100 ACCOUNTING EXERCISE 5-1 Preparation of a Worksheet The Trial Balance of PEDRO JOSE Advertising Agency before adjustments are shown below. PEDRO JOSE ADVERTISING AGENCY Trial Balance October 31, 2020 ACCOUNT TITLES DEBIT CREDIT Cash P 260,000 Accounts receivable 28,800 Prepaid rent 70,000 Prepaid insurance 50,000 Office supplies 19,200 Office equipment 96,000 Accumulated depreciation P 14,000 Notes payable 30,000 Accounts payable 120,000 Salaries payable 30,000 Interest payable 2,000 PJ Capital 200.000 PJ Drawing Commission revenue 160.000 Total P 556.000 P 556.000 32.000 INSTRUCTIONS: 1. Prepare a worksheet 2. Adjustment data on October 31, 2020, the end of the month: (a) the uncollectible account is 5% of accounts receivable (1) Prepaid rent is for six months beginning September 1. (c) Expired insurance, P 36,000 (d) Unearned commission, P 8,000 (e) Unpaid salaries, P 24,000 3. Prepare an Income Statement, Capital Statement and balance sheet