ACTIVITY SHEET NO. 17, 18

In December 2020, the following transactions to place as follow:

2Zwuey Xi invested P60,000cash to start his law practice.

4A one-year insurance effective December 1 was paid, P6,000.

6Office furniture worth P15,000 was purchased on account from Ez Furniture Co.

8Office and computer supplies costing P2,500 was bought for cash.

11Received from City bank P60,000 for loan applied to be used in his law practice.

14Purchased on credit a desktop computer unit and printer for office use worth P60,000 for MSI.

16Received P12,500 cash for legal services rendered to Jose Lopez.

18Paid P1,000 for Miscellaneous expense incurred.

20Received P10,500 cash for legal services rendered to clients

22Advertising placed on a local paper for three months effective Dec. 1, was paid, P3,600

24Various clients were billed for professional services, P16,400.

25Micro System Inc was partially paid, P45,000.

26Collected accounts various clients, P7,500.

27Light water and telephone use for the month of Dec. was paid, P1,500.

28Salary was paid P5,500.

29Withdrew P12,000 for personal use.

30Received P5,000 as advance fees for legal services to be rendered the next year.

Required:

A.

1.Posting of entries to the general ledger with the following account numbers of Xi Law Office as follows:

Cash 1001, Accounts Receivables 1002, Office Supplies 1003, Prepaid insurance, 1004, Furniture and equipment 1005, Accounts payables 2001, Notes payable-Bank 2002, Zwuey Xi, Capital 3001, Zwuey Xi, Drawing 3002, Professional Fees 4001, Salaries expense 5001, Utilities expense 5003, Advertising Expense 5004, Miscellaneous Expense 5008.

2.Unadjusted Trial Balance.

3.Journalizing and posting of Adjusting entries as of December 31, 2019.

a.The one-year P6,000 insurance paid effective December 1.

b.Office rental of P4,000 for the month of December was still unpaid.

c.Interest of 18% per annum on P60,000 bank loan granted on December 11, has render next year.

d.Advertising placement of P3,600 for three months was effective on December 1.

e.Fees of P5,000 collected in advance on December 30 will be for services to be rendered next year.

f.Office supplies unused at the end of the month P1,600.

g.Furniture and Equipment are estimated to have a useful life of ten years. It was decided to provide one-month depreciation for December.

B.

1.Adjusted Trial balance.

2.Statement of Financial Performance

3.Statement of Change in Owners' Equity

4.Statement of Financial Position

5.Journalizing of post closing entries

6.Post closing Trial Balance