Mangga Company
Worksheet
December 31, 2021
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Closing Entries Post Closing Trial Balance
Accounts Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash ₱534,000 ₱534,000 ₱534,000 ₱534,000
Accounts Receivable 350,000 350,000 350,000 350,000
Equipment 360,000 360,000 360,000 360,000
Accounts Payable ₱360,000 ₱360,000 ₱360,000 ₱360,000
Notes Payable 300,000 300,000 300,000 300,000
Harold, Capital 200,000 200,000 200,000 ₱287,000 487,000
Harold, Withdrawal 100,000 100,000 100,000 100,000
Royalty Income 120,000 ₱30,000 90,000 ₱90,000 ₱90,000
Service Income 600,000 600,000 600,000 600,000
Office Supplies Expense 80,000 ₱5,000 75,000 ₱75,000 75,000
Salaries Expense 140,000 30,000 170,000 170,000 170,000
Utilities Expense 16,000 16,000 16,000 16,000
Total ₱1,580,000 ₱1,580,000
Adjustments
Allowance for bad debts 21,000 21,000 21,000 21,000
Office Supplies 5,000 5,000 5,000 5,000
Accumulated Depreciation - Equipment 12,000 12,000 12,000 12,000
Interest Payable 9,000 9,000 9,000 9,000
Salaries Payable 30,000 30,000 30,000 30,000
Unearned Royalty Income 30,000 30,000 30,000 30,000
Interest Expense 9,000 9,000 9,000 9,000
Depreciation Expense - Equipment 12,000 12,000 12,000 12,000
Bad debt expense 21,000 21,000 21,000 21,000
₱107,000 ₱107,000 ₱1,652,000 ₱1,652,000 ₱303,000 ₱690,000 ₱1,349,000 ₱962,000
Profit 387,000 387,000
Grand Totals ₱690,000 ₱690,000 ₱1,349,000 ₱1,349,000 ₱690,000 ₱690,000 ₱1,249,000 ₱1,249,000
Mangga Company
Income Statement
December 31, 2021
Revenues
Royalty Income ₱90,000
Service Income 600,000
Total ₱690,000
Expenses
Office Supplies Expense 75,000
Salaries Expense 170,000
Utilities Expense 16,000
Interest Expense 9,000
Depreciation Expense - Equipment 12,000
Bad debt expense 21,000
Total 303,000
Profit ₱387,000
Mangga Company
Statement of Changes in Equity
December 31, 2021
Harold, Owner's Equity, 10/1/2021 ₱200,000
Add: Additional Investments by Harold ₱ -
Profit 387000 387,000
Total ₱587,000
Less: Withdrawals 100,000
Harold, Owner's Equity, 12/31/2021 ₱487,000
Mangga Company
Balance Sheet
December 31, 2021
Assets
Current Assets
Cash ₱534,000
Accounts Receivable 350,000
Allowance for bad debts (21,000)
Office Supplies 5,000
Total Current Assets ₱868,000
Non-current Assets
Equipment 360,000
Accumulated Depreciation - Equipment (12,000) 348,000
Total Assets ₱1,216,000
Liabilities
Current Liabilities
Accounts Payable ₱360,000
Interest Payable 9,000
Unearned Royalty Income 30,000
Salaries Payable 30,000
Notes Payable 300,000
Total Current Liabilities ₱729,000
Owner's Equity
Harold, Capital, 12/31/2021 487,000
Total Liabilities and Owner's Equity ₱1,216,000
Mangga Company
Statement of Cash Flows
For the Month Ended Dec. 31, 2021
Cash Flows from Operating Activities:
Cash received from royalty income ₱120,000
Cash received from customers 250,000
Payment for office supplies (80,000)
Payment for salaries (140,000)
Payment for utilities (16,000)
Net cash provided by (used in) operating activities ₱ 134,000
Cash Flows from Investing Activities:
- -
Net cash provided by (used in) investing activities ₱ -
Cash Flows from Financing Activities:
Cash received as investments by owner 200,000
Cash received from bank loan 300,000
Payments for withdrawals by owner (100,000)
Net cash provided by (used in) financing activities ₱ 400,000
Net Increase (Decrease) in Cash ₱534,000
Cash balance at the beginning of the period -
Cash balance at the end of the period ₱534,000
Mangga Company
Statement of Cash Flows
For the Month Ended Dec. 31, 2021
Cash Flows from Operating Activities:
Net Income ₱ 387,000
Add: Depreciation 12,000
Change in Operating Assets and Liabilities
Increase in AR (329,000)
Increase in Office Supplies (5,000)
Increase in Interest Payable 9,000
Increase in UI 30,000
Increase in SP 30,000
Net cash provided by (used in) operating activities ₱ 134,000
Cash Flows from Investing Activities:
- -
Net cash provided by (used in) investing activities ₱ -
Cash Flows from Financing Activities:
Cash received as investments by owner 200,000
Cash received from bank loan 300,000
Payments for withdrawals by owner (100,000)
Net cash provided by (used in) financing activities ₱ 400,000
Net Increase (Decrease) in Cash ₱ 534,000
Cash balance at the beginning of the period -
Cash balance at the end of the period ₱ 534,000
Mangga Company
Closing Entries
Date Account Titles and Explanation Debit Credit
2021
1 Dec. 31 Royalty Income ₱ 9 0 0 0 0 1
2 Service Income ₱ 6 0 0 0 0 0 2
3 Income Summary ₱ 6 9 0 0 0 0 3
4 To close income accounts to income summary 4
5 5
6 Dec. 31 Income Summary 3 0 3 0 0 0 6
7 Office Supplies Expense 7 5 0 0 0 7
8 Salaries Expense 1 7 0 0 0 0 8
9 Utilities Expense 1 6 0 0 0 9
10 Interest Expense 9 0 0 0 10
11 Depreciation Expense - Equipment 1 2 0 0 0 11
12 Bad debt expense 2 1 0 0 0 12
13 To close expense accounts to income summary 13
14 14
15 15
16 Dec. 31 Income Summary 3 8 7 0 0 0 16
17 Harold, Capital 3 8 7 0 0 0 17
18 To close the income summary to equity 18
19 19
20 20
21 Dec. 31 Harold, Capital 1 0 0 0 0 0 21
22 Harold, Withdrawal 1 0 0 0 0 0 22
23 To close the withdrawal account 23
24 24
25 25
Mangga Company
Reversing Entries
Date Account Titles and Explanation Debit Credit
2021
1 Interest Payable ₱ 9 0 0 0 1
2 Interest Expense ₱ 9 0 0 0 2
3 To record interest expense on the bank loan 3
4 4
5 5
6 Office Supplies Expense 5 0 0 0 6
7 Office Supplies 5 0 0 0 7
8 8
9 9
10 10
11 Unearned Royalty Income 3 0 0 0 0 11
12 Royalty Income 3 0 0 0 0 12
13 13
14 14
15 15
16 Salaries Payable 3 0 0 0 0 16
17 Salaries Expense 3 0 0 0 0 17
18 18
19 19
20 20