DMB Consulting Firm owned by the sole proprietor Nica Balleta just opened its office in June 1, 2017 at

UPS 5 Brgy. San Isidro, Sucat Paraaque City and had the following transactions during the month.

1-Jun Invested P500,000 cash and hired one office staff.

1-Jun Secured business permits to operate and paid P10,000 as fees.
2-Jun Paid three months advanced rental for the office for P60,000 and P40,000 as two months rental deposit
Purchased the following office equipments amounting P55,000 at office warehouse
2 pc unit P25,000/each
1 printer P5,000
3-Jun Purchased 2 airconditioning unit for P30,000 in cash at ace hardware.
Purchased furnitures and fixtures for P43,650 at SM appliances on account.
Paid P5,678 for office supplies purchased at National Bookstore.
4-Jun Purchased service vehicle costing P100,000 issuing a 2-year promissory note @ 10% interest/annum
5-Jun Provided accounting services to Gramans Company for 12,000 in cash.

8-Jun Paid one year fire insurance premium for P10,000

Provided accounting services to 101 Logistics for 25,000 on account.
9-Jun Received P25,000 from Lina Inc. for accounting services rendered.
10-Jun Provided accounting services to Change Company for 100,000; receiving P40,000 cash
downpayment and the balance on June 25.
11-Jun Provided accounting services to Gregan Company for 30,000 in cash.
Incurred representation expense of P2,450 in meeting the client.
12-Jun The proprietor incurred official gasoline expenses for P5,000 and was reimbursed by the staff
Rendered accounting services to another client for P20,000 payable on July 12.

15-Jun Paid salary to staffs for the period June 1-15 for P35,000.
16-Jun The staff incurred transportation expenses for P2,000
17-Jun Paid P 43,650 to SM Appliances for furnitures and fixtures purchased.
Rendered accounting services to a client for P75,000. The client issued a 30-day promissory note
18-Jun Jenna an office staff, advanced P1,000 for personal use and promised to pay in July.
19-Jun Rendered accounting services to another client for P20,000 payable on July 19.

21-Jun The proprietor was reimbursed for representation expenses with a client for P3,000.
25-Jun Collected the balance from Change company.
28-Jun Received telephone bills and recorded it as liability for P5,500
Received electricty bill and paid P12,745 in cash.
Received water bill and paid P3,985 in cash.
29-Jun Paid salary to employees for the period August 16-31 as follows:
Jenna Mangubat (office staff)
Gross Salary P 35,000
WHT Payable 5,000
SSS Payable 1,000
Philhealth payable 250
Pag-ibig payable 200
Net Pay P 28,550
30-Jun The owner withdraws cash for P20,000

Additional information:
1 Supplies consumed for the month is P1,650
2 The advanced payment for rental, payment of insurance premium and purchases of supplies are
recorded using the asset method
5 Compute depreciation expense for the following assets as of Aug 31:
Purchased Date Asset Cost Salvaged Value Life
June 2 Computers P50,000 P2.000 3 years
June 2 Printers P5,000 P500 3 years
June 3 Aircon P15,000 P1.000 3 years
June 3 Furnitures P43,650 P500 3 years
June 4 Vehicle P100,000 P10,000 5 years

3 An advertising expense was incurred in June 31 but payment was made to supplier on July 2
 for P5,000
4 An accounting service was made to a customer in June 31 for P20,000 but only billed to customer
on July 5
6 Compute interest expense on promissory note issued in June 4 for the purchase of service vehicle at 10% per annum, P100,000 2
7 Compute interest receivable issued by a customer in June 17 at 10% per annum, P75,000 30-day note
Computation:
Salvaged Depreciation Per day Days Total
Cost Value Net Life per year (365 days) Used Depreciation
50,000 2,000 48,000 3 16,000.00 43.84 29 1,271.23
5,000 500 4,500 3 1,500.00 4.11 29 119.18
15,000 1,000 14,000 3 4,666.67 12.79 28 357.99 1,748.40
43,650 500 43,150 3 14,383.33 39.41 28 1,103.38 1,103.38
100,000 10,000 90,000 5 18,000.00 49.32 27 1,331.51 1,331.51
4,183.29
e at 10% per annum, P100,000 2-year note.
Company Name: DMB CONSULTING FIRM Page No. 0 1
GENERAL JOURNAL
DATE Account Title & Explanation PR DEBIT CREDIT
2016
June 1 Cash 100-01 50 0 0 00
Mr. Alabat Capital 300 5 0 0 000
To record initial investment of the
owner to the business

1 Taxes and Licenses 500-02 1 0 0 00

Cash 100-01 1 0 000
To record licensing fees

2 Prepaid Rent 100-08 6 0 0 00

Rental Deposit 101-08 4 0 0 00
Cash 100-01 1 0 0 000
To record three months advanced rent
& two months rental deposit

2 Office Equipment 101-01 5 5 0 00

Cash 100-01 5 5 000
To record purchases of computer and
printer units in cash

3 Office Equipment 101-01 3 0 0 00

Cash 100-01 3 0 000
To record purchases of
airconditioning unit

3 Furniture and Fixtures 101-04 4 3 6 50

Accounts Payable 200-01 4 3 650
To record purchases of furnitures
and fixtures

Company Name: DMB CONSULTING FIRM Page No. 0 2

GENERAL JOURNAL
DATE Account Title & Explanation PR DEBIT CREDIT
2016
June 3 Office Supplies 100-06 5 6 78
Cash 100-01 5 678
To record purhcases of supplies
 4 Service Vehicle 101-07 10 0 0 00
Notes Payable 200-08 1 0 0 000
To record purchase of vehicle issuing
a 90-day PN

5 Cash 100-01 1 2 0 00
Service Revenue 400-01 1 2 000
To record audit service to Gramans
Company

8 Prepaid Insurance 100-07 1 0 0 00

Cash 100-01 1 0 000
To record one year fire insurance
premium

8 Accounts Receivable 100-03 2 5 0 00

Service Revenue 400-01 2 5 000
To record acctg services to 101 Log.

9 Cash 100-01 2 5 0 00
Service Revenue 400-01 2 5 000
To record audit service to Lina Inc.

Company Name: DMB CONSULTING FIRM Page No. 0 3

GENERAL JOURNAL
DATE Account Title & Explanation PR DEBIT CREDIT
2016
10 Cash 100-01 4 0 0 00
Accounts Receivable 100-03 6 0 0 00
Service Revenue 400-01 1 0 0 000
To record acctg services to Change
Co. with cash DP and balance on June 25

11 Cash 100-01 3 0 0 00
Service Revenue 400-01 3 0 000
To record audit service to Gregan Co.

11 Representation Expenses 500-10 2 4 50

Cash 100-01 2 450
 To record reimbursement to owner

12 Gasoline Expenses 500-08 5 0 00

Cash 100-01 5 000
To record reimbursement to owner

12 Accounts Receivable 100-03 2 0 0 00

Service Revenue 400-01 2 0 000
To record acctg services to a client
to be paid on July 12

15 Salaries, wages & benefits 500-07 3 5 0 00

Cash 100-01 3 5 000
To record salaries for Aug 1-15

16 Transportation Expenses 500-14 2 0 00

Cash 100-01 2 000
To record expenses incurred by staff

Company Name: DMB CONSULTING FIRM Page No. 0 4

GENERAL JOURNAL
DATE Account Title & Explanation PR DEBIT CREDIT
2016
17 Accounts Payable 200-01 4 3 6 50
Cash 100-01 4 3 650
To record payment to accounts payable
to SM Appliances

17 Notes Receivable 100-04 7 5 0 00

Service Revenue 400-01 7 5 000
To record acctg services to a client
who issues a 30-day PN

18 Advances to employees 100-05 1 0 00

Cash 100-01 1 000
To record cash advance of staff

19 Accounts Receivable 100-03 2 0 0 00

Service Revenue 400-01 2 0 000
To record acctg services to a client
to be paid on July 19

21 Representation Expenses 500-10 3 0 00

 Cash 100-01 3 000
To record reimbursement to owner

25 Cash 100-01 6 0 0 00
Accounts Receivable 100-03 6 0 000
To record collection from Change Co.

28 Communication Expense 500-13 5 5 00

Accounts Payable 200-01 5 500
To record telephone bill on account

Company Name: DMB CONSULTING FIRM Page No. 0 5

GENERAL JOURNAL
DATE Account Title & Explanation PR DEBIT CREDIT
2016
28 Light and Water 500-05 1 6 7 30
Cash 100-01 1 6 730
To record payment of electricity bill

29 Salaries, wages & benefits 500-07 3 5 0 00

Withholding Tax Payable 200-03 5 00 0
SSS Payable 200-04 1 00 0
Philhealth Payable 200-05 25 0
Pag-ibig Payable 200-06 20 0
Cash 100-01 2 8 55 0
To record salaries for Aug 16-31

31 Mr. Alabat Drawings 301 2 0 0 00

Cash 100-01 2 0 000
To record owner's drawings
COMPANY'S NAME: BAA ACCOUNTING FIRM GENERAL LEDGER
Account Title: CASH Account No. 100-01

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 1 Owners investment GJ1 500000
Payment of licence fees GJ1 1 0 0 0 0
2 Rental payment GJ1 10 0 0 0 0
Purchase of assets GJ1 5 5 0 0 0
3 Purchase of assets GJ1 3 0 0 0 0
Purchase of supplies GJ2 5 6 7 8
5 Acctg services GJ2 12000
8 Fire insurance GJ2 10000
9 Acctg services GJ2 25000
10 Acctg services GJ3 40000
11 Acctg services GJ3 30000
Representation GJ3 2 4 5 0
12 Gas expenses GJ3 5 0 0 0
15 Salaries of employees GJ3 35 0 0 0
16 Transporation expenses GJ3 2 0 0 0
17 Payment to SM Appliances GJ4 43 6 5 0
18 Advances to employee GJ4 1 0 0 0
21 Representation GJ4 3 0 0 0
25 Collection from Change Co. GJ4 60000
28 Electricity bill GJ5 16730
29 Salaries of employees GJ5 28550
31 Owner's drawings GJ5 20000 298942

Account Title: MR. ALABAT CAPITAL Account No. 300

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 1 Owner's investment GJ1 500000 ( 5 0 0 0 0 0)

Account Title: TAXES & LICENCES Account No. 500-02

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 1 Licensing fees GJ1 10000 10000

Account Title: PREPAID RENT Account No. 100-08

 DATE EXPLANATION PR DEBIT CREDIT BALANCE
2017
June 2 Three months advance GJ1 60000 60000

Account Title: RENTAL DEPOSIT Account No. 101-08

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 2 Three months deposit GJ1 40000 40000

Account Title: OFFICE EQUIPMENT Account No. 101-01

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 2 Computer & printer GJ1 55000
3 Air-conditioning unit GJ1 30000 85000

Account Title: FURNITURE & FIXTURES Account No. 101-04

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 3 Purchased on account GJ1 43650 43650

Account Title: OFFICE SUPPLIES Account No. 100-06

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 3 Cash purchases GJ2 5678 5678

Account Title: SERVICE REVENUE Account No. 400-01

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 5 Cash services GJ2 1 2 0 0 0
8 Services on account GJ2 2 5 0 0 0
9 Cash services GJ2 2 5 0 0 0
10 Services on cash/account GJ3 1 0 0 0 0 0
11 Cash services GJ3 3 0 0 0 0
12 Services on account GJ3 2 0 0 0 0
17 with 30-day PN GJ4 7 5 0 0 0
 19 Services on account GJ4 20000 ( 1 8 0 0 0 0)

Account Title: ACCOUNTS RECEIVABLE Account No. 100-03

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 8 101 Log GJ1 2 5 0 0 0
10 Change Co. GJ3 6 0 0 0 0
12 For collection July 12 GJ3 2 0 0 0 0
19 For collection July 19 GJ4 2 0 0 0 0
25 Collection from Change Co. GJ4 60000 65000

Account Title: ACCOUNTS PAYABLE Account No. 200-01

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 3 Furniture and Fixtures GJ1 43650
17 Payment for F&F GJ4 43650
28 Telephone bill GJ4 5500 ( 5 5 0 0)

Account Title: PREPAID INSURANCE Account No. 100-07

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 8 One yr fire insurance GJ2 10000 10000

Account Title: SERVICE VEHICLE Account No. 101-07

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 4 2-year PN GJ2 1 00000 1 00000

Account Title: NOTES PAYABLE Account No. 200-08

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 4 Vehicle 2-year PN GJ2 1 00000 ( 1 0 0 0 0 0)

Account Title: GASOLINE EXPENSES Account No. 500-08

 DATE EXPLANATION PR DEBIT CREDIT BALANCE
2017
June 12 Reimb to owner GJ3 5000 5000

Account Title: NOTES RECEIVABLE Account No. 100-04

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 17 Acctg services, 30-day PN GJ3 75000 75000

Account Title: TRANSPORTATION EXPENSES Account No. 500-14

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 16 Staff expenses GJ3 2000 2000

Account Title: SALARIES, WAGES & BENEFITS Account No. 500-07

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 15 Salaries Aug 1-15 GJ3 35000
29 Salaries Aug 16-31 GJ4 35000 70000

Account Title: ADVANCES TO EMPLOYEES Account No. 100-05

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 18 Messenger advances GJ4 1000 1000

Account Title: REPRESENTATION EXPENSE Account No. 500-10

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 21 Owner's reimbursement GJ3 2450
Owner's reimbursement GJ4 3000 5450

Account Title: COMMUNICATION EXPENSES Account No. 500-13

 DATE EXPLANATION PR DEBIT CREDIT BALANCE
2017
June 28 Telephone bill GJ4 5500 5500

Account Title: LIGHT & WATER Account No. 500-05

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 28 Electricity bill GJ5 16730 16730

Account Title: MR. ALABAT DRAWINGS Account No. 301

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 31 Owner's cash drawings GJ5 20000 20000

Account Title: WITHHOLDING TAX PAYABLE Account No. 200-03

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 29 Salaries Aug 16-31 GJ5 5000 ( 5 0 0 0)

Account Title: SSS PAYABLE Account No. 200-04

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 29 Salaries Aug 16-31 GJ5 1000 ( 1 0 0 0)

Account Title: PHILHEALTH PAYABLE Account No. 200-05

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 29 Salaries Aug 16-31 GJ5 250 ( 2 5 0)

Account Title: PAG-IBIG PAYABLE Account No. 200-06

DATE EXPLANATION PR DEBIT CREDIT BALANCE

2017
June 29 Salaries Aug 16-31 GJ5 200 ( 2 0 0)
667,000.00 368,058.00 298,942.00

500,000.00

10,000.00
60,000.00

40,000.00

85,000.00

43,650.00

5,678.00
 307,000.00

65,000.00

5,500.00

10,000.00

100,000.00

100,000.00
 5,000.00

75,000.00

2,000.00

70,000.00

1,000.00

5,450.00
 5,500.00

16,730.00

20,000.00

5,000.00

1,000.00

250.00

200.00
918,950.00 918,950.00
-
 DMB CONSULTING FIRM
Trial Balance
June 31,2017
Debit Credit
100-01 Cash 298,942.00
100-03 Accounts receivable 65,000.00
100-04 Notes receivable 75,000.00
100-05 Advances to employees 1,000.00
100-06 Office supplies 5,678.00
100-07 Prepaid insurance 10,000.00
100-08 Prepaid rent 60,000.00
101-01 Office equipment 85,000.00
101-04 Furniture & fixtures 43,650.00
101-07 Service vehicle 100,000.00
101-08 Rental deposit 40,000.00
200-01 Accounts payable 5,500.00
200-03 Withholding tax payable 5,000.00
200-04 SSS payable 1,000.00
200-05 Philhealth payable 250.00
200-06 Pag-ibig payable 200.00
200-08 Notes payable 100,000.00
300-00 Mr. Alabat Capital 500,000.00
301-00 Mr. Alabat Drawings 20,000.00
400-01 Service revenue 307,000.00
500-02 Taxes and licenses 10,000.00
500-05 Light and water expense 16,730.00
500-07 Salaries, wages & benefits 70,000.00
500-08 Gasoline expenses 5,000.00
500-10 Representation expenses 5,450.00
500-13 Communication expenses 5,500.00
500-14 Transportation expenses 2,000.00
918,950.00 918,950.00
 DMB CONSULTING FIRM
Worksheet
June 31,2017
Unadjusted Trial Balance Adjusting Entries
Debit Credit Debit Credit
100-01 Cash 298,942.00
100-03 Accounts receivable 65,000.00 e) 20,000.00
100-04 Notes receivable 75,000.00
100-05 Advances to employees 1,000.00
100-06 Office supplies 5,678.00 a) 1,650.00
100-07 Prepaid insurance 10,000.00 c) 833.33
100-08 Prepaid rent 60,000.00 b) 20,000.00
101-01 Office equipment 85,000.00
101-04 Furniture & fixtures 43,650.00
101-07 Service vehicle 100,000.00
101-08 Rental deposit 40,000.00
200-01 Accounts payable 5,500.00
200-03 Withholding tax payable 5,000.00
200-04 SSS payable 1,000.00
200-05 Philhealth payable 250.00
200-06 Pag-ibig payable 200.00
200-08 Notes payable 100,000.00
300-00 Mr. Alabat Capital 500,000.00
301-00 Mr. Alabat Drawings 20,000.00
400-01 Service revenue 307,000.00 e) 20,000.00
500-02 Taxes and licenses 10,000.00
500-05 Light and water expense 16,730.00
500-07 Salaries, wages & benefits 70,000.00
500-08 Gasoline expenses 5,000.00
500-10 Representation expenses 5,450.00
500-13 Communication expenses 5,500.00
500-14 Transportation expenses 2,000.00
918,950.00 918,950.00
Supplies expense a) 1,650.00
Rent expense b) 20,000.00
Insurance expense c) 833.33
Advertising expense d) 5,000.00
Accrued expense payable d) 5,000.00
Interest expense f) 739.73
Accrued interest payable f) 739.73
Interest receivable g) 287.67
Interest income g) 287.67
Depreciation expense h) 4,183.29
Accumulated depreciation-SV h) 1,331.51
Accumulated depreciation-OE h) 1,748.40
Accumulated depreciation-F&F h) 1,103.38
52,694.02 52,694.02

Net income for the month

 Adjusted Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit
298,942.00 298,942.00
85,000.00 85,000.00
75,000.00 75,000.00
1,000.00 1,000.00
4,028.00 4,028.00
9,166.67 9,166.67
40,000.00 40,000.00
85,000.00 85,000.00
43,650.00 43,650.00
100,000.00 100,000.00
40,000.00 40,000.00
5,500.00 5,500.00
5,000.00 5,000.00
1,000.00 1,000.00
250.00 250.00
200.00 200.00
100,000.00 100,000.00
500,000.00 500,000.00
20,000.00 20,000.00
327,000.00 327,000.00
10,000.00 10,000.00
16,730.00 16,730.00
70,000.00 70,000.00
5,000.00 5,000.00
5,450.00 5,450.00
5,500.00 5,500.00
2,000.00 2,000.00

1,650.00 1,650.00
20,000.00 20,000.00
833.33 833.33
5,000.00 5,000.00
5,000.00 5,000.00
739.73 739.73
739.73 739.73
287.67 287.67
287.67 287.67
4,183.29 4,183.29
1,331.51 1,331.51
1,748.40 1,748.40
 1,103.38 1,103.38
949,160.69 949,160.69
147,086.35 327,287.67
180,201.32 180,201.32
327,287.67 327,287.67 802,074.34 802,074.34
 DMB CONSULTING FIRM
Statement of Income
For the Month Ended Junet 31, 2017

Service Income 327,000.00

Less: Expenses
Taxes and licenses 10,000.00
Light and water expense 16,730.00
Salaries, wages & benefits 70,000.00
Gasoline expenses 5,000.00
Representation expenses 5,450.00
Communication expenses 5,500.00
Transportation expenses 2,000.00
Supplies expense 1,650.00
Rent expense 20,000.00
Insurance expense 833.33
Advertising expense 5,000.00
Depreciation expense 4,183.29 146,346.62
Net Income 180,653.38
Add (deduct): Other income/expenses
Interest Income 287.67
Interest Expense (739.73) (452.06)

Net Income for the month 180,201.32

 DMB CONSULTING FIRM
Statement of Changes in Capital
For the Month Ended Junet 31, 2017

Original capital 500,000.00

Add (Deduct):
Additional investment -
Net income for the month 180,201.32
Drawings (20,000.00)
Net Increase (Decrease) in Capital 160,201.32
Total Capital, August 31 660,201.32
 BAA ACCOUNTING FIRM
Statement of Financial Position
As of August 31, 2016

ASSETS
Current Assets:
Cash 298,942.00
Accounts receivable 85,000.00
Notes receivable 75,000.00
Interest receivable 287.67
Advances to employees 1,000.00
Office supplies 4,028.00
Prepaid insurance 9,166.67
Prepaid rent 40,000.00
Total Current Assets 513,424.34
Non-current Assets:
Office equipment 85,000.00
Accumulated depreciation (1,748.40) 83,251.60
Furniture & fixtures 43,650.00
Accumulated depreciation (1,103.38) 42,546.62
Service vehicle 100,000.00
Accumulated depreciation (1,331.51) 98,668.49
Rental deposit 40,000.00
Total Non-Current Assets 264,466.71
Total Assets 777,891.05
LIABILITIES
Current Liabilities:
Accounts payable 5,500.00
Withholding tax payable 5,000.00
SSS payable 1,000.00
Philhealth payable 250.00
Pag-ibig payable 200.00
Accrued expense payable 5,000.00
Accrued interest payable 739.73
Total Current Liabilities 17,689.73
Non-current Liabilities:
Notes Payable 100,000.00
Total Liabilities 117,689.73
CAPITAL
Mr. Alabat Capital 660,201.32
Total Liabilities and Capital 777,891.05
 BAA ACCOUNTING FIRM
Statement of Cash Flow
For the Month Ended August 31, 2016

Cash Flow from Operating Activities:

Cash received from customers 167,000.00
Cash paid for advances of employee (1,000.00)
Cash paid for rental (100,000.00)
Cash paid for salaries (63,550.00)
Cash paid for licences (10,000.00)
Cash paid for supplies (5,678.00)
Cash paid for fire insurance (10,000.00)
Cash paid for transportation (2,000.00)
Cash paid for gasoline (5,000.00)
Cash paid for representation (5,450.00)
Cash paid to light and water (16,730.00)
Net cash flow for operating activities (52,408.00)
Cash Flow from Investing Activities:
Cash paid for purchase of office assets (128,650.00)
Net cash flow for investing activities (128,650.00)
Cash Flow from Financing Activities:
Cash investment of owner 500,000.00
Cash withdrawal by owner (20,000.00)
Net cash flow from financing activities 480,000.00
Net Increase in Cash 298,942.00
Cash balance, beginning -
Cash Balance, end 298,942.00
 ADJUSTING ENTRIES DEBIT CREDIT

a Suppplies expense 1,650.00

Office supplies 1,650.00
To record supplies used for the month

b Rent expense 20,000.00

Prepaid rent 20,000.00
To record rent expense for the month

c Insurance expense 833.33

Prepaid insurance 833.33
To record insurance expenses for the
month of June
(Computation: P10,000/12mos = P833.33)

d Advertising expenses 5,000.00

Accrued expense payable 5,000.00
To record ads incurred in June 31 but
paid the following month

e Accounts receivable 20,000.00

Service revenue 20,000.00
To record acctg services incurred in
June 31 but billed on July 2

f Interest Expense 739.73

Accrued interest payable 739.73
To record interest for 2-year PN for
P100,000 @ 10% per annum
Computation:
P100,000 x 10%=P10,000/365days=P27.40/day
P27.40 x 27 days (June 4-31) = P739.73

g Interest Receivable 287.67

Interest Income 287.67
To record interest for 30-day PN for
P75,000 @ 10% per annum
Computation:
P75,000 x 10%=P7,500/365days = P20.55/day
P13.70 x 14 days (June 17-31) = P287.67

h Depreciation expense 4,183.29

Accumulated depreciation - SV 1,331.51
 Accumulated depreciation - OE 1,748.40
Accumulated depreciation - F&F 1,103.38
To record depreciation expense for the
month of June.
 833.33

10,000.00
27.40
739.73

7,500.00
20.55
287.67
CLOSING ENTRIES DEBIT CREDIT
a Service Revenue 327,000.00
Interest income 287.67
Taxes and licenses 10,000.00
Light and water expense 16,730.00
Salaries, wages & benefits 70,000.00
Gasoline expenses 5,000.00
Representation expenses 5,450.00
Communication expenses 5,500.00
Transportation expenses 2,000.00
Supplies expense 1,650.00
Rent expense 20,000.00
Insurance expense 833.33
Advertising expense 5,000.00
Depreciation expense 4,183.29
Interest expense 739.73
Income Summary ###
To close revenue and expenses
to income summary

b Income Summary 180,201.32

Mr. Alabat Capital ###
To close income summary to
the capital account

c Mr. Alabat Capital 10,000.00

Mr. Alabat Drawings 10,000.00
To close drawing account to
the capital account.
CLOSING ENTRIES DEBIT
a Service Revenue 327,000.00
Interest income 287.67
Taxes and licenses
Light and water expense
Salaries, wages & benefits
Gasoline expenses
Representation expenses
Communication expenses
Transportation expenses
Supplies expense
Rent expense
Insurance expense
Advertising expense
Depreciation expense
Interest expense
Income Summary
To close revenue and expenses
to income summary

b Income Summary 180,201.32

Mr. Alabat Capital
To close income summary to
the capital account

c Mr. Alabat Capital 20,000.00

Mr. Alabat Drawings
To close drawing account to
the capital account.
CREDIT

10,000.00
16,730.00
70,000.00
5,000.00
5,450.00
5,500.00
2,000.00
1,650.00
20,000.00
833.33
5,000.00
4,183.29
(739.73)
180,201.32

180,201.32

20,000.00
 BAA ACCOUNTING FIRM
Post-Closing Trial Balance
August 31,2016

Debit Credit
Cash 298,942.00
Accounts receivable 85,000.00
Notes receivable 75,000.00
Interest receivable 287.67
Advances to employees 1,000.00
Office supplies 4,028.00
Prepaid insurance 9,166.67
Prepaid rent 40,000.00
Office equipment 85,000.00
Accumulated depreciation 1,748.40
Furniture & fixtures 43,650.00
Accumulated depreciation 1,103.38
Service vehicle 100,000.00
Accumulated depreciation 1,331.51
Rental deposit 40,000.00
Accounts payable 5,500.00
Withholding tax payable 5,000.00
SSS payable 1,000.00
Philhealth payable 250.00
Pag-ibig payable 200.00
Accrued expense payable 5,000.00
Accrued interest payable 739.73
Notes Payable 100,000.00
Mr. Alabat Capital 660,201.32
782,074.34 782,074.34