Problem 1. BTS Accounting firm, started operation only on April 1, 2020 and it provides accounting and tax services to big establishments in Kalibo, Aklan. Its accounting period ends on Dec. 31, and on this date, adjusting entries are prepared. The unadjusted trial balance of BTS Accounting Firm at Dec. 31, 2020 follows: DBS Accounting Firm Trial Balance 31-Dec-20 P 120,000.00 60,000.00 50,000.00 24,000.00 240,000.00 40,000.00 800,000.00 1,300,000.00 P Cash Accounts Receivable Office Supplies Prepaid Insurance Office Equipment Furniture and Fixtures Land Building Accounts Payable Loans Payable DBS, Capital Professional fees Salaries Expense Advertising Expense Transportation Expense Utilities Expense Miscellaneous Expense Total 168,000.00 500,000.00 1,800,000.00 540,000.00 250,000.00 36,000.00 10,000.00 70,000.00 8,000.00 3,008,000.00 P P 3,008,000.00 Additional Information 1. An inventory of office supplies on December 31, 2020 showed supplies on hand totaled P38,000. 2. The prepaid insurance represents a one-year insurance policy on the building purchased on May 1, 2020. 3. The Office Equipment is estimated to have a 5-year life with salvage value of P40,000 starting from April 1, 2020. 4. The furniture and fixtures are acquired on April 1, 2020 and are estimated to last for 10 years with no salvage value. 5. The estimated useful life of the building is 20 yrs. with estimated salvage value of P100.000. (Assume that the completion date of the building is on April 1. 2020.) 6. The Professional fees include P40,000 of advances made by one client for services to be rendered in the second week of January. 7. The company's estimated allowance for uncollectible accounts is very minimal because it has not experienced defaulted accounts yet. The estimate for uncollectible accounts is 2% of Accounts Receivable. DIRECTION: Refer to your answers in the previous assessment (Adjusting Entries and Adjusted Trial Balance). In continuation, provide the following: 1. Worksheet 2. Income Statement and Balance Sheet 3. Post-Closing Entries 4. Post-Closing Trial Balance 5. Reversing Entries