Problem # 1
Adjusting Entries
July 1 Cash 270,000 Unearned Revenue 90,000
Unearned Revenue 270,000 Consulting Revenue 90,000
October 1 Prepaid Advertising 135,000 Advertising Expense 45,000
Cash 135,000 Prepaid Advertising 45,000
December 31 Salaries Expense 230,000 Salaries Expense 230,000
Salaries Payable Salaries Payable 230,000
January 4 Salaries Expense 620,000 Salaries Payable 230,000
Cash 620,000 Salaries Expense 390,000
Cash 620,000.00
July 1 Cash 270,000 Consulting Revenue 180,000
Service Revenue 270,000 Unearned Service Revenue 180,000
October 1 Advertising Expense 135,000 Prepaid Advertising 90,000
Cash 135,000 Advertising Expense 90,000
December 31 Salaries Expense Salaries Payable 230,000
Salaries Payable Salaries Expense 230,000
Problem #2
Adjusting Entries
April 1 Prepaid Equipment Rent 36,000 Equipment Rent Expense 27,000
Cash 36,000 Prepaid Equipment Rent 27,000
July 1 Cash 72,000 Unearned Programming Revenue 18,000
Unearned Service Revenue 72,000 Programming Revenue 18,000
April 1 Equipment Rent Expense 36,000 Prepaid Equipment Rent 9,000
Cash 36,000 Equipment Rent Expense 9,000
July 1 Cash Programming Revenue 54,000
Service Revenue Unearned Programming Revenue 54,000
January 1 Equipment Rent Expense 54,000
Prepaid Equipment Rent 54,000
Unearned Programming Revenue 9,000
Programming Revenue 9,000
Date Account Title and Explanation Dr. Cr.
2022
Dec-31 Printing Revenues ₱8,130,000.00
Income Summary ₱8,130,000.00
# To close revenue account to income summary
Income Summary 3,730,000
Supplies Expense 710,000
Salaries Expense 2,270,000
Depreciation Expense 250,000
Repairs Expense 10,000
Telephone Expense 20,000
Utilities Expense 80,000
Interest Expense 300,000
Miscellaneous Expense 90,000
# To close expenses
Income Summary 4,400,000
Labalan, Capital 4,400,000
# To close the income summary account
Labalan, Capital 1,500,000
Labalan, Withdrawals 1,500,000
# To close the withdrawals account
Problem #4
Analysis of the Income Summary Account
1. The debit side amounting to P197,000 is the
expense account summary and the credit side
amounting to P190,000 is the income account
summary.
2. The loss of Rosemarie Español Services is P7,000 as the outcome is a debit balance, which indicates a loss.
3
2022
December 31 Income Summary 7,000
Capital 7,000
Date Account Title and Explanation Dr. Cr.
2022
Dec-31 Service Revenues ₱1,065,000.00
Income Summary ₱1,065,000.00
# To close revenue account to income summary
Income Summary 405,000
Salaries Expense 295,000
Supplies Expense 20,000
Depreciation Expense 30,000
Depreciation Expense 60,000
# To close expenses
Income Summary 660,000
Pascual, Capital 660,000
# To close the income summary account
Pascual, Capital 524,000
Pascual, Withdrawals 524,000
# To close the withdrawals account
Problem #6
Preparing the Reversing Entries
2022
December 31 Prepaid Expense 25,000
Prepaid Insurance 25,000
31 Interest Income 17,000
Interest Receivable 17,000
31 Office Supplies Expense 50,000
Office Supplies 50,000
31 Depreciation Expense 125,000
Accumulated Depreciation 125,000
31 Salaries Payable 35,000
Salaries Expense 35,000
31 Unearned Rent Revenues 80,000
Rent Revenues 80,000