Priscilla;s Boutique & Dress Shop

Unadjusted Trial Balance

December 31, 2020

101CashP191,968.50

111Accounts Receivable17,500.00-

131Prepaid Insurance12,000.00

142Building580,000.00

145Furniture & Fixtures 120,000.00

150Equipment230,000.00

201Accounts PayableP156,608.50

202Notes Payable88,000.00

302Priscilla's, Capital700,000.00

303Priscilla's, Drawing10,000.00

412Service Income340,000.00

413Unearned Revenue10,000.00

611Salary Expense75,000.00

612Supplies Expense45,000.00

613Light and water7,500.00

614Miscellaneous Expense5,640.00________________________

P1,294,608.50P1,294,608.50

==========================

Adjusting Entries:

1. Building is acquired October 1, estimated useful life of 20 years.
2. Equipment is acquiredSeptember 1, estimated useful life of 10 years.
3. Furniture and fixtures is acquired November 1 estimated useful life of 5 years
4. 5% of accounts receivable at the end of the year is determined to be uncollectible.
5. At the end of the year, insurance has already lapsed.
6. Total electricity and water bills today P3,450.00 at the end of the month.
7. Unrecorded salaries of four employees P20,000.00, the following deductions are 3% for SSS Premium, 2% for Medicare, 4% for withholding tax based on the basic salary.

Provision should be made for the following accounts:

Account CodeAccount Title

151Accumulated Depreciation - Building

152Accumulated Depreciation - Equipment

153Accumulated Depreciation - Furniture & Fixtures

154Allowance for Doubtful Accounts

203SSS Premium Payable

204Medicare Payable

205Withholding Taxes Payable

206Accrued Salaries Payable

207Utilities Payable

615Depreciation Expense- Building

616Depreciation Expense -Equipment

617Depreciation Expense - Furniture and Fixtures

618Bad Debts Expense

619Insurance Expense

Requirements:

1. Can you prepare the Adjusting Entries?
2. Can you prepare Income Statement?
3. Can you make the Balance Sheet?
4. Can you make a Statement of Owner's Equity?