet
Dec. 31, 201X

ASSETS
Current Assets
Cash 30,000
Accounts Receivable 80,000
Allow for Doubtful Accts (4,300)
Interest Receivable 150
Notes Receivable 30,000
Office Supplies 7,000
Prepaid Insurance 9,000
Prepaid Rent 45,000 196,850

Non-Current Assets
Furniture and Fixtures 30,000
Accum. Dep'n - F&F (6,000)
24,000

Machineries 50,000
Accum. Dep'n - Mach (3,500)
46,500 70,500
TOTAL ASSETS 267,350

LIABILITES & OWNER'S EQUITY

Current Liabilities
Accounts Payable 75,000
Notes Payable 15,000
Interest Payable 10,000
Unearned Service Income 5,000
Salaries Payable 10,000
Utilities Payable 4,000 119,000

Non-Current Liability
Loan Payable 100,000
TOTAL LIABILITIES 219,000

Praktiswan Capital, End 48,350

TOTAL LIABILITIES & OWNER'S EQUITY 267,350
a. Interest Receivable 400
Interest Income 400
I = Prt
= P20,000 x 6% x 4/12

b. Office Supplies Expense 18,000

Office Supplies 18,000

c. Prepaid Insurance 50,000

Insurance Expense 50,000
= P60,000 x 5/6

d. Rent Expense 10,000

Prepaid Rent 10,000
(P40,000 - P30,000)

e. Unearned Service Income 12,000

Service Income 12,000
(P20,000-P8,000)

f. Salaries Expense 12,000

Salaries Payable 12,000
(P132,000 / 11 mos)
12,000 Salary per month

g. Utilities Expense 5,000

Utilities Payable 5,000

h. Bad Debts Expense 2,800

Allowance for Bad Debts 2,800
(4% x P70,000)

i. Dep'n Exp - F&F 6,000

Accum. Dep'n - F&F 6,000

j. Dep'n Exp - Mach 3,400

Accum. Dep'n - Mach 3,400
(P3,000 + P400)

Mach 1 Mach 2
(P30,000/10 yrs) (P10,000 - P2,000) / 5 yrs 1,600
3,000 x 3/12
400