EXERCISE 5-1 Preparation of a Worksheet The Trial Balance of PEDRO JOSE Advertising Agency before adjustments are shown below:

SAMPLE OF WORKSHEET

>>>>> SAMPLE OF INCOME STATEMENT

>>>>> SAMPLE OF CAPITAL STATEMENT

>>>>> SAMPLE OF BALANCE SHEET

PLEASE DO IT IN A DIGITAL WAY NOT HANDWRITTEN. I'm begging you because my eyes are really bad.

The Trial Balance of PEDRO JOSE Advertising Agency before adjustments are shown below: CREDIT PEDRO JOSE ADVERTISING AGENCY Trial Balance October 31, 2020 DEBIT P 260,000 28,800 70,000 50,000 19,200 96,000 ACCOUNT TITLES Cash Accounts receivable Prepaid rent Prepaid insurance Office supplies Office equipment Accumulated depreciation Notes payable Accounts payable Salaries payable Interest payable PJ Capital PJ Drawing Commission revenue Total P 14,000 30,000 120,000 30,000 2,000 200,000 32,000 160.000 P 556.000 P 556.000 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 (6) Prepaid rent is for six months beginning September 1. (c) Expired insurance, P 36,000. (d) Unearried cornmission, P 8,000. (e) Unpaid salaries, P 24,000. 3. Prepare an Income Statement, Capital Statement and balance sheet. Marianne Reyes Information Systems Company Work Sheet For the Year Ended December 31, 2020 Account Title Trial balance debit credit 64,000 350,000 116,000 42,000 12,000 400,000 590,000 177,000 Adjustments Adjusted Trial Balance Income Statement debir credit Debit credit debit credit 64,000 350,000 116.000 a)11.000 31,000 11.000 11,000 400,000 590,000 c) 59,000 236,000 Balance Sheet debit credit 64,000 350,000 116,000 31,000 11,000 400,000 590,000 236,000 450,000 450,000 450,000 270,000 c) 90.000 360,000 380,000 Cash Notes Receivable Accounts Receivable Supplies Prepaid Insurance Land Building Accumulated depreciation Building Equipment Accumulated depreciation Equipment Accounts Payable Uneamed consulting revenues M.Reyes, Capital M.Reyes, Drawing Consulting Revenue Salaries Expense Rent Expense Repairs Expense Miscellaneous Expense 413,000 413,000 204,000 by83,000 413.000 121.000 121,000 805,000 805.000 50,000 50,000 b)83.000 1,191,000 d)12.000 805,000 50,000 1,108,000 770,000 25,000 71,000 37.000 2.977.000 2977.000 782,000 25,000 71.000 37,000 1,191,000 782,000 25,000 71,000 37,000 (a 11.000 c)59.000 11,000 59,000 11,000 59,000 c90,000 90,000 90,000 Supplies Expense Depreciation expense Building Depreciation expense- equipment Salaries Payable Interest receivable Interest Income Insurance Expense e) 14.000 d)12.000 14,000 e 14.000 1,000 270.000 3.152.000 f/1.000 270.000 12,000 12000 14,000 14,000 14,000 1,000 3.152,000 1,076,000 1,205,000 2,076.000 1.947.000 129,000 129,000 1,205,000 1,205,000 2,076,000 2076,000 Net Income MARIANNE REYES INFORMATION SYSTEMS COMPANY STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2020 Consulting Revenue P 1,191,000 Less: Operating Expenses Salaries Expense P 782,000 Depreciation expense-Equipment 90,000 Depreciation expense-Building 59,000 Repair Expense 71,000 Rent Expense 25,000 Supplies Expense 11,000 Insurance Expense 1,000 Miscellaneous Expense 37,000 1,076,000 Net Income P 129,000 MARIANNE REYES INFORMATION SYSTEMS COMPANY STATEMENT OF CHANGES IN OWNER'S EQUITY FOR THE YEAR ENDED DECEMBER 31, 2020 P 805,000 Capital, January 1, 2020 Add: Additional investments Net income Total Less: Withdrawal Increase in Capital Capital, December 31, 2020 P.0- 129.000 P 129,000 50,000 79,000 P 884,000 MARIANNE REYES INFORMATION SYSTEMS COMPANY BALANCE SHEET DECEMBER 31, 2020 ASSETS Current Assets Cash P 64,000 Notes Receivable 350,000 Accounts Receivable 116,000 Interest Receivable 14,000 Supplies 31,000 Prepaid Insurance 11,000 Non-current Assets Land P 400,000 Building P 590,000 Less: Accumulated Depreciation 236.000 354,000 Equipment P 450,000 Less: Accumulated Depreciation 360,000 90.000 TOTAL ASSETS P 586,000 844,000 P1,430,000 LIABILITIES AND OWNER'S EQUITY Current Liabilities Accounts Payable Salaries Payable Unearned Consulting Revenue M. Reyes, Capital P 413,000 12,000 121.000 P 546,000 884,000 TOTAL LIABILITIES AND OWNER'S EQUITY P1,430,000