Gerry Sanvictores, tax consultant, began his tax practice on Dec. 1, 2014. The transactions of the firm are as follows:

Dec 1 Sanvictores invested P150,000 in the firm.

Dec 3 Paid rentals amounting to P8,000.

Dec 5 Purchased supplies on account, P7,200.

Dec 7 Acquired P75,000 of office equipment, paying P37,000 down with the balance evidenced by a 10% note due in 30 days.

Dec 9 Paid P7,200 on account for supplies purchased.

Dec 10 Paid assistants salaries, P6,000.

Dec 20 Performed consulting services for cash, P20,000.

Dec 24 Billed clients for consulting services, P48,000.

Dec 28 Received P80,000 from Erap as advanced payment for services yet to be rendered.

Dec 31 Sanvictores withdrew P12,000 from the business.

Additional information:

1. Supplies on hand at year-end amounted to P4,700.

2. Salaries of P8,000 have accrued as of year-end.

3. Office equipment has a residual value of P3,000 and a 3-year useful life.

4. Sanvictores spent 30 hours working on a tax consultancy case in December 29 for Henares, with his work billed at P500 per hour.

5. Sanvictores rendered 10 out of a total 100 contract hours for Erap.

6. Bad debts are at 2% of accounts receivable.

Requirements:

1. Journalize the above transactions and prepare adjusting and closing entries. (1 point each)

2. Determine the adjusted balances of the following: (2 pts. each) Show your solution.

a. Net income

b. Total Liabilities

c. Net realizable value of accounts receivable

d. Total assets

e. Total Book value of all PPE items

f. Sanvictores, capital

g. Total expenses