REY'S INTERNET CAFÉ

TRIAL BALANCE
DECEMBER 31, 200D

ACCOUNT TITLE DEBIT CREDIT

Cash 56,600
Account Receivable 3,000
Notes Recievable 1,650
Tools 1,000
Furniture and Fixture 4,000
Office Equipment 25,900
Communication Equipment 50,000
Note Payable 4900
Loan Payable 25,000
Account Payable 11,700
Rey Capital 124,500
Rey Drawing 7,000
Service Income 25,350
Rent Income 8,000
Taxes and Licenses Expenses 3,000
Communication Expenses 1,250
Miscellanous Expenses 450
Rent Expenses 12,000
Advertising Expenses 3,600
Salaries Expenses 30,000
TOTAL 199,450 199450

PHASES OF ACCOUNTING

RECORDING
CLASSIFYING
SUMMARIZING
INTERPRETING
 CASH Note Payable
120,000 50,000 4,000
9,200 3,000
25,000 1,000 4,000
6,000 12,000
3,500 15,000
8,000 4,000
2,000 7,000 Loan Payable
3,600
450
1,250
4,800
15,000
173,700 117,100 Account Payable
56,600 4,800

Account Receivable
11,000 6,000 Rey Capital
2,000
11,000 8,000
3,000

Notes Recievable Rey Drawing

3,500 3,500 7,000
1,650 7,000
5,150 3,500
1,650
Service Income

Tools
1,000
1,000

Furniture and Fixture

4,000 Rent Income
4,000

Office Equipment
16,500
4,500 Taxes and Licenses Expenses
 4,900 3,000
25,900 3,000

Communication Equipment Communication Expenses

50,000 1,250
50,000 1,250
 Note Payable Miscellanous Expenses
4,000 450
4,900 450
8,900
4,900
Rent Expenses
12,000
Loan Payable 12,000
25,000
25,000
Advertising Expenses
3,600
3,600
Account Payable
16,500
11,700
Salaries Expenses
15,000
Rey Capital 15,000
120,000 30,000
4,500
124,500

Rey Drawing

Service Income
9,200
11,000
3,500
1,650
25,350

Rent Income
8,000
8,000

axes and Licenses Expenses

Communication Expenses
CALENDAR PERIOD STARTS ACCOUNTING PERIOD ON JANUARY 1 AND ENDS ON DEC. 31
FISCAL PERIOD MAY START IN ANY MONTH EXCEPT JANUARY AND COMPLETE THE 12 MONTH PERIOD

Case A.
SUPER MASSAGE CLINIC
STATEMENT OF FINANCIAL POSITION
FOR THE FISCAL YEAR ENDED DECEMBER 31, 200H To get Owner Equity
ASSET A-L=OE
Current Asset; ASSET-
Cash 24,200 321,650
Due for the customers 13,450
Notes Recievable 8,000
TOTAL CURRENT ASSET: 45,650
Non- Current Asset;
Delivery Van 200,000
Office Equipment 48,000
Furniture Equipment 28,000
TOTAL NON-CURRENT ASSET: 276,000
total asset: 321,650

LIABILITIES
Current Liabilities;
Note Payable 12,000
Due to Supplier 21,000
TOTAL CURRENT LIABILITIES: 33,000
Non- Current Liabilities;
Loan Payable 40,000
TOTAL NON-CURRENT LIABILITIES: 40,000
total liabilities: 73,000
total owner equity: 248,650

Case B.
SUPER MASSAGE CLINIC
STATEMENT OF FINANCIAL POSITION To get Owner Equity
FOR THE FISCAL YEAR ENDED DECEMBER 31, 200H A-L=OE
ASSET ASSET-
Current Asset; 214,790
Cash 68,900
Account Recievable 36,500
Allow. for Impairment Loss 1,200 35,300
Unused Office Supplies 2,350
Prepaid Advertising 12,000
Unexpired Insurance 6,500
Accrued Interest Income 2,340
Rental Recievable 15,000
Repair Supplies Inventory 4,000
TOTAL CURRENT ASSET: 146,390
Non-Current Asset;
Furniture and Equipment 76,000
Accumulated Depreciation 7,600 68,400
TOTAL NON-CURRENT ASSET: 68,400
total asset: 214,790

LIABILITIES
Current Liabilities;
Account payable 32,000
Notes Payable 16,500
Accrued Interest Expenses 1,200
Unearned commission 11,000
Salaries Payable 8,000
TOTAL CURRENT LIABILITIES: 68,700
total liabilities: 68,700
total OE: 146,090
A= L +OE
A-L=OE

allowance for impairment is a contra asset account = credit side

accounts receivable -allowance for impairment loss = net realizable value

prepaid advertising expense is a prepaid expense which is an expense paid in advance

unexpired expense
unused

furniture & equipment - accumulated depreciation = net book value

car 1,000,000 with its useful life of 10 years
1,000,000/10= 100,000
1,000,000-100,000 = 900,000

accrued interest expense - expense already incurred but not yet paid= liability

accrued interest income already earned but not yet collected = asset

unearned commission = liability

NELSON TRUCKING COMPANY

STATEMENT OF CHANGES IN OWNER'S EQUITY
FOR THE FISCAL YEAR ENDED JUNE 30, 200C

NELSON CAPITAL, JUNE 30, 200B 500,000

ADD: ADDITIONAL INVESTMMENT 20,000
BALANCE 520000
ADD: NET PROFIT (LEES NET LOSS) 73,100
 BALANCE 593100
LESS: NELSON PERSONAL 25,000
NELSON CAPITAL, JUNE 30, 200C 568,100

NELSON TRUCKING COMPANY

INCOME STATEMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 200C

TRUCKING SERVICE INCOME 267000

RENTAL INCOME 12000
TOTAL INCOME 279000
RENT 48000
REPAIRS & MAINTENANCE 36000
UTILITIES 12450
GAS & OIL 76000
TAXES & LICENSES 8450
INSURANCE 25000
TOTAL EXPENSES 205900
TOTAL NET PROFIT (LESS NET LOSS) 73,100

To get Owner Equity

LIABILITIES= EQUITY
73,000 248,650 CAPITAL
To get Owner Equity

LIABILITIES= EQUITY
68,700 146,090
a unused office supplies 320
supplies expense 320

b prepaid insurance 1800

insuransce expense 1800

c depreciation expense-office equipment 13,500

accumulated depreciation 13,500

d Rental Income 4000

 Unearned Rental Income 4000

e. Service Income 3,000

Unearned Income 3,000

f. Interest Recievable 100

Interest Income 100

g Impairment Loss 1,050

Allowance for Impairment loss 1,050

h. Salaries Expenses 12,000

Accrued Salaries Expenses/ Salaries Payable 12,000

Additional lang po ito mam: I'm not sure tama po ako wag po sana kayo magagalit
ako po ay naguguluhan sa not yet collected
collected it's either na collect muna di mo pa nakukuha , kasi po nasa kaya na po ang pera?
bakit po kailangan pang icollect po? kaya medyo naguguluhan po ako.

Assume that, trade payable= Account Reci

not yet collected
e. Cash 19,500
Account Payable 19,500

Account Rec- balance= not yet collected

22,500- 3,000= 19,500

binawasan ko po siya thru Adjuesting entry

inaassume ko lang po ito. If ever mali po ako paki correct nalang po ako mam, medyo
naguguluhan po talaga ko sa sa not yet collected if na earned na po ba or di na.
Diba po pag adjusting entry is nag aadjust ka na po at nasasayo na po pera.
 accrual basis accounting
revenues are rtecognized whenever they are performed regardless sof when they are collected
expenses are recognized whenever they are incurred and not when they are paid

a unused office supplies 320

supplies expense 320

b prepaid insurance 1800

insuransce expense 1800

c depreciation expense-office equipment 9000

accumulated depreciation 9000
10 years
july to dec
4500 200b
9000 200c
13500 accum depr
9000 depreciation exp 200d
22500 accum der 200d
22500 9000 31500
nbv as of 200E
92000
-31500
60500 nbv of office eqpt as of 200E

SOLUTION:
b. 7,200/12 600 per month paid to insurance
* Remaining Insurance 3 months
3X600= 1,800

months
per month payment of insurance
 c. annual
not yet earned 9000 depre of Owner Equity
depreciation as of 12/31/2000c
9000x 1/2 7/1- 12/31/200b
9000x 1 1/1- 12/31/200c
13,500

d. The total rental income is 12,000 but according to adjustment entry their
unearned rental income is 1/3 of the amount is collected we all know that unearned
income, not yet earned but not already collected. So we need to devide it the 1/3 and 12,000 to get th 1

12,000 / 1/3 or 3 equal of 4,000

e. INCOME METHOD ( SERVICE INCOME)

450,000 trial balance
447,000 actual earned
3,000 unearned

Service Income
3,000 450,000
447,000

450,000- 447,000= 3,000

Unearned Service Income

3,000
3,000

f. 6%x 20,000x30/360 =100

6%x20,000= 1,200
1,200x30= 36,000
36,000/360 100

g. Impairment loss (10%x22,500= 2,250)

2,250-1,200= 1,050

given and amount of impairment loss.

equivalent of 10 percent loss

h. Salaries Expenses
120,000
12,000
132,000
Salaries Payable
12,000 May na accure na salaries na 12,000
12,000 kaya madadagdagan ang
expenses.

( May nagamit during the period)

hey are collected

cost-salvage value/ depreciable life

92000-2000=90000/10=9000
9000 x 6/12 = 4500
monthly
1/3 and 12,000 to get th 1/3 of the amount is collected.