Activity 2
Maria Jasmine began business on January 1, 2022 leasing the basement of a building. The
building tenants are her regular customers, some of them paying in advance.
The following unadjusted trial balance was prepared for Maria Jasmine as of December 31,
2023:
MARIA JASMINE PARK PLACE
UNADJUSTED TRIAL BALANCE
December 31, 2023
Account Account Title Debit Credit
Number
101 Cash P218,000
111 Accounts Receivable 180,000
111-A Allowance for Bad Debts P 3,000
116 Prepaid Insurance 4,000
120 Leasehold Improvements 504,000
120-A Accumulated Depreciation-Leasehold Improvements 42,000
121 Furniture and Fixtures 30,000
121-A Accumulated Depreciation-Furn. & Fixtures 3,000
201 Accounts Payable 35,000
202 12% Notes Payable 400,000
203 SSS & EC Premiums Payable 3,000
204 Pagibig Premiums Payable 2,000
205 Philhealth Premiums Payable 2,000
206 Withholding Taxes Payable 4,000
207 Advances from Tenants 15,000
301 Maria Jasmine, Capital 144,000
302 Maria Jasmine, Drawings 85,000
401 Parking Fees Income 854,000
402 Interest Income 14,000
506 Office Supplies Expense 8,000
507 Pagibig Premiums Expense 4,000
508 Philhealth Premiums Expense 4,000
509 SSS & EC Premiums Expense 4,000
510 Rent Expense 180,000
511 Salaries Expense 186,000
512 Taxes & Licenses 18,000
513 Utilities Expense 96,000 - .
Totals P1,521,000. P1,521,000
The following data were available on December 31, 2023.
a. Salary of a casual employee in the amount of P4,000 has been incurred as of December
31 but remains unpaid.
b. A count of the office supplies showed P1,000 remaining on hand as at December 31.
c. Three months parking fees were received in advance from 5 tenants on December 1,
2023.
d. Maria Jasmine made some improvements on the basement building on May 1, 2022.
Her lease contract runs for eight years.
e. Ms. Jasmine took out a six-month insurance policy for her business effective October 1,
2023.
f. Maria Jasmine invested P20,000 of the furniture and fixtures on January 1, 2022.
Estimated useful life of 5 years, scrap value of P5,000. The remaining amount was
acquired on June 30, 2023 with an estimated life of 5 years, no scrap value.
g. The accountant maintains an allowance for doubtful accounts equal to 5% of the
outstanding accounts receivable.
h. The note issued to Philippine National Bank was dated November 1, 2023 and is due
January 31, 2024.
i. 3% tax due for the last quarter receipts amounting to P500,000.
Requirement:
1) Prepare the adjusting entries based on the above information. Use a 2-column
worksheet.
2) Prepare an adjusted trial balance as of December 31, 2023.
