1.
Adjusting Entries ACCOUNTS DEBIT
Insurance Expense 400
Prepaid Insurance
Office Supplies Expense 1,050
Office Supplies
Depreciation Expense-Office Equipment 1,000
Accumulated Depreciation
Salary Expense 1,200
Salary Payable
Accounts Receivable 3,000
Service Revenue
Unearned Revenue 1,600
Service Revenue
CREDIT
400
1,050
1,000
1,200
3,000
1,600
2.T-accounts Insurance Expense Accounts Receivable
400 12,500
3,000
400
15,500
Depreciation Expense-0ffice Equipment Prepaid Insurance
1,000 2,400
1,000 2,000
Accumulated Depreciation Service Revenue
6,000
1,000
7,000
Accounts Receivable Office Supplies Office Supplies
Expense 1,800 1,050
1,050
750
1,050
Prepaid Insurance Salary Expense Salary Payable
400 15,000 1,200
1,200
1,200
16,200
Service Revenue
29,000 Unearned Revenue
3,000 1,600 4,600
1,600
3,000
33,600
3. TRIAL BALANCE
Steady Answering Service
Worksheet
December 31,200b
ACCOUNTS UNADJUSTED TRIAL ADJUSTMENTS ADJUSTED TRIAL
BALANCE BALANCE
Debit Credit Debit Credit Debit
Cash P21600 21,600
Accounts Receivable 12,500 P3,000 15,500
Office Supplies 1,800 P1,050 750
Prepaid Insurance 2,400 400 2,000
Office Equipment 34,000 34,000
Accumulated Depreciation P6000 1,000
Accounts Payable 7,000
Unearned Revenue 4,600 1,600
T.Ramos, Capital 48,700
T.Ramos, Drawing 4,000 4,000
Service Revenue 29,000 4,600
Salaries Expense 15,000 1,200 16,200
Rent Expense 4,000 4,000
Insurance Expense 400 400
Office Supplies Expense 1,050 1,050
Depreciation Expense-Office supplies expense 1,000 1,000
Salary payable 1,200
TOTAL P95300 P95300 P8250 P8250 P100,500
ADJUSTED TRIAL
BALANCE
Credit
7,000
7,000
3,000
48,700
33,600
1,200
P100,500
ADJUSTED TRIAL BALANCE
December 31,200b
ACCOUNTS DEBIT CREDIT
Cash 21,600
Accounts Receivable 15,500
Office Supplies 750
Prepaid Insurance 2,000
Office Equipment 34,000
Accumulated Depreciation 7,000
Accounts Payable 7,000
Unearned Revenue 3,000
T.Ramos, Capital 48,700
T.Ramos, Drawing 4,000
Service Revenue 33,600
Salary Expense 16,200
Rent Expense 4,000
Insurance Expense 400
Office Supplies Expense 1,050
Depreciation Expense-Office Equipment 1,000
Salary Payable 1,200
TOTAL P100,500 P100,500
4.Financial Statements
Steady Answering Service
Income Statement
For the month ended December31,200b
Revenue:
Service Revenue P33,600
Expense:
Salary Expense P16,200
Rent Expense 4,000
Insurance Expense 400
Office Supplies Expense 1,050
Depreciation Expense-Office Equipment 1,000 22,650
Net Income P10,950
Steady Answering Service Steady Answering Service
Statement of Changes in Owner's Equity Balance Sheet
For the month ended December 31,200b For the month ended December 31,200b
T.Ramos, Capital, Beginning P48,700 Asset:
Add: Net Income 10,950 Cash
Accounts Receivable
Less: Office Supplies
T.Ramos, Drawing 4,000 Prepaid Insurance
T.Ramos, Capital, End P55,650 Office Equipment
Accumulated Depreciation-Office Equipment
Total Assets:
Liabilities:
Accounts Payable
Unearned Revenue
Salary Payable
Total Liabilities:
Owner's Equity:
T.Ramos, Capital
Total Liabilities and Owner's Equity:
wering Service
December 31,200b
P21,600
15,500
750
2,000
34,000
7,000 27,000
P66,850
P7000
3,000
1,200
P11,200
55,650
P66,850
