Zeljade VIllamar is a lawyer specializing in corporate tax law. trial balance taken

on Dec. 31, 2020

Villamar Legal Services

Trial Balance

December 31, 2020

Cash P 75,000

Office Supplies 8,000

Prepaid Insurance 12,000

Office Equipment 150,000

Computer Equipment 60,000

Notes Payable P 50,000

Accounts Payable 5,000

Villamar, Capital 114,000

Villamar, Withdrawals 35,000

Consulting Revenues 390,000

Rent Expense 50,000

Salaries Expense 120,000

Telephone Expense 10,000

Utilities Expense 39,000

P 559,000 P 559,000

Information for year-end adjustments:

a) Office supplies on hand at year-end amounted to P3,000.

b) On Jan. 1 of the current year, Villamar purchased office equipment which cost P150,000 with an expected

life of 5 years and no salvage value.

c) Computer equipment costing P60,000 with an expected life of three years and no salvage value was

purchased on July 1 of the current year.

d) A premium of P12,000 for a one-year insurance policy was paid on Dec, 1.

e) Salaries earned by legal aide, which have not yet been paid, amounted to P 3,000.

Required:

1. Journalize the adjusting entries.

2. Prepare the income statement, statement of owner's equity and balance sheet and cash flow

3.Journalize the closing entries and prepare the Post-Closing Trial balance.