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    Problem 7 Worksheet and Reversing Entries

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    krisayatsumi
    1) The document presents the unadjusted trial balance of Wellness Massage as of December 31, 2021 which includes asset, liability, equity, income and expense accounts. 2) Adjusting journal entries are made for depreciation expense, bad debt expense, rent expense, and prepaid insurance. 3) An income statement and balance sheet are prepared from the adjusted trial balance. Closing entries are made and a post-closing trial balance is presented. 4) The balance sheet shows total assets of $1,104,500 consisting mainly of cash, accounts receivable, and computer equipment. Total liabilities and equity are also $1,104,500 with rent payable being the sole

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    Problem 7 Worksheet and Reversing Entries

    Uploaded by

    krisayatsumi
    568 views14 pages
    1) The document presents the unadjusted trial balance of Wellness Massage as of December 31, 2021 which includes asset, liability, equity, income and expense accounts. 2) Adjusting journal entries are made for depreciation expense, bad debt expense, rent expense, and prepaid insurance. 3) An income statement and balance sheet are prepared from the adjusted trial balance. Closing entries are made and a post-closing trial balance is presented. 4) The balance sheet shows total assets of $1,104,500 consisting mainly of cash, accounts receivable, and computer equipment. Total liabilities and equity are also $1,104,500 with rent payable being the sole

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    PROBLEM-7-WORKSHEET-AND-REVERSING-ENTRIES

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    1) The document presents the unadjusted trial balance of Wellness Massage as of December 31, 2021 which includes asset, liability, equity, income and expense accounts. 2) Adjusting journal entries are made for depreciation expense, bad debt expense, rent expense, and prepaid insurance. 3) An income statement and balance sheet are prepared from the adjusted trial balance. Closing entries are made and a post-closing trial balance is presented. 4) The balance sheet shows total assets of $1,104,500 consisting mainly of cash, accounts receivable, and computer equipment. Total liabilities and equity are also $1,104,500 with rent payable being the sole

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    568 views14 pages

    Problem 7 Worksheet and Reversing Entries

    Uploaded by

    krisayatsumi
    1) The document presents the unadjusted trial balance of Wellness Massage as of December 31, 2021 which includes asset, liability, equity, income and expense accounts. 2) Adjusting journal entries are made for depreciation expense, bad debt expense, rent expense, and prepaid insurance. 3) An income statement and balance sheet are prepared from the adjusted trial balance. Closing entries are made and a post-closing trial balance is presented. 4) The balance sheet shows total assets of $1,104,500 consisting mainly of cash, accounts receivable, and computer equipment. Total liabilities and equity are also $1,104,500 with rent payable being the sole

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 14

    (1)

    8
    Accounts Dr Cr
    Cash 1,000,000
    Owner's Equity 1,000,000

    Computer Equipment 700,000


    Cash 700,000

    Taxes and Licenses 200,000


    Cash 200,000

    Insurance Expense 42,000


    Cash 42,000

    Accounts Receivable 3,200,000


    Service Fee 3,200,000

    Utilities Expense 420,000


    Cash 420,000

    Salaries Expense 2,400,000


    Cash 2,400,000

    Cash 2,900,000
    Accounts Receivable 2,900,000
    ASSETS
    Cash Accounts Receivable
    1,000,000 700,000 3,200,000 2,900,000
    2,900,000 200,000
    42,000
    420,000
    2,400,000

    138,000 300,000

    EQUITY
    Owner's Equity
    1,000,000

    1,000,000

    INCOME
    Service Fees
    3,200,000

    3,200,000

    EXPENSES
    Taxes and Licenses Insurance Expense Utilities Expense
    200,000 42,000 420,000

    200,000 42,000 420,000


    Computer Equipment
    700,000

    700,000

    Salaries Expense
    2,400,000

    2,400,000
    WELLNESS MASSAGE
    Unadjusted Trial Balance
    December 31, 2021

    Accounts Debits Credits


    Cash ₱138,000
    Accounts receivable 300,000
    Computer equipment 700,000
    Owner's Equity 1,000,000
    Service Fees ₱3,200,000
    Taxes and Licenses 200,000
    Insurance Expense 42,000
    Utilities Expense 420,000
    Salaries Expenses 2,400,000

    Totals ₱4,200,000 ₱4,200,000


    AJE 1:

    AJE 2:

    AJE 3:

    AJE 4:
    Depreciation Expense 35,000
    Accum Dep 35,000
    700,000/5yrs * 3/12

    Bad Debt Expense 30,000


    ABD 30,000
    10% * 300,000

    Rent Expense 120,000


    Rent Payable 120,000

    Prepaid Insurance 31,500


    Insurance Expense 31,500
    42,000 * 9/12
    WELLNESS MASSAGE
    Worksheet
    December 31, 20x1

    Adjusted Trial Balance Income Statement


    Accounts
    Debit Credit Debit Credit
    Cash ₱138,000
    Accounts receivable 300,000
    Computer equipment 700,000
    Owner's Equity 1,000,000
    Service Fees ₱3,200,000 ₱3,200,000
    Taxes and Licenses 200,000 200,000
    Insurance Expense 10,500 10,500
    Utilities Expense 420,000 420,000
    Salaries Expenses 2,400,000 2,400,000

    Totals
    Adjustments:
    Dep Expense 35,000 35,000
    Accumulated Dep 35,000
    BDE 30,000 30,000
    Allow for Bad Debts 30,000
    Rent Expense 120,000 120,000
    Rent Payable 120,000
    Prepaid Insurance 31,500
    TOTALS ₱4,385,000 ₱4,385,000 ₱3,215,500 ₱3,200,000
    ₱15,500
    ₱3,215,500 ₱3,215,500
    WELLNESS MASSAGE
    Worksheet
    December 31, 20x1

    Balance Sheet Closing Entries Post Closing Trial Balance


    Debit Credit Debit Credit Debit Credit
    ₱138,000 ₱138,000
    300,000 300,000
    700,000 700,000
    1,000,000 15,500 984,500
    3,200,000
    200,000
    10,500
    420,000
    2,400,000

    35,000
    35,000 35,000
    30,000
    30,000 30,000
    120,000
    120,000 120,000
    31,500 31,500
    ₱1,169,500 ₱1,185,000 ₱3,215,500 ₱3,215,500 ₱1,169,500 ₱1,169,500
    ₱15,500
    ₱1,185,000 ₱1,185,000
    CLE 1: Service fees 3,200,000
    Income Summary 15,500
    Taxes and Licenses 200,000
    Insurance exp 10,500
    Sal Exp 2,400,000
    Utilities Exp 420,000
    Dep Exp 35,000
    BDE 30,000
    Rent Expense 120,000

    CLE 2: Owner's Equity 15,500


    Income Summary 15,500
    WELLNESS MASSAGE Entity A
    Balance Sheet Income Statem
    As of December 31, 20x1 For the two months ended D

    ASSETS INCOME
    Cash ₱138,000 Service Fees
    Accounts receivable 300,000
    Allowance for Bad Debts -30,000
    Prepaid Insurance 31,500
    Computer equipment 700,000 EXPENSES
    Accumulated Depreciation -35,000 Taxes and Licenses
    Insurance Expense
    Utilities Expense
    TOTAL ASSETS ₱1,104,500 Salaries Expenses
    Dep
    LIABILITIES BDE
    Rent Payable ₱120,000 Rent expense

    LOSS FOR THE PERIOD

    EQUITY 984,500

    TOTAL LIABILITIES & EQUITY ₱1,104,500


    Entity A
    Income Statement
    e two months ended December 31, 20x1

    ₱3,200,000

    -200,000
    -10,500
    -420,000
    -2,400,000
    -35,000
    -30,000
    -120,000

    (P15,500)
    Rent payable 120,000
    Rent Expense 120,000

    Insurance Expense 31,500


    Prepaid Insurance 31,500

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