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    Financial Accounting and Reporting

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    Paula Bautista
    Robert Espiritu began providing credit collection services in September 2017. The unadjusted trial balance shows accounts such as cash, accounts receivable, supplies, equipment, notes payable, accounts payable, capital, and various income and expense accounts. Additional information provides details on supplies, equipment depreciation, interest expense, insurance, unearned and earned income, and accounts receivable collectability that require adjustment entries. The adjusted trial balance and financial statements including the statement of financial position, statement of profit or loss, and statement of changes in equity must be prepared along with closing and reversing entries.

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    Financial Accounting and Reporting

    Uploaded by

    Paula Bautista
    262 views1 page
    Robert Espiritu began providing credit collection services in September 2017. The unadjusted trial balance shows accounts such as cash, accounts receivable, supplies, equipment, notes payable, accounts payable, capital, and various income and expense accounts. Additional information provides details on supplies, equipment depreciation, interest expense, insurance, unearned and earned income, and accounts receivable collectability that require adjustment entries. The adjusted trial balance and financial statements including the statement of financial position, statement of profit or loss, and statement of changes in equity must be prepared along with closing and reversing entries.

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    FAR-assignment-4-problem-3.docx

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    Robert Espiritu began providing credit collection services in September 2017. The unadjusted trial balance shows accounts such as cash, accounts receivable, supplies, equipment, notes payable, accounts payable, capital, and various income and expense accounts. Additional information provides details on supplies, equipment depreciation, interest expense, insurance, unearned and earned income, and accounts receivable collectability that require adjustment entries. The adjusted trial balance and financial statements including the statement of financial position, statement of profit or loss, and statement of changes in equity must be prepared along with closing and reversing entries.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    262 views1 page

    Financial Accounting and Reporting

    Uploaded by

    Paula Bautista
    Robert Espiritu began providing credit collection services in September 2017. The unadjusted trial balance shows accounts such as cash, accounts receivable, supplies, equipment, notes payable, accounts payable, capital, and various income and expense accounts. Additional information provides details on supplies, equipment depreciation, interest expense, insurance, unearned and earned income, and accounts receivable collectability that require adjustment entries. The adjusted trial balance and financial statements including the statement of financial position, statement of profit or loss, and statement of changes in equity must be prepared along with closing and reversing entries.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Financial Accounting and Reporting

    Chapter 4
    Accounting Cycle of a Service Provider: Journalizing, Posting, Trial Balance, Adjustments and Financial
    Statements

    Problem 3
    Robert Espiritu began operation to provide credit collection services on September 2017. The
    Unadjusted trial balance as of September 30, 2017 is as shown below:

    Robert Espiritu
    Trial Balance
    September 30,2017

    Cash and Cash equivalent P174,000


    Accounts Receivable 96,200
    Office Supplies 10,500
    Prepaid insurance 24,000
    Equipment 300,000
    Notes Payable P100,000
    Accounts Payable 123,500
    Unearned Service Income 50,000
    R. Espiritu, Capital 200,000
    R. Espiritu, Drawings 6,000
    Service income 176,200
    Salaries expense 12,000
    Transportation expense 13,000
    Rent expense 12,000
    Miscellaneous Expenses 2,000
    ------------- --------------
    TOTAL P649,700 P649,700
    ========
    =========

    Additional data:
    a. Unused office supplies on September 30,2017 is P7,500.
    b. The Equipment was acquired on September 1, 2017 with useful life of 5 years and
    with estimated residual value of P30,000.
    c. Interest on the notes payable is 18%. The note was issued on September 1, 2017.
    d. The prepaid insurance is for a period of six months taken September 1, 2017.
    e. Service income earned but unbilled, P3,800.
    f. 60% of the Unearned service income has been earned as of September 30,2017.
    g. Aging of the accounts receivable indicates the following;
    Age Amount % of Collectability
    0 -10 days P55,000 100%
    11 -20 days 20,000 90%
    21 - 30 days 25,000 70%

    Required:
    1. Enter the unadjusted trial balance on a worksheet and complete the worksheet.
    2. Journalize the adjusting entries.
    3. Prepare the adjusted trial balance
    4. Prepare the financial statements
    a. Statement of Financial Position
    b. Statement of Profit or Loss
    c. Statement of Changes in Equity
    5. Journalize the closing entries.
    6. Post the closing entries.
    7. Prepare the Post-closing Trial Balance.
    8. Prepare the reversing entries.

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