DIANA MARGALLO INTERIOR DECORATOR

WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 2018

Account UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT FINANCIAL POSITION
No. ACCOUNT TITLE DEBITS CREDITS DEBITS CREDITS DEBITS CREDITS DEBITS CREDITS DEBITS CREDITS
Cash 186,000 186,000 186,000
Accounts Receivable 71,200 71,200 71,200
Prepaid Rent 19,200 1) 7,200 12,000 12,000
Equipment 177,500 177,500 177,500
Accumulated Depreciation-Equipment 4,750 2) 7,125 11,875 11,875
Accounts Payable 18,750 18,750 18,750
Notes Payable 12,000 12,000 12,000
Margallo, Capital 300,000 300,000 300,000
Margallo, Drawings 19,000 19,000 19,000
Professional Fees 276,300 276,300 276,300
Salaries Expense 82,500 3) 12,000 94,500 94,500
Supplies Expense 17,000 6) 5,000 12,000 12,000
Utilities Expense 37,800 37,800 37,800
Interest Expense 1,600 4) 80 1,680 1,680
Totals 611,800 611,800

Rent Expense 1) 7,200 7,200 7,200

Depreciation Expense-Equipment 2) 7,125 7,125 7,125
Salaries Payable 3) 12,000 12,000 12,000
Interest Payable 4) 80 80 80
Doubtful accounts Expense 5) 3,560 3,560 3,560
Allowance for doubtful accounts 5) 3,560 3,560 3,560
Supplies 6) 5,000 5,000 5,000
Totals 34,965 34,965 634,565 634,565 163,865 276,300 470,700 358,265
NET INCOME 112,435 112,435
276,300 276,300 470,700 470,700
GENERAL JOURNAL
ADJUSTING ENTRIES: DEBIT CREDIT

1) Rent Expense 7,200

Prepaid Rent 7,200
(19,200/8 x 3)
#
2) Depreciation Expense-Equipment 7,125
Accumulated Depreciation-Equipt 7,125
(177,500-35,000 x 5%)
#
3) Salaries Expense 12,000
Salaries Payable 12,000
#
4) Interest Expense 80
Interest Payable 80
(12,000 x .12 x 20/360)
#
5) Doubtful Accounts Expense 3,560
Allowance for doubtful accounts 3,560
(71,200 x 5%)
#
6) Supplies 5,000
Supplies Expense 5,000
#
 Diana Margallo, Interior Decorator
Income Statement
For the Year Ended December 31, 2018

REVENUES:
Professional Fees ₱ 276,300
EXPENSES:
Salaries Expense ₱ 94,500
Utilities Expense 37,800
Supplies Expense 12,000
Rent Expense 7,200
Depreciation Expense-Equipment 7,125
Doubtful Accounts Expense 3,560
Interest Expense 1,680 163,865
NET INCOME ₱ 112,435

Diana Margallo, Interior Decorator

Capital Statement
For the Year Ended December 31, 2018

Margallo, Capital Jan. 1 ₱ 300,000

Add: Net income 112,435
Total 412,435
Less: Margallo, Drawings 19,000
Margallo, Capital December 31 ₱ 393,435

Diana Margallo, Interior Decorator

Statement of Financial Position
December 31, 2018

ASSETS
Current Assets:
Cash ₱ 186,000
Accounts Receivable ₱ 71,200
Less: Allowance for Doubtful Accounts 3,560 67,640
Prepaid Rent 12,000
Supplies 5,000 ₱ 270,640

Non-Current Assets:
Equipment ₱ 177,500
Less: Accumulated Depreciation 11,875 165,625
Total Assets ₱ 436,265

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
Accounts Payable ₱ 18,750
Notes Payable 12,000
Salaries Payable 12,000
Interest Payable 80 ₱ 42,830

Owner's Equity:
Margallo, Capital December 31, 2018 393,435
Total Liabilities and Owner's Equity ₱ 436,265
 CLOSING ENTRIES:

1 Close the Revenues

Professional Fees 276,300

Income and Expense Summary 276,300

2 Close the Expenses

Income and Expense Summary 163,865

Salaries Expense 94,500
Utilities Expense 37,800
Supplies Expense 12,000
Rent Expense 7,200 Margallo, Capital
Depreciation Expense-Equipment 7,125 300,000 Jan-01
Doubtful Accounts Expense 3,560 4 19,000
Interest Expense 1,680 112,435 3
19,000 412,435
3 Close the Income and Expense Summary account

Income and Expense Summary 112,435 393,435 Dec-31

Margallo, Capital 112,435

4 Close the Drawing account Income and Expense Summary

276,300 1
2 163,865
Margallo, Capital 19,000 4 112,435
Margallo, Drawings 19,000 276,300 276,300
 Diana Margallo, Interior Decorator
Post-Closing Trial Balance
December 31, 2018

DEBITS CREDITS
Cash 186,000
Accounts Receivable 71,200
Allowance for Doubtful Accounts 3,560
Prepaid Rent 12,000
Supplies 5,000
Equipment 177,500
Accumulated Depreciation - Equipment 11,875
Accounts Payable 18,750
Notes Payable 12,000
Salaries Payable 12,000
Interest Payable 80
Margallo, Capital 393,435
Totals ₱ 451,700 ₱ 451,700

REVERSING ENTRIES:

Jan-01 Supplies Expense 5,000

Supplies 5,000

Reversing entries are done for Prepaid Expense (Expense Method) and Unearned Income (Income Method)