Step2: Journalize business transactions; Step8: Adjusting Entries are journalized and pos

Entries are journalized and posted; Step11: Reversing entries are journalized an
GENERAL JOURNAL
Date

Particulars

GENERAL JOURNAL
Date

Particulars

GENERAL JOURNAL
Date

Particulars

Step5: Necessary adjusting entries are assembled

Adjustment Data:
a.) Physical count of office supplies showed that P4,610 of office supplies remained unused as of July 31, 2012
b.) Accrued electric bill for July 31 is P3,180
c.) The office equipment has a salvage value of P2,500 and an estimated life of 5 years.
d.) Accrued interest on the notes receivable is computed using 360 days

journalized and posted; Step9: Closing

es are journalized and posted
Page 1
PR

Debit

Credit

PR

Debit

Page 2
Credit

July 31, 2012

PR

Debit

Page 3
Credit

Step6: Preparation of Worksheet

Account Titles

Trial Balance
Dr

Cash
Accounts Receivable
Notes Receivable
Office Supplies
Office Equipment
Accounts Payable
Juan Dela Cruz, Capital
Juan Dela Cruz, Drawing
Professional Fees
Rent Expense
Salaries Expense
Utilities Expense
Total

Office Supplies Expense

Adjustments
Cr

Dr

Adjusted Trial B
Cr

Dr

Utilities Payable
Depreciation Expense
Accumulated Depreciation-Office Equipment
Interest Receivable
Interest Income

Net Income

Adjusted Trial Balance

Income Statement
Cr

Dr

Balance Sheet
Cr

Dr

Cr

Step7 Preparation of Financial Statements

Heading:
Business Name
Type of FS
Date

Professional Fees

Less: Operating Expenses

Rent

Salaries
Office Supplies
Depreciation
Utilities
Net Operating Income

Add: Other income

Interest Income

Net Income

Juan Dela Cruz, CPA

Statement of Changes in Owner's Equity
For the month ended July 31, 2012
Juan Dela Cruz, Capital, July 1, 2012
Add: Net Income for the month
Total
Less: Juan Dela Cruz, Drawing

Juan Dela Cruz, Capital, July 31, 2012

Juan Dela Cruz, CPA

Balance Sheet
July 31, 2012
AS S E TS
Cash
Accounts Receivable
Notes Receivable
Interest Receivable
Office Supplies
Office Equipment
Less: Accumulated Depreciation
Total Assets

P
P
LIABILITIES

Accounts Payable
Utilities Payable
Total Liabilities

P
P

O W N E R' S E Q U I T Y
Juan Dela Cruz, Capital, July 31, 2012
Total Liabilities & Owner's Equity

Step4: Preparation of Trial Balance

Juan Dela Cruz, CPA
Trial Balance
July 31, 2012
Account Titles

PR

Cash

101

Accounts Receivable

102

Notes Receivable

103

Office Supplies

105

Office Equipment

113

Accounts Payable

201

Juan Dela Cruz, Capital

301

Juan Dela Cruz, Drawing

302

Professional Fees

401

Rent Expense

502

Salaries Expense

503

Utilities Expense

508

Debit

TOTAL
Step10: Preparation of Post-Closing Trial Balance

Account Titles

PR

Cash

101

Accounts Receivable

102

Notes Receivable

103

Interest Receivable

104

Office Supplies

105

Office Equipment

113

Accumulated Depreciation Equipment

114

Accounts Payable

201

Utilities Payable

203

Juan Dela Cruz, Capital

301

Debit

TOTAL

Juan Dela Cruz, CPA

Trial Balance
July 31, 2012
Credit

Credit