ADJUSTING ENTRIES

Juan de la Cruz System Services $($JDCSS$)$ began professional practice as a system analyst on July $01,2022.$ He plans to

prepare his annual financial statement. During the year, the owner completed these transactions:

July $1.$ Owner invested PHp $1,000,000$ cash along with computer equipment worth Php$.100,000$ only.

July $1.$ Paid php$.150,000$ for the rent of office space.

July $31.$ Purchased php$.12,000$ of furniture on credit $($due within $90$ days$).$

July $31.$ Completed a work for a client and immediately collected the php$.320,000$ cash.

August $01.$ Completed work for a client and sent a bill for php$.270,000$ to be paid within $30$ days.

August $03.$ Purchased supplies for php$.18,000$ in cash.

August $31.$ Paid an assistant php$.36,200$ cash as wages for $60$ days.

Sept $01.$ Collected php$.75,000$ on the amount owed by the client.

Sept $30.$ Paid php$.12,000$ cash to settle the liability on the furniture purchased.

Oct $05.$ Owner withdrew php$.5,000$ cash for personal use.

Oct $15.$ Completed work for another client who paid only php$.40,000$ for $50\%$ of the system design.

Oct $31.$ Paid salary of assistant php$.37000.$

Nov $30.$ Paid taxes and licenses for the month $3,500$

December $31.$ Received PLDT bill, php$.1,800$ and Meralco bill php$.3,800.$

Additional Information at the end of December $31,2022$:

$1.$ The company estimates that $5\%$ of the accounts receivable is deemed uncollectible.

$2.$ The remaining supplies on hand is amounting to $3,500.$

$3.$ The rent was good for nine months.

$4.$ The computer equipment has a useful life of three years. No depreciation has yet been made during the year.

$5.$ The furniture has a $20\%$ annual depreciation.

Requirements:

Prepare the journal entries, Adjusting Journal Entries, Posting, Unadjusted Trial balance, adjustements and Ajusted Trial Balance