Lance Ravales, tax consultant, began his practice on Dec. 1, 2019. The transactions of the firm are as follows:

Dec. 1 Ravales invested P150,000 in the firm.

2 Paid rent for December to Ramuel Realty, P8,000.

2 Purchased supplies on account, P7,200.

3 Acquired P75,000 of office equipment, paying P37,000 down with the balance due

in 30 days.

8 Paid P7,200 on account for supplies purchased.

14 Paid assistant's salaries for two weeks, P6,000.

20 Performed consulting services for cash, P20,000.

28 Paid assistant's salaries for two weeks, P6,000.

30 Billed clients for December consulting services, P48,000.

31 Ravales withdrew P12,000 from the business.

Required:

The business uses the following accounts:

Cash

Accounts Receivables

Supplies

Office Equipment

Accumulated Depreciation

Accounts Payable

Salaries Payable

Ravales, Capital

Ravales, Drawing

Income Summary

Consulting Revenues

Salaries Expense

Supplies Expense

Rent Expense

Depreciation Expense

Journalize the December transactions and post to the ledger.

Prepare and complete the worksheet using the following information:

Supplies on hand at December 31 amounted to P4,700.

Salaries of P1,800 for December.

Depreceiation is P800 for December.

Ravales has spent 20 hours on a tax fraud case during December. When completed in December 31, his work will be billed at P500 per hour.

Journalize and post adjusting entries.

Prepare income statement, a statement of changes in equity; a balance sheet and a statement of cash flows.

Journalize and post closing entries and prepare post-closing trial balance.