DO IT! 4 Balance Sheet Classifications Fill in your answers. Name of Account Normal Balance Debit Credit ACCOUNT CLASSIFICATION -Asset - Liability -Equity Example: Asset If Asset or Liability, state if --Current -Non-Current Debit Non-Current 1. Buildings 2. Accounts Payable 3. Castro, Drawings 4. Equipment 5. Allowance for Doubtful Accounts 6. Notes Payable 7. Cash in Bank 8. Furniture and Fixtures 9. Taxes Payable 10. Notes Receivable 11. Cash on hand 12. Land 13. Accounts Receivable 14. Accumulated Depreciation 15. Castro, Capital DO IT! 3 Correcting Entries CASE 1: Bought equipment amounting to 56,200 on account. Entry made: Debit: Equipment 56,200.00 Credit: Cash 56,200.00 Correct entry: Debit: Credit: Correcting entry: Debit: Credit: CASE 2: Rendered services for cash amounting to 50,000. Entry made Debit: Accounting Receivable 50,000.00 Credit: Service Revenue 50,000.00 Correct entry Debit: Credit: Correcting entry: Debit: Credit CASE 3: Collected accounts receivable from customer amounting to 15, 100. Entry made Debit: Cash 11,500 Credit: Accounts Receivable 11 500 Correct entry Debit: Credit: Correcting entry: Debit: Credit CHAPTER 4: DO IT! 1 Worksheet Event Buddies had the following account balances on December 31, 2019: Cash P 181,100 Accounts receivable 300,000 Service Revenue 401,600 Blessie, Capital Jan. 1, 2019 961,900 Salaries Expense 190,000 Taxes and licenses 45,000 Equipment 500,000 Utilities expense 82,400 Accounts payable 135,000 Prepaid Rent 170,000 Blessie, withdrawal 30,000 Additional information: . . Accrued salaries at December 31, 2019 amounted to P30,700. 5% of the accounts receivable is estimated to be uncollectible. Depreciation on Equipment for the year is P100,000. P60,000 of the Prepaid rent has expired into expense by December 31, 2019. . . Requirements: Prepare the 10-column Worksheet. Use the format given on the next page. EVENT BUDDIES WORKSHEET December 31, 2019 Account Account Name Unadjusted Trial Balance Debit Credit Adjusting Entries Adjusted Trial Balance Code Statement of Financial Performance Debit Credit Statement of Financial Position Debit Credit Debit Credit Debit Credit Cash Accounts Receivable Allowance for Bad Debts Prepaid Rent Equipment Acumulated Depreciation Accounts payable Salarles Payable Blessie, Capital Blessie Withdrawal Service Revenue Taxes and licenses Ultes expense Salaries Expense Bad Debts Depreciation Expense Rent Expense TOTAL NET INCOMELOSS DO IT! 2 Closing Entries After preparing worksheet, prepare the CLOSING JOURNAL ENTRIES necessary to close the nominal/temporary accounts. STEP 1: CLOSE THE REVENUE ACCOUNT TO INCOME SUMMARY ACCOUNT STEP 2: CLOSE THE EXPENSES ACCOUNTS TO INCOME SUMMARY ACCOUNT STEP 3: CLOSE THE INCOME SUDARY ACCOUNT TO CAPITAL ACCOUNT STEP 4: CLOSE THE DRAWING ACCOUNT TO CAPITAL