topic 9

The Income Statement section of Susan Casulla Travel and Tours' worksheet for the month ended January 31, 20A is presented below: Susan Casulla Travel and Tours Worksheet For the month ended 31 January 20A Income Statement Debit Credit P 120,000 Service Income Uncollectible Account Expense Taxes and Licenses Office Rental Expense Salaries Expense Insurance Expense Depreciation Expense Total Profit Total P 2,500 8,000 10,000 25,000 3,000 5,000 P 53,500 66,500 P 120,000 P120,000 P 120,000 The Balance Sheet section of the same worksheet, Susan Casulla, Capital showed a balance of P254,000 and Drawing account of P30,000 respectively. Required: 1. Closing Entries 2. Single-Step Income Statement 3. Statement of Changes in Owner's Equity The following adjusting entries were prepared at the end of the accounting period. (Explanation are intentionally omitted) ADJUSTING ENTRIES REVERSING ENTRIES P 750 1. Accrued Interest Income Interest Income P 750 2. Prepaid Insurance Insurance Expense P 500 P 500 3. Rent Expense Accrued Rent Expense P1,300 P1,300 4. Rent Income Unearned Rent Income P1,800 P1,800 5. Rent Expense Prepaid Rent P 650 P 650 6. Salaries and Wages Accrued Salaries and Wages P1,000 P1,000