On January 1, 2021 Huang Junjie established Notepad Company for providing printing

services. A summary of transactions in 2021 is as follows:

01/02 Huang invested P160, 000 cash, P250, 000 amounts of building and P300, 000 amount of land in the name of the bu
JE: Debit Credit
Cash 160,000.00
Building 250,000.00
Land 300,000.00
J, Capital 710,000.00
To record initial contribution

01/30 NotePad Company paid insurance expense P2, 000 and rent expense P3, 000.
JE: Debit Credit
Insurance Expense 2,000.00
Rent Expense 3,000.00
Cash 5,000.00
To record payment of Insurance and Rent Expenses

2/03 NotePad Company purchased shop equipment for cash P32, 000.
JE: Debit Credit
Shop Equipment 32,000.00
Cash 32,000.00
To record acquisition of Shop Equipment on Cash basis

03/04 NotePad Company purchased shop supplies P12, 000 on account.

JE: Debit Credit
Supplies 12,000.00
Accounts Payable 12,000.00
To record acquisition of Supplies on account

03/05 NotePad Company purchased a printing machine for P46, 000. NotePad Company paid P6, 000 in cash and issued 3
JE: Debit Credit
Shop Equipment 46,000.00
Cash 6,000.00
Notes Payable 40,000.00
To record acquisition of Shop Equipment with partial payment and issued 30-day note for the remaining balance

04/08 NotePad Company received a cash payment of P4, 500 for providing printing service to customers.
JE: Debit Credit
Cash 4,500.00
Service & Repair Revenue 4,500.00
To record revenue on cash basis

04/09 NotePad Company paid advertising P800

 JE: Debit Credit
Advertising Expense 800.00
Cash 800.00
To record advertising as charged to expense

05/12 NotedPad Company paid maintenance expense P4, 200 for the printing machine.
JE: Debit Credit
Maintenance Expense 4,200.00
Cash 4,200.00
To record maintenance expense on cash basis

06/14 NotePad Company paid P6, 000 for previous purchase of supplies on account.
JE: Debit Credit
Accounts Payable 6,000.00
Cash 6,000.00
To record payment of accounts payable for previous purchase of supplies on account

07/16 NotePad Company performed P6,400 of printing service on account for Alex Entertainment Company.
JE: Debit Credit
Accounts Receivable 6,400.00
Service and Repair Revenue 6,400.00
To record revenue performed on account

08/18 NotePad Company paid P350 for installation and telephone service for the month.
JE: Debit Credit
Telephone Expense 350.00
Cash 350.00
To record payment for installation as charged to Telephone Expense

09/19 NotePad Company paid P560 for minor repairs on the printing machine.
JE: Debit Credit
Repair Expense 560.00
Cash 560.00
To record repair expenses on cash basis

09/20 NotePad Company performed printing service P8, 100. NotePad Company collected P5, 000 cash, and accepted a 6
JE: Debit Credit
Cash 5,000.00
Notes Receivable 3,100.00
Repair & Service Revenue 8,100.00
To record Service and Repair Revenue

10/01 Notepad Company paid maintenance expense P250 on the printing machine. Huang withdrawn cash P10, 000 to ce
 JE: Debit Credit
Maitenance Expense 250.00
J, Withdrawal 10,000.00
Cash 10,250.00
To record maintenance expense and withdrawal on cash basis

10/25 NotePad Company received cash P6, 000 for a service from Harvard University.
JE: Debit Credit
Cash 6,000.00
Repair and Service Revenue 6,000.00
To record revenue performed on cash basis

10/27 NotePad Company purchased shop supplies for cash P10, 000
JE: Debit Credit
Supplies 10,000.00
Cash 10,000.00
To record purchase of supplies on cash basis

10/29 NotePad Company purchased a computer for cash P2,500

JE: Debit Credit
Shop Equipment 2,500.00
Cash 2,500.00
To record acquisition of shop equipment on cash basis

11/01 NotePad Company collected receivables from Alex Entertainment Company.

JE: Debit Credit
Cash 6,400.00
Accounts Receivable 6,400.00
To record cash collection

11/15 NotePad Company paid P1, 300 for monthly utility bill.
JE: Debit Credit
Utilities Expense 1,300.00
Cash 1,300.00
To record utilities expense on cash basis

12/31 NotePad Company paid P500 for maintenance on the printing machine.
JE: Debit Credit
Maintenance Expense 500.00
Cash 500.00
To record maitenance charged as expense on cash basis
of land in the name of the business.

P6, 000 in cash and issued 30-day note for the remaining balance.

for the remaining balance

customers.
ment Company.

, 000 cash, and accepted a 60-day note from the customer for the remaining balance.

thdrawn cash P10, 000 to celebrate his birthday.

 Assets

Cash Accounts Receivable Notes Receivable

DR. CR. DR. CR. DR. CR.
01/02 160,000.00 5,000.00 01/30 07/16 6,400.00 6,400.00 11/01 09/20 3,100.00 03/04
04/08 4,500.00 32,000.00 2/03 10/27
09/20 5,000.00 6,000.00 03/05
10/25 6,000.00 800.00 04/09
11/01 6,400.00 4,200.00 05/12
6,000.00 06/14 0 3,100.00
350.00 08/18
560.00 09/19
10,250.00 10/01
10,000.00 10/27
2,500.00 10/29
1,300.00 11/15
500.00 12/31
181,900.00 79,460.00
102,440.00

Liabilities
Accounts Payable Notes Payable
DR. CR. DR. CR.
06/14 6,000.00 12,000.00 03/04 40,000.00 03/05

6,000.00 12,000.00 40,000.00

6,000.00

Equity
J, Capital J, Withdrawal
 DR. CR. DR. CR.
710,000.00 01/02 10/01 10,000.00

710,000.00 10,000.00

Revenue

Repair & Service Revenue

DR. CR.
4,500.00 04/08
6,400.00 07/16
8,100.00 09/20
6,000.00 10/25

25,000.00

Expenses

Insurance Expense Rent Expense Advertising Expense

DR. CR. DR. CR. DR. CR.
01/30 2,000.00 01/30 3,000.00 04/09 800.00 05/12
10/01
12/31
2,000.00 3,000.00 800.00
 Supplies Shop Equipment Building Land
DR. CR. DR. CR. DR. CR. DR.
12,000.00 2/03 32,000.00 01/02 250,000.00 01/02 300,000.00
10,000.00 03/05 46,000.00
10/29 2,500.00

22,000.00 80,500.00 250,000.00 300,000.00

Maintenance Expense Telephone Expense Repair Expense Utilities Expense
DR. CR. DR. CR. DR. CR. DR.
4,200.00 08/18 350.00 09/19 560.00 11/15 1,300.00
250.00
500.00
4,950.00 350.00 560.00 1,300.00
Land
CR.
Utilities Expense
CR.
 Notepad Company
Trial Balance
For the Yeand Ended December 31, 20XX
Debit Credit
Cash 102,440.00
Notes Receivable 3,100.00
Supplies 22,000.00
Shop Equipment 80,500.00
Building 250,000.00
Land 300,000.00
Accounts Payable 6,000.00
Notes Payable 40,000.00
J, Capital 710,000.00
J, Withdrawal 10,000.00
Repair & Service Revenue 25,000.00
Insurance Expense 2,000.00
Rent Expense 3,000.00
Advertising Expense 800.00
Maintenance Expense 4,950.00
Telephone Expense 350.00
Repair Expense 560.00
Utilities Expense 1,300.00
781,000.00 781,000.00
On January 1, 2021 Huang Junjie established Notepad Company for providing printing
services. A summary of transactions in 2021 is as follows:

01/02 Huang invested P160, 000 cash, P250, 000 amounts of building with an estimated useful life of 5 years and salvage
and P300, 000 amount of land in the name of the business.
JE: Debit Credit
Cash 160,000.00
Building 250,000.00
Land 300,000.00
J, Capital 710,000.00
To record initial contribution

01/30 NotePad Company paid insurance expense P2, 000 and rent expense P3, 000.
JE: Debit Credit
Insurance Expense 2,000.00
Rent Expense 3,000.00
Cash 5,000.00
To record payment of Insurance and Rent Expenses

2/03 NotePad Company purchased shop equipment for cash P32, 000 with an estimated life of 5 years
and a salvage value of 2, 000.
JE: Debit Credit
Shop Equipment 32,000.00
Cash 32,000.00
To record acquisition of Shop Equipment on Cash basis

03/04 NotePad Company purchased shop supplies P12, 000 on account.

JE: Debit Credit
Supplies 12,000.00
Accounts Payable 12,000.00
To record acquisition of Supplies on account

03/05 NotePad Company purchased a printing machine for P45, 000 with an estimated life of 3 years and no salvage value
NotePad Company paid P6, 000 in cash and issued 30-day note for the remaining balance.
JE: Debit Credit
Shop Equipment 45,000.00
Cash 6,000.00
Notes Payable 39,000.00
To record acquisition of Shop Equipment with partial payment and issued 30-day note for the remaining balance

04/01 NotePad Company paid rental for 3 years in the amount of P36, 000
JE: Debit Credit
Prepaid Rent 36,000.00
Cash 36,000.00
 To record rent paid in advance

04/08 NotePad Company received a cash payment of P4, 500 for providing printing service to customers.
JE: Debit Credit
Cash 4,500.00
Service & Repair Revenue 4,500.00
To record revenue on cash basis

04/09 NotePad Company paid advertising P800

JE: Debit Credit
Advertising Expense 800.00
Cash 800.00
To record advertising as charged to expense

05/12 NotedPad Company paid maintenance expense P4, 200 for the printing machine.
JE: Debit Credit
Maintenance Expense 4,200.00
Cash 4,200.00
To record maintenance expense on cash basis

06/14 NotePad Company paid P6, 000 for previous purchase of supplies on account.
JE: Debit Credit
Accounts Payable 6,000.00
Cash 6,000.00
To record payment of accounts payable for previous purchase of supplies on account

07/31 The business borrowed 250, 000 from a bank on July 31, 2021. The loan carries a 3% interest.
Principal and interest is payable on July 31, 2022.
JE: Debit Credit
Cash 250,000.00
Notes Payable 250,000.00
To record the amount borrowed from the bank

07/16 NotePad Company performed P31,400 of printing service on account for Alex Entertainment Company.
JE: Debit Credit
Accounts Receivable 31,400.00
Service and Repair Revenue 31,400.00
To record revenue performed on account

08/01 On August 1, the company received 50, 000 from a client for monthly services to be rendered from September 1 20
JE: Debit Credit
Cash 50,000.00
 Unearned Service and Repair Revenue 50,000.00
To record cash received for future services

08/18 NotePad Company paid P350 for installation and telephone service for the month.
JE: Debit Credit
Telephone Expense 350.00
Cash 350.00
To record payment for installation as charged to Telephone Expense

09/19 NotePad Company paid P560 for minor repairs on the printing machine.
JE: Debit Credit
Repair Expense 560.00
Cash 560.00
To record repair expenses on cash basis

09/20 NotePad Company performed printing service P8, 100. NotePad Company collected P5, 000 cash, and accepted a 6
JE: Debit Credit
Cash 5,000.00
Notes Receivable 3,100.00
Repair & Service Revenue 8,100.00
To record Service and Repair Revenue

09/30 On September 30 2021, the business loaned money in the amount of P100, 000. It carries 6 % and due in Septembe
Payment of principal and interest will be on September 30, 2022.
JE: Debit Credit
Notes Recievable 100,000.00
Cash 100,000.00
To record loan extended to the other entity

10/01 NotePad Company paid insurance policy for 3 years in the amount of 60, 000
JE: Debit Credit
Prepaid Insurance 60,000.00
Cash 60,000.00
To record Prepaid Insurance on cash basis

10/02 Notepad Company paid maintenance expense P250 on the printing machine. Huang withdrawn cash P10, 000 to ce
JE: Debit Credit
Maitenance Expense 250.00
J, Withdrawal 10,000.00
Cash 10,250.00
To record maintenance expense and withdrawal on cash basis

10/25 NotePad Company received cash P6, 000 for a service from Harvard University.
 JE: Debit Credit
Cash 6,000.00
Repair and Service Revenue 6,000.00
To record revenue performed on cash basis

10/27 NotePad Company purchased shop supplies for cash P10, 000
JE: Debit Credit
Supplies 10,000.00
Cash 10,000.00
To record purchase of supplies on cash basis

10/30 NotePad Company purchased a computer for cash P18, 000

with an estimated life of 5 years and salvage value of P3, 000
JE: Debit Credit
Shop Equipment 18,000.00
Cash 18,000.00
To record acquisition of shop equipment on cash basis

11/01 NotePad Company collected receivables amounting to 6, 400 from Alex Entertainment Company.
JE: Debit Credit
Cash 6,400.00
Accounts Receivable 6,400.00
To record cash collection

11/15 NotePad Company paid P1, 300 for monthly utility bill.
JE: Debit Credit
Utilities Expense 1,300.00
Cash 1,300.00
To record utilities expense on cash basis

12/31 NotePad Company paid P500 for maintenance on the printing machine.
JE: Debit Credit
Maintenance Expense 500.00
Cash 500.00
To record maitenance charged as expense on cash basis

Notes to Adjustments:
1. Prepare necessary adjusting entries
2. Supplies inventory at the end of December 31 amounted to 10, 000
3. On December 31 service income that is unbilled amount to 5, 000
4. As of year-end, unpaid salaries amount to 3, 000
5. Doutbtful accounts are estimated at 5% of accounts receivable
6. On June 1 the business entered into a contract where it will render services for 12 months
from June 1, 2021 to May 2022 for a contract prize of 60, 000. The payment will be received on May 2022
Requirements:
1. Prepare necessary journal entries
2. Prepare Trial balance
3. Prepare Income Statement
4. Prepare Statement of Changes in Equity
5. Prepare Balance sheet
seful life of 5 years and salvage value of 50, 000

life of 5 years

e of 3 years and no salvage value.

ote for the remaining balance

e to customers.

tainment Company.

e rendered from September 1 2021 to Jan 31, 2022.

d P5, 000 cash, and accepted a 60-day note from the customer for the remaining balance.

carries 6 % and due in September 30, 2022.

g withdrawn cash P10, 000 to celebrate his birthday.

ent Company.
ed on May 2022
 Assets

Cash Accounts Receivable Notes Receivable

DR. CR. DR. CR. DR. CR.
01/02 160,000.00 5,000.00 01/30 07/16 31,400.00 6,400.00 11/01 09/20 3,100.00
04/08 4,500.00 32,000.00 2/03 09/30 100,000.00
07/31 250,000.00 6,000.00 03/05
08/01 50,000.00 36,000.00 04/01
09/20 5,000.00 800.00 04/09
10/25 6,000.00 4,200.00 05/12 25,000.00 103,100.00
11/01 6,400.00 6,000.00 06/14
350.00 08/18
560.00 09/19 Prepaid Rent
100,000.00 09/30 DR. CR.
60,000.00 10/01 04/01 36,000.00
10,250.00 10/02
10,000.00 10/27
18,000.00 10/30
1,300.00 11/15
500.00 12/31

481,900.00 290,960.00 36,000.00

190,940.00

Liabilities Unearned Repair &

Accounts Payable Notes Payable - Service Revenue
DR. CR. DR. CR. DR. CR.
06/14 6,000.00 12,000.00 03/04 39,000.00 03/05 ### 08/01
250,000.00 07/31

6,000.00 12,000.00 289,000.00 ###

6,000.00
 Equity
J, Capital J, Withdrawal
DR. CR. DR. CR.
710,000.00 01/02 10/02 10,000.00

710,000.00 10,000.00

Revenue

Repair & Service Revenue

DR. CR.
4,500.00 04/08
31,400.00 07/16
8,100.00 09/20
6,000.00 10/25

50,000.00

Expenses

Insurance Expense Rent Expense Advertising Expense

DR. CR. DR. CR. DR. CR.
01/30 2,000.00 01/30 3,000.00 04/09 800.00

2,000.00 3,000.00 800.00

 Supplies Shop Equipment Building
DR. CR. DR. CR. DR. CR.
03/04 12,000.00 2/03 32,000.00 01/02 250,000.00 01/02
10/27 10,000.00 03/05 45,000.00
10/30 18,000.00

22,000.00 95,000.00 250,000.00

Prepaid Insurance
DR. CR.
10/01 60,000.00

60,000.00
 Maintenance Expense Telephone Expense Repair Expense
DR. CR. DR. CR. DR. CR.
05/12 4,200.00 08/18 350.00 09/19 560.00 11/15
10/02 250.00
12/31 500.00
4,950.00 350.00 560.00
 Land
DR. CR.
300,000.00

300,000.00
 Utilities Expense
DR. CR.
1,300.00

1,300.00
 Notepad Company

Unadjusted Trial Balance Adjustment Adjusted Trial Balance

Debit Credit Debit Credit Debit Credit Adjustment:
Cash 190,940.00 190,940.00 01/02 Depreciation Expense
Accounts Receivable 25,000.00 40,000.00 65,000.00 Accumulated Depreciatio
Allowance for Doubtful Accounts 325.00 325.00
Notes Receivable 103,100.00 103,100.00 AD = Cost- Salvage Value
Prepaid Rent 36,000.00 9,000.00 27,000.00 Useful life
Prepaid Insurance 60,000.00 5,000.00 55,000.00 250, 000 - 50, 000 = 40, 000
Supplies 22,000.00 12,000.00 10,000.00 5
Shop Equipment 95,000.00 95,000.00
Accumulated Depreciation 18,500.00 18,500.00 2/03 Depreciation Expense
Building 250,000.00 250,000.00 Accumulated Depreciatio
Accumulated Depreciation 40,000.00 40,000.00
Land 300,000.00 300,000.00
Accounts Payable 6,000.00 6,000.00 AD = Cost- Salvage Value
Notes Payable 289,000.00 289,000.00 Useful life
Unearned Repair & Service Revenue 50,000.00 40,000.00 10,000.00 32, 000- 2, 000 = 6, 000 x 11/12
J, Capital 710,000.00 710,000.00 5
J, Withdrawal 10,000.00 10,000.00
Repair & Service Revenue 50,000.00 80,000.00 130,000.00 03/05 Depreciation Expense
Insurance Expense 2,000.00 2,000.00 Accumulated Depreciatio
Rent Expense 3,000.00 3,000.00
Advertising Expense 800.00 800.00 AD = Cost- Salvage Value
Maintenance Expense 4,950.00 4,950.00 Useful life
Telephone Expense 350.00 350.00 45, 000 - 0 = 15, 000 x 10/12 = 12
Repair Expense 560.00 560.00 3
Utilities Expense 1,300.00 1,300.00
Interest Receivable 1,500.00 1,500.00 04/01 Rent Expense
Interest Payable 3,125.00 3,125.00 Prepaid Rent
Salaries Payable 3,000.00 3,000.00
 36, 000/ 3 x 9/12 = 9, 000
Interest Income 1,500.00 1,500.00
Interest Expense 3,125.00 3,125.00 07/31 Interest Expense
Rent Expense 9,000.00 9,000.00 Interest Payable
Insurance Expense 5,000.00 5,000.00
Supplies Expense 12,000.00 12,000.00 250, 000 x 3% = 7, 500 x 5/12 = 3, 125
Salaries Expense 3,000.00 3,000.00
Depreciation Expense 58,500.00 58,500.00 08/01 Unearned Service and Repair Revenu
Doubtful Expense 325.00 325.00 Service and Repair Reven
1,105,000.00 1,105,000.00 172,450.00 172,450.00 1,211,450.00 1,211,450.00 50, 000 / 5 x 4 = 40, 000
0.00 0.00 0.00
09/30 Interest Receivable
Interest Income
100, 000 x 6 % = 6, 000 x 3/12 = 1, 50

10/01 Insurance Expense

Prepaid Insurance
60, 000/ 3 = 20, 000 x 3/12 = 5, 000

10/30 Depreciation Expense

Accumulated Depreciatio
AD = Cost- Salvage Value
Useful life
18, 000 - 3, 000 = 3, 000 x 2/ 12
5

Supplies Expense
Supplies

Accounts Receivable
Service and Repair Reven
Salaries Expense
Salaries Payable

Accounts Receivable
Service and Repair Reven
60, 000 / 12 = 5, 000 x 35, 000

Doubtful Expense
Allowance for Doubtful A

65, 000 * 5% = 3, 250

 Dr. Cr.
ation Expense 40,000.00 Interest Receivable Prepaid Rent
Accumulated Depreciation- Blg. 40,000.00 DR. CR. DR. CR.
09/30 1,500.00 - 9,000.00 04/01
st- Salvage Value

0, 000 - 50, 000 = 40, 000

ation Expense 5,500.00

Accumulated Depreciation- Shop E. 5,500.00 1,500.00 - 9,000.00

st- Salvage Value

Accounts Receivable Accumulated Dept- S.E
000- 2, 000 = 6, 000 x 11/12 = 5,500 DR. CR. CR. DR.
5,000.00 - 5,500.00 2/03
35,000.00 12,500.00 03/05
ation Expense 12,500.00 500.00 10/30
Accumulated Depreciation- Shop E. 12,500.00

st- Salvage Value

000 - 0 = 15, 000 x 10/12 = 12, 500 40,000.00 18,500.00

Interest Payable Salaries Payable

9,000.00 CR. DR. CR. DR.
Prepaid Rent 9,000.00 - 3,125.00 07/31 - 3,000.00
/ 3 x 9/12 = 9, 000

3,125.00
Interest Payable 3,125.00

0 x 3% = 7, 500 x 5/12 = 3, 125 3,125.00 3,000.00

Service and Repair
ed Service and Repair Revenue 40,000.00 Interest Income Revenue
Service and Repair Revenue 40,000.00 CR. DR. CR. DR.
/ 5 x 4 = 40, 000 - 1,500.00 09/30 - 40,000.00 08/01
5,000.00
1,500.00 35,000.00
Interest Income 1,500.00
0 x 6 % = 6, 000 x 3/12 = 1, 500

5,000.00
Prepaid Insurance 5,000.00 1,500.00 80,000.00
/ 3 = 20, 000 x 3/12 = 5, 000
Interest Expense Rent Expense
ation Expense 500.00 DR. CR. DR. CR.
Accumulated Depreciation- Shop E. 500.00 07/31 3,125.00 04/01 9,000.00
st- Salvage Value

000 - 3, 000 = 3, 000 x 2/ 12 = 500

12,000.00
Supplies 12,000.00 3,125.00 9,000.00

s Receivable 5,000.00 Salaries Expense Depreciation Expense

Service and Repair Revenue 5,000.00 DR. CR. DR. CR.
3,000.00 01/02 40,000.00
 3,000.00 2/03 5,500.00
Salaries Payable 3,000.00 03/05 12,500.00
10/30 500.00
s Receivable 35,000.00
Service and Repair Revenue 35,000.00
/ 12 = 5, 000 x 35, 000
3,000.00 58,500.00
325.00
Allowance for Doubtful Account 325.00
Doubtful Expense
* 5% = 3, 250 DR. CR.
325.00

325.00
 Prepaid Insurance Supplies
DR. CR. DR. CR.
- 5,000.00 10/01 - 12,000.00

- 5,000.00 12,000.00

Accumulated Dept- E Allowance for DA

CR. Dr. CR. Dr.
- 40,000.00 01/02 - 325.00

40,000.00 -

Unearned SRR
CR. DR.
08/01 40,000.00
 40,000.00

Insurance Expense Supplies Expense

DR. CR. DR. CR.
10/01 5,000.00 12,000.00

5,000.00 12,000.00
 NotePad Company
Statement of Financial Performance
For the Year Ended December 31, 20XX

Repair & Service Revenue 130,000.00

Interest Income 1,500.00
Total Gross Income 131,500.00
Expenses:
Insurance Expense 2,000.00
Rent Expense 3,000.00
Advertising Expense 800.00
Maintenance Expense 4,950.00
Telephone Expense 350.00
Repair Expense 560.00
Utilities Expense 1,300.00
Interest Expense 3,125.00
Rent Expense 9,000.00
Insurance Expense 5,000.00
Supplies Expense 12,000.00
Salaries Expense 3,000.00
Depreciation Expense 58,500.00
Doubtful Expense 325.00
Total Operating Expenses 103,910.00
Net Income 27,590.00
 NotePad Compay
Statement of Changes in Equity
For the Year Ended December 31, 20XX

J, Capital- Beginning 710,000.00

Net Income for December 27,590.00
Less:
J, Withdrawal 10,000.00
Net Increase in Owner's Equity 17,590.00
J, Capital- Ending 727,590.00
 NotePad Company
Statement of Financial Position
For the Year Ended December 31, 20XX
Assets Liabilites
Cash 190,940.00 Accounts Payable 6,000.00
Accounts Receivable 65,000.00 Notes Payable 289,000.00
Allowance for Doubtful Accounts 325.00 Unearned Repair & Service Revenue 10,000.00
Notes Receivable 103,100.00 Interest Payable 3,125.00
Interest Receivable 1,500.00 Salaries Payable 3,000.00 311,125.00
Prepaid Rent 27,000.00 Owner's Equity
Prepaid Insurance 55,000.00 J, Capital- Ending 727,590.00
Supplies 10,000.00
Shop Equipment 95,000.00
Accumulated Depreciation 18,500.00
Building 250,000.00
Accumulated Depreciation 40,000.00
Land 300,000.00
Total Assets 1,038,715.00 Total Liabilites & Equity 1,038,715.00 0.00
 NotePad Company
Statement of Financial Performance
For the Year Ended December 31, 20XX

Repair & Service Revenue 25,000.00

Expenses:
Insurance Expense 2,000.00
Rent Expense 3,000.00
Advertising Expense 800.00
Maintenance Expense 4,950.00
Telephone Expense 350.00
Repair Expense 560.00
Utilities Expense 1,300.00
Total Operating Expenses 12,960.00
Net Income 12,040.00
 NotePad Compay
Statement of Changes in Equity
For the Year Ended December 31, 20XX

J, Capital- Beginning 710,000.00

Net Income for December 12,040.00
Less:
J, Withdrawal 10,000.00
Net Increase in Owner's Equity 2,040.00
J, Capital- Ending 712,040.00
 NotePad Company
Statement of Financial Position
For the Year Ended December 31, 20XX
Assets Liabilites
Cash 102,440.00 Accounts Payable 6,000.00
Notes Receivable 3,100.00 Notes Payable 40,000.00
Supplies 22,000.00 Equity
Shop Equipment 80,500.00 J, Capital- Ending 712,040.00
Building 250,000.00
Land 300,000.00
Total Assets 758,040.00 Total Liabilities & Owner's Equity 758,040.00