STEADY ANSWERING SERVICE

Trial Balance
December 31, 200b
Balance
Particulars Debit
Cash 21,600
Accounts Receivable 12,500
Office Supplies 1,800
Prepaid Insurance 2,400
Office Equipment 34,000
Accumulated Depreciation
Accounts Payable
Unearned Revenue
T. Ramos, Capital
T. Ramos, Drawing 4,000
Service Revenue
Salary Expense 15,000
Rent Expense 4,000
P 95,300
Balance
Credit

6,000
7,000
4,600
48,700

29,000

P 95,300
At the end of the period, the following adjusting entries were made:

Journal Entries
Date Particulars Debit
Dec. 31 Insurance Expense P 400
Prepaid Insurance
To record expired insurance

31 Office Supplies Expense 1,050

Office Supplies
To record supplies on hand

31 Depreciation Expense 1,000

Accumulated Depreciation
To record depreciation expense

31 Salary Expense 1,200

Salary Payable
To record accrued wages

31 Accounts Receivable 3,000

Service Revenue
To record revenues earned for rendered service

31 Unearned Revenue 1,600

Service Revenue
To record earned portion of unearned revenue
P 8,250
Credit

P400

1,050

1,000

1,200

3,000

1,600

P 8,250
 Prepaid Insurance Salaries Payable Service Revenue
2,400 400 1,200
2,000
Unearned Revenue
Accounts Receivable 1,600
12,500
3,000 Salaries Expense
15,500 15,000
1,200
Office Supplies 16,200
1,800 1,050
750 Insurance Expense
400
Accumulated Depreciation
6,000 Office Supplies Expense
1,000 1,050
7,000
Depreciation Expense
1,000
 Service Revenue
29,000
3,000
1,600
33,600

Salaries Expense

Insurance Expense

Office Supplies Expense

Depreciation Expense
 STEADY ANSWERING SERVICE
Worksheet
December 31, 200b
Trial Balance Adjustments
Account Title Debit Credit Debit
Cash 21,600
Accounts Receivable 12,500 3,000
Office Supplies 1,800
Prepaid Insurance 2,400
Office Equipment 34,000
Accumulated Depreciation 6,000
Accounts Payable 7,000
Unearned Revenue 4,600 1,600
T. Ramos, Capital 48,700
T. Ramos, Drawing 4,000
Service Revenue 29,000
Salary Expense 15,000 1,200
Rent Expense 4,000
TOTAL P 95,300 P 95,300
Insurance Expense 400
Office Supplies Expense 1,050
Depreciation Expense 1,000
Salary Payable
TOTAL P 8,250
SERVICE

00b
Adjustments Adjusted Trial Balance
Credit Debit Credit
P 21,600
15,500
1,050 750
400 2,000
34,000
1,000 P 7,000
7,000
3,000
48,700
4,000
4,600 33,600
16,200
4,000

400
1,050
1,000
1,200 1,200
P 8,250 P 100,500 P 100,500
 STEADY ANSWERING SERVICE
Adjusted Trial Balance
December 31, 200b
Balance
Particulars Debit Credit
Cash P 21,600
Accounts Receivable 15,500
Office Supplies 750
Prepaid Insurance 2,000
Office Equipment 34,000
Accumulated Depreciation P 7,000
Accounts Payable 7,000
Unearned Revenue 3,000
T. Ramos, Capital 48,700
T. Ramos, Drawing 4,000
Service Revenue 33,600
Salary Expense 16,200
Rent Expense 4,000
Insurance Expense 400
Office Supplies Expense 1,050
Depreciation Expense 1,000
Salary Payable 1,200
P 100,500 P 100,500
 STEADY ANSWERING SERVICE
Income Statement
For the month ended December 31, 200b
Revenue:
Service Revenue
Expenses:
Salary Expense P 16,200
Rent Expense 4,000
Insurance Expense 400
Office Supplies Expense 1,050
Depreciation Expense 1,000
Net Income
P 33,600

22,650
P 10,950
 STEADY ANSWERING SERVICE
Statement in Changes in Owner's Equity
For the month ended December 31, 200b
T. Ramos, Capital, beginning
Add: Net Income

Less: T. Ramos, Drawing

T. Ramos, Capital, ending
P 48,700
10,950
59,650
-4,000
P 55,650
 STEADY ANSWERING SERVICE
Balance Sheet
December 31, 200b
ASSETS
Cash P 21,600
Accounts Receivable 15,500
Office Supplies 750
Prepaid Equipment 2,000
Office Equipment 34,000
Accumulated Depreciation
Total Assets P 66,850

LIABILITIES and OWNER'S EQUITY

Accounts Payable
Salary Payable

T. Ramos, Capital
Unearned Revenue
Total Liabilities and Owner's Equity
 7,000

7,000
1,200

55,650
3,000
P 66,850
 STEADY ANSWERING SER
Worksheet
December 31, 200b
Trial Balance Adjustments
Account Title Debit Credit Debit
Cash 21,600
Accounts Receivable 12,500 3,000
Office Supplies 1,800
Prepaid Insurance 2,400
Office Equipment 34,000
Accumulated Depreciation 6,000
Accounts Payable 7,000
Unearned Revenue 4,600 1,600
T. Ramos, Capital 48,700
T. Ramos, Drawing 4,000
Service Revenue 29,000
Salary Expense 15,000 1,200
Rent Expense 4,000
TOTAL P 95,300 P 95,300
Insurance Expense 400
Office Supplies Expense 1,050
Depreciation Expense 1,000
Salary Payable
TOTAL P 8,250
 STEADY ANSWERING SERVICE
Worksheet
December 31, 200b
Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit Debit
21,600 21,600
15,500 15,500
1,050 750 750
400 2,000 2,000
34,000 34,000
1,000 7,000
7,000
3,000
48,700
4,000 4,000
4,600 33,600 33,600
16,200 16,200
4,000 4,000

400 400
1,050 1,050
1,000 1,000
1,200 1,200
P 8,250 P 100,500 P 100,500 22,650 33,600 73,100
10,950
P 33,600 P 33,600 P 77,850
Balance Sheet
Credit

7000
7000
3,000
48,700

1,200
66,900
10,950
P 77,850