a.

Bank note issued last October 1, 2019 maturing in 20 months with 3% interest

b.

The useful life of the building is 20 years with a salvage value of Php 50,000

c.

Paid employees salaries and commission for October 17 to October 31, 2019

d.

It is expected that 5% of the accounts from Ms. Silvanna is deemed uncollectible.

e.

Records show that there are still remaining Php 3,480 worth of art and crafts supply.

f.

Purchase of insurance last October 15, 2020 was not recorded. The insurance contract is worth 72,000 and is valid until October 15, 2023.

Requirements:

1

Prepare the necessary journal entries for the month ending October 31, 2019

2

Prepare the adjusted trial balance

3

Prepare the (1) Income Statement; and (2) Statement of Financial Position for October 2019