Worksheet Preparation

A trial balance and additional information for adjustments appear below for Carla Auto Repair Shop after one year of operation.

CARLA AUTO REPAIR SHOP

TRAIL BALANCE

December 31, 2015

Debit Credit

Cash On Hand Php 25,000

Cash In Bank 45,000

Accounts Receivable 49,000

Notes Receivable 30,000

Prepaid Insurance 15,000

Machinery & Equipment 150,000

Furniture & Fixtures 25,000

Accounts Payable Php 26,000

Bella, Capital 50,000

Bella, Personal 5,000

Repair Income 275,000

Referral Income 15,000

Salaries Expense 45,000

Supplies Expense 600

Rent Expense 55,000

Taxes & Licenses Expense 7,250.00

Utilities Expense 46,750

___________________ ------------------------------------

Total Php 498,850.00 Php 498,850.00

The following information pertaining to the year-end adjustments is available.

1. 10% of the accounts receivable should be recognized as doubtful of collection.

2. Insurance premium recorded as Prepaid Insurance was for six months starting Sept. 1, 2012.

3. Supplies still on hand, Php 200.00

4. The note receivable represents a 60-day 12% note received from the customer on Nov. 16, 2012.

5. Machinery and equipment were acquired April 1, 2012 with an estimated useful life of 10 years and scrap value of Php 50,000.

6. The furniture and fixtures were acquired January 1, 2012 with an estimated useful life of 10 years and a scrap value of Php2,500.

7. The notes payable is for 60 days at 18% due to Republic Finance dated December 1, 2012.

8. December gross receipts of Php 4,333.33 is subject to 3% percentage tax.