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M6 Post-Task

1. The document shows accounting transactions for Entity A throughout the year ended December 31, 20X1 including revenues, expenses, assets, and liabilities. 2. Key transactions include $6 million in service revenue, $1.9 million in total expenses, $1.4 million in owner's drawings, and $4.1 million in net income for the year. 3. The balance sheet as of December 31, 20X1 includes $5.2 million in total assets including $1.9 million in cash and $2.2 million in accounts receivable, and $500,000 in notes payable.

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Marielle Sison
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68 views9 pages

M6 Post-Task

1. The document shows accounting transactions for Entity A throughout the year ended December 31, 20X1 including revenues, expenses, assets, and liabilities. 2. Key transactions include $6 million in service revenue, $1.9 million in total expenses, $1.4 million in owner's drawings, and $4.1 million in net income for the year. 3. The balance sheet as of December 31, 20X1 includes $5.2 million in total assets including $1.9 million in cash and $2.2 million in accounts receivable, and $500,000 in notes payable.

Uploaded by

Marielle Sison
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Cash 2,000,000.

00 x
1
Owner's Capital 2,000,000.00 x
Equipment 1,000,000.00 x
2
Cash 1,000,000.00 x
Cash 500,000.00 x
3
Notes Payable 500,000.00 x
Prepaid Insurance 160,000.00 x
4
Cash 160,000.00 x
Cash 2,000,000.00 x
5 Accounts Receivable 4,000,000.00 x
Service Revenue 6,000,000.00 x
Cash 1,800,000.00 x
6
Accounts Receivable 1,800,000.00 x
Salaries Expense 1,200,000.00 x
7
Cash 1,200,000.00 x
Utilities Expense 500,000.00 x
8
Cash 500,000.00 x
Supplies 120,000.00 x
9
Cash 120,000.00 x
Owner's Drawing 1,400,000.00 x
10
Cash 1,400,000.00 x
Cash Equipment
2,000,000.00 1,000,000.00 1,000,000.00
500,000.00 160,000.00
2,000,000.00 1,200,000.00
1,800,000.00 500,000.00 Supplies
120,000.00 120,000.00
1,400,000.00
1,920,000.00

Prepaid Insurance
160,000.00

Accounts Receivable
4,000,000.00 1,800,000.00
2,200,000.00

Notes Payable
500,000.00

Owner's Capital Owner's Drawings


2,000,000.00 1,400,000.00

Service Revenues
6,000,000.00

Salaries Expense Utilities Expense


1,200,000.00 500,000.00
Unadjusted Trial Balance
Entity A
December 20x1
Cash 1,920,000.00
Equipment 1,000,000.00
Supplies 120,000.00
Prepaid Insurance 160,000.00
Accounts Receivable 2,200,000.00
Notes Payable 500,000.00
Owner's Capital 2,000,000.00
Owner's Drawing 1,400,000.00
Service Revenues 6,000,000.00
Salaries Expense 1,200,000.00
Utilities Expense 500,000.00
TOTAL 8,500,000.00 8,500,000.00

ADJ#1
Depreciation Expense 100,000.00
Accumulated Depreciation 100,000.00
ADJ#2
Interest Expense 30,000.00
Interest Payable 30,000.00
ADJ#3
Insurance Expense 13,333.33
Prepaid Insurance 13,333.33
ADJ#4
Supplies Expense 80,000.00
Supplies 80,000.00
Unadjusted Trial Balance Adjustments
Dr. Cr. Dr. Cr.
Cash 1,920,000.00
Equipment 1,000,000.00
Supplies 120,000.00 80,000.00
Prepaid Insurance 160,000.00 13,333.33
Accounts Receivable 2,200,000.00
Notes Payable 500,000.00
Owner's Capital 2,000,000.00
Owner's Drawing 1,400,000.00
Service Revenues 6,000,000.00
Salaries Expense 1,200,000.00
Utilities Expense 500,000.00
TOTAL 8,500,000.00 8,500,000.00
Adjustments:
Depreciation Expense 100,000.00
Accumulated Depreciation 100,000.00
Interest Expense 30,000.00
Interest Payable 30,000.00
Insurance Expense 13,333.33
Supplies Expense 80,000.00
TOTAL 223,333.33 223,333.33
Entity A
Worksheet
December 20x1
Adjusted Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr.
1,920,000.00 1,920,000.00
1,000,000.00 1,000,000.00
40,000.00 40,000.00
146,666.67 146,666.67
2,200,000.00 2,200,000.00
500,000.00
2,000,000.00
1,400,000.00 1,400,000.00
6,000,000.00 6,000,000.00
1,200,000.00 1,200,000.00
500,000.00 500,000.00

100,000.00 100,000.00
100,000.00
30,000.00 30,000.00
30,000.00
13,333.33 13,333.33
80,000.00 80,000.00
8,630,000.00 8,630,000.00 1,923,333.33 6,000,000.00 6,706,666.67
4,076,666.67
6,000,000.00 6,000,000.00 6,706,666.67
Balance Sheet Closing Entries Post-Closing Trial Balance
Cr. Dr. Cr. Dr. Cr.
1,920,000.00
1,000,000.00
40,000.00
146,666.67
2,200,000.00
500,000.00 500,000.00
2,000,000.00 1,400,000.00 4,076,666.67 4,676,666.67
1,400,000.00
6,000,000.00
1,200,000.00
500,000.00

100,000.00
100,000.00 100,000.00
30,000.00
30,000.00 30,000.00
13,333.33
80,000.00
2,630,000.00 7,400,000.00 7,400,000.00 5,306,666.67 5,306,666.67
4,076,666.67
6,706,666.67
CLOSING ENTRIES

Service fees 6,000,000.00


Salaries Expense 1,200,000.00
Utilities Expense 500,000.00
Depreciation Expense 100,000.00
Interest Expense 30,000.00
Insurance Expense 13,333.33
Supplies Expense 80,000.00
Income summary 4,076,666.67

Income Summary 4,076,666.67


Owner's Equity 4,076,666.67

Owner's Equity 1,400,000.00


Owner's Drawing 1,400,000.00

REVERSING ENTRY

Interest Payable 30,000.00


Interest Expense 30,000.00
ENTITY A
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 20X1

INCOME
Service Fees ₱ 6,000,000.00

EXPENSES
Salaries Expense 1,200,000.00
Utilities Expense 500,000.00
Depreciation Expense 100,000.00
Interest Expense 30,000.00
Insurance Expense 13,333.33
Supplies Expense 80,000.00
TOTAL EXPENSES ₱ 1,923,333.33

NET INCOME ₱ 4,076,666.67


Entity A
Balance Sheet
As of December 31, 20x1

ASSET
Cash ₱ 1,920,000.00
Supplies 40,000.00
Prepaid Insurance 146,666.67
Accounts Receivable 2,200,000.00
Total Current Assets 4,306,666.67

Equipment 1,000,000.00
Accumulated Depreciation (100,000.00)
Total Non-Current Assets 900,000.00

TOTAL ASSETS 5,206,666.67

LIABILITIES
Notes Payable ₱ 500,000.00
Interest Payable 30,000.00
Total Liabilities 530,000.00

EQUITY
Owner's Equity -
Add: Investment 2,000,000.00
Add: Net Income 4,076,666.67
Less: Owner's Drawing (1,400,000.00)
Total Equity 4,676,666.67

TOTAL LIABILITIES AND EQUITY 5,206,666.67

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