CHART OF ACCOUNTS

Cash
Prepaid Rent
Prepaid Supplies
Equipment
Accumulated Depreciation - Equipment
Note Payable
Utilities Payable
Interest Payable
Owner's Equity
Owner's Drawing
Rent Expense
Utilities Expense
Supplies Expense
Interest Expense
Depreciation Expense
Services Fee
Ref Account Debited
1 Cash
1

2 Cash
2

3 Rent Expense
3

4 Equipment
4

5 Supplies Expense
5

6 Cash
6

7 Owner's Drawing
7
Account Credited Dr Cr
200,000.00
Owner's Equity 200,000.00

100,000.00
Note Payable 100,000.00

60,000.00
Cash 60,000.00

180,000.00
Cash 180,000.00

50,000.00
Cash 50,000.00

220,000.00
Services Fee 220,000.00

40,000.00
Cash 40,000.00
 Cash Prepaid Rent
1.00 200,000.00 - 1.00 - -
2.00 100,000.00 - 2.00 - -
3.00 - 60,000.00 3.00 - -
4.00 - 180,000.00 4.00 - -
5.00 - 50,000.00 5.00 - -
6.00 220,000.00 - 6.00 - -
7.00 - 40,000.00 7.00 - -
520,000.00 330,000.00 - -
BAL 190,000.00 - BAL - -

Interest Payable Owner's Equity

1.00 - - 1.00 - 200,000.00
2.00 - - 2.00 - -
3.00 - - 3.00 - -
4.00 - - 4.00 - -
5.00 - - 5.00 - -
6.00 - - 6.00 - -
7.00 - - 7.00 - -
- - - 200,000.00
BAL - - BAL - 200,000.00

Depreciation Expense Services Fee

1.00 - - 1.00 - -
2.00 - - 2.00 - -
3.00 - - 3.00 - -
4.00 - - 4.00 - -
5.00 - - 5.00 - -
6.00 - - 6.00 - 220,000.00
7.00 - - 7.00 - -
- - - 220,000.00
BAL - - BAL - 220,000.00
 Prepaid Supplies Equipment
1.00 - - 1.00 - -
2.00 - - 2.00 - -
3.00 - - 3.00 - -
4.00 - - 4.00 180,000.00 -
5.00 - - 5.00 - -
6.00 - - 6.00 - -
7.00 - - 7.00 - -
- - 180,000.00 -
BAL - - BAL 180,000.00 -

Owner's Drawing Rent Expense

1.00 - - 1.00 - -
2.00 - - 2.00 - -
3.00 - - 3.00 60,000.00 -
4.00 - - 4.00 - -
5.00 - - 5.00 - -
6.00 - - 6.00 - -
7.00 40,000.00 - 7.00 - -
40,000.00 - 60,000.00 -
BAL 40,000.00 - BAL 60,000.00 -
 Accumulated Depreciation - Equipment Note Payable
1.00 - - 1.00 -
2.00 - - 2.00 -
3.00 - - 3.00 -
4.00 - - 4.00 -
5.00 - - 5.00 -
6.00 - - 6.00 -
7.00 - - 7.00 -
- - -
BAL - - BAL -

Utilities Expense Supplies Expense

1.00 - - 1.00 -
2.00 - - 2.00 -
3.00 - - 3.00 -
4.00 - - 4.00 -
5.00 - - 5.00 50,000.00
6.00 - - 6.00 -
7.00 - - 7.00 -
- - 50,000.00
BAL - - BAL 50,000.00
 Utilities Payable
- 1.00 - -
100,000.00 2.00 - -
- 3.00 - -
- 4.00 - -
- 5.00 - -
- 6.00 - -
- 7.00 - -
100,000.00 - -
100,000.00 BAL - -

Interest Expense
- 1.00 - -
- 2.00 - -
- 3.00 - -
- 4.00 - -
- 5.00 - -
- 6.00 - -
- 7.00 - -
- - -
- BAL - -
 Brunah's Salon
Unadjusted Trial Balance
December 31, 20x1
Dr
Cash 190,000.00
Prepaid Rent -
Prepaid Supplies -
Equipment 180,000.00
Accumulated Depreciation - Equipment -
Note Payable -
Utilities Payable -
Interest Payable -
Owner's Equity -
Owner's Drawing 40,000.00
Rent Expense 60,000.00
Utilities Expense -
Supplies Expense 50,000.00
Interest Expense -
Depreciation Expense -
Services Fee -
520,000.00
 Brunah's Salon
Unadjusted Trial Balance
December 31, 20x1
Cr
-
-
-
-
-
100,000.00
-
-
200,000.00
-
-
-
-
-
-
220,000.00
520,000.00 1
Account Debited
Prepaid Rent

Depreciation Expense

Interest Expense

Prepaid Supplies

Utilities Expense
Account Credited Dr Cr
50,000.00
Rent Expense 50,000.00

3,000.00
Accumulated Depreciation - Equipment 3,000.00

1,000.00
Interest Payable 1,000.00

20,000.00
Supplies Expense 20,000.00

3,000.00
Utilities Payable 3,000.00
 10 10 10 10 10 10 60
DEC JAN FEB MAR APR MAY

36000
3000

1000
 Brunah's
Worksh
December 3

Undadjusted TB Adjustments
Accounts dr cr dr cr
Cash 190,000.00 - - -
Prepaid Rent - - 50,000.00 -
Prepaid Supplies - - 20,000.00 -
Equipment 180,000.00 - - -
Accumulated Depreciation - Equipment - - - 3,000.00
Note Payable - 100,000.00 - -
Utilities Payable - - - 3,000.00
Interest Payable - - - 1,000.00
Owner's Equity - 200,000.00 - -
Owner's Drawing 40,000.00 - - -
Rent Expense 60,000.00 - - 50,000.00
Utilities Expense - - 3,000.00 -
Supplies Expense 50,000.00 - - 20,000.00
Interest Expense - - 1,000.00 -
Depreciation Expense - - 3,000.00 -
Services Fee - 220,000.00 - -
520,000.00 520,000.00 77,000.00 77,000.00
Profit
 Brunah's Salon
Worksheet
December 31, 20x1

Adjusted TB Income Statement Balance Sheet Closing Entries

dr cr dr cr dr cr dr
190,000.00 - 190,000.00 - -
50,000.00 - 50,000.00 - -
20,000.00 - 20,000.00 - -
180,000.00 - 180,000.00 - -
- 3,000.00 - 3,000.00 -
- 100,000.00 - 100,000.00 -
- 3,000.00 - 3,000.00 -
- 1,000.00 - 1,000.00 -
- 200,000.00 - 200,000.00 40,000.00
40,000.00 - 40,000.00 - -
10,000.00 - 10,000.00 - -
3,000.00 - 3,000.00 - -
30,000.00 - 30,000.00 - -
1,000.00 - 1,000.00 - -
3,000.00 - 3,000.00 - -
- 220,000.00 - 220,000.00 220,000.00
527,000.00 527,000.00 47,000.00 220,000.00 480,000.00 307,000.00 260,000.00
173,000.00 - 173,000.00
220,000.00 220,000.00 480,000.00 480,000.00

Equity Beg
+ Profit/ (Loss}
- Withdrawals
=Equity End
Closing Entries Post-Closing TB
cr dr cr
- 190,000.00 -
- 50,000.00 -
- 20,000.00 -
- 180,000.00 -
- - 3,000.00
- - 100,000.00
- - 3,000.00
- - 1,000.00
173,000.00 - 333,000.00 160,000.00 333,000.00
40,000.00 - -
10,000.00 - -
3,000.00 - -
30,000.00 - -
1,000.00 - -
3,000.00 - -
- - -
260,000.00 440,000.00 440,000.00
Account Debited

Services Fee

Income Summary

Owner's Equity
Account Credited Dr Cr

220,000.00
Rent Expense 10,000.00
Utilities Expense 3,000.00
Supplies Expense 30,000.00
Interest Expense 1,000.00
Depreciation Expense 3,000.00
Income Summary 173,000.00

173,000.00
Owner's Equity 173,000.00

40,000.00
Owner's Drawing 40,000.00
 Brunah's Salon
Statement of Financial Position
As of December 31, 20x1

ASSETS
Cash 190,000.00
Prepaid Rent 50,000.00
Prepaid Supplies 20,000.00
Equipment 180,000.00
Accumulated Depreciation - Equipment (3,000.00) Contra Asset
TOTAL ASSETS 437,000.00

LIABILITIES
Note Payable 100,000.00
Utilities Payable 3,000.00
Interest Payable 1,000.00
TOTAL LIABILITIES 104,000.00

EQUITY
Owner's Equity 333,000.00
TOTAL EQUITY 333,000.00

TOTAL LIABILITIES AND EQUITY 437,000.00

1.00
 Brunah's Salon
Income Statement
For the period ended December 31, 20x1

INCOME
Services Fee 220,000.00

EXPENSES
Rent Expense (10,000.00)
Utilities Expense (3,000.00)
Supplies Expense (30,000.00)
Interest Expense (1,000.00)
Depreciation Expense (3,000.00)
TOTAL EXPENSES (47,000.00)

PROFIT FOR THE PERIOD 173,000.00

 Brunah's Salon
Statement of Changes in Equity
For the period ended December 31, 20x1

Owner's Equity, Beg 200,000.00

Add: Net Income 173,000.00
Less: Withdrwals (40,000.00)
Owner's Equity, End 333,000.00
 Brunah's Salon
Statement of Cash Flows
For the period ended December 31, 20x1

Cash Flow from Operating Activities

Receipts from clients 220,000.00
Payments for prepaid rent (60,000.00)
Payments for prepaid supplies (50,000.00)
Net cash provided by operating activities 110,000.00

Cash Flow from Investing Activities

Purchase of equipment (180,000.00)
Net cash used in investing activities (180,000.00)

Cash Flow from Financing Activities

Initial Investment 200,000.00
Receipts from bank loan 100,000.00
Owner's Withdrawals (40,000.00)
Net cash provided by financing activities 260,000.00

Net Increase in Cash 190,000.00

Cash, beginning -
Cash, end 190,000.00