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    Exercise Adjusting Entries To Reversing Entries

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    JunmirMalicVillanueva
    The document contains trial balance information for two separate entities, Ian Di Co and I. Miguel, as of December 31, 2020 and October 31, 2020 respectively. For each entity, requirements include journalizing adjusting entries, preparing financial statements, journalizing closing entries, ruling accounts, and preparing a post-closing trial balance. For I. Miguel, reversing entries are also required for certain adjustments.

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    Exercise Adjusting Entries To Reversing Entries

    Uploaded by

    JunmirMalicVillanueva
    983 views2 pages
    The document contains trial balance information for two separate entities, Ian Di Co and I. Miguel, as of December 31, 2020 and October 31, 2020 respectively. For each entity, requirements include journalizing adjusting entries, preparing financial statements, journalizing closing entries, ruling accounts, and preparing a post-closing trial balance. For I. Miguel, reversing entries are also required for certain adjustments.

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    Exercise Adjusting entries to reversing entries.docx

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    The document contains trial balance information for two separate entities, Ian Di Co and I. Miguel, as of December 31, 2020 and October 31, 2020 respectively. For each entity, requirements include journalizing adjusting entries, preparing financial statements, journalizing closing entries, ruling accounts, and preparing a post-closing trial balance. For I. Miguel, reversing entries are also required for certain adjustments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    983 views2 pages

    Exercise Adjusting Entries To Reversing Entries

    Uploaded by

    JunmirMalicVillanueva
    The document contains trial balance information for two separate entities, Ian Di Co and I. Miguel, as of December 31, 2020 and October 31, 2020 respectively. For each entity, requirements include journalizing adjusting entries, preparing financial statements, journalizing closing entries, ruling accounts, and preparing a post-closing trial balance. For I. Miguel, reversing entries are also required for certain adjustments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    1 The Trial balance of the worksheet for Ian Di Co.

    at December 31, 2020,


    are as follows:

    Ian Di Company
    Worksheet Trial Balance
    December 31, 2020
    Account title Debit Credit
    Cash 270,000
    Accounts receivable 160,000
    Office supplies 110,000
    Equipment 600,000
    Accum. Depreciation 120,000
    Accounts payable 110,000
    Unearned fees 30,000
    Jan Di, capital 700,000
    Jan Di, drawing 60,000
    Fees revenue 300,000
    Salaries expense 50,000
    Miscellaneous expense 10,000 _______
    TOTAL 1,260,000 1,260,000
    Other data:
    1. Aphysical count of office supplies revealed that P80,000 was on hand.
    2. Depreciation expense is P 40,000
    3. Unearned fess amounted only to P5,000 as of year end.
    4. Accrued salaries is P40,000.

    REQUIRED:
    1. Journalize the adjusting entries.
    2. Journalize the closing entries.
    3. Prepare the Income statement and balance sheet.
    1. Prepare the Post closing Trial Balance.

    2 I. Miguel began operations to provide credit investigation services on October 31,


    2020. The trial balance column of the worksheet for Mr. Miguel at October 31, 2020
    are as follows:
    I. Miguel
    Trial Balance
    October 31, 2020
    Cash and cash equivalents P124,000
    Accounts Receivable 56,200
    Unused supplies 10,500
    Prepaid insurance 24,000
    Equipment 300,000
    Notes Payable 100,000
    Accounts Payable 123,500
    I. Miguel, Capital 200,000
    I. Miguel, Drawing 6,000
    Professional Fees Earned 136,200
    Salaries Expense 12,000
    Transportation Expense 13,000
    Rent Expense 12,000
    Other Expenses 2,000 ________
    TOTAL P559,700 P559,700
    Other data:
     Supplies on hand, P7,500.
     Depreciation for the period is P4,000.
     Interest accrued on notes payable issued on October 1, P3,000
     Insurance is for a period of six months taken Sept.30, 2020.
     Fees earned but unbilled totaled P7,500.

    REQUIRED:
    1. Enter the trial balance on a worksheet and complete the worksheet.
    2. Journalize the adjusting entries.
    3. Prepare an Income Statement, Owners’ Equity Statement and a Balance Sheet at October 31,
    2020.
    4. Journalize the closing entries from the financial statement column of the worksheet.
    5. Rule the accounts and prepare a post-closing trial balance
    6. Which of the adjustments prepared can be reversed? For these adjustments, prepare
    reversing entries.

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